To all members;
As we continue to experience the Corona Virus across Canada, we are seeing some areas of the country seeing cases greatly reduced, while other areas are still locked down and some areas seeing a rebound of case numbers.
National and Provincial Health Authorities are all in agreement that a second wave is virtually a guarantee, and we need to remain vigilant in Social (Physical) Distancing, personal hygiene, and the use of appropriate PPE. Provinces are slowing opening businesses, parks, recreational facilities etc. but still under cautions and warnings from Health Authorities.
We want to remind you that our recommendations to you have NOT changed. We have been in contact with national lenders, AMC’s and other industry stakeholders, and the recommendations pertaining to viewing subject properties are still in effect.
For those who need a reminder, we STRONGLY recommend that no CNAREA member enter the interior of the subject property. Lenders are still accepting ‘modified full appraisal reports’ where information, including photos, pertaining to the subject property are supplied by the occupants. We have provided a series of Extraordinary Assumption examples to help you deal with this information, so that your reports remain USPAP Compliant, and you are still able to provide quality products to your clients.
There may be those who feel that their individual market segments have reduced risks, a low number of active cases, etc. HOWEVER I want to remind you that this is how the second wave will be produced! Please resist the temptation to enter subject properties. As Health officials have stated, even taking precautions with PPE, etc. the risk is still present. We all know of cases where occupants have ‘misrepresented’ the truth about their particular situation and asking the occupant a series of questions about their risk or possible exposure will not necessarily protect you. If an applicant is given the impression that if the appraiser can’t view the interior of the dwelling, they are at risk for the loan not being approved, they may be emboldened to provide answers to ensure you will enter. Please note NONE of the national lenders are asking appraisers to enter the dwellings.
Appraisers play a vital role in ensuring Canadians obtain credit facilities that will help them, or their businesses get through these challenging times but not at the expense of health and safety. Both associations, banks, AMC’s, mortgage lenders, mortgage insurers, regulators and other stakeholders have all stated that the health and safety of clients, homeowners, tenants etc., and appraisers is first and foremost. The market place has adjusted to accepting full appraisals that do not include the inspection of the interior of a home by the appraiser which means that the appraiser should be looking at alternative methods of obtaining this information; please refer to previous announcements for details.
Please ensure you remain vigilant, so that you, your families, and your clients remain safe and healthy. If you have any questions or concerns please do not hesitate to contact us at 888.399.3366.