Would Adding A 1004mc To A Completed Appraisal Comply With USPAP?

[Eli]

I understand the OP's point. It was not included in the original scope of work presented by the client. That is the OP's issue. Ya'll are getting side tracked. I know the problem, but I'll let the experts explain it. LOL

 

[DWiley]

I understand the OP's point. It was not included in the original scope of work presented by the client. That is the OP's issue. Ya'll are getting side tracked. I know the problem, but I'll let the experts explain it. LOL

Oh I understand well the general principles of complaining about something being added to an assignment. i would fully agree that the SOW and the reporting requirements should be communicated and agreed to up front. What i cannot understand is why adding a properly completed 1004MC form would have any effect on the results of a properly completed appraisal report.

 

[Eli]

I understand the OP's point. It was not included in the original scope of work presented by the client. That is the OP's issue. Ya'll are getting side tracked. I know the problem, but I'll let the experts explain it. LOL

Oh I understand well the general principles of complaining about something being added to an assignment. i would fully agree that the SOW and the reporting requirements should be communicated and agreed to up front. What i cannot understand is why adding a properly completed 1004MC form would have any effect on the results of a properly completed appraisal report.

Yep, and that work file better have something in it regardless on supporting the data on page 1 of 1004 if an appraiser uses that form. I don't think that is the OP's issue here. I think it may be more like a lawyer or nail person in business that bill my the minute.

 

[Lee Lansford]

You are probably still doing retypes too!

Listen to Danny Wiley. What you are receiving here is a free education. There are folks who are superior (to most everyone) in their depth and breadth of knowledge on certain topics--Danny Wiley is one such person.

 

[ucbruin]

Maybe HLWT's point is that page 1 represents all sales in a neighborhood....
Page 2 represents all sales in the neighborhood which is considered comparable to the subject....
General data vs specific data....

 

[Elliott]

Elliott said: ↑
Where did you come up with those numbers for listings and sales on the top of Page 2, where you gave a count, and price range?

HLWT said:
Those numbers and from the results of my search for comparables. I did not use them as a basis of analysis for market trends. For example, not included in those numbers are things such as absorption rate or seller concessions...and the 1004MC groups results differently and so on.



From a practical standpoint, how do you obtain the information for the MC form? From MLS? When doing a MC form for other lenders do you charge more? For years the MC has become a standard requirement for 1004s, so I find it difficult to understand why this would be a significant 'upgrade' of an assignment. Also, the UAD/CU checkers require conformance between the MC and the top of page 2.

 

[Tom4value]

So doing a market analysis is a change of SOW? Glaring evidence that no market research was done originally!

If you did market research to come up with your market conclusions, adding the 1004mc addendum should just be filling in the boxes based upon your file data, about a minute or two out of your day. It would be like adding a picture that you took but just didn’t put it into the report originally.

 

[ZZGAMAZZ]

Lender wants a 1004MC but didn't order it originally. If I add it, haven't I broadened the scope and created the need for a new assignment? If I submit it as a stand-alone report, then isn't it still an appraisal service and subject to Standards?

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I'm going to take advantage of the scenario to address long-standing issues I've never been able sufficiently to understand:

-- Was client input elicited when the SOW was being determined?
-- Was the SOW, per se, incorporated in the Engagement Letter?
-- To what extent is it necessary for the 1004MC, per se, to be addressed in the Engagement and/or SOW, i.e., does the SOW indicate that a market analysis will be conducted, as well as the neighborhood boundaries desccribed, the HBU determined, zoning determined, photos included, etc.; or is the 1004MC excluded by default?

My questions that might appear to be sophmoric are sincere as I try to obtain a better understanding of the absolutes and parameters of a solid SOW.

Regards.

p.s. I'm also questioning the validity of the term "of one's peers" that more and more appears to be entirely meaningless because taken literally it can't be defined; consequently, I would prefer comments that describe the SOW inherently to be based upon that nebulous group of like-minded professionals, who don't exist in reality, to be referenced.

 

[DWiley]

-----
I'm going to take advantage of the scenario to address long-standing issues I've never been able sufficiently to understand:

-- Was client input elicited when the SOW was being determined?
-- Was the SOW, per se, incorporated in the Engagement Letter?
-- To what extent is it necessary for the 1004MC, per se, to be addressed in the Engagement and/or SOW, i.e., does the SOW indicate that a market analysis will be conducted, as well as the neighborhood boundaries desccribed, the HBU determined, zoning determined, photos included, etc.; or is the 1004MC excluded by default?

My questions that might appear to be sophmoric are sincere as I try to obtain a better understanding of the absolutes and parameters of a solid SOW.

Regards.

p.s. I'm also questioning the validity of the term "of one's peers" that more and more appears to be entirely meaningless because taken literally it can't be defined; consequently, I would prefer comments that describe the SOW inherently to be based upon that nebulous group of like-minded professionals, who don't exist in reality, to be referenced.

Technically, this is not a SOW issue. As defined in USPAP, SOW entails only development issues, not reporting items. The OP addresses a reporting issue. Market analysis would have been required as part of the development - with or without a 1004MC being part of the report

 

[Tom4value]

-----
I'm going to take advantage of the scenario to address long-standing issues I've never been able sufficiently to understand:

-- Was client input elicited when the SOW was being determined?
-- Was the SOW, per se, incorporated in the Engagement Letter?
-- To what extent is it necessary for the 1004MC, per se, to be addressed in the Engagement and/or SOW, i.e., does the SOW indicate that a market analysis will be conducted, as well as the neighborhood boundaries desccribed, the HBU determined, zoning determined, photos included, etc.; or is the 1004MC excluded by default?

My questions that might appear to be sophmoric are sincere as I try to obtain a better understanding of the absolutes and parameters of a solid SOW.

Regards.

p.s. I'm also questioning the validity of the term "of one's peers" that more and more appears to be entirely meaningless because taken literally it can't be defined; consequently, I would prefer comments that describe the SOW inherently to be based upon that nebulous group of like-minded professionals, who don't exist in reality, to be referenced.

I will take a crack at this.

The scope of work is the work needed to be done to, as they say in USPAP, "solve the problem"; provide an opinion of market value for (I presume) mortgage lending. Part of that scope, as noted in the industry and your "peers", is developing a market analysis that not only identifies trends but sales, listings (inventory), and ratios of listing price/sales price, DOM, relevance of REOs, etc. This is EXPECTED.

What you are questioning is providing the 1004MC addendum, which is an appraisal CONDITION, something that the client requires. The DATA in the 1004MC addendum contains only information that you would have (should have) done in the expected scope of work. It is the form itself that is an appraisal CONDITION. Now, you can argue that since it was not listed in the engagement letter, you shouldn't have to provide it (or at least for free). That is not the road I would take but that is your business, not mine. However, it (providing data to fill it out) is not a change in scope of work.