Re: New URAR and 2055 forms are required starting November 1

Fannie Mae has substantially revised the URAR and 2055 forms, as well as many others. You'll be seeing a lot of these new forms. Starting November 1, the forms you're used to are going to start going away for good, replaced by new versions. Some of the highlights are below.

Please Note: For October orders, we need to know which form you'd like us to use. Any loans not closing before Nov 1, 2005 are subject to additional charges to re-write them on the new forms. Data in these new forms is re-arranged - see italicized sentence in the following paragraph - This means it's not just "push a button" for us to re-write these reports. So, mortgage brokers, please be sure what your lender's requirements are as to forms used. We don't want you to incur unnecessary expense, but neither can we re-write reports without compensating our staff accordingly.

This is a major change. It's been more than 10 years since Fannie revamped its appraisal forms. There's a lot new and different in the new forms, and we want to make sure you're up to speed on the major ways the new forms differ from the old. There are literally dozens of ways, but below are the most important.

What's the bottom line? The new forms require more research and analysis, firmer representations on the part of appraisers, and eliminate the cost and income approaches to value. You and your bank will be getting more useful, solid information, which you may find in different places than you're used to. But you'll still be getting the quality, professional service you expect from us. We won't miss a beat with the new forms and we want to be sure you won't, either.

More research required

The new forms may require your appraiser to search recorded deeds and land records. The new form asks the appraiser to analyze the sales contract for a property being sold and the sales or transfer history of the property for the last three years. It also asks the appraiser to analyze the sales history for the selected comparables for the previous year. These are just some of the ways the new forms get you more thorough, useful information. Click here to learn more.

New representations

The new form asks whether any part of the land involved in the mortgage transaction is in a flood hazard area. The former form only asked if the house or any improvements were. The new form asks whether there are any adverse conditions that affect the livability, soundness or structural integrity of the property. And the appraiser now certifies to Fannie Mae that the client has not asked the appraiser to reach a certain value in the report. We take this new representation on our part seriously. Click here to learn more.

"Exterior Only"

The new 2055 is an Exterior Only form -- no more "2055 with Interior" assignments. For interior measurements, photos and inspection, please order a URAR.

No more cost or income approaches

The new form does not require the "cost" or "income" approaches you're used to seeing if the appraiser doesn't think it's necessary. So you may only see the more standard (for residential mortgages) "sales comparison" approach.

Questions?

Please don't hesitate to contact us on the web at www,campbellappraisal.com or by phone if you have any questions about the new forms we haven't answered here.