AF New Appraisal Practices Board Appointment

[Fritz in NY]

love your new rice mix, I do buy that brand all the time....

 

[InsanityCO]

I understand Mark Lenne and the banking industry theory doing BPO's or a CVR or other type's of evaluation, however using these other products which the banks have started to use has not been proven to work in the long run. My problem with these other products is the actual subject property to be valued. For example, I have been doing purchases on older properties that the lender is trying to go FHA, I ask the listing agent is the property going to meet FHA standard's, they always say yes, doing my inspection on these properties, most of them have a lot of deferred maintenance and don't apply to the minimum FHA requirements. Most neighborhoods I appraise also have a lot of different types of homes and quality level's in the same neighborhood. How can you due a mass appraisal on these homes by just driving by and saying it meets the formula that was procured by a machine or a BPO by a Realtor who is just a salesman who usually has no idea about the property other than selling any amenities that they think are desirable to a buyer? The lending institutions have not been bit yet, I think they will or loan 60 to 70 percent LTV for the risk factor.

 

[Non Sequitur]

Last edited by Ken B : Today at 11:41 AM.

Typical Ken; post an insult trying to get a response and then erases/edits it a day later.

Yes, alternative products for appraisers. Can they also cut the grease and fat from USPAP to do these so called products as they would like us to do them. Will this discount our liability and E&O insurance at the same time?

Exactly. Instead of insulting appraisers who question whether APOs and AAVMs can compete with BPOs and AVMs, give us the tools to do so. And that would be to remove all regulatory constraints on appraisers. Allow appraisers to play by the same rules real estate agents and AVM companies play by, which for the most part are none. Then maybe, just maybe, I'll be able to crank out "alternative" products for $35 and below.

 

[Ken B]

Typical Ken; post an insult trying to get a response and then erases/edits it a day later.
Exactly. Instead of insulting appraisers who question whether APOs and AAVMs can compete with BPOs and AVMs, give us the tools to do so. And that would be to remove all regulatory constraints on appraisers. Allow appraisers to play by the same rules real estate agents and AVM companies play by, which for the most part are none. Then maybe, just maybe, I'll be able to crank out "alternative" products for $35 and below.

Actually, I merely changed my profile pic, as I do on the occasion, and the edit removed a suggestion that you refer to a profile pic that depicted Uncle Sam stating "I want you to stop whining."

Referring you to a profile pic of me didn't really make sense.

You should perhaps not consider yourself quite so important nor me quite so meek.

I must admit that your suggestions regarding removal of the restrictions on appraisers (i.e. USPAP) is profound twaddle.

 

[Don Clark]

Typical Ken; post an insult trying to get a response and then erases/edits it a day later.
Exactly. Instead of insulting appraisers who question whether APOs and AAVMs can compete with BPOs and AVMs, give us the tools to do so. And that would be to remove all regulatory constraints on appraisers. Allow appraisers to play by the same rules real estate agents and AVM companies play by, which for the most part are none. Then maybe, just maybe, I'll be able to crank out "alternative" products for $35 and below.

Great idea....notm2:

You must subscribe to the old time comedian "Brother Dave Gardner's" philosphy..."Just make everything legal, that way there will be no crime".

 

[Green Hornet]

There was a brief moment in time during the depths of this latest crash in which changes could have been made that would benefits appraisers. Changes that would have required the lenders to put more skin in the game and own the loans that they sold.

That moment is gone. The march forward to faster and cheaper continues. From a business stand point, an APO and a BPO are not equal. The APO still must comply with development and reporting requirements. The BPO, not. The end users do not care and as such, the BPO sets the upper limit for the fee for these products.

An analogy for you free market folks...the BPO is the company that can offshore its work force to India at $2/day. The APO is the company that is mandated to hire only US workers at $15/hr.

Tell me how I can be competitive with BPOs, AVMs and other alternative valuation products. Either make them abide by the same rules or allow appraisers to put on a different hat and step outside of USPAP for these "valuation" products.

If one is unwilling to consider either option, then stop pretending that the APO will allow the appraiser to compete with the BPO. It does not.

There is a widening gap between what USPAP requires of the appraiser and what the market place wants. At some point, it will get too wide and the mortgage origination, residential appraiser will be history. In an odd way, USPAP will be the demise of the residential appraiser.

I would love to be wrong about this. Don, can you help me to see the light?

Yes, there is a conflict of interest when a person is put into a public position that allows them to determine policy that directly benefits their private pursuits.

 

[Don Clark]

There is a widening gap between what USPAP requires of the appraiser and what the market place wants. At some point, it will get too wide and the mortgage origination, residential appraiser will be history. In an odd way, USPAP will be the demise of the residential appraiser.

I would love to be wrong about this. Don, can you help me to see the light?

.

Maybe that is the goal......the demise of the residential appraiser. Being at the end time of my career, I don't worry about myself. I worry about all those students I have helped enter the "profession", and whether or not I mislead them into thinking that being an appraiser was a worthy pursuit.

Unless standards(ASB) and practices(APB) work hand in hand and make USPAP more flexible, user friendly, and understandable then the whole thing is just one big merry go round.

 

[Ken B]

Abso-freaking-lutely amazing...

"USPAP killed the residential appraiser." "We could compete if it wasn't for USPAP."

That certainly goes a long way to answering why some refuse to join ANY professional appraisal organization.

 

[LI-Appr]

Maybe that is the goal......the demise of the residential appraiser. Being at the end time of my career, I don't worry about myself. I worry about all those students I have helped enter the "profession", and whether or not I mislead them into thinking that being an appraiser was a worthy pursuit.

Unless standards(ASB) and practices(APB) work hand in hand and make USPAP more flexible, user friendly, and understandable then the whole thing is just one big merry go round.

We need to address the influence that exist from certain market segments in the context of the TAF, ASB and others. How much input is done by members of TAVMA., First Amer, the big four oligopoly?ARE we are looking for independent appraisers? Or are puppets on a sting more desirable to the special interest groups.

IMHO
KP

 

[Don Clark]

Abso-freaking-lutely amazing...

"USPAP killed the residential appraiser." "We could compete if it wasn't for USPAP."

That certainly goes a long way to answering why some refuse to join ANY professional appraisal organization.

Has nothing to do with joining a professional organization. I have previously stated that 20 years ago I should have done just that. What I actually said was:

"Unless standards(ASB) and practices(APB) work hand in hand and make USPAP more flexible, user friendly, and understandable then the whole thing is just one big merry go round."

I believe that is true. If the ASB has standards that make it difficult if not impossible to do what is allowed or suggested by the APB, then all is for naught.