What's Up With 2055 Form ? Two Family Orders Being Received.

[Joe Birrell (NY)]

Is it me or am I missing something here ? I'm suddenly getting orders for
2055 drive-bys on 2 family homes. Since the title of the form is "Limited One-Family Residential" I'm getting annoyed with the lenders. Oh, and some of the orders are on sales. Public records are out of control lacking useful data and properties have never appeared in MLS. Am I being treated like a mushroom ? (you know the saying about being kept in the dark and feed bull manure).

P.S. And I'm not going to track down the property owner for interior
data either.

 

[rtubbs]

Joe, advise the requestor(s) that, if the appraisals are Fannie Mae or Freddie Mac products, the 2055 can only be used with single family residential. It's hard to figure where some of the people get their training, ain't it?

 

[Joe Birrell (NY)]

Joe, advise the requestor(s) that, if the appraisals are Fannie Mae or Freddie Mac products, the 2055 can only be used with single family residential. It's hard to figure where some of the people get their training, ain't it?

Thanks for the insight, I didn't think about the so-called "investor" angle.
It's one of the buzz phrases they use...."our investor wants.........". I forgot to mention some of the requests are asking for Form 216 along with
2055 (Operating Income Statement).

 

[Tim Hicks (Texas)]

The appraiser can decide if any form is not sufficient to adequate job. What they ar trying to do is get a SRIP for a lesser fee (2055 plus other forms). I would not do it. The income approach is most often an important approach to value in a 2-4 family property. Why let them dictate something less than adequate?

 

[Ben Vukicevich SRA]

Ranting Joe,

Your example is the exact reason I have changed the Intended Use on all my appraisals from Mortgage Lending to Mortgage Underwriting. I'm glad I use Clickforms because I use freeform text and I BOLD and increase the font size to large on the cover sheet to state Intended Use: Mortgage Underwriting. They're the geniuses. They're supposed to know what they need for the investor involved via the great, all-knowing, automated underwriting system. Maybe we need a great, all-knowing, automated USPAP system to coincide with these silly exterior only things.

The appraisal report is for the client (Intended User) and a tool for mortgage underwriting (Intended Use), and nobody else involved in the lending process (buyer, seller, broker, etc), so I'm stating it, up front and really big. Out goes Mortgage Lending and in goes Mortgage Underwriting.
Any problems, Mr. Buyer, on an exterior only appraisal, please go see the underwriter or the GSE, not me. You have been deemed worthy by the GSE to receive this limited appraisal format and to save.....$50 bucks. Enjoy it.

Ben

 

[rtubbs]

Joe, you might want to refer your requestor(s) to the Fannie Mae Selling Guide. Section 203.01 specifies the forms that are acceptable for manually underwritten mortgages. Section 203.02 discusses Desktop Underwriter-Processed Mortgages and spells out the "three different streamlined appraisal forms that can be used for Desktop Underwriter-processed mortgages that are secured by "ONE-FAMILY" properties". You can't use a 2055, 2065 or 2095 on anything but single family.

I feel sure that Freddie Mac has the same requirements.

 

[Frederick R. Ruffell]

The requestor is probably asking for the newer 2055 form titled Desktop Underwriter Quantative Analysis Aappraisal Report. This form is appropiate for one family properties only. However these report forms can be used to report a Limited or a Complete appraisal. They can be used as a Restricted report of a Limited or a Complete appraisal, and they can be used as a Self contained report of a Limited or a Complete appraisal provided you use appropiate addendums. But I would just go to a narrative at that point.

The words "limited" or "Complete" come from Std. 1 of USPAP and deal with the scope of the appraisal process and having nothing to do with the words "restricted", "self contained", or "Summary" which come from Std. 2 of USPAP and describes the REPORTING options of the appraisal.

Do not let the reporting form dictate the appraisal. But do get the newer forms as the old ones may not be in compliance with current USPAP standards at least not with alot of addendum writing which defeats the brief format that the client is requesting.

 

[Anonymous]

I solved the 2055 problem several years ago. I don't do them. I watch appraisers appraise on 2055 for ranch tracts using 80 or more acre lots, 300% land adjustments, etc., only to get a call back wanting them to "convert" to a 1004.

I had a lender panicky calling me not to appraise a double wide on a 2055, but on a "regular" 1004 form. No problem, I am not doing a 2055 and did not price the service as one.

I have one subcontractor that is married to forms. Thinks the Land form is the cat's meow for everything. I warned him recently not to expect me to co-sign many of those. If he is too lazy to use a narrative or learn a word processer.

The first person to be sanctioned in Arkansas was done so for using the land form on a vacant timber tract. Many of the complaints to the states are for "limited reports" i.e. - 2055's.

Using the 2055 is far riskier than a more complete form, therefore should require a HIGHER fee not a lesser one.
Ter