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I got this today.

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by Carnivore, Oct 16, 2007.

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  1. Carnivore

    Carnivore Elite Member

    0
    Jan 15, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    Can anyone guess what I am seeing in this letter?

    Hint: This is posted on the USPAP Forum.

    Dear Appraisal Partners,

    We received an email from one of our lenders requiring new
    guidelines that Provident Lending is requiring on Appraisals. See
    below on the new requirements. If you receive an order from
    Frontier that has Provident listed as the Lender please follow these
    guidelines:

    Provident Guideline Update - Appraisal Guidelines

    Provident Funding is amending the appraisal requirements for all of its loan programs. The changes include:

    The Maximum Distance for Comparables is 0.5 (Urban), 1.0 (Suburban), and 5.0 miles (Rural). Comparables that exceed the distances above will not be accepted.

    The Maximum Comparable Age is 3 months from the date of the property inspection as listed on the appraisal. One comparable may have a sale date not to exceed 6 months if the remaining two are within 3 months.

    The Underwriter is responsible for including both of these changes in their review of the appraisal. If the comparables provided do not meet these requirements, additional comparables must be conditioned for. If the appraiser is unable to provide them, a Desk Review must be ordered.

    An Appraisal Desk Review is also now required for all Second Mortgages, unless one was ordered on the First Mortgage.
     
  2. 3 Putt

    3 Putt Member

    1
    Aug 18, 2005
    Professional Status:
    Certified General Appraiser
    State:
    Ohio
    Starting to see that request in my neck of the woods. It's really tough to pull of sometimes, especially in a slow market.
     
  3. The Matrix

    The Matrix Senior Member

    0
    Apr 28, 2003
    Professional Status:
    Certified General Appraiser
    State:
    Colorado
    They're really clamping down now the horse is out of the barn. In the rural parts of Colorado.. the nearest home maybe more than 5-miles from the subject. This is an example of an irrational underwriting requirement.
     
  4. PropertyEconomics

    PropertyEconomics Elite Member

    0
    Jun 19, 2007
    Professional Status:
    Certified General Appraiser
    State:
    New Mexico

    Mr Wilson .. could this be considered neighborhood redlining .. if it is MANDATORY and your statement is true? Wouldnt this fly in the face of fair housing laws?
     
  5. Renee Healion

    Renee Healion Senior Member

    0
    Feb 21, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Connecticut
    If they do not need the appraiser's judgement, they must want an AVM.

    They are not asking for expanded commentary when a guideline is exceeded, they are deciding by fiat what is not a comp. If they determine what is not a comp, then they are appraising.
     
  6. Renee Healion

    Renee Healion Senior Member

    0
    Feb 21, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Connecticut
    part deux... sorry keyboard has a hair trigger

    And if the lender/amc is appraising, the appraiser is not appraising but has now truly become merely The Form Filler. The resulting 'appraisal' is not a supported opinion but just a product made to order and is not compliant with USPAP.
     
  7. Terrel L. Shields

    Terrel L. Shields Elite Member
    Gold Supporting Member

    157
    May 2, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Arkansas
    100% agreed from these quarters....you've lost control of the "appraisal process" - it is being dictated to you. I bet 3 of 4 appraisers won't read it that way and won't have a problem with it unless it comes before the board.
     
  8. Mark to market

    Mark to market Junior Member

    0
    Nov 14, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    New Mexico
    That you could all interpret tightening standards as irrational, redlining or a USPAP violation assures me that you have been staring at the computer for quite some time.

    To me these are all rational guidelines for a tightening and declining market. Please remember that the guidelines are also not absolute as the lender allows for nonconformity with additional comps or thru a desk review.

    If we would have had these guidelines last year the lender implode meter would not be so high.
     
  9. PropertyEconomics

    PropertyEconomics Elite Member

    0
    Jun 19, 2007
    Professional Status:
    Certified General Appraiser
    State:
    New Mexico

    Mr Raney .. if you have a guideline that says its mandatory that comparable sales be within 5 miles in a rural area, and you are in Corona New Mexico, and the nearest most recent sale may be 20 - 30 miles away in a similar market .. but the GUIDELINES state they will not accept those comparables ... is that not issuing a near redline for Corona New Mexico?

    I ask because in Rural areas to say that a maximum of five miles distance for comparables when the nearest house to your subject is in excess of five miles away ... is not a reasonable guideline.

    Honestly the guidelines of this company appear to contradict themselves. In once instance sales exceeding these distances will NOT be accepted. In another they trigger a desk review. There is some disconnect here in my mind.

    I do understand your general points though. I just took them to an extreme because the underwriter may take them to an extreme with you.
     
  10. Workbox

    Workbox Elite Member

    1
    Mar 2, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Colorado
    What! UW's getting lazy! If they want pink fuzzy slipper appraisals, its time for them to leave. If they want they truth, get UW's that know how to comprehend.
     
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