What Form?

[Sid Holderly]

I have received several different answers to this before and am looking for what you currently would do.
I have a request for an appraisal on a residential house and lot. The use as described by the bank is TERM LOAN. This is a small rural bank and these types of loans are held in house an never sold on the market. When I ask the bank they give no definitive answer.

Is this an approved used for a FANNIE, FREDDIE, VA or RD 1004 form?

If not, then general purpose, AI, old summary or old URAR?

A year ago the replies went both ways, so which way are you all laaning today?

 

[Randolph Kinney]

Why not ask the bank? If they hold the loan, they don't need the Fannie 1004 UAD form / 1004MC form however, they might want it anyway.

 

[Sid Holderly]

Many local appraiser say using the 1004 UAD /MC form is not deemed appropriate by the State Appraisal Board and Attorney General.

 

[Randolph Kinney]

Many local appraiser say using the 1004 UAD /MC form is not deemed appropriate by the State Appraisal Board and Attorney General.

What happens if the bank sells the loan to Fannie or tries to?

 

[Sid Holderly]

Yes, this is why I submitted this question. I sent the question to the State licensing agency, but their response is not likely to come quick.

 

[Randolph Kinney]

I believe the authority that governs appraisal reports overall is USPAP.

Effective January 1, 2012, the 2012-2013 version of the Uniform Standards of Professional Appraisal Practice, commonly known as USPAP, is adopted by the Indiana Real Estate Commission with the advisement of the Real Estate Appraiser Licensure and Certification Board. This was done by emergency rule of the Commission, and more information can be found by clicking here to view the documents maintained by the Indiana Register.

http://www.in.gov/pla/3350.htm

As long as the 1004 has additional verbiage to make it USPAP compliant, I can't see why it can't be used by banks.

 

[Mike Kennedy]

General Purpose Appraisal Report - GSE forms and guidelines are not applicable - based on the OP's "This is a small rural bank and these types of loans are held in house an never sold on the market." I would require written confirmation from the Bank's Head Lender and/or CFO/Chief Compliance Office prior to proceeding with the assignment.

 

[Peter LeQuire]

General Purpose Appraisal Report - GSE forms and guidelines are not applicable - based on the OP's "This is a small rural bank and these types of loans are held in house an never sold on the market." I would require written confirmation from the Bank's Head Lender and/or CFO/Chief Compliance Office prior to proceeding with the assignment.

Given the opportunity to do an appraisal for a transaction that is not to be used to support a GSE-intended loan, why use the GSE forms? Why not use the report format which you believe best communicates your appraisal? If you go to the decision maker to raise the question, why not ask it in a way that has the best chance of giving you the answer you want? Perhaps something like - Dear CFO: Because the proposed loan is not intended for sale to FNMA/FHLMC, I believe it appropriate to report the appraisal in in one of the following formats: either the AI form report, or the general purpose forms provided by my software provider, or in a narrative. Please let me know if your institution has a preference which of these report formats is used."

 

[Mark K]

I do very little lender work and no UAD anymore.

However, when I work for local lenders that keep loans in-house, I use the old 1004 for SFR appraisals.

The state license board probably does not care, nor should they; this is outside of their scope. The UAD is not appropriate for private work but there's no reason the bank couldn't use it. For in-house work, my clients don't care if I use UAD or the old 1004 but since we both like the 1004 better, that's what I use.

 

[Mike Kennedy]

Given the opportunity to do an appraisal for a transaction that is not to be used to support a GSE-intended loan, why use the GSE forms? Why not use the report format which you believe best communicates your appraisal? If you go to the decision maker to raise the question, why not ask it in a way that has the best chance of giving you the answer you want? Perhaps something like - Dear CFO: Because the proposed loan is not intended for sale to FNMA/FHLMC, I believe it appropriate to report the appraisal in in one of the following formats: either the AI form report, or the general purpose forms provided by my software provider, or in a narrative. Please let me know if your institution has a preference which of these report formats is used."

Agreed and implied in my "short form"/suggestive post above.