The FNMA 704

Is the FNMA 704 suitable for a "drive-by" appraisal?

The FNMA 704 is a practical, if not a preferred method, of reporting a drive-by appraisal for a transaction that is not mortgage related.  The old 2055 has problems because of its use of the obsolete terms "departure", "limited appraisal", and "complete appraisal".  The new 2055 has a problem in that it's purpose is for a mortgage related transaction.

USPAP, Standard 2 says:

"STANDARD 2 does not dictate the form, format, or style of real property appraisal reports.  The form, format, and style of a report are functions of the needs of intended users and appraisers.  The substantive content of a report determines its compliance."

The 704 has no canned certifications, scope of work, statement of assumptions and limiting conditions, intended use, or intended user statements.  All these are required in the appraisal report and must be prepared for the specific assignment providing the appraiser with maximum latitude within the limits set by USPAP and GREAB rules.