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  #1  
Old 10-16-2007, 02:49 PM
Carnivore's Avatar
Carnivore Carnivore is offline
 
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Location: Queen City
State: North Carolina
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Default I got this today.

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.
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  #2  
Old 10-16-2007, 03:16 PM
3 Putt's Avatar
3 Putt 3 Putt is offline
 
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Default

Quote:
Originally Posted by Carnivore View Post
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.[/i]
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  
Old 10-16-2007, 03:22 PM
The Matrix The Matrix is offline
 
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State: Colorado
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Default

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  
Old 10-16-2007, 03:34 PM
PropertyEconomics's Avatar
PropertyEconomics PropertyEconomics is offline
 
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Location: Central New Mexico
State: New Mexico
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Default

Quote:
Originally Posted by David Wilson View Post
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.

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?
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  #5  
Old 10-16-2007, 03:44 PM
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Renee Healion Renee Healion is offline
 
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Location: Land of Steady Habits
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Default

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.
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  #6  
Old 10-16-2007, 03:58 PM
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Renee Healion Renee Healion is offline
 
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Default

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.
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  #7  
Old 10-16-2007, 08:38 PM
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Terrel L. Shields Terrel L. Shields is offline
 
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Location: Springtown, AmeRica
State: Arkansas
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Default

Quote:
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
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.
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  #8  
Old 10-16-2007, 09:29 PM
Mark to market Mark to market is offline
 
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State: New Mexico
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Posts: 439
Default

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  
Old 10-16-2007, 09:43 PM
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PropertyEconomics PropertyEconomics is offline
 
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Location: Central New Mexico
State: New Mexico
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Default

Quote:
Originally Posted by Mark Raney View Post
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.

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.
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  #10  
Old 10-16-2007, 10:10 PM
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Default

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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