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  #1  
Old 03-08-2009, 08:11 PM
Doug Smith, SRA's Avatar
Doug Smith, SRA Doug Smith, SRA is offline
 
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Default Montana's Top 10 USPAP Violations

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.

Top 10 USPAP Violations (2).pdf

Regards,

Doug
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Old 03-08-2009, 08:25 PM
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#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.
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Old 03-08-2009, 09:27 PM
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Were these found AFTER looking at the work file or only from reviewing the appraisal???
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  #4  
Old 03-08-2009, 10:39 PM
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Default 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
File Type: pdf http___www.com.ohio.gov_real_docs_real_winter0809.pdf (52.4 KB, 42 views)
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  #5  
Old 03-08-2009, 11:01 PM
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Default Good Question

Quote:
Originally Posted by PropertyEconomics View Post
Were these found AFTER looking at the work file or only from reviewing the appraisal???
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  
Old 03-08-2009, 11:21 PM
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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  
Old 03-09-2009, 12:07 AM
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Quote:
Originally Posted by Doug Smith, IFAS View Post
Why don't lenders review reports through the prism of USPAP?

Attachment 17192

Regards,

Doug
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.
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  #8  
Old 03-09-2009, 12:38 AM
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Quote:
Originally Posted by timd354 View Post
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.
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  
Old 03-09-2009, 01:55 AM
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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 ....

Well, at least they didn't ask for the list. Homey don't play that game. (Homey the clown-In Living Color reruns)
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  #10  
Old 03-09-2009, 07:25 AM
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Drivel.................
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