Used the wrong form now what?

[J Grant]

Print it out for reference, and merge the existing report with a blank Gen purpose form

After an hour or two of retyping, it will be done.

 

[Terrel L. Shields]

Okay. provide proof that any board has disciplined an appraiser for using a 1004 for private work. I'll wait.

Oklahoma did a few years ago. Fined and probation, etc. Cannot recall the case or I would cite it.

The form is Fannie Mae's. The definition of market value is Fannie Mae's. Use the IRS definition. Redo on the non-lender forms or Gen Purpose forms.

 

[CGinMN]

A form is just a scaffolding for your opinions and conclusions. Any form can be modified for any use, but whether the client accepts it is another matter. You should not automatically get in trouble with a state board for using a 1004 in a divorce. It depends on how the report has been modified to fit the use. I am not arguing that appraisers should use the 1004 for non-lending - they shouldn’t - but whether it is worthy of discipline should depend on the specifics.

 

[Tom D]

It also should have also been put on a restricted general form. Just for fun, call you E&O and ask them it that was ok. My state & E&O said, don't do dat.
So you people who want to use the fannie form for other value purposes, knock your self out. Before the state does.

 

[J Grant]

A form is just a scaffolding for your opinions and conclusions. Any form can be modified for any use, but whether the client accepts it is another matter. You should not automatically get in trouble with a state board for using a 1004 in a divorce. It depends on how the report has been modified to fit the use. I am not arguing that appraisers should use the 1004 for non-lending - they shouldn’t - but whether it is worthy of discipline should depend on the specifics.

I would be less worried about the possibility of it landing up with the state than bout the probability of the other side's attorney discrediting it - or even the appraiser's client's own attorney.

 

[George Hatch]

Appraisers have used that form and it's predecessors for non-Fannie work since it's inception, so it's common for the form to be used for non-Fannie assignments even if they're engaged in the same intended use.

The intended use is different for this assignment but the definition of value is the same and so is the scope of work being used for the assignment. Unless your state board has one of those belligerent Southerners who hassle appraisers because they've got a bad attitude the worst that could happen to you is a note telling you why using this form for off-label uses is not-optimal and advising you to be more mindful next time.

If you do use one of the spin-offs from the Fannie forms then go through the housekeeping pages to make sure that they're not saying anything that you don't intend to say.

Better yet, skip the 1004 derivatives altogether and use the Appraisal Institute SFR form instead. It's a better form anyway.

 

[Tim Hicks (Texas)]

Well, the form says Fannie Mae/Freddie Mac and federally related transaction all through it. Why would any appraiser think a Fannie Mae1004 is appropriate for non-federally related use? Even worse, why would an appraiser provide an individual with a 1004-UAD with all the UAD abbreviations and ratings. It brings me to the conclusion that appraisers don't even read the forms they are using. Okay, I am done degrading the OP because he/she deserves it. Correct the report to a general purpose appraisal form (most software companies have it), apologize and move on. Lesson learned. You aren't the first appraiser to make this mistake and will not be the last. I am sure Fernando has done it many times.

 

[John Hassler]

again. provide proof that this has ever occurred. My belief is that this is just your opinion, not actual fact that a an appraiser has been disciplined for this.

The state can and has taken action for appraisers (plural) signing a certification with untrue statements such as ‘the intended use was for a mortgage finance transaction’ when it was not. I can say that with 100% certainty being the one who signed off on such actions. One like this is usually not catastrophic in and of itself but could be part of a “series of errors” finding.

 

[Dublin ohio]

Well, the form says Fannie Mae/Freddie Mac and federally related transaction all through it.

I see no mention of the above on the first three pages of the 1004 except the footer that designates the form number. All of the Fannie speak is on the three cert pages

 

[Tiffany Gibbons]

Now what?

I have Clickforms. All you would have to do is put the general form in and all the relevant information should transfer. I'm pretty sure I was able to do that in Wintotal too but it's been awhile. Then, look through the whole thing, make sure everything is there and deleted the URAR out. I've done this on the Ole "is it a PUD or a condo" town house, a 2055 exterior liquidation which I eventually got into, etc.