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Montana's Top 10 USPAP Violations

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by Doug Smith SRA, Mar 8, 2009.

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  1. Doug Smith SRA

    Doug Smith SRA Member

    0
    Jan 16, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Montana
    Here is a recent publication of the Montana Board of Appraisers. Item #9 is peculiar to Montana. I sent this along to some out-of-state friends and one found #9 "Bizarre." I never thought of it before then. What do you think?

    This is very helpful as a self-report card and extremely helpful with reviews. Trainees would benefit from this list.

    I do a share of reviews. I see many of these violations in the reports I review and yet these violations are very rarely cited by lenders. State Boards, however, pounce on these when reviewing reports. Almost never, do I see an appraiser summarize the Highest and Best Use on a 1004;instead the appraiser relies on the check box. I never see the land value supported; only some vague hint that it was either extracted or abstracted and one report this month had the land value derived from matched pair analysis.

    Why don't lenders review reports through the prism of USPAP?

    Here is the PDF attachment.

    View attachment Top 10 USPAP Violations (2).pdf

    Regards,

    Doug
     
  2. Caligirl

    Caligirl Senior Member

    0
    Jan 27, 2006
    Professional Status:
    Certified General Appraiser
    State:
    California
    #9 is less bizarre IMO than #5. #5 sounds like a mini-tirade written by someone who has been driven nuts over seeing the same mistake made over and over again.

    FWIW, I used to write my narratives as a trainee, with a copy of the USPAP 'checklist', a similar copy of 'Top 10 USPAP violations' from my state board, and the lender's requirements for that particular assignment on my desk. The reports were checked against those before they went out. These are all useful templates for any kind of reporting.
     
  3. PropertyEconomics

    PropertyEconomics Elite Member

    0
    Jun 19, 2007
    Professional Status:
    Certified General Appraiser
    State:
    New Mexico
    Were these found AFTER looking at the work file or only from reviewing the appraisal???
     
  4. Hamlet

    Hamlet Elite Member

    0
    Aug 14, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    Ohio
    Ohio's Top 10 Infractions

    PE, not maintaining a work file is #4 on the list in Ohio. I don't think these are listed in any particular order, however.
     

    Attached Files:

  5. Doug Smith SRA

    Doug Smith SRA Member

    0
    Jan 16, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Montana
    Good Question

    This is my reading of the situation.

    The Board uses an extensive check list to review the report. Most of the questions are directed to the report and not the work file.

    The case examiner first considers the report on its face. For instance, if the report glibly cites some means from which land value is derived and there is no summary of this step and no mention of actual land sales or homes sales from which the value was extracted, the examiner will move on into the work file.

    Most of the violations are derived from a reading of the report. The lack of a summary of Highest and Best Use is the most frequent "Gotcha." If the summary is not in the report, the report will be cited.

    My argument about this particular HBU Gotcha is the form itself. If single family use was not the highest and best use, then the appraisal would not be on a 1004. But I don't argue with the MAN! I just summarize the obvious.

    If investigated, the work file is examined and some citations are issued on the basis of lack of detail in the work-file but the report itself is where the examiner concentrates the effort.

    Most appraisers get into trouble because they have no idea how to summarize their analysis. Adjustments are sprinkled onto a report like so much salt and pepper. Armed with this list, any report can be cited. Read about Exposure and ask if your report clearly states an opinion in the context of exposure time.

    Doug
     
  6. Abester

    Abester Senior Member

    0
    Jun 12, 2003
    Professional Status:
    Certified General Appraiser
    State:
    Florida
    Why is the reporting of exposure time required? My last USPAP class instructor indicated this was no longer required except in unusual circumstances. Development is still required, but not the reporting.
     
  7. timd354

    timd354 Elite Member

    109
    Jan 11, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Maryland
    Lenders don't review reports through the prism of USPAP because they generally do not have even a minimal understanding of USPAP and they simply do not care about USPAP.
     
  8. Green Hornet

    Green Hornet Senior Member

    0
    Dec 29, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    Washington
    If they required a USPAP compliant report, it would cost too much money, drive 80% of the appraisers out of the business and slow everything down.

    I have been wondering,,,is there such as thing as an implied scope of work.

    If I submit a report, developed in a certain way, with certain information and comments and it is accepted by the client, does that acceptance establish a scope of work for an acceptable report so long as new orders do not require anything additional?
     
  9. JSmith43

    JSmith43 Elite Member

    18
    May 5, 2003
    Professional Status:
    Certified General Appraiser
    State:
    California
    2 and 10 are a load of caca. I would expect more from citizens of Montana. Someone must be forcing them to behave this way at the point of a ....:unsure:

    Well, at least they didn't ask for the list. Homey don't play that game. (Homey the clown-In Living Color reruns)
     
  10. Greg Bell

    Greg Bell Senior Member

    0
    Jul 7, 2006
    Professional Status:
    Gvmt Agency, FNMA, HUD, VA etc.
    State:
    Louisiana
    Drivel.................
     
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