Interagency Guidelines, FDIC and AS IS Values

[mark hurlock]

Isnt an appraiser obligated to do the work competently and in compliance with law?

.

Is an appraiser who failed to educate the banker's employee incompetent or non compliant?

 

[Ken B]

<tap tap tap> Is this thing on?

Intended Use and Intended User.

If those aspects are related to an "end" loan...a loan related to the permanent financing of a proposed/new/under construction residential property, the exemptions (previously discussed) of the Interagency Guidelines most likely come into play. In which case, the appraisal is subject to the requirements of those agencies for which appraisal exemptions apply.

If the appraisal is related to funding an actual construction loan, which would be a relatively short-term loan held by the lender and not sold on a secondary market, then the exemptions which exist for "end" loans to be sold to the specified secondary market participants do not apply, although any of the other exemptions MAY apply. If NO exemptions apply and if the lender is subject to the OCC regulations previously quoted, THOSE requirements are applicable. If not regulated by the OCC, the lender is bound by the regulations of whichever entity has oversight over it.

That said, an appraisal for new construction may not actually be related to funding of a construction loan as the funding for the builder's existing line of credit the builder utilizes to finance construction may have been based upon an appraisal a CG might have performed on the entire subdivision. In which case, the SFR appraisal may be requested so as to establish the parameters of a draw against that line of credit.

The client knows...or should know...what they need. It is not unheard of that a specific client may want more than the minimum necessary for a job and may have different requirements than another client. If the appraiser is unsure, a phone call or email to the client may be appropriate.

Why is this a difficult concept?

 

[mark hurlock]

George, I distinguished between when a lender may “need” a particular value compared to when they may not. You for some reason misinterpreted this as legal advice to get around a requirement.

Then you gave your idealist opinion of your expectation of an appraiser in order to measure up to your standards. I simply recognized your expectation is unrealistic. You and CaN for some reason decided to posture yourselves as though this means I favor and or practice a lower level of professionalism. I will not join you in your efforts to elevate yourself above 90% or more of appraisers. You can stand alone on that. If you want to have a discussion and be realistic about it, count me in.

Something tells me you have an chip on your shoulder from another thread and can't let it go.

Since you like to impose your expectations on others, I must say I expected more from you on a public forum, kid.

 

[George Hatch]

Is an appraiser who failed to educate the banker's employee incompetent or non compliant?

Nice try at the diversion.

An appraiser failing to identify and satisfy the known and knowable minimums for an assignment is in violation. If that process ends up providing more in the assignment than what the client knows they need then that's the way it goes.

In this case these minimums have been published. Whether the banks employees I've actually dealt with all understood how the appraisal end of those requirements worked or not I was still obligated to know and comply.

I wasn't speculating about some of those employees not understanding some of those requirements, I was speaking from experience. That you find their lapses astonishing is kewl and all, but it doesn't alter that.

My guess is that if you were getting your AMC assignments from clerks in Mumbai you wouldn't find the possibility that they may not know as much about what you're doing as you do so astonishing.

 

[Ken B]

I don't know any reasonable person who would not agree that the intentional mis-statement of another's comments on a supposedly professional internet forum is grossly unethical.

Some are here to learn. Some are here to teach. Others are here to harass and subvert. It is a shame that the teachers have to continually battle the subverters so that the students are not mislead.

 

[Randolph Kinney]

Lenders and their staff may not know all that applies to them but some are now requiring the following certification statement in the appraisal:

The following FIRREA Certification Statement is required on all reports:

The appraiser certifies and agrees that this appraisal was prepared in accordance with the requirements of Title XI of the Financial Institutions, Reform, Recovery & Enforcement ACT (FIRREA) of 1898, as amended (12 U.S.C. 3331 et seq.), and any applicable implementing regulations in effect at the time the appraiser signs the appraisal certification.

Amendments to TILA and FIRREA Concerning Appraisals

Federal Register

Unified Agenda current as of Spring 2013

SUMMARY

The CFPB is participating in interagency rulemaking processes with the Board of Governors of the Federal Reserve System (Board), the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), and the Federal Housing Finance Agency (FHFA) (collectively, the Agencies) to develop proposed regulations to implement the amendments made by the Dodd- Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) to the Truth in Lending Act (TILA) and the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) concerning appraisals.

https://www.federalregister.gov/reg...nts-to-tila-and-firrea-concerning-appraisals-

The responsibility is on the appraiser to know what applies to them even if it is written for the lending institution or GSEs.

 

[George Hatch]

These are banking requirements, which means the banks are required to get appraisals that include these elements - whether the employees getting them understand those requirements or not. Their regulators aren't (mostly) going to come directly after the appraiser who failed to meet those requirements in their assignments; instead they'll discipline the lender for those violations.



How often have you had to explain why you did something in an appraisal to a client who wasn't appraisal-savvy? It's not really such a rare occurrence.

 

[George Hatch]

Then you gave your idealist opinion of your expectation of an appraiser in order to measure up to your standards. I simply recognized your expectation is unrealistic. You and CaN for some reason decided to posture yourselves as though this means I favor and or practice a lower level of professionalism. I will not join you in your efforts to elevate yourself above 90% or more of appraisers. You can stand alone on that. If you want to have a discussion and be realistic about it, count me in.

Something tells me you have an chip on your shoulder from another thread and can't let it go.

Since you like to impose your expectations on others, I must say I expected more from you on a public forum, kid.

I think most of our regulars understand what it means when I quote an AO from the ASB or relate war stories about what I've seen from the regulators over the years. Only some of the comments I've been making represent any original thinking of my own. Me (and others) toeing the party line is not me inventing or imposing personal standards of my own on you.

USPAP minimums are not some lofty and unachieveable goal that nobody can meet in their work. They're bare bones minimums that we expect everyone to meet. It's just not that complicated or difficult to understand that we must do what we say and say what we do.


As for the chip on my shoulder, I generally don't hold grudges from one discussion to the next. These disgreements happen all the time - someone strongly disagrees with me on one thread but I end up on their side in another. I freely acknowledge that I'm sometimes wrong, even sometimes when my opinion ends up prevailing.

There aren't any unified teams on this forum and the support we give each other in a thread is always conditioned on actually agreeing with the position being argued. Opponent in one exchange is often ally in another. That's pretty standard.

I take unpopular positions on certain topics on this forum on a regular basis and I generate my fair share of opposing viewpoints. But these gunbattles usually only get snarky when someone starts that, which is to say a lot of these debates pass without any of that. But by the same token I expect that if I get testy there's almost nobody on this forum who will put up with that for any length of time without returning it in kind. That's why when I start something like that I don't then claim shock or disappointment when that individual picks that gauntlet up and slaps me back.

You seem to have a habit of going to snarky early and often. Maybe you think you're being so subtle about it that you can claim some plausible deniability when people call you on it. If so then I fear you are either greatly overestimating your own writing skills or greatly underestimating other peoples' reading comprehension. Either of those being a fatal flaw in what goes on around here. Suffice it to say you're not the first appraiser to come here and engage in that mode of discourse and you're not even the most skilled troll we've ever laughed off the island. Those people some of these regulars are comparing you to but you don't know who they are? Where do you think they went and how do think they left?

I'm curious what you think it means when most every thread you engage in generates responses from various posters accusing you of being: (a) not nearly as smart as you seem to think you are; and (b) a possible troll because nobody could be that dumb and stubborn IRL.

 

[CANative]

Could you please expand on your comments George?

 

[George Hatch]

LOL, now that's a "request" I don't often get.

BTW, I've been on the opposing side of a couple of lengthy and impassioned gunbattles with both you and KenB recently, so that's an example of what I'm talking about when I say we never mindlessly line up in lockstep with each other.