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Transaction Type

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bororke

Freshman Member
Joined
Jun 14, 2013
Professional Status
General Public
State
Florida
I am an UW and reviewing an appraisal. The appraiser originally completed the purchase transaction appraisal and now they are refinancing a month later and it appears that the appraiser just changed the transaction type to refinance and nothing else changed.

Can an appraiser do that or is that a USPAP violation?
 

RSW

Elite Member
Joined
Feb 18, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
Did the appraiser make as statement that he had appraised the subject property within the last 3 years? If not, he is in violation of USPAP. It could be that nothing has changed in the market, but I would think the information in the 1004mc has changed. Just changing the change you noted is not sufficient and could be a USPAP violation.
 

graindart

Junior Member
Joined
Jan 20, 2002
Professional Status
Certified Residential Appraiser
State
Montana
Are the effective dates different? If so, some minor data probably might have changed somewhat. A lot of it depends on location. Some areas with fewer sales / listings don't see much change for appraisals completed 6 months apart.

If you're asking if the report has to be completely re-written from the ground up using different wording, the answer is "no". If a few things changed like possibly 1004mc data and the appraiser noted that he had appraised the subject prior, that would be typical of back-to-back appraisals in areas with lower volume turnover.
 

BRCJR

Elite Member
Gold Supporting Member
Joined
Sep 20, 2005
Professional Status
Licensed Appraiser
State
Virginia
I am an UW and reviewing an appraisal. The appraiser originally completed the purchase transaction appraisal and now they are refinancing a month later and it appears that the appraiser just changed the transaction type to refinance and nothing else changed.

Can an appraiser do that or is that a USPAP violation?
It "appears".....go line item by line item and see if it still "appears"...is the effective date the same? is the report date still the same? etc.
 

jay trotta

Elite Member
Joined
Feb 8, 2004
Professional Status
Certified Residential Appraiser
State
Connecticut
I am an UW and reviewing an appraisal. The appraiser originally completed the purchase transaction appraisal and now they are refinancing a month later and it appears that the appraiser just changed the transaction type to refinance and nothing else changed.

Can an appraiser do that or is that a USPAP violation?

Your are the Underwriter ? you should be aware of the protocol to follow, shouldn't you ? USPAP is available via computer, and should be at your finger tips for the purpose(s) you are inquiring about.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
If the comps were still the best, no need to change them. The date, 1004MC should be different from the first appraisal, and as others have said, the prior services statement should reflect the prior appraisal. But there will be very minor changes from the initial report
 

Dublin ohio

Senior Member
Joined
Mar 20, 2008
Professional Status
Licensed Appraiser
State
Ohio
I am an UW and reviewing an appraisal. The appraiser originally completed the purchase transaction appraisal and now they are refinancing a month later and it appears that the appraiser just changed the transaction type to refinance and nothing else changed.

Can an appraiser do that or is that a USPAP violation?

You pose a question to the members of this forum but provide very minimal information within your post. But as many time happens with similar posts in various threads. When members ask for a little clarification. Poof. the op disappears. With only a month between appraisals. It could very well be that nothing has changed. Of course that is market specific. The op has stated in posts in other threads that they have also been "reviewing" appraisals for many years. If that is fact. It fascinates me that the op is even asking such a question. Did you even look at the 1004mc and compare it to the original. Did the owner of record change? SMH
 

glenn walker

Elite Member
Joined
Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
California
You said it was originally a purchase loan so there would have been a buyer and seller and a purchase contract analysis in the original appraisal ? NOW a month later the new owner is doing a refinance loan ? In my opinion this is a new assignment because you have different owners and different scope of work. As far as violations probably both the Lender and appraiser. The lenders underwriter is responsible to review the appraisal and it's obvious you have two identical reports on your desk ( but different owners )

USPAP

(1)
Appraiser certification states he-she visually inspected both the interior and exterior as of the effective date ** Did the new buyers occupy the home or is it tenant occupied or vacant ? The Appraiser is certifying he inspected the property and he did but that was when different occupants lived there ?

(2)
Did the appraiser disclose his prior appraisal service and report the Subjects new Sale & transfer history ?
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
A new date of value is a new appraisal.

If nothing else sold in the market in the month since the current owner purchased the property, and nothing new has been listed for sale in the neighborhood, that is a comparable, then none of that information changes between the two reports.

If the subject has been remodeled, or improved, or destroyed in that month, the value might be different, the comparables might be different. But if the subject has not changed, the value is most likely still the same.

Then the only thing that would change on the appraisal is the notice of previous service and a new fee on the invoice.

.
 
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