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Old 12-05-2003, 01:47 PM
Christopher Lauver's Avatar
Christopher Lauver Christopher Lauver is offline
 
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Hello All,

I have recently rec'd a strange request to look over (Desk review?)3 appraisals for a local mortgage company. They said the reviews are for "internal use only". They say that it is for a hud review of their work. Hud has asked to see some of there work? and they want to make sure the appraisals are up to snuff. Strange thing is the work is 2 1/2 to 3 years old. Can these be done w/o me becoming responsible due to the "internal use"? Has anyone ever come across this? It just doesn't feel right in the gut. I love the forum, but I will say after reading a lot of the posts within this forum I tend to be less trusting of mortgage co.

Thanks,

Chris
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Old 12-05-2003, 03:25 PM
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Pine Tree Pine Tree is offline
 
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My Gut agrees with yours.

Peace, Wendy
  #3  
Old 12-05-2003, 03:45 PM
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Pamela Crowley (Florida) Pamela Crowley (Florida) is offline
 
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I don't think I would do that! HUD probably already has had full field reviews done on those.

PLEASE DON'T EVER BELIEVE ANYONE

THAT YOUR APPRAISAL OR OPINION IS ONLY

FOR THEIR INTERNAL USE!!!!!!
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  #4  
Old 12-06-2003, 10:49 AM
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George Hatch George Hatch is offline
 
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On the one hand, I don't trust mortgage brokers. On the other hand I don't see how a technical review of an appraisal, performed compently and ethically by the reviewer, can be used for a bad purpose.

It could be that HUD is looking to make the broker take back a couple of bad loans and the broker wants to find out if there's any justification to say "no"; and there very well might be. Or, it could be the the broker suspects there is a problem with this work and wants to find out one way or another. Or it could be that the broker wants to find out about the long term performance of their appraisers. Or it could be any one of a dozen more legitimate uses. I wouldn't make an assumption that a review is going to turn up a problem or automatically turn out badly for the original appraiser. Sometimes reviews are simply used as a secondary stamp of approval.

The thing to keep in mind about a review is that even if there are errors, they should be put into perspective. A couple typos and maybe an incorrect sale date or missing a mortgage amount on a comparable is no big deal and isn't going to affect the value opinion. Even when you do find errors like that, they should be communicated as just that, minor errors. People commonly get caught up in the thinking that their job as a reviewer is to play detective and start with a presumption of guilt. To show the original appraiser for the corrupt and evil person they are, and that all errors or differences in opinion or style are proof of that evil. IMO, that's way over the top.

If the original appraiser screwed up or did things they shouldn't have done, that isn't the reviewer's problem, nor can it ever be wrong for them to point it out. Just so long as it's all kept in perspective.
  #5  
Old 12-06-2003, 03:01 PM
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Ben Vukicevich,SRA Ben Vukicevich,SRA is offline
 
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I remember reading somewhere that HUD was coming down on lenders for not doing enough of their required appraisal reviews for quality control purposes.

Maybe some one will remember the exact statement from HUD.


Ben
  #6  
Old 12-06-2003, 05:21 PM
Oregon Doug Oregon Doug is offline
 
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Christopher - the phrase "internal use only" means that your review/appraisal report will remain within the confines of the earth's gravitational field!

I appraised a hospital back in the 70's and was called before a Senate Subcommittee about three years later to testify as to where I got the replacement cost data!

Oregon Doug
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  #7  
Old 12-08-2003, 09:32 AM
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Christopher Lauver Christopher Lauver is offline
 
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Thanks for the all the comments. What about having the client sign a letter of engagement stating the work to be done is for internal quality control use only? I don't know if it makes a difference, but they are not looking for a written opinion of value just if the report is of good quaility. I went to Standard 3 and it seems that one could report on the quality of the work as long as the "scope" is disclosed. In addition, could it be possible to note all this in the review and be protected?

Chris
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