Estimated Values on an Apprasial Request

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by mshap, Mar 16, 2009.

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  1. mshap

    mshap New Member

    0
    Mar 16, 2009
    Professional Status:
    Banking/Mortgage Industry
    State:
    Tennessee
    Aside from HVCC, is it against USPAP for a mortgage company to list an estimated value on an appraisal request? If so, where is that in USPAP?

    Thanks!
     
  2. David Dietz

    David Dietz Member

    0
    Oct 30, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    It depends, is the provided estimate of value a condition of the appraisal?

    What reason would you have for listing the estimate?
     
  3. Pamela Crowley (Florida)

    Pamela Crowley (Florida) Elite Member

    3
    Jan 13, 2002
    Professional Status:
    Retired Appraiser
    State:
    Florida
    USPAP AO-19 is the USPAP answer.

    Some States have made it illegal for any kind of value to be given to the appraiser.
     
  4. Michigan CG

    Michigan CG Moderator Staff Member Moderator

    27
    Nov 1, 2006
    Professional Status:
    Certified General Appraiser
    State:
    Michigan
    It is not a violation of USPAP however it is illegal in many states; Michigan, Ohio and Kansas come to mind.
     
  5. Couch Potato

    Couch Potato Elite Member

    0
    Mar 15, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    If one views it as an attempt to influence the opinion of value, it is a violation of USPAP.
     
  6. Ross (CO)

    Ross (CO) Senior Member

    0
    Jan 17, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Colorado
    ".....is it against USPAP.....for a mortgage company to..." ?

    - - - - - -

    Since when did ANY mortgage company EVER have to adhere to...USPAP ?

    They always could do, or try to do, or attempt to influence...anybody with anything....and there never was any mechanism in place to stop those efforts. Can you offer ANY reason why an order for an......"unbiased opinion of current market value".....would ever NEED to impart someone ELSE's estimated opinion of value ? For all these years too many concerned and conscientious people with ethics as their operating principal have been saying to those who are SUPPOSED TO CARE.....that there had been too much biasing, suggesting and influencing going on....and no one wanted to listen so long as "business" could be done and commissions were riding on that production.

    Change we can believe in !........yeah, right.
     
  7. Smokey Bear

    Smokey Bear Elite Member

    0
    Dec 8, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Only appraisers are controlled by USPAP, so they can do it, but if it has conditions on the order like "must hit needed value" then it violates USPAP for you to accept it.
     
  8. Couch Potato

    Couch Potato Elite Member

    0
    Mar 15, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    Never. The USPAP violation is committed by the appraiser by accepting an order that attempts to direct the value opinion.
     
  9. Ken B

    Ken B Elite Member

    6
    Feb 18, 2004
    Professional Status:
    Certified General Appraiser
    State:
    Florida
    USPAP states that an appraiser cannot accept an assignment that is contingent upon a desired outcome regarding value. The following statement is extraordinarily unpopular with some here, but the mere acceptance of an appraisal order which contains an estimated value does not inherently create a "contingent assignment." What can create the appearance of a contingent assignment is verbiage in the appraisal order to the effect of "call before completing the report if value is less than that requested/indicated/estimated/etc." or "Call if there are problems."

    Technically, USPAP has no authority over anyone, including appraisers. Legally, most States have required that appraisers licensed in that State comply with USPAP. I am aware of no rule or regulation making USPAP binding upon anyone other than licensed appraisers.

    So, to answer the OP's question, there is nothing in USPAP which prohibits a mortgage company from entering a value estimated on an appraisal order.

    There may be other regulations prohibiting such an action, however.
     
  10. Mr Rex

    Mr Rex Elite Member

    26
    Jan 12, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    Where's the Irish guy with the green typeface? I'm sure he has an opinion. Something about contract analysis and an client opinion of value provided upfront....:new_smile-l:
     
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