Download navy federal credit union appraisal requirements

NAVY FEDERAL CREDIT UNION
APPRAISAL REQUIREMENTS
Page 1 URAR –
SUBJECT SECTION
Subject Address must match USPS exactly
Occupancy: If Tenant occupied- Please provide the monthly rent.
Special Assessments
For the question “Is the subject currently offered for sale or has it been offered for sale in the past 12
months?” a 3rd party data source must be provided if the subject has not been listed.
Neighborhood Name
CONTRACT SECTION
If the contract section is not applicable
If there is a contract
NEIGHBORHOOD SECTION
Location
Urban
Suburban
Rural
One- Unit Housing Trends
Present land use
Neighborhood Boundaries
Neighborhood Description
Market Conditions
Predominant value
SITE SECTION
Dimensions: The actual lot dimensions must be provided or state no survey or plat available. If you state “See
Attached Plat,” please be sure that the dimensions are on the plat.
Zoning: If No Zoning or Non-Conforming Zoning, please comment whether the subject could be rebuilt if
destroyed.
Utilities: If Water or Sewer is private a comment is required stating the impact on marketability. Comment if
public water/sewer is available.
Flood Zone: If in Flood Zone please comment on what, if any, impact on marketability. Include Flood Map if
available. Will a variance be needed? Please comment on any specific conditions, verification sources, and any
impact on value/marketability.
Adverse Site Conditions or External Factors: Please be sure to comment on the impact of any adverse or
external factors. If the factors do not present an effect on marketability then the appraiser should include a
comment that it does not cause a concern or affect the marketability.
Street: If the subject is on a private road please comment who maintains the road.
IMPROVEMENTS
General Description: Design Style
*UAD does not allow for the design style to include # of stories or descriptors such as condition or
materials.
Exterior and Interior Description
Amenities Section
Car Storage
Condition Rating: Please be sure to review the condition rating definitions for UAD.
The client requires that the condition be at a minimum of a C4 condition rating. Upon inspection, if you find
that the condition is below a C4 (i.e. C5 or C6), please STOP and contact VMG immediately.
*A common error is the rating being a C1 when the home has been occupied. According to the UAD
definition, a C1 has never been occupied.
Actual Age vs. Effective Age: If there is a significant difference in the subject’s actual age and effective age, please
indicate why.
Handrails and Guardrails: Handrails are required on all stairs more than four risers in height. Guardrails are
required on the open side of stairs, landings and balconies which are more than 30 inches above the floor or grade
below.
Physical Deficiencies or Adverse Conditions that affect the livability, soundness or structural integrity of
the property.
*If any items exist, the appraisal report must be “Subject to” the repair(s) in order to remediate these items.
Major Renovations or Additions: If the subject has any addition or conversion, please indicate whether or not it
was legally permitted. If no permits were obtained the appraiser should make the appraisal “Subject To” the
proper and required permits.
Bonus Rooms/FROG: If the subject has a bonus room above the garage, please comment as to how the bonus
room is accessed and whether it is heated and cooled, and finished to the same quality of construction as the main
living area.
Page 2 URAR
The top of Page 2 URAR above the sales grid should match the 1004MC form or the appraiser should include
comments as to why the data differs from the 1004MC form.
SALES GRID
Address: The subject and comparable addresses must match USPS exactly.
Proximity to Subject: UAD requires the Directional to be included. For example: N, S, E, W.
Data Source: UAD requires the MLS # to be included on this line and the DOM following the MLS #.
REQUIRED COMMENTS FOR THE SALES GRID
For any item on the sales grid that differs from the subject and no adjustment is warranted then a “0” must be
entered on the adjustment field. If an adjustment is warranted then comments should be made supporting the
adjustments and how derived.
Quality or Condition adjustments
For any item that cannot be bracketed by a closed comparable sale
AGE
GLA
Basement
Distance/Time
Declining or Increasing Values
Active/Pending Listings: 2 active or pending listings are required.
Net/Gross/Line Adjustment Percentages: The client requires that the appraiser specifically comment on any
comparable where the adjustment exceeds the 15% net/25% gross and 10% line adjustment guideline.
****A blanket statement is not acceptable.
(i.e., Comparable 1 exceeded the 15% net guideline due to…., Comparable 2 exceeded the 15% net and
25% gross guideline due to….)
Above Grade Room Count: UAD adjustment guidance states “If a feature or aspect of the subject property differs
from a feature or aspect of a comparable property and the appraiser determines that no adjustment is warranted,
the appraiser must enter a zero (0) in the adjustment line. The zero (0) will indicate to the reader/user of the
report that the appraiser considered the difference and determined that no adjustment should be made. When the
features for the subject and comparable sale's) are the same and no adjustment is warranted, leave the field blank do not enter or default to zero”. In an effort to adhere to UAD guidelines and remain consistent and clear to the
reader, please provide Bedroom adjustments to line 1, Bathroom adjustments to line 2 and total room count
adjustments under Functional Utility.
PRIOR TRANSFER HISTORY
The Data Source and Effective date of Data Source should be included for the subject and comparables.
*The Effective date of data source should be in MM/DD/YYYY format for UAD compliance.
If any prior transfers of the subject or comparable’s is noted, provide comments discussing the analysis of the prior
transfer.
COST APPROACH
NFCU does not require the cost approach.
Site value is always required. Support for site value should not just be tax assessor. Acceptable support for site
value could be alternative methods such as allocation or extraction or land sales, for example.
If the site value exceeds 30% of the total value the appraiser should include commentary as to whether the land to
value ratio is typical and any affect on future marketability this may have.
Remaining Economic life is required for FHA and USDA loans, however, regardless of transaction type, we
recommend the appraiser always include.
PAGE 3 URAR – PUD SECTION
If the subject is in a PUD then the appraiser should:
Check Yes or No for “is the developer in control of the HOA?”
Check Unit Type- Attached/Detached or both in some cases.
The rest of the section is ONLY required when the developer is in control of the HOA and the unit type is Attached.
PAGE 6 – CERTIFICATION
UAD requires the Appraisers name and License number to match ASC.GOV exactly.
You can verify how the appraisers name/license # is listed by visiting www.ASC.Gov .
For example, if ASC.GOV has Joe M Smith then Joe Smith is not correct. It would have to include the middle initial
regardless of how you sign your name. It must match ASC.Gov for a successful UCDP transmission.
The Date of signature, Effective date of report and Expiration date of certification or license must be in
MM/DD/YYYY format for UAD compliance.
The AMC name (Valuation Management Group) should be listed on NAME field under the Lender/Client section.
TIPS FOR THE 1004MC FORM
If the Months of supply is over 12 months yet “In Balance” is indicated on page one of the URAR then comments
should be made to support the trends and why they conflict.
If there is not enough statistical data to derive trends, then comments should be noted on the 1004MC form and
support for trends indicated on page one of the URAR and on the 1004MC form.
*If a condominium the top section of the 1004MC form should be completed on ALL competing projects
and the lower section should be completed on the subject’s project only. Be sure that the # of Active
Comparable Listings in the subject Project section matches Page 1 of the 1073 Condominium form for
Project Information # of Units for sale.
ADDITIONAL FORMS TO BE INLCLUDED
PHOTO REQUIREMENTS
Subject front
Subject rear
Street scene
All bathrooms
Main living area
Kitchen
Any additional amenity that is given value or noted in the appraisal
Any items that require repair or that are considered deferred maintenance items
If there are views or external factors present
Photos with people present are not permitted
REQUIRED COMMENTS FOR APPRAISAL REPORTS
AS IS VALUE: If the appraisal is made “Subject To” Completion or repairs an AS IS value is required to be
included in the additional comments for compliance with Interagency guidelines.
Exposure Time - In order to assure that intended users understand the context in which the opinion of value is
developed, the Board has adopted revisions to make it a clear requirement that reasonable exposure time must
be reported in all assignments in which an opinion of reasonable exposure time must be developed. As clarified
in the 2012-13 edition of USPAP, exposure time must be developed: When exposure time is a component of the
definition for the value opinion being developed.
Example Disclosure:
EXPOSURE TIME: The estimated length of time the property interest being appraised would have been
offered on the market prior to the hypothetical consummation of a sale at market value on the effective
date of the appraisal; a retrospective opinion based on an analysis of past events assuming a competitive
and open market. The appraisers have determined the subject property would have to be exposed for XX to
XX months or years (time frame) on the open market in order to have a market value of $XXX,XXX on the
effective date of this appraisal.
Appraiser Independence: VMG is requesting that a similar comment be added to all appraisal orders to
certify appraiser independence. Please certify the following in your appraisal:
“I certify, as the appraiser, that I have completed all aspects of this valuation, including reconciling my
opinion of value, free of influence from the client, client’s representatives, borrower, or any other party to
the transaction.”
USPAP Prior Service disclosure: Certifications now require appraisers to state whether or not they have
provided services on the subject property for the last 36 months from the effective date of value; this is a
change from prior criteria.
Example: I have performed no (or the specified) other services, as an appraiser or in any other capacity,
regarding the property that is the subject of the work under review within the three-year period
immediately preceding acceptance of this assignment. NOTE: The current Fannie Mae forms do not include
this on the certification page.