Used the wrong form now what?

[Sadie]

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

I am sure if someone wanted to scroll endlessly through the state board websites they could fine one. Prove that it hasn't. It is misleading and a violation of USPAP for that reason. Also violates SOW rule.

 

[Dublin ohio]

Also violates SOW rule.

How?

 

[Fernando]

A reasonable person would think it shouldn't matter because the appraiser should appraise subject to its market value at time of death.
The nitpickers and regulators just love to make things more difficult than it should be. Thanks USPAP for making our lives easier (sarcasm there).

 

[Joyce Potts]

I wish I had a dollar (inflation) for every private client report I got hold of or reviewed that was done on a FNMA form. Most appraiser's either don't know or just don't care.

 

[Sadie]

A reasonable person would think it shouldn't matter because the appraiser should appraise subject to its market value at time of death.
The nitpickers and regulators just love to make things more difficult than it should be. Thanks USPAP for making our lives easier (sarcasm there).

A knowledgeable would know they need to adhere to the SOW rule. An appraisal report for non lending purposes on a F/F form violates that rule.

 

[Dublin ohio]

A knowledgeable would know they need to adhere to the SOW rule. An appraisal report for non lending purposes on a F/F form violates that rule.

How?

 

[Webbed Feet]

While the FNMA/Freddie Forms are copyrighted, can anyone link me one state board case where an appraiser was sanctioned over using a copyrighted form for non-lender work, please?

We both know the issues are the certifications, the incorrect and misleading boilerplate the appraisers use that were all intended for lender work, incorrect definitions of value used, incorrect effective dates of valuation, and yes, SOW violations all over the place. The SOW problems come from the totality of all of the mistakes that literally end up screaming that not only was the appraiser not qualified for the assignment, they also failed to appropriately and credibly identify the appraisal problem and needs of the client. I am not sure where or why copyrighting or so much of a "form" specific lens is coming from here. But, we all (or should have had) considerable education about how using any form that includes certifications, that are prohibited from being altered and blatantly say the report is for mortgage lending, .... but it turns out it was NOT created for lending but for a host of private party needs, is misleading the moment it gets transmitted to the client. There is copious internet information on the topic.

https://www.mckissock.com/blog/appraisal/non-lender-appraisal-work/

Transitioning Into Non-Lender Work

Seasoned appraiser Philip G. Spool discusses the differences between working for AMCs and lenders compared to working for non-lenders.

www.workingre.com

Non-Mortgage-Forms - Brubaker and Associates

www.brubakerandassociates.com

https://www.philspool.com/downloads/articles/APPRAISING%20FOR%20NON-LENDERS-Working%20RE.pdf

I will not belabor this with a few dozen more web links, but there has been plenty of education on the general topic and lots of internet articles. I only bopped into this thread because while it is true it is not the "form," it is everything else using a wrong form ends up creating for the hapless appraiser. The appraiser that clearly has no, or slight, experience in private party work. And, for those who want to reduce this to "show me a board sanction!!!!!" I have personally filed complaints/allegations and therefore later received copy of the board sanctions, fines, and CE course agreements (with no hour credited to licensing to boot) that the appraisers ended up with. We may all be pretty siloed and individually see very little of what goes on in the world of appraiser sanctions, and way too many complaints/allegations that SHOULD HAVE BEEN FILED do not get filed, but that does not, and should not, diminish the need for profession members that should comprehend the requirements of the profession.

 

[sputnam]

I doubt there are any board sanctions that came about because the aprpaiser used the 'wrong' form. State appraisal boards don't enforce copyright laws. They enforce USPAP and their own appraisal regulations. Nothing in USPAP specifies which report form is to be used. The closest you can get in USPAP are the admonitions to not be misleading and to not make reporting errors. Nevertheless, don't use an inappropriate form. Period.

 

[Zoe]

We both know the issues are the certifications, the incorrect and misleading boilerplate the appraisers use that were all intended for lender work, incorrect definitions of value used, incorrect effective dates of valuation, and yes, SOW violations all over the place. The SOW problems come from the totality of all of the mistakes that literally end up screaming that not only was the appraiser not qualified for the assignment, they also failed to appropriately and credibly identify the appraisal problem and needs of the client. I am not sure where or why copyrighting or so much of a "form" specific lens is coming from here. But, we all (or should have had) considerable education about how using any form that includes certifications, that are prohibited from being altered and blatantly say the report is for mortgage lending, .... but it turns out it was NOT created for lending but for a host of private party needs, is misleading the moment it gets transmitted to the client. There is copious internet information on the topic.

https://www.mckissock.com/blog/appraisal/non-lender-appraisal-work/

Transitioning Into Non-Lender Work

Seasoned appraiser Philip G. Spool discusses the differences between working for AMCs and lenders compared to working for non-lenders.

www.workingre.com

Non-Mortgage-Forms - Brubaker and Associates

www.brubakerandassociates.com

https://www.philspool.com/downloads/articles/APPRAISING%20FOR%20NON-LENDERS-Working%20RE.pdf

I will not belabor this with a few dozen more web links, but there has been plenty of education on the general topic and lots of internet articles. I only bopped into this thread because while it is true it is not the "form," it is everything else using a wrong form ends up creating for the hapless appraiser. The appraiser that clearly has no, or slight, experience in private party work. And, for those who want to reduce this to "show me a board sanction!!!!!" I have personally filed complaints/allegations and therefore later received copy of the board sanctions, fines, and CE course agreements (with no hour credited to licensing to boot) that the appraisers ended up with. We may all be pretty siloed and individually see very little of what goes on in the world of appraiser sanctions, and way too many complaints/allegations that SHOULD HAVE BEEN FILED do not get filed, but that does not, and should not, diminish the need for profession members that should comprehend the requirements of the profession.

Yeah, in short terms, just read the certs and limiting conditions on the 1004 form and it will tell anybody the form don't fit the appraisal problem.

 

[Zoe]

What happens if someone uses the URAR 1004 form for private work, but clearly states intention for "Estate Valuation" or "Divorce Proceedings" multiple times in the report and Lender is N/A. I have read earlier threads, just now, that state that this in unacceptable. All information in report is accurate, just used the wrong form. Have other appraisers used the URAR form for private appraisals? Does anyone have any experience using them successfully for private work? FYI I did look for other forms, there are many, but did not think that using a modified URAR was inappropriate. I feel terrible by the way, so please be gentle in your replies. Yes, going forward I will use a general residential form and my next CE class will be related to this topic. Now what?

The 1004 form don't fit this appraisal problem.

If you use that form, I will compare it to a batter in baseball. You have strike one against you before you ever begin.