Comments on: The 1004D for Disaster Inspections – Advice

By: Michael Calwell

Michael Calwell — Fri, 11 Nov 2022 16:33:15 +0000

Dave Towne, Thank you so much for this informative article on how to complete a 1004D. I have just been asked to do one in Cape Coral, FL after the hurricane.

Thanks,
Mike Calwell

By: maya

maya — Fri, 10 Sep 2021 19:38:43 +0000

In reply to Steve Little.

did anyone hear of the catastrophic disaster area property inspection report? i’ve been using this, its the most relevant for both exterior and interior.

By: Steve Little

Steve Little — Thu, 01 Oct 2020 19:21:53 +0000

Four years after it was written your blog is still helping – thanks much Dave!

By: PNW Appraiser

PNW Appraiser — Thu, 01 Oct 2020 03:53:46 +0000

Just did one of these (on the 1004D). Feel free to plagiarize, “The client has requested a “Disaster Inspection” be completed on this 1004D form. The question above in this section is irrelevant to the assignment and neither box can be checked. Original Lender/Client (above) name & address are assumed to be the same as provided in the engagement letter for this assignment; I was not provided with an “Original Appraisal”. Please see the following page for comments and pictures relating to the Disaster inspection.”

I included the single page “Disaster Area Inspection” (the one with space for two photos) as the second page and added the comments, “The subject property has not been physically damaged by the disaster.” and “The neighborhood has not been physically damaged by the disaster.” to make it clear that I’m only evaluating physical condition and am not evaluating the market.

Cheers

By: Mike Ford

Mike Ford — Tue, 29 Aug 2017 19:58:57 +0000

After the Northridge earthquake of 1992 (?) my old firm did virtually hundreds and hundreds of post disaster driveby “inspections”. I think the fee in 1992 was $200 to the company with the actual appraiser getting about 1/2 that. Maybe it was only half that $200 memory. After all it WAS LSI, Chase & WAMU I think.

The ‘form’ we used was a hybrid with very few lines. Address; borrower or owner name, file number, and check boxes essentially asking if there were visible chimney crack, exterior surface crack or visible foundation cracks.

HUGE disclaimer addendum!

We could do about 10 to 20 of these a day depending on how far apart the properties were.

Clients need to know what their specific objective is. IF it is only stating whether there is obvious damage, then its relatively easy. IF an opinion of value trend or impact of the hurricane is being requested then frankly that simply cannot be done in ANY Credible manner.

The market has not yet demonstrated a reaction to the disaster. The most any one could do is opine using extraordinary assumptions based on other disaster areas like Louisiana or Florida or past events in Texas itself. What would the point of that be? Conclusion would be entirely assumptive.

With enough extraordinary assumptions most appraisers could make property located on the volcano lip of Mount St. Helens seem like a sound investment.

Much work will involve UAD/1004 forms for proposed renovation or new construction. FNMA should assure appraisers are really qualified; and that borrowers are not also being taken advantage of.

Some assignments may be condition (collateral verification) related for existing loans whether in default or not or for possible forbearance purposes. FNMA should not render these meaningless by extraneous requirements.

Still others may be some type of drive-by for as yest undetermined purposes. Just be careful what ever you do. THIS is where we really prove ourselves to be professionals helping our fellow Americans and neighbors…or mere opportunistic hacks.

By: Baggins - Subject to

Baggins - Subject to — Tue, 12 Apr 2016 01:37:27 +0000

I remember the good old days when 2075’s aka the PIR, were used for streamline refinances, and not just disaster or visual verification. We were getting 250 for those at one point. The FHA specifics on the 1004d is that it rides ‘by attachment’ to an original report. It is not a stand alone report, and I have never, and will never, provide a 1004D without an accompanying report for it to attach to. Personally I refuse to follow up with a 1004D, unless I’m the originating appraiser. Anything else is misleading to the report user. It is the appraisers responsibility to provide appraisal consultation if necessary. Appraisers completing stand alone 1004d’s in leu of 2075’s are operating incompetently. I’ve recently moved my 1004d verification of condition fee up 50 bucks, and value recert is more. The check box for verification of MV should only be requested, and should only be checked by the appraiser, when there is an issue with expiring age life of the appraisal effective date, per FHA shelf life rules. I think that’s 4 months, but it’s fluxed between 4 and 6 if I recall correctly. If lenders need a renewed effective date outside of FHA, they should order a new appraisal entirely, but should also be able to cop a discount if the same appraiser revisits the analysis. Most of the heavy lifting is done, but anything which requires a renewed effective date analysis, practically requires an entire new workfile to accommodate the market data. Lenders often reject the proper use of 1004D w/ value recert, because that nullifies the original market data. And of course, the 1004D does not require the MC, and that’s where the whole thing goes haywire in the underwriting xml review process. A true 1004D with value recert, probably comes with a fresh grid and a new comp or two. How else could the appraisal remain compliant with the new 2 in 90, 2 a or uc, and other bracketing sales? If the shelf life has expired, checking value recert without providing a new U90 comp, is misleading itself because theoretically, the U90 is why there is a change to value. You can’t state value recert for a new grid inclusion, without including that. The fact the 1004D does not have 6 grid slots which require filling if the value recert is checked, is a developmental short coming.

By: Koma

Koma — Mon, 11 Apr 2016 17:42:44 +0000

Thanks for the information. I’m guessing with these types of situations they can’t rely on their computers to help them. Maybe they can have a fleet of drones to fly around the properties and the they won’t need us at all…jking Sorry Dave long busy weekend working (not a complaint).

By: KenQ

KenQ — Mon, 11 Apr 2016 15:42:27 +0000

Thanks Dave, great advice. I just type a letter and include the photos. I don’t use any form for disaster inspections.