We’ve got a few days until it’s officially fall, but as soon as Labor Day is in the rearview mirror it seems we mentally move right into autumn. I hope everyone had a great summer, and academic years have started off on a positive note for those of you whose families are back in the school routine. For this issue of Dart Board, I wanted to share information about Disaster Area Inspection Reports. With the recent devastation caused by Hurricanes Harvey and Irma, and also by wildfires in the West, we’re getting a lot of questions around what products should be used following a disaster. 

Inspections in Disaster Areas. So many of our fellow citizens across the country are dealing with devastation wrought by natural disasters. First and foremost, we want all of our clients, brokers and appraisers to know that we are here to support you and your borrowers in any way that we can. Dart has always believed that at the end of the day, every business relationship and every transaction comes down to people. The destruction left behind by these events is hard to comprehend, and all of us here at Dart send our thoughts and prayers for recovery to those impacted by these events.

When it comes to inspecting properties that have been affected by natural disasters, the Disaster Area Inspection Report (DAIR) is the most commonly used product. Some lenders require a 1004D as opposed to a DAIR, so it is best to first check with your institution/investor before placing an order. When performing a DAIR inspection, the appraiser will observe the exterior features of a property and surrounding neighborhood. The report will include exterior photos, and will include a statement indicating whether or not the property sustained damage from the disaster.

If the property did sustain damage, typically an additional report would be ordered which includes an interior inspection of the property. This report, the Catastrophic Disaster Area Inspection Report (CDAIR) provides an assessment of any impact to the value and marketability of the subject’s neighborhood as a result of a natural disaster, as well as a complete set of exterior and interior photos of the subject. Photos of any damage to the subject will also be included along with comments on the severity of the damage. With both the DAIR and CDAIR, the appraiser does not provide an estimate on the effect on value of any damage nor an estimated “Cost to Cure” any damage. No opinion of value is provided.

Just yesterday, FHA issued a waiver on its requirement that inspections required in disaster areas not be completed until after FEMA issues a close date for the Incident Period. Inspections on single-family properties in the Hurricane Irma Presidentially Declared Major Disaster Area in Florida will be permitted beginning yesterday, September 19. Read FHA’s full announcement here. The Mortgage Bankers Association, which had asked HUD Secretary Ben Carson to consider changing the Incident Close Date inspection requirement last week, says it will continue to work with HUD to secure a long-term resolution for this issue. 

Our staff is here to guide you through any questions you may have about disaster inspection reports. Contact your Account Coordinator or Account Executive, or you can reply to me and I’ll put you in touch with the most appropriate person to assist with your needs.

Upcoming Events. October is a busy travel month for us here at Dart!  We’ll start off our travels in Las Vegas at Valuation Expo. Next up is the Association of Appraiser Regulatory Officials Fall Conference in Washington, DC, which our Vice President of Compliance and Process Control will be attending. Then it’s back to Las Vegas for NAMB National before we end our travels in Denver for MBA’s Annual Convention & Expo. We’re building our meeting schedule now for all four events – to schedule a meeting, visit www.dartappraisal.com/events.

As always, if there is anything we can do to assist with your appraisal management needs, please don’t hesitate to contact me. 

Thank you,

Michael Dresden
President
Dart Appraisal