Desktops Are Being Done WRONG!
Appraisers, back in April, I was notified by someone “close to the action” of appraisal report submittals to the GSE’s, that many Desktops are being submitted back to lenders TOTALLY WRONG by the assigned appraisers! These reports are being captured and evaluated in the current Desktop observation and testing phase of the UCDP evaluations.
Lenders use the UCDP as an initial report Quality Control check so that any problems can be identified, and sent back to the appraiser for correction, before the last submittal is used for the loan. The UCDP ‘sees’ every report for a particular property address, and keeps track of individual appraisers assigned on reports to that address. Multiple uploads to the UCDP can be done until the lender is satisfied that the report will be accepted for GSE loan purchase requirements.
Based on the recent Desktops submitted and observed, basic trends have been discovered:
- Appraisers have not carefully read over the Desktop Scope of Work, Assumptions and Limiting Conditions, and Certifications on the Desktop form, and appraisal protocols from Fannie Mae or Freddie Mac for Desktop assignments. Read the protocol from either one because those apply to both GSE’s. See PDF here.
- Appraisers are ‘cloning’ a “traditional” full inspection report, and using those for a Desktop report assignment! The Certifications and other verbiage in the “traditional” report forms contain comments that the appraiser has made a property inspection, which is not the case with Desktops. Some appraisers are adding a second Certification page with verbiage that contradicts the original ‘cloned’ report. This can get the appraiser in deep doo-doo if the report winds up at the State Appraiser Regulatory Agency.
- Reports are being submitted with incomplete, or insufficient, property data, floorplan, etc., which is required before any Desktop assignment can be done. If you cannot obtain this data, request that the assignment be converted to a “traditional” full appraisal. Lenders have been informed that this is a possibility. Don’t let any AMC ‘clerk’ brow-beat you into doing the assignment. With Desktop assignments, you CANNOT rely on any form of assumption (other than a required inspection where you believe a repair or alteration is unnecessary). You must have actual data about the subject to use with which to formulate your decisions and value statement.
It is really distressing to me that quite a few appraisers are not attentive to their responsibilities, and are making totally erroneous decisions about how to do these new Desktop assignments.
- Never clone a prior report, unless it is a true Desktop report, done on the 1004 Desktop, or 70D form.
- Rather than clone, build a Desktop Template report, and use that to start any new Desktop report.
- Correctly verify all data used for the subject property; make no assumptions about anything.
- Make sure the Floor Plan is a correct diagram; exterior wall dimensions and interior wall placements (and room labels) must be included.
- Read all verbiage in the report to be sure nothing is stated about you making a personal inspection!!
- Don’t be afraid to say ‘NO’ to the client; if you cannot obtain necessary property data, photos, floor plan, and other info, ask that the assignment be CONVERTED to a full traditional 1004 report, or else decline.
Quite frankly, after doing research on these Desktops, they are far more complicated to do than a traditional full inspection assignment we are all used to doing. Don’t kid yourself believing otherwise. So be darn careful about what you are doing if you choose to do Desktop assignments.