July 2008 ASC Q&a- Wink Wink Comp Comp

[George Hatch]

Again, it's the assignment conditions of the second appraisal that might come into conflict with the Ethics Rule, not the first. You're not going to be able to cure the problem with the second assignment by outlawing the first, even if such a thing could be done on a standards basis.

Which it can't.

Lookit, why don't you try this? Approach your state legislators and lobby/bribe/coerce them to enact legislation at the state level requiring all appraisals to include at a minimum either a Summary Appraisal report or a specific preformatted file addendum that requires an arbitrary minimum level of documentation, including the signed certification. Enact specific minimum penalties for undocumented appraisals, starting at $1500 per offense. Then post all that information right on the state appraisal board's website both as a summary and in the form of a downloadable pdf.

Make these comp checks unprofitable and risky. It'll still be a state enforcement problem, but for a lot of people just being specific about the penalties will be enough to prod them into compliance. The perception out there now is that this is an offense that the states don't care about - hence your problems.

 

[Fred]

Nice in theory, but the problem is that they do not want us to perform a “comp check” just because they are curious. They want the “comp check” as an upfront guarantee.

And the guarantee is unethical, whether or not there is an upfront "comp check."

 

[Carnivore]

And the guarantee is unethical, whether or not there is an upfront "comp check."

Exactly, so why would an appraiser even bother with the comp check, Just go straight to the garantee and see if it works out.

Of course get your money upfront...

 

[Rice Brewer]

Rice, the point is that when it comes to "pressure", the ASB does not control--the ASB does not have authority over--those who would "pressure" appraisers. The ASB can only inform those appraisers who are subject to the USPAP as to what is, and what is not, acceptable behavior on the part of the appraiser.Lee

Yet, they refuse to give us the tools to refute the "pressure".

They should say that comp checks are NOT allowed because the potential for abuse is just too great for the PUBLIC good.

 

[Rice Brewer]

I can see your problem. They gave you the same answers I have been posting here for years. You didn't seem to like it when I said it either. I don't see any problem with the answers not making sense or not being understandable. They're just not the answers you want.

Steve, I am not saying that the answer (or your's over the years) isn't the "correct" answer vis a vie' USPAP. One CAN do comp checks and still be USPAP compliant if one has the fortitude and ethical backbone. I am saying that I wholeheartedly and 100% disagree with USPAP on this issue.

Comp Checks beget Guaranteed Values 99.9% of the time.

The solution: Make all oral appraisal reports, except as ordered to be given under oath by a Judge, against the USPAP.

 

[SANDY]

Yet, they refuse to give us the tools to refute the "pressure".

They should say that comp checks are NOT allowed because the potential for abuse is just too great for the PUBLIC good.

By George I think you've hit upon something with that public good thingy!!! Ahhhh but the traps must be allowed to be baited so that those that take the cheese because they have families to feed can be punished while those that provide the bait drive home in their Lexus!

 

[woodyva]

By George I think you've hit upon something with that public good thingy!!! Ahhhh but the traps must be allowed to be baited so that those that take the cheese because they have families to feed can be punished while those that provide the bait drive home in their Lexus!

Folks:

I am wondering if it even is worth the arguement. It seems TAF is more concerned seeing it's pockets lined by the "victims" it is et out to protect. The Public Trust lines in the USPAP should be changed to say the Lenders Trust.

We are a stepping stone, or hoop they jump through for loan processing. I am not being called a rogue appraiser by one of my clients because I have the courage to say a declining market is a declining market. Rubber stamping reports is all they want. I think they want us involved so when the loan defaults they can get the appraiser's E & O to cover the short falls of the MI.

 

[woodyva]

Again, it's the assignment conditions of the second appraisal that might come into conflict with the Ethics Rule, not the first. You're not going to be able to cure the problem with the second assignment by outlawing the first, even if such a thing could be done on a standards basis.

Which it can't.

Lookit, why don't you try this? Approach your state legislators and lobby/bribe/coerce them to enact legislation at the state level requiring all appraisals to include at a minimum either a Summary Appraisal report or a specific preformatted file addendum that requires an arbitrary minimum level of documentation, including the signed certification. Enact specific minimum penalties for undocumented appraisals, starting at $1500 per offense. Then post all that information right on the state appraisal board's website both as a summary and in the form of a downloadable pdf.

Make these comp checks unprofitable and risky. It'll still be a state enforcement problem, but for a lot of people just being specific about the penalties will be enough to prod them into compliance. The perception out there now is that this is an offense that the states don't care about - hence your problems.

George is right. The state's have the power to make new regs. The state can use the spirit of USPAP, but specify it's understanding in a manner that can stop this type of stuff.

 

[Bearslide]

George is right. The state's have the power to make new regs. The state can use the spirit of USPAP, but specify it's understanding in a manner that can stop this type of stuff.

But will they have the stones? Which will be the first state to step up to the plate and say "Enough is enough - it is WAY past time the words "for the public good" MEAN for the public good." Which state will draw the line in the sand and be the first? Which state will start interpreting for the public good instead of the good of the money men? Which state will push aside the brothelhood (as someone referred to it earlier today) and do what is right? Whichever state has the courage to protect their citizens will start the ball rolling. Which state wants to be known as the state that stood up and was counted, measured - and NOT found wanting? Is it to the east? The west? The north? The south? Which state will lead the way?

 

[Mike Phillips]

I think they want us involved so when the loan defaults they can get the appraiser's E & O to cover the short falls of the MI.

Interesting thought. How many E&O companies have you heard of that are screaming like mashed cats because they are being forced to pay claims? I haven't heard of one. It appears to me there are plenty of foreclosures to go around. So...what's up with that? The only thing I've heard about E&O companies is a rumor here or there about them decreasing their fees.