Questions_and_Reponses__2.pdf

1. I have not had to prepare a USDA proposal prior to this so I am hoping that I am filling it out correctly. I believe I have it all completed however, if something is missing will someone from USDA notify me so I can correct it or provide what is missing?

Response: By law, the Government cannot open or preview any proposal prior to the closing date. You may re-submit your proposal as many times as necessary prior to the closing date.

2. Could the Government please confirm if the offeror itself has to be a certified appraiser entity?

Or can the offeror provide certified appraisers?

Response: If the offeror is an Appraisal Management Company (AMC), the prime contractor does not have to be a certified appraiser and hold an appraiser’s license.

3. Master Appraisal: We are not able to identify which form this is referring to and therefore would not be able to accurately quote this product with the information on hand.

Response: Master Appraisals-There is no “form” for a master appraisal. Master appraisals are original appraisals completed for a set of plans for a specific subdivision “As Improved”. The appraiser is sent let’s say a set of 3 plans of varying home sizes let’s say for example 1,200, 1,300, 1,500 and an appraisal is completed for each set of plans on a buildable e lot in the subdivision. Comps are discovered, and the appraiser completes the appraisals as masters. The appraiser takes pictures of all the lots in the Subdivision for subsequent appraisals. The process is compliant with USPAP.

4. Subsequent Appraisal under Master: We are not able to identify which form this is referring to and therefore would not be able to accurately quote this product with the information on hand.

Response: Subsequent Appraisals Under a Master-These are appraisal reports completed for additional appraisals after the masters are completed. Because the appraisal report is dated the same as the Master, appraisal, the appraiser uses the same comps as the master and therefore does not have to inspect the sites again. The report is quicker, cheaper and saves the government money. The reports are typically a little more than half the cost of a Master Appraisal. Once the market changes (values change), the appraiser completes a new set of master appraisals at the master bid price.

5. Foreclosure Appraisal: Due to the requirements within the USDA documentation, this request would need to be accompanied by a REO addendum. Due to the additional information, these products will run about $50 higher than the standard appraisals. Can they confirm they do, in fact, require an REO addendum for the Foreclosure Appraisal?

Response: REO Addendum-We do not require an REO addendum. Typically, foreclosure appraisals are cheaper for an appraiser as they ask for a copy of the appraisal made at loan origination for property specs and they just complete a drive by appraisal due to safety reasons.

6. Inspection Services/Reinspection Services: We are not able to identify what form this is referring. My initial thought is a “trip fee” but this could also constitute a 1004D - Appraisal Update or a 1004D - Final Inspection.

Response: Inspection Services-These services are performed by an appraiser to confirm that the home was built to plans and specs. The appraiser completed the initial home appraisal and now is doing an inspection to make sure the home is completed according to plans local specifications. The reinspection is completed if the first inspection discovered the home was not completed on the first inspection. See the BPA for specs.

7. Manufactured Home: I am not seeing a 1004C (Manufactured Home) listed within the pricing matrix. These forms typically run about $100-$150 more than standard 1004 files. We currently have 1004C’s ordered through USDA RD Texas and want to be sure nothing is missed.

Response: Manufactured Homes-We do not do that many manufactured homes in California. When we do, we order the appraisals with the 1004c. However, appraisers have not been charging more for this type of an appraisal. We do not make loans on existing manufactured homes in California only new manufactured homes, so the appraisals are quoted under the “New Home” bid.

8. Unique Properties/Locations: Places such as Lake Tahoe or properties located in mountainous areas are very difficult to flat rate “quote”. California has a few pockets where the fee is substantially higher due to these geographical difficulties. Would the Agency allow for Fixed Price with Economic Price Adjustment on these limited “challenge files”?

Response: In these types of cases, quotes will be requested for the specific property by at least three BPA holders and the BPA call will be awarded to the lowest price technically acceptable quote.

9. What is the process/procedure for files that exceed our maximum loss percentage?

Response: I do not understand this question.

Is there a process for requesting trip fees? With this primarily being an origination contract, I do not foresee this being an issue, but I wanted to verify there was a process in place for requesting them, if needed.

Response: Trip fees will not be paid. All costs are to be included in the flat rate quote.