A.7.1.3.4 Scope of Work Rule

A. The Scope of Work Rule is essentially problem-solving guidance that includes property identification, extent of inspection, the type and extent of data researched, and the kind of analysis needed to arrive at opinions or conclusions. The rule also states that appraisers have broad flexibility and significant responsibility in determining the appropriate scope of work for an appraisal or appraisal review assignment.

B. According to USPAP, appraisers (including HUD Review Appraisers) are responsible for determining the scope of work. However, as an employer who is also the client, the Department may issue guidance as to what is the extent of an assignment for a review appraisal. It is not a violation of USPAP for an appraiser to accept an assignment, in which a limited scope of work is appropriate, so long as the assignment and scope of work are clearly defined, produces credible results, and is performed objectively without bias.

C. HUD Review Appraisers may have to expand the scope of work and do additional research in performing an assignment. The Review Appraiser should discuss such situations with management in order to determine whether additional work by HUD staff is appropriate, or if the application should be rejected or approved with conditions.

D. According to USPAP, if relevant information is not available because of assignment conditions that limit research opportunities (such as conditions that place limitations on inspection or information gathering), an appraiser must withdraw from the assignment unless the appraiser can still develop credible assignment results. For example, they may be able to modify the assignment conditions to expand the

81 There may be times when consulting other appraisers rises to the level of “significant appraisal review assistance” and the name of the person providing that assistance must be stated in the certification.

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Appendix 7 Valuation Processing A.7.1 HUD Review Appraiser Scope of Work

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scope of work to include gathering the information or use an extraordinary assumption[82] about such information.

E. Workload Sharing arrangements may require HUD Review Appraisers to perform reviews without the benefit of being able to do a physical inspection. In these cases, the assignment will generally be completed with the Review Appraiser making certain assumptions, such as the condition to be consistent with the photographs and other reports.

F. HUD Review Appraisers may be required to provide consultation with Senior Underwriters and other staff who have been asked to review an appraisal.