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Why is USPAP bad for us?

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by esturni, Aug 24, 2007.

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  1. esturni

    esturni Sophomore Member

    0
    Dec 31, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    I've been reading some posts about the downturn in the market, the mortgage crises, slow work for appraisers etc... People here have blamed skippy appraisers, shady mortgage brokers, etc, and also USPAP... Why USPAP? I don't see it.
     
  2. leelansford

    leelansford Elite Member

    45
    Mar 29, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois

    Add me to your list of those who "don't see it."
     
  3. Non Sequitur

    Non Sequitur Elite Member
    Supporting Member

    249
    Feb 14, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Louisiana
    I think the general feeling is that USPAP is open to many interpretations which lead to differing standards. Many would prefer a 10 Commandments sort of standards. IMO the general lack of business acumen of many independent appraisers hurt the industry more than anything else.
     
  4. Midwest Guy

    Midwest Guy Senior Member

    0
    Dec 12, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    Missouri
    I read over and over again from the same few people that USPAP is not strict enough, the ASB was way too late in the new appraiser requirements, AO 2 allows less than a "Full Appraisal," blah, blah, blah.

    USPAP gives us something, it is a work in progress, and must meet the needs of several. The problem is not USPAP, the problem is applying the rules we have to all appraisers, not just the ones trying to comply.

     
  5. Joyce Potts

    Joyce Potts Elite Member

    58
    Feb 6, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    The Fraud of Appraisal Regulation-It's worth the read.

    http://www.financialsense.com/editorials/reality/2004/0702.html

    I've posted this article multiple times, but few people read it, and many that do read it, tend not to believe it.

    IMO, the appraisal regs were authored to afford the lending industry the ability to exploit the 'Skippy' appraiser who 'played ball' allowing billions of profits to be made on otherwise 'risky' loan scenarios, yet allows them to lower the boom on the appraiser when things head south.

    The lending industry and their high-paid lobbyists in Washington D.C., are not there to do the 'right' thing, they're there to make sure the revenue streams continue to flow.

    Soon or later, the appraisal community, the borrowers, the taxpayers who eventually foot the bill and the politicians are going to have to wake up and smell the Starbucks.

    http://www.financialsense.com/editorials/reality/2004/0702.html
     
  6. rcsone

    rcsone Senior Member

    0
    May 26, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Oklahoma
    as stated in agreement to the prior of JP's post........."THEY" screwed the US taxpayer during the arranged S & L explosion. This time, in concert with the US Gov, the "deal" was passed to our trading partners for energy and cheap imported goods to exchange uncollectable IOU's for dollars held for investment throughout the world for unpaid bills. Plus if the dollar drops we repay some of the lowered balance with lesser valued (in exchange...) dollars. We are living beyond our borrowed means from ourselves and other folks. And some in both camps will suffer because we have to prove with local destruction of some homeownership, investments, and employment that we were "duped" to the same degree....(?). Before the FALL, they created the MOUNTAIN........bail out the lenders----helk, no. Let them do without the taxpayers' pocketpick just like we all have to do when our problems happen individually. The poor appraising folks and poor appraisal processing/selection were propagated and originated to fall from the same tree at different times. The old, proper non-participants were out-reproduced by the newbies and, therefore, their influence of honesty and dilligence was diminished accompanied by lost of income. The future? Change creates opportunity..............and the preceding appraisal path was filed with dishonesty by intention, so-o-o maybe, the next phase will be better.............being uncooperative by nature and sensitive to real or imagined criticism, this "courtship" of LO/MB was never attempted or considered, which makes the middle of next year forward a look of good for me and mine..........
     
  7. moh malekpour

    moh malekpour Elite Member

    0
    May 25, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Excellent essay by Mr. Levy. I don’t know where is he at now but he wrote this manuscript in 2004. If he wants to rewrite it now, it is even worse. I wish he would write a similar article in one of newspapers now which there is bette receptive atmosphere than 2004. His analysis and solution are right on target
     
  8. Joyce Potts

    Joyce Potts Elite Member

    58
    Feb 6, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    I had the pleasure of speaking to Mr. Levy personally when I first posted this article. Since its publication, Mr. Levy has left the appraisal business, unfortunately.

    Mr. Levy was clearly far more astute than many of us and clearly ahead of his time, IMO.
     
  9. Workbox

    Workbox Elite Member

    2
    Mar 2, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Colorado
    Moh, I have talked to others, the Street does not want this out and us yapping our gums about this and that we "told you so" and expose it to the general public or investors to see. Yes, it is very good reading and we know the drill. But they are controlling the spin as best as they can. Just get out of the way when it/they get(s) nauseous.
     
  10. KEN SMITH

    KEN SMITH Sophomore Member

    0
    Jan 6, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Indiana
    Ken Smith

    USAP is not perfect and is not clear in some situations but the appraisal industry has to have some rules,some minimum standards to which we will not exceed.Many lenders,brokers and bankers have never heard of uspap.But overall uspap is a good set of basic standards, Thank you
     
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