New 2055 test form, two more released; Fannie says it intends to reduce overall number of forms

Fannie Mae released June 24 three more revised appraisal report forms: a new 2055, and new co-op forms 1073 and 1075. As with their release of test versions of a new URAR, 1004B and 1004D June 3, their stated goal is to allow/require appraisers to "report the results of his or her appraisal in a more concise manner than our existing report formats," it said.

Our forms department is programming the new forms already, and they will all be available in July's WinTOTAL update. New forms are your business, and our "drop everything" commitment to ensuring you have the forms you need has been part of what's made us your favorite appraisal software and technology provider. WinTOTAL customers with support contracts will not only receive the new forms for free, but will have them installed automatically, through our Instant Customer Update system.

The latest test forms, where applicable, have added "direct questions… which require the appraiser to comment on key areas of his or her research and analysis." As with the new URAR, more "yes/no" areas have been added, and space has been made to accommodate a three-year history for the subject and the comps.

Perhaps the most important aspect of Fannie's June 24 announcement, available here in PDF format, is that it intends to "consolidate the number of our appraisal report forms in order to simplify our documentation requirements for customers and their appraisers." Accordingly, "we will be retiring certain existing appraisal report forms and using the form numbers currently associated with those forms for different appraisal report and inspection purposes."

Once all its new forms have been tested, revised if necessary and completed, the following will be the only forms Fannie intends to use: The new URAR, for one-unit interior and exterior

• The new 1004B, for use with all one- to four-unit reports
• The new 2055, released last week, for one-unit exterior only
• A new 1004C for manufactured homes, a test version of which is scheduled to be released by August
• The new 1073, released last week, for a co-op interior and exterior
• The new 1075, released last week, for a co-op exterior only
• The new 1004D, for use with all one- to four-unit reports
• A new 1025 for two- to four-unit properties, interior and exterior, a test version of which is scheduled to be released by August
• A new 2000A for field reviews for two- to four-unit reports, a test version of which is scheduled to be released by August

"We made a variety of enhancements to these test forms to help communicate our expectations for a high-quality appraisal, to strengthen the appraiser's accountability for the quality of his or her appraisal, and to help ensure the appraiser's compliance with our requirements and those of" USPAP, Fannie said of its latest trio of test forms.

As with the new URAR released earlier this month, the new 2055 asks "yes" or "no" whether the prior sales of the subject and the comps were arm's length transactions, and asks the appraiser to verify the owner of record of the subject.

The new forms are downloadable in PDF format from Fannie Mae's website: 2055, 1073 and 1075. More than 11,000 appraisers downloaded the three test forms Fannie released earlier this month from links from our e-newsletter, not counting (because it's impossible) those who may have clicked through then forwarded the PDF forms directly to colleagues and clients. We are proud that so many appraisers rely on us to keep them up to date on the things that matter to them most, and aspire to continue to oearn your weekly readership.

As with its other test forms, Fannie stresses that the existing 2055, 1073 and 1075 are still authorized for use, but that the test forms may be used from now until June 1, 2005. And we and Fannie are both interested in what you think of the new forms. Write Fannie either by e-mail to test_appraisal_forms@fanniemae.com or by regular mail addressed to Fannie Mae, Test Appraisal Forms, 3900 Wisconsin Avenue, NW, Mail Stop 2H-4S-08, Washington, DC 20016 no later than October 1, 2004.

When you're done – because it's Fannie who needs to hear your concerns more than anyone – let us know what you think. As we did with the new URAR, 1004B and 1004D we will share in our next edition your observations and concerns with the latest new forms. Write us at mattb@alamode.com.