USPAP Compliance Addendum

[Em Tee]

Can someone please clear this up or direct me to where I can find the answer? We have a form in our software called USPAP Compliance Addendum and another form called USPAP 2002. Is either or both of these forms REQUIRED??? Everywhere I look, I come up with different answers.

 

[Jo Ann Meyer Stratton]

What software are you using? Review each form with the limiting conditions outlined in 2002 USPAP, and then decide which one you like and suits your needs the best. An order that will end up with Fannie Mae will require their limiting conditions and an additional one that is in compliance with 2002 USPAP. Fannie Mae still requires their 1993 version to be included with every URAR. The 2055 includes one similar to the 1993. That is why a current one is also needed in addition to the 2055. If Fannie Mae will never be involved, then you only need one limiting condition that is in compliance with 2002 USPAP. I use Day One and they have several choices, including a blank one. I use the blank one and have filled it out to my specifications. For example I have erased the word inspection from my vocabulary, so my version uses words like observation, viewing, visiting, etc. I am not a home inspector, I observe property for valuation purposes only. Also I have a statement abouit offering an opinion of value, since appraisers no longer estimate market value (AVMs estimate market value). I use the blank USPAP addendum to also state the intended use, intended user, purposes and scope of my work in addition to the 2002 limiting conditions.

 

[Restrain]

Many systems leave in the original USPAP and update the USPAP page for changes to reflect the changes. For example, USPAP requires a certification SIMILAR TO ..... and that is why we still use the 6/93 Certification form. Just use common sense and include the current USPAP form and you'll be O.K.

 

[Ross (CO)]

Mary, I select a form called "USPAP Identification (Rev. 9/99)" which allows the appraiser some boxes to check off and also an open area to enter text which defines your client / appraiser relationship, intended users, what you understand the purpose of the appraisal to be (something I try to clarify with every homeowner as well) as many order-page formats received by clients do not specify, and other aspects about the scope-of-work performed with reference to what the client asked for.....like exterior-only drive-by with no interior observations afforded and the limitations that creates. Sometimes a client does not want us to get all the info so we must do sufficient CYA.

 

[Em Tee]

Thanks for your replies. Sometimes it's very frustrating when there are so many forms to choose from, and my supervisor either doesn't know or is too busy for me and I just get the brush-off. I want to make sure I do all of it by the book. What's really informative and eye opening is when we're sent copies of other appraiser's work. I like to see something besides what my supervisor is teaching me.

Thanks again!

 

[jtrotta]

Jo Ann Meyer Stratton;

I support your conclusion and over the past 15+ years have devised my own addendum that goes out with each report. It adds to the rif rafe, but supports my basis and covers a lot of what the "form" addendums don't.

Sometimes all ya need is your own experience to lead you to the water, you may not wish to drink it.

 

[Jo Ann Meyer Stratton]

Ross:
Compare your 99 form to 2002 USPAP, there were changes to the limiting conditions in 2000 and again in 2001--so your 1999 form might be outdated.

If anyone is interested I will email them some of my templates--I keep reading and changing as I read on the internet or hear in talking to another appraiser or hear in a seminar somewhere, etc, etc, so my templates are alwasy "achanging". I have gotten some excellant ideas from many appraisers over the the last 20 years and that is the source of most of my canned comments. I have templates for a conventional URAR, FHA, 2055, 2070, review, retype, update to an appraisal letter, statements I use on my order and receipt forms, etc. My master addendum covers eveything I might possibly have to comment on some day for some property--so then I delete, add to, amend, change, edit, rearrange, etc, etc, etc to fit each specific property. It serves as a reminder to me of what I do need to comment on. So if anyone wants to take a look, just email and all the feedback I can get is very much appreciated!!! As I said I am constantly changing!
jmstratton@aznex.net

 

[bradellis]

Mary,

Save yourself some time and grief. Look at Standard 2. In it, the USPAP reporting requirements are spelled out. The foms you are using, URAR, Condo, 1025 already cover most of the requirements.

If you normally write an addendum, like I do, just add a couple of sentences covering items not already covered by the forms- like intended use/users, any departures and the reasons for them, and extraorginary assumptions and/or hypothetical conditions if any exist.

Folks, have I left anything out?

Brad Ellis, IFA, RAA

 

[Geoff Hatcher]

Brad,

I additionally have a section on Purpose of Appraisal and Scope of Appraisal

 

[bradellis]

George-

Fair enough- nothing wrong with that. And scope of work can be very important if you are not utilizing one of the approaches but are not departing.

Brad Ellis, IFA,RAA