Evaluation Liability

[DWiley]

You are interpreting the requirement incorrectly but I have learned over the years that despite what happens in the real world, when you have made your interpretation, no amount of information to the contrary will change your opinion. I can live with that. But I'll point out these errors (as I see them) in my post so others can evaluate (pun intended) on their own. I'm confident your intent is the same when you post in argument.

As my kids would say - True dat.

My experience with this is not limited to the work I did as a firm owner at The Wiley Group. I have also discussed it first hand in formal meetings with the regulators themselves. Marion, please forgive me if I consider those regulators as a more authoritative source than your rambling disjointed postings. Cheers

 

[Pittsburgh Pete]

Marion should be back shortly to explain her confusion and admit that she was incorrect!

 

[George Hatch]

I can't believe this is even a controversy.

"Appraiser" is defined by the actions of the individual and the expectations of the user, not by the labels and nomenclature being used. Not by licensure. Appraisers existed prior to USPAP and they will continue to exist after USPAP, and so will the fundamental expectations in the market for people acting in this role to be technically competent and ethical WRT impartiality and objectivity.

That an unlicensed individual may act as an appraiser to produce a workproduct that does not meet the minimums in USPAP doesn't make them not-an-appraiser in relation to our definition of that term, nor does it make that workproduct not-an-appraisal; it's strengths or weaknesses notwithstanding. That they may not be obligated by law or contract or agreement to adhere to everything in USPAP doesn't alter the fact that we can still judge its credibility at least in part on the fundamentals in USPAP. By which I am not referring to housekeeping trivia like 3yr assignment or 3yr sales history requirements or the like.

There are other property valuation standards and other titles or nomenclature for activities that fit the definition of an appraisal and appraiser. Those other valuation standards share certain fundamentals of USPAP because they basically have to due to the nature of what we do and what the market expects of the outside valuation opinion. If all you had to adhere to was a contract between you and your client and there wasn't any other formal written standard, the people using that appraisal would still have expectations for competency and ethics, everything else in USPAP being an extension or expansion or clarification of those two requirements.

And for the last time - AO13 is NOT part of the USPAP itself. It's an informed opinion that's based on the ASB's interpretation of USPAP, the ASB being the recognized authority WRT understanding USPAP. (even if some of the individuals who have served on the ASB have been ...inconsistent ...about certain issues).

 

[Terrel L. Shields]

The evaluation forms are generally a single page which covers the points required by the IAEG guidelines. Cookie cutter evals take about 15-30 minutes if data is plentiful. Rural or oddball properties can take a bit longer. These evaluations are typically completed by unlicensed persons.

My evaluation cost $175 and contains 10 MLS printouts total 15 page. Loan officer took the pix and unlicensed student wrote report. MAI owns the company. All the office ID info has been scrubbed from MLS Sheets but signer is not member of board.

 

[Dale Floyd]

So many varying opinions about this within the appraiser community. How odd we must sound to the outsiders who believe we are the one group who should have this figured out.

I'm an analyst - about everything. Overkill, some would say. And I do appreciate the time and effort put into this conversation because there have been things stated that I hadn't considered pertaining to evaluations vs appraisals. Pieces of most opinions have some truth from both sides.

But I'm convinced from the rather stark amount of evidence we see thus far, there is a real difference between evaluations and appraisals from the legal, audit, lending, and regulatory perspectives. I'm not sure I buy the argument that anything we say with a value estimate qualifies as an appraisal and must pass USPAP. I'm also not buying the argument that appraisers have no greater obligations than non-appraisers when we deliver products like evals to our clients. I'm not sure that saying something is "restricted" over an assignment in Tennessee that says "This is not an appraisal" across the front is the answer although I think I understand why that's being done.

Bottom line - I can find nothing - NOTHING - that has the finality of a judicial hammer stating evals and appraisals are to categorized as the same thing, and evals have been around just as long as the appraiser licensing laws. I think this is because those of us out of finance who used to have Collateral Reviews aka Evaluations have always known the differences.

Example.

Evaluation - That piece of property is probably worth around $250,000+/- based on overall information. Something like that. (So using it as collateral for a $50,000 HELOC makes sense.)

Appraisal - Based on ALL relevant facts, the market value of that piece of property is justified to be $237,800 Here is all the credible proof and analysis. (The sale price of $236,000 is justified, and a mortgage request of $180,000 can proceed to the next step in the process.)

 

[J Grant]

As an analyst, you came to a wrong conclusion about appraisers and USAP. (imo)

It's not up to you or me to "buy an argument", it's right there in USPAP, any time an appraiser opines a value, even if that opinion is a verbal statement, they have done an appraisal, and must have a work file with from which they can create an appraisal report. ( this is not exact verbiage from USPAP I am summarizing) And USPAP has a few minimum caveats in reporting we are stuck with, that we would have to add to an evaluation...it would still be an evaluation, only difference is an appraiser would need to add to the evaluation report needed USPAP compliant statements and our work file must be that from which an appraisal could be developed. .

. Unless there is a local or state law that creates a jurisdictional exception that would release an appraiser from USPAP if doing an evaluation....seems FL is considering such a law. ( from another post)

 

[DWiley]

I'm not sure that saying something is "restricted" over an assignment in Tennessee that says "This is not an appraisal" across the front is the answer although I think I understand why that's being done.

Who is doing that? I never heard of that. I would find that confusing.

 

[SpartanAG]

My evaluation cost $175 and contains 10 MLS printouts total 15 page. Loan officer took the pix and unlicensed student wrote report. MAI owns the company. All the office ID info has been scrubbed from MLS Sheets but signer is not member of board.

My apologies. I should have been more clear. When I said single sheet, I meant all the analysis was done on a single sheet. The data for the sales used and pictures of the subject add additional pages.

 

[Dale Floyd]

Who is doing that? I never heard of that. I would find that confusing.

It was confusing to me too, but that reference is to a conversation going on outside of this thread. And, of course, I may have misunderstood.
There are several readers, who would rather discuss without posting things for all to see.

I've not spoken to you directly about this before Danny, but I think Tennessee did a pretty good job covering this in our state law. I understand
all the arguments from Mr. Grant, Marion and others, but I think there's a limited place for a non-appraisal product like evals and I really believe
appraisers are the perfect professionals to handle them without all the required legalese of a conventional appraisal.

Do you agree, or do you have other thoughts about it all?

 

[J Grant]

JGrant is a female but no problem re confusion on a bulletin board!

Hope evaluations can be reasonable additional source of work/ income for appraisers.