USPAP Minimum requirement to Inspect

[mark hurlock]

Is it possible to be issued a legitimate citation of USPAP non-compliance where the only reason for this is the lack of an inspection?

Obviously.

 

[Webbed Feet]

I completed an appraisal 5-6 months and lender asked for a recertification...(PLEASE don't stop reading and refer me to AO-3). I explained that what he was requesting I could not do. Is there a USPAP minimum requirement that I must re-inspect. I think I need to re-inspect to CMA, but they are insisting that I disclose in report however I need to and make it a hypothetical assumption that property is still there and in the same condition as was previously appraised.

There is no such thing as a "Hypothetical Assumption." And, unless I missed it in the thread, I can't believe everyone let that one go.

Question? Is there a USPAP minimum requirement to inspect a property? If yes could you help me identify that in USPAP. If, no, how do I handle this request?

There has never been a requirement in the USPAP to ever "inspect" any physical structure.

Dialogue between ME and LENDER below.

ME:
Per our conversation, I have done some research regarding this subject.

Per USPAP Advisory Opinion 3
A recertification of value is performed to confirm whether or not the conditions of a prior appraisal have been met and does not change the original effective date of the appraisal. Since you are asking for an updated value as of a new date, it is a new assignment and I will have to re-inspect to cover my own liability.

How so is that?


Lender:
I am confused, yes as discussed earlier this is a new assignment with a new effective date which means that yes you must meet the minimum criteria set forth in USPAP for each assignment. I would expect you would have a new file for this assignment to keep the comps, communication, and other important documentation. I was not aware that it is a USPAP minimum requirement to inspect a property could you help me identify that in USPAP. That seems to be your basis.

USPAP in addition allows you to leverage any relevant work from the prior assignments and the scope of work is not required to be the same as you well know.

The lender message above is completely correct. The assignment conditions between the two assignments do not have to be the same. The real issue is if this lender is again expecting reporting on Fannie Mae 2005 version forms.

 

[Webbed Feet]

ROFL...Why is this thread so long?

A lender wants an update. Use the 1004D. Inspect from the street (at a minimum.) Report the new appraisal on the 1004D. Send them a bill for at least $200.

and spend longer updating the 1004D with everything it needs to meet state regulatory compliance than it would have taken to just fill out a new 1004 all over again.....

 

[Michigan CG]

......USPAP requires an inspection when the scope of work determines it to be necessary to develop credible results......

And everyone with four contiguous brain cells agrees. So what is the debate?

 

[mark hurlock]

And everyone with four contiguous brain cells agrees. So what is the debate?

At least three people on this thread claimed USPAP does not ever require an inspection and one of them was a USPAP instructor.

While USPAP does not establish when the scope of work would or would not require an inspection or what level of inspection might be required, the scope of work does require one when it is determined necessary for credible assignment results.

So there is no debate. According to USPAP, those claiming that USPA does not ever require an inspection are wrong.

What don't you understand about this thread? Did you read any of it other than what you responded to?

 

[mark hurlock]

There has never been a requirement in the USPAP to ever "inspect" any physical structure.

While USPAP does not establish when the scope of work would or would not require an inspection or what level of inspection might be required, the scope of work does require one when it is determined necessary for credible assignment results.

what don't you understand?

 

[mark hurlock]

There is no such thing as a "Hypothetical Assumption." .

USPAP does not define or reference a hypothetical assumption.

But to say there is no such thing would be false.

Hypothetical assumption—An assumption used in a financial projection to present a condition or course of action that is not necessarily expected to occur, but is consistent with the purpose of the projection.

 

[Mike Kennedy]

H.A. is an Accounting term typically utilized in Financial Forecasting. Consult the AICPA Guide for further info on uses. An H.A. need not be reasonable or plausible. That's fine in their world. In ours, an Appraiser's opinions based on either an EA or an HC must be credible.

 

[mark hurlock]

H.A. is an Accounting term typically utilized in Financial Forecasting. Consult the AICPA Guide for further info on uses. An H.A. need not be reasonable or plausible. That's fine in their world. In ours, an Appraiser's opinions based on either an EA or an HC must be credible.

Can we assume that would be why USPAP does not define or reference the term? Or should that be clarified as well?

 

[Mike Kennedy]

Can we assume that would be why USPAP does not define or reference the term? Or should that be clarified as well?

The lack of the irrelevant term's presence in the USPAP is self-explanatory.