When is a Review Required to meet Std 3?

[Joyce Potts]

But a certified appraiser working for a bank, but acting as an administrative reviewer? Does Std 3 and 4 apply? I doubt it.

It absolutely does. Where is USPAP is a certified appraiser working as a bank employee given a USPAP pass. He may be in compliance with other banking regulatory guidelines, but if I want to hire a review of that review???

Secondly, in my case cited in the original post, the Certified Appraiser was an INDEPENDENT fee appraiser hired by the bank. Why they hired someone from SC to review an appraisal from Florida, is beyond me. So your reviewer employee issue is not relevant to my particular situation.

 

[Terrel L. Shields]

Where is USPAP is a certified appraiser working as a bank employee given a USPAP pass

when wearing their banker hat, in my state, an appraiser does not have to comply with USPAP.

 

[djd09]

The Evolution of Review Appraisals and Having Only One Throat to Choke


July 9, 2010, 1:42 pm By Jeff Schurman

As the department grew, I was tapped to run this value-adding department; thus becoming the world’s first ever AMC review department manager!


(waiting for applause to die down)

The Evolution of Review Appraisals and Having Only One Throat to Choke

Have you ever wondered about the origin of Appraisal Management Companies (AMCs) reviewing appraisal reports before sending them on to clients? Much of the current day rhetoric about AMCs and "review appraisals" revolves around a contention that a "review of an appraisal report" and a "review...

www.housingwire.com

 

[George Hatch]

The gulf between the administrative review and the technical review is an ocean of unknowable depth...

So do you know what the difference between the two terms is? Because it doesn't look to me like you do.

 

[Joyce Potts]

when wearing their banker hat, in my state, an appraiser does not have to comply with USPAP.

And while I'm also a huge fan of Jordan Peterson as well-- you can't selectively switch hats thinking that will shield (pun intended) you from a complaint over a review, 'technical' or otherwise by an appraiser with an active license. I'll still come after you, administratively at a minimum.

 

[George Hatch]

So do you know what the difference between the two terms is? Because it doesn't look to me like you do.

I'll save those of you who don't know the answer the trouble of looking it up. Those terms were used in AO-6 to delineate between what an appraiser does vs what a user does. AO-6 has already been retired, so that's why most of the noobs (which isn't everyone here) wouldn't be familiar with it.

When an appraiser reviews an appraisal the subject of their review is the appraisal itself, the opinion being developed is about the quality of that work, and the decision to be made is limited to what to do with the appraisal report.

When a user "reviews" an appraisal the subject of their review is the property being appraised, the opinion being developed is whether or not they agree with the results, and the decision to be made is oriented towards what to do with the property.

-------------------------------
So a licensee who is acting as an appraiser is doing something very different from a licensee who is acting like a user. If I'm a licensee but I'm working at the moment as a loan originator or an underwriter then those roles are as users, not as an appraiser - regardless of the fact that I also hold a license.

There is no such thing as a USPAP compliant buyer or a USPAP compliant brokerage service or a USPAP compliant loan decision. These activities and all appraisal scrutiny these individuals are performing lie entirely outside the realm of appraisal practice.

OTOH, if I am working as an appraiser and reviewing someone else's work and my opinions are about the quality of the appraisal then those actions fit the definitions and USPAP is applicable. The fact that the service may be deemed outside of a state's jurisdiction or the like is a licensing issue, not an appraisal standards issue.

 

[Joyce Potts]

I'll save those of you who don't know the answer the trouble of looking it up. Those terms were used in AO-6 to delineate between what an appraiser does vs what a user does. AO-6 has already been retired, so that's why most of the noobs (which isn't everyone here) wouldn't be familiar with it.

When an appraiser reviews an appraisal the subject of their review is the appraisal itself, the opinion being developed is about the quality of that work, and the decision to be made is limited to what to do with the appraisal report.

When a user "reviews" an appraisal the subject of their review is the property being appraised, the opinion being developed is whether or not they agree with the results, and the decision to be made is oriented towards what to do with the property.

-------------------------------
So a licensee who is acting as an appraiser is doing something very different from a licensee who is acting like a user. If I'm a licensee but I'm working at the moment as a loan originator or an underwriter then those roles are as users, not as an appraiser - regardless of the fact that I also hold a license.

There is no such thing as a USPAP compliant buyer or a USPAP compliant brokerage service or a USPAP compliant loan decision. These activities and all appraisal scrutiny these individuals are performing lie entirely outside the realm of appraisal practice.

OTOH, if I am working as an appraiser and reviewing someone else's work and my opinions are about the quality of the appraisal then those actions fit the definitions and USPAP is applicable. The fact that the service may be deemed outside of a state's jurisdiction or the like is a licensing issue, not an appraisal standards issue.

Not sure I totally agree with that, George. Depending on the state, I'd love to see case dismissed over your assertion, but I doubt there is one for other reasons. I'd love to be a test case though. I fail to see where a certified appraiser who is an employee of lender or AMC and opines to the development and reporting of an appraisal is somehow EXEMPT from USPAP and administrative legal scrutiny.

 

[George Hatch]

Not sure I totally agree with that, George. Depending on the state, I'd love to see case dismissed over your assertion, but I doubt there is one for other reasons. I'd love to be a test case though. I fail to see where a certified appraiser who is an employee of lender or AMC and opines to the development and reporting of an appraisal is somehow EXEMPT from USPAP and administrative legal scrutiny.

I'm not commenting at all on the ability of a state board to decide which assignments they do and don't have jurisdiction over. As I say, those are laws/regs and jurisdiction issues, not an appraisal standards issue. States Rights and all.



And before anyone else in these threads starts challenging me to pick whose side I'm on, I'm on the side of the profession and the standards themselves. As far as I'm concerned it's immoral for a state board to LARP as a user of an appraisal (they're not) and to develop biased opinions about the quality of an appraiser's work. In the event of a complaint their role in making the final determination is to do so without bias or prejudice, so that isn't possible when using a biased "investigation" that consists of someone reviewing the technical aspects of the appraisal for the sole purpose of judging the appraiser's performance from a primarily adversarial perspective.

In my view the state boards should *always* separate the review process from the decision process, and should never invoke the double standard. Regulate by example, not by edict.

 

[Joyce Potts]

And if a state, like Florida, who adopts USPAP into their state statutes, then would you not agree it's up to a state board to decide if they have jurisdiction, minimally?

 

[George Hatch]

And if a state, like Florida, who adopts USPAP into their state statutes, then would you not agree it's up to a state board to decide if they have jurisdiction, minimally?

Subject to whatever federal requirements may also apply to a given situation, that's exactly what I've always said since before I even showed up on this forum. The govt is the govt. Render unto Caesar.