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  #1  
Old 08-16-2011, 11:17 AM
Kali the Boston Terrier's Avatar
Kali the Boston Terrier Kali the Boston Terrier is offline
 
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Default State Complaints

Thoughts after seeing a few files come across my desk...

Many lender complaints center on the question(s) adjustments, use of certain sales, belief that the appraiser overlooked other sales, etc. Many of the complaint issues that I see most appraisers getting into issues with, are things that are FNMA guidelines or are some lender specific guideline. Unless it was clearly articulated in the engagement agreement, there is little in the way of a USPAP violation.

The board members have the unique ability to look into your work file, and see what things you did and did not do. I am amazed about about how little appraisers have in their work file, I'm also amazed by how little they have in it knowing full well they are sending it into the State. 9.9 times out of 10 what you are preparing is a Summary Report, which means your work file should have the necessary information for me to rely upon. It's funny I have actually seen more lenders do paired sale analysis for contested adjustments, then I actually see appraisers do.

One final thing, just because you do not believe the complainant is an intended user, they can still complain...anyone can complain, for any reason. At that point it becomes the department's complaint, not the complainant. Saying you are not going to send the work file in to the State because you disagree with the complainant right...will just get you sacked with a violation that would be just as disastrous to your career as anything that they are complaining about.
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Old 08-16-2011, 11:51 AM
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Wow...pretty amazing, yet not surprising, either. What are the rebuttals like?
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  #3  
Old 08-16-2011, 02:43 PM
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Kali the Boston Terrier Kali the Boston Terrier is offline
 
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Originally Posted by residentialguy View Post
Wow...pretty amazing, yet not surprising, either. What are the rebuttals like?
You mean the compliance hearing? Many do not show up, the ones that do are very scared, and for good reason.
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Old 08-16-2011, 04:16 PM
PL1957 PL1957 is offline
 
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Quote:
Originally Posted by Kali the Boston Terrier View Post
The board members have the unique ability to look into your work file, and see what things you did and did not do. I am amazed about about how little appraisers have in their work file, I'm also amazed by how little they have in it knowing full well they are sending it into the State. 9.9 times out of 10 what you are preparing is a Summary Report, which means your work file should have the necessary information for me to rely upon. It's funny I have actually seen more lenders do paired sale analysis for contested adjustments, then I actually see appraisers do.
IMO, I don't think you should be the workfile police. I think you should rely on what's in the report unless there is a compelling reason to go past it. To the best of my knowledge, there are no guidelines in USPAP or anywhere else indicating specifically what should or shouldn't be in a workfile other than "all other data, information, and documentation necessary to support the appraiser's opinions and conclusions and to show compliance with USPAP ..." If that's not a "gray" statement, nothing is.

If a report has USPAP issues, it has USPAP issues. You don't need a workfile to make that determination.
  #5  
Old 08-16-2011, 06:54 PM
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Kali the Boston Terrier Kali the Boston Terrier is offline
 
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Originally Posted by PL1957 View Post
IMO, I don't think you should be the workfile police. I think you should rely on what's in the report unless there is a compelling reason to go past it. To the best of my knowledge, there are no guidelines in USPAP or anywhere else indicating specifically what should or shouldn't be in a workfile other than "all other data, information, and documentation necessary to support the appraiser's opinions and conclusions and to show compliance with USPAP ..." If that's not a "gray" statement, nothing is.

If a report has USPAP issues, it has USPAP issues. You don't need a workfile to make that determination.
When someone alleges a SR 1 complaint, the only thing you have to rely upon is the work file. Seeing almost all have a SR 1 complaint attached to it, or the allegations are that an appraiser did not have adequate support for an adjustment...the only thing that will protect an appraiser is the work file.

I would go so far as to call the State Appraisers Board the police, but development and reporting are different and both are usually cited as a complaint. Your statement "all other data, information, and documentation necessary to support the appraiser's opinions and conclusions and to show compliance with USPAP ..." is especially the reason why the appraiser should have a very full file for a state complaint.
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  #6  
Old 08-16-2011, 06:59 PM
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What do you do in a case where the file is full of good supporting evidence...the only problem is that he didn't add that to the report, making the report suspect of being unsupported because of lacking evidence actually in the report?
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  #7  
Old 08-16-2011, 07:08 PM
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Joyce Potts Joyce Potts is offline
 
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If you get a complaint field on you, you need to timely, I said TIMELY, respond. Hire a consultant who can help write a rebuttal. I've done that many times for certain appraisers when I think they have a fair shake and did a fair job.

Conversely, I've turned my share of horrific appraisals in for disciplinary action.

The purpose of the TIMELY REBUTTAL, at least in Florida, is to convince the investigators and/or attorneys to drop the case and not forward it to the PROBABLE CAUSE PANEL, because if it advances to the Probably Cause Panel it becomes far more serious and costly.
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  #8  
Old 08-16-2011, 11:35 PM
PL1957 PL1957 is offline
 
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Quote:
Originally Posted by Kali the Boston Terrier View Post
When someone alleges a SR 1 complaint, the only thing you have to rely upon is the work file. Seeing almost all have a SR 1 complaint attached to it, or the allegations are that an appraiser did not have adequate support for an adjustment...the only thing that will protect an appraiser is the work file.
How many complaints allege SR1 violations? How many complainants know that there is a SR1? When I did reviews for my state, most complaints consisted of "this is a bad report".
Quote:
Originally Posted by Kali the Boston Terrier View Post
I would go so far as to call the State Appraisers Board the police, but development and reporting are different and both are usually cited as a complaint. Your statement "all other data, information, and documentation necessary to support the appraiser's opinions and conclusions and to show compliance with USPAP ..." is especially the reason why the appraiser should have a very full file for a state complaint.
You can NEVER have enough in your files to include "all other data, information ... necessary" It is so broad a requirement as to be nonsensical. Reasonable people can look at the same workfile and legitimately disagree as to whether it contains "all other data ... necessary". Why would you even consider sanctioning someone for such a vague requirement unless there was something significantly wrong with the report?
  #9  
Old 08-17-2011, 12:06 AM
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Here is a good document to print, read and keep somewhere

http://www.appraiserdefense.com/supp...toftrouble.pdf
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  #10  
Old 08-17-2011, 04:37 AM
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Kali the Boston Terrier Kali the Boston Terrier is offline
 
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Quote:
Originally Posted by PL1957 View Post
How many complaints allege SR1 violations? How many complainants know that there is a SR1? When I did reviews for my state, most complaints consisted of "this is a bad report".
Nearly all of them allege it, the complaints we see are from ore sophisticated users, written by chief appraisers for banks.

Quote:
Originally Posted by PL1957 View Post
You can NEVER have enough in your files to include "all other data, information ... necessary" It is so broad a requirement as to be nonsensical. Reasonable people can look at the same workfile and legitimately disagree as to whether it contains "all other data ... necessary". Why would you even consider sanctioning someone for such a vague requirement unless there was something significantly wrong with the report?
Who said dinging someone about the contents of a work file? My point is that the work file offers protection for the vague complaints of development. The only requirement for work file content is a true copy of the report, the rest is up for interpretation. The point is that if someone says a report lacks support for say a view adjustment, and then the work file has nothing in it to support that adjustment that's a problem. There is nothing in USPAP that compels the report contents to support that adjustment under a Summary report format. Yet without that support in the work file and/or support for a different adjustment coming from the complainant, the only saving grace at that point for the appraiser is a work file.
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