Hybrid Appraisal Extraordinary Assumptions

[Meandering]

Varies by assignment. Obviously. Which should go without saying, but apparently doesn't.

really?

There is a "law" pertaining to residential lending appraisals that varies with the assignment?

what are they,

since they are laws that appraisers must RECOGNIZE and comply with, not just state some law some place varies.

so what are those laws?

.

 

[glenn walker]

Marion let's start making a list of how many times appraisers break a law either unintentionally or because the creators of forms and their SOW may in themselves break a law. Let's examine the issue of Home Inspections and FHA & VA appraisals. Jimmy-Bob Appraiser just received an-order for a FHA. These agencies require the property to meet minimum property requirements and the appraisers SOW is to physically inspect- observe both the interior and exterior and to make a list of any required repairs or inspections and include a cost to cure for those repairs.

First the typical appraiser has no construction or home inspection background and technically under USPAP the appraiser is accepting a SOW when he/she is not qualified to do home inspections and in States that require home inspectors to be licensed are we breaking both USPAP and State Laws ?

 

[Dale Floyd]

Marion - Dearest - I do love to read your thoughts, as you are very knowledgeable about a great many things....

But your application about who is supposed to know what, is mislabeled in this instance. If a lender fails to follow the rules, then he/she/they/it are supposed to face consequences based on the regulations which were written for them and their loan policies. If they do something wrong, or order the wrong thing, then that's not our fault. If we do something wrong based on regulations written for us, however, then that's on us.

I mean - What if the bank failed to order an appraisal in the first place? Since those same regulations you are pointing to states one must be done, would we be at fault for not doing one anyway? Of course not...

Again - These regulations are about appraisals, but they are not for appraisers - They are for bankers....

 

[hastalavista]

I appreciate your optimism.

I like to think I have an optimistic nature.

But, my post was more serious than tongue-in-cheek (believe it or not).
If any appraiser agrees with the argument that USPAP compliance includes ensuring that every lending assignment they complete needs to have the loan components (loan amount, risk assessment, loan program, etc.) verified by the appraiser so they can ensure they competently complete the assignment, I encourage them to do so. In that case, I would think consistency and prudence demand they do it for every lending assignment because we don't want to be responsible for a client's incorrect loan categorization and lending decisions. But some might just selectively apply that standard to certain appraisal types. Every appraiser has that ability already; we are free to choose if we want to take on an assignment nor not.

 

[Meandering]

But really George.

How can an appraiser know if they are competent to perform a residential lending appraisal PRIOR TO ACCEPTING the appraisal order,

if no one, not even here, can list the laws the appraiser must recognize and COMPLY with?

Surely, there is something, someone is not saying.

There wasn't any such requirement to to recognize and comply with laws in the competence rule in the the 2005 or even the 2008 USPAPs.
IIt was in the 2014 USPAP though.


OMG,

This was a NEWER REQUIREMENT THAT USERS OF APPRAISALS TOLD THE ASB needed to be in the USPAP.

NOW WHY, does anyone think this new requirement was needed?

Check out your old USPAPs, yourselves, maybe the requirement wasn't in the same place it is today.

.


.

 

[Meandering]

Hello Danny?

Marion - Dearest - I do love to read your thoughts, as you are very knowledgeable about a great many things....

But your application about who is supposed to know what, is mislabeled in this instance. If a lender fails to follow the rules, then he/she/they/it are supposed to face consequences based on the regulations which were written for them and their loan policies. If they do something wrong, or order the wrong thing, then that's not our fault. If we do something wrong based on regulations written for us, however, then that's on us.

I mean - What if the bank failed to order an appraisal in the first place? Since those same regulations you are pointing to states one must be done, would we be at fault for not doing one anyway? Of course not...

Again - These regulations are about appraisals, but they are not for appraisers - They are for bankers....

Dale is looking for you,

He can't list the laws appraisers must recognize and comply with, for residential lending appraisals either.

.

 

[djd09]

He is conferring with his lawyer???

 

[BRCJR]

Since you know more than Danny about USPAP,

Then you answer the question,
What are the laws applicable to a Residential Lending Appraisal,
that the APPRAISER must recognize and comply with?
.

Simply, that depends upon the SOW.

 

[BRCJR]

I have placed over 10,000 appraisal assignments in my career, so far.

Not ONE time has an Appraiser inquired as to the interest rate we are charging for that particular customer.

If they did I would tell them it is confidential.

Can anyone tell me how the SOW would differ on a higher priced mortgage than one not higher priced?

 

[Meandering]

Simply, that depends upon the SOW.

uhmmm,

well,

see,

kinda,

you need to know the scope of the work, before you can know if you can competently complete the appraisal. And you need to recognize and comply with the laws that pertain to the assignment, not specifically to the scope of the work.

Maybe that's why the competency rule comes before the scope of the work rule?

eh?

,