A little more specific plesae, i.e. Is an "update to an appraisal" a new assignment? As a new assignment can we incorporate the original appraisal by refrence??? etc.
I will try to give a summary of the class and it's topics but I do intend to corner the guy afterwards with hard copy of my scope, Jo Ann's appraisal update letter (which is very good as I read it), and anything SPECIFIC submitted here.
I would like to hear more about updates... USPAP says ( Pg 129) that we can do an update of appraisal done for a different client ... How does the ethics rule apply to that.. it also says we can update an appraisal done by another.. Under what conditions? Does an extraordinary assumption cover the new appraisal ? Seems pretty scary to afix one's signature based on another's work.. thoughts? W
Frederick, I'll be attending the following Monday, the 20th. (On the 17th I'm attending a dinner at a local tech college with our appraisal board chair and executive on the topic of recent actions they have taken.) I'll watch this thread for questions and maybe we can compare notes afterward.
Updates are new assignments no matter what reporting option is used.
Option 1 without incorporation
Another appraiser completes an appraisal. For some reason the client doesn't like it, the appraiser is not on their approved list, the appraiser moves out of the area, etc, etc, etc. So the client orders an appraisal from a different appraiser. The client may or not provide any information from the old report. The new appraiser starts from square one and does everything that would be necessary as a completely new assignment.
Option 2 incorporates by attachment
Another appraiser completes an appraisal. For some reason (see above). This time the client provides the new appraiser with at least the front page of the URAR and requests a 2055 Exterior view assignment from the the new appraiser. The new appraiser checks out the information on the front page, agrees with the information on that page, utilizes the information about the interior, GLA, etc in preparing the 2055 Exterior, does all the necessary items, writes up a report and attaches the page one of the old URAR as additional information.
Another example would be the client provides an entire copy of a report by someone else and now wants a review. Again the new appraiser would do what is necessary, write up their review report with their opinions and conclusions, refer to and attach the old report to the new report for additional reference and information.
Option 3 incorporates by reference
This option requires the original client and either the original appraiser or appraisal firm to be involved. Both have copies of the original report, therefore it can be referred to without being attached to the report for the new assignment. The new report will be required to include at a minimum the items listed in AO-3, option 3, remaining information can be obtained from the original report.
Frederick & Steve: again with bated breath--I will be waiting to hear what your instructors have to say about what I just wrote!
Thanks Joanne !
All this sounds to me like and update has been made obsolete and is now simply a new assigment.. And with disclosure you can use information out of someone else's appraisal.. I guess I am wondering why we Would.. We woud do our own work, wouldn't we? Perhaps my eyes are wide shut, but this whole section seems pointless to me .. W
Check out Section 201 in Fannie Mae's guidelines that went into effect 6/30/2002. For six months the guidelines and the 2002 USPAP said the same thing. By the way, notice that Fannie Mae does NOT say one thing about recertification of value. All they discuss is updating a report, which is agreement with 2002 USPAP Advisiory Opinion 3 and Statement 7. But they describe it as an extension. Then comes along 2003 USPAP and now it is NO longer an extension but a completely new assignment, where the big concern would be confidentiality. But Option 3 covers us nicely for that since only original parties can be involved with that. The other options, the client would be providing the information. Although Option 1 could be questionable if a new client contacted the original appraiser too soon, so then the appraiser would have to decide whether they would be violating the Confidentiality section of the Ethics Rule. If they won't be, then forge onward with your new assignment. If the appraiser is nervous give the client your competitions phone number.
Here are a few jewels you can ax him: Expound on the differences between an evaluation that is not USPAP compliant, an evaluation that is USPAP compliant, a fully USPAP compliant evaluation, and an appraisal? Exactly where does one stop and the other begin?
Or, is a USPAP compliant evaluation an appraisal? If not, then what is the difference between an appraisal and an evaluation? If he tells you the difference is something like level of detail is the difference, get him to clarify the exact point to distinguish between the level of detail difference between an evaluation and a limited appraisal. That should take up the 1st 15-minute break.