The API Restricted Assessment Supporting Memorandum (RASM) notes on page 16.3.5;
Within the above limitations you are to provide, if instructed by the lender-client, risk ratings in line with the PropertyPRO Supporting Memorandum methodology. Based on the information provided and as observed, the valuer is to make specific comment is they believe there is a medium to high risk in the area of property and/or market risk.
Given the changes made to the API PropertyPRO Supporting Memorandum (PPSM) which included changes to the Risk Rating categories, the API has carried these changes through to the output reports for the RASM so that there is consistency of reporting in respect to the risk rating categories.
The layout and field labels, as well as the Valuer declaration have also been updated to ensure consistency between the Restricted Assessment Pro-forma Report (RA Report) and the ‘new’ PropertyPRO output reports. For more information regarding the ‘new’ PPSM, click here.
The RASM also notes on pages 16.3.4 and 16.3.5;
Recent comparable sales must be reviewed. In agreeing to undertake a Restricted Assessment the CPV/RPV is required to have recently researched the relevant market place and to be familiar with the most recent sales and market direction.
A minimum of three recent sales should be considered for comparison purposes and must be retained on file for review in the event of a future audit. Details of these sales can be provided to the client on commercial terms acceptable to the parties.
Where the client has requested the inclusion of sales evidence in the RA Report, and the Valuer/Valuation Firm has agreed to provide sales in the RA Report, the API recommends that the sales evidence be displayed in the PPSM output report. The RA Report shows the recommended layout and positioning of the sales evidence section. Changes to the RA Report are highlighted in yellow in the sample RA Report available for review/downloading here.
The ‘new’ RA Report will come into effect on Sunday 5 April 2020 at the same time as the ‘new’ PPSM and associated output reports.
The API recommends that Valuer Members and their Corporate Employers who undertake Restricted Assessments for and on behalf of lenders utilising the RASM ensure that they have made the appropriate changes to their valuation management system used to generate RA reports, and that they advise their clients and uses of Restricted Assessments of the above changes.
Please do not hesitate to contact us at email@example.com if you have any queries regarding the changes to the API Restricted Assessment Pro-forma Report.
Member Reminder: Correct use of PropertyPRO Reports
The PropertyPRO Supporting Memorandum (PPSM) provides the basis upon which Members of the Australian Property Institute (API) provide valuations of ‘single residential properties’ for first mortgage purposes using the PropertyPRO ‘API Residential Valuation and Security Assessment Pro-forma Report’ (Report).…
PropertyPRO 2020 Resources updated 23 September 2020
As previously announced on 19 August 2020 the PropertyPRO Supporting Memorandum (PPSM) document has been updated and becomes effective on Sunday 4 October 2020. The API has updated the PropertyPRO 2020 Resources to include the latest…
PropertyPRO Supporting Memorandum Update
The PropertyPRO Supporting Memorandum (PPSM) and associated output reports was released earlier this year with an effective date of 10 May 2020. Following its release, the API received feedback from industry…
PropertyPRO Project Roll Out - Lessons Learnt Forum
We recently held the ‘PropertyPRO Lessons Learnt Forum’ where we collected constructive feedback about the successes and challenges of this significant project roll out. We are extremely grateful to everyone…
Logo Image Files and Licence Agreement
The ‘new’ PropertyPRO Supporting Memorandum (PPSM) and associated output reports will ‘go live’ on Sunday 10 May 2020. The API would like to thank all for their patience in the rollout of the…
PropertyPRO 2020 Resources updated 25 February 2020
As announced on 5 February 2020 the PropertyPRO 2020 Resources, including the PropertyPRO Supporting Memorandum (PPSM) document and the associated output reports have been finalised and are published on the API PropertyPRO…