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Indianapolis Appraisal Blog

Lenders - Just a Refresher - 12 Things You Should Know
March 31st, 2010 1:57 PM

I know these items have been around for awhile but I thought I would post a refresher. It never hurts brush up on things every once in awhile. Though my company completes real estate appraisals in the Indianapolis area, the forms are widely used throughout that country by most appraisers.

1. New "driveby" forms — no more "2055 With Interior"
With the redesign of the 2055 single family "driveby" form there is no longer a "2055 with Interior." For interior inspection, photos, sketches etc. please order a URAR. There are new Exterior Only "driveby" forms for condos (1075) and co-ops (2095).

2. On purchase loans, you need to send us the sales contract
The new URAR requires us to analyze the sales contract and information. You can expedite our analysis but making sure to send this information along with your order.

3. New appraisal update/completion form does not provide for value increases
If the value has gone up and you want to document that, it's a new appraisal. The new 1004D is for certifying completion of construction or that the subject has not declined in value since the original appraisal. Use this instead of old Form 442.

4. Cost and income approaches are not required in most cases
If cost and income approaches aren't necessary, they normally won't be included. From now on you'll probably only see them on a small number of single family residential properties.

5. New 2055 Exterior Only requires more thorough comps, sales history research
This is true of the new URAR, too, but it's a bigger change with the 2055. The important point is that appraisers will need to do more thorough research on sales histories of both the subject and comps, whatever the assignment.

6. Appraiser makes more meaningful representations on condition, structure
The old URAR asked if there were any apparent adverse site conditions or issues with the structure, soundness, livability, etc. No more "apparent"  we need to tell you if there are any issues. This is a more thorough inspection and analysis than previously.

7. Appraiser must research, analyze sales, transfer history of subject, comps
In addition to the sales contract, appraisers need to examine the transfer history of the subject for the past three years and each selected comp for the last year.

8. Appraiser certifies there has been no pressure to hit a number
We cannot complete the new form(s) if our client asks us whether we can "come in" at a certain value or threatens not to pay if the value isn't at least $X. We take this new representation on our part seriously.

9. Instead of structure only, is any part of the property in a flood hazard area?
Previously the question was whether the house was built within a flood zone. Now if any of the property is located in the flood zone we must note that on the report.

10. New, separate field review forms for single family, 2-4
There is a new 2000A form for field reviews of 2-4 family units. The 2000 is for single family.

11. New standalone manufactured home form (interior only)
The old 1004C manufactured home addendum is now its own standalone form. It is interior only — no "drivebys" or exterior only manufactured home appraisals.

12. New 1025 residential income form does not require listing comps
Rental and sales comps are still required.

Please don't hesitate to contact us at or by phone (317) 809-1252 if you have any questions about the new forms we haven't answered here.  

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Posted by Anthony Akins on March 31st, 2010 1:57 PMPost a Comment

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