The appraiser should be the one that inspects the property not a third party. If the appraiser has the reasonability of reporting a value for that property and the inspection is wrong then the appraiser is hanging out on a inaccurate value.  It just does not make any sense to change a good product (1004) with a product that would harm the appraisal industry. Lets hope that FANNI MAE can see that before it is to late!