IVS (International Valuation Standard) vs USPAP

[George Hatch]

The only reason I referenced the GSEs internal policies was to make the point that regardless of which set of rules everyone was held to, those rules would still require appraisers to say what they do and do what they say. I didn't refer to the GSE policies as an appraisal standard, nor was I talking about the use of multiple appraisal standards at the same time.

 

[DWiley]

I know that they don't publish standards. That kind of stuff is fine but the guidance (maybe unintentionally) influencing comparable selection should not be there. Just my opinion.

There is no guidance. What you refer to as "guidance" is simply the parameters for loan eligibility.

 

[Joe Flacco]

There is no guidance. What you refer to as "guidance" is simply the parameters for loan eligibility.

You can call it whatever you want. I'm just saying that the selling guide has had a significant impact on appraisal when it should not. I don't think it's intentional or something like that.

 

[DWiley]

... I'm just saying that the selling guide has had a significant impact on appraisal when it should not...

On this, I agree. It can certainly happen when people (like the OP, for example) cite them as appraisal standards, when they are not.

I can think of several times in my career when the data simply did not exist to produce an appraisal report that complied with GSE parameters. But those were all property eligibility issues, not appraisal issues.

 

[Terrel L. Shields]

You can call it whatever you want. I'm just saying that the selling guide has had a significant impact on appraisal when it should not.

Pressure from lenders for the appraiser to make the appraisal 'conform' to GSE guidelines is a hazard of the business. If you refuse, they go to the next one until they find a compliant appraiser to do their bidding...and they don't call you again. Conditioning biases result in the appraiser seeking to avoid pain by doing the bidding of the client even when they have major reservations about it. It leads to some appraisers becoming so used to this that they think everyone does it, so they argue "in the real world", it is done that way.

 

[Joe Flacco]

Just to be clear, I am not talking about property eligibility issues. And yes, it does have a lot of do with appraisers misunderstanding what the selling guide is.

 

[DWiley]

Just to be clear, I am not talking about property eligibility issues.

Can you provide an example of what you are talking about?

 

[Joe Flacco]

Can you provide an example of what you are talking about?

I'm talking about like the adjustment guidelines that existed before, comps within 12 months, and comps in and out of projects and stuff like that.

 

[DWiley]

I'm talking about like the adjustment guidelines that existed before, comps within 12 months, and comps in and out of projects and stuff like that.

Well, that was exactly my point. I consider those property eligibility issues. For example, I once had an assignment for an SFR. I showed up and found a manufactured home had been place on an inner city lot where the original home burned. So, i had a new, manufactured home sitting in the middle of 50+ year old homes. There was not another manufactured home for 15 miles (verified through an exhaustive records search). So, due to the lack of comparable properties, the property was not eligible. So, an eligibility issue that some lenders try to make an appraisal issue (when its not).

 

[RCA]

Fannie Mae and Freddie Mac do not write, nor do they publish appraisal standards.

Fannie Mae and Freddie Mac do not write, nor do they publish appraisal standards. What they publish are their policies regarding loans that they will purchase. BIG difference.

BTW, having served on both the ASB and the IVS Standards Board, I found your comments on the memberships of those two bodies, and their relative intelligence, quite amusing

As a matter of your education,
1. Fannie Mae has: Chapter B4-1: Appraisal Requirements

Fannie Mae Selling

selling-guide.fanniemae.com

2. Standards are mandatory actions or rules that give formal policies support and direction. https://frsecure.com/blog/differentiating-between-policies-standards-procedures-and-guidelines/
3. Thus Fannie Mae has appraisal standards. In fact they have many standards, and terms such as mortgage lending standards, underwriting standards you should be familiar with.

And these GSE standards are at the national level.