Adapt or Die?

[JSmith43]

Now my question to you folks is---what is in this carefully constructed sow language that makes the value conclusion any better than a straight up ole BPO done by a realtor on one of their cma or BPO forms? Is this carefully constructed sow addendum designed mainly if not all for cya in terms of USPAP compliance or does it actually contribute to a more reliable value conclusion?

Market participants simply want a custom product with a reduced scope. They typically dictate the form of the report (the BPO form) and skip many of the "state this", "summarize this" edicts of standard two (current version) and cut to the chase (in their view).

Their business plan is not beholden to ASB schedules, exposure drafts, and effective dates of USPAP revision.

They'd probably like it if appraisers, especially two hatters (appraiser/agents) would be in the pool of participants. But, for what they are using this stuff for, remote control data mining, it matters less where the BPO provider throws the dart(the value opinion), but what info they bring to the form.

Setting the fact that the value conclusion is less important than the data delivered aside, I'd say the value conclusions would probably run neck and neck between a group of BPO providers following the BPO form and the client's specifications vs a group essentially following the client's specifications, supplemented with the full spectrum of USPAP compliance in development and reporting.

The users of the services probably filter out the sub par performers in any case.

The truth? We can't handle the truth. In a slow moving market, most appraisals can be replaced with a tax valuation.

 

[Blueprint]

Lets do the adapt or die lifestyle by eliminating USPAP and licensing altogether. Let’s eliminate MB's altogether. Let’s make all lending and interaction come directly from self supported institutions. That’s security, pig style, in a blanket.

Let’s let the banks/investors, and appraisers, feel the effects of these changes, be them good or bad short term.

Let’s go back to the roots where the banks had to actually work hard and worry about finding qualified appraisers themselves because they know their own money is at stake.

No licensed or certified appraisers will be allowed anymore. Only seasoned, qualified appraisers that are honest and accurate will be requested based on experience. That is what the lenders will need and want. Qualified appraisers will be compensated adequately.

Of course I am in a total dream world and may have missed out on a few things. I can dream and make others think. I can also make others angry with a post like this. If so, no offense intended. I'm just having some fun.

 

[Fred]

Market participants simply want a custom product with a reduced scope.

Reduced from what?

 

[Blueprint]

From normal style to layman style.

 

[JSmith43]

Reduced from what?

Reduced, compared to the valuation services that were typically provided a residential lender, say, pre-USPAP.

Scope is a pretty interesting word. I wonder if the original meaning relates to what one could see through a rifle scope? The approximate direction would be implied, the field of vision, dependent upon the design of the optics. The accuracy would depend upon the quality of the optics, the suitability of the magnification for a given range and of course, the manual calibration to close the gap between predicted and actual impacted area from a shooting bench, or, better yet, a gun vise.

Then there is the light factor. What kind of ambient light? Are we going to have to deal with star light only? Perhaps a NVG3 is called for. It is a PITA to pick the perfect scope for any particular situation.:icon_mrgreen:

 

[Doug Smith SRA]

Miller Time Boiler Plate Maker

Reduced, compared to the valuation services that were typically provided a residential lender, say, pre-USPAP.


Then there is the light factor. What kind of ambient light? Are we going to have to deal with star light only? Perhaps a NVG3 is called for. It is a PITA to pick the perfect scope for any particular situation.:icon_mrgreen:

Not "light," lite...

USPAP Lite-"Great taste, less filling"

USPAP doesn't need a diet. A summary report only needs 11 items, most of which can be boiler plated in the USPAP Lite report.:new_all_coholic:

 

[Blueprint]

Not "light," lite...

USPAP Lite-"Great taste, less filling"

USPAP doesn't need a diet. A summary report only needs 11 items, most of which can be boiler plated in the USPAP Lite report.:new_all_coholic:

USPAP gone-"Great taste, no filling"

 

[SANDY]

Many good posts. Thank you for your time and know that once again I have learned much. I think the topic has been beat to death enough for me. I hope someday soon, the pendulum swings back to quality over speed.

Meanwhile my thoughts and actions must now turn to the tropical breezes of the Florida Keys, margaritas, scuba diving, laying around the pool/spa, bicycle riding, sunsets at Mallory Square, key lime pie, fresh caught fish on the grill, etc etc etc.

 

[JSmith43]

Not "light," lite...

USPAP Lite-"Great taste, less filling"

USPAP doesn't need a diet. A summary report only needs 11 items, most of which can be boiler plated in the USPAP Lite report.:new_all_coholic:

Not bad. My actual plan was to prove to Santora that we could do away with scope altogether because we'd still have iron sites. Good enough for most situations

 

[Fred]

Reduced, compared to the valuation services that were typically provided a residential lender, say, pre-USPAP.

I don't know Rog, those who passed for old-timers when I got into this business used to tell me how residential appraisals were reported on 3x5 index cards - and other such war stores about how one day the bank President said, "Hey! What if we have a picture of the property in the file along with the appraisal card?"

Back then, people could just get up from the closing table with some white-out and a pen, find the value card and make the deal work - people who wouldn't live long enough to hear of such things as PDF and unlocking.

Not bad. My actual plan was to prove to S that we could do away with scope altogether because we'd still have iron sites. Good enough for most situations

Back when I took my first USPAP class, and before the document included the word scope, an old-timer showed me the reporting requirement that said we had to disclose the extent of the process of collecting and confirming data and procedures used in development - and he said to me - "See that? We have to have a scope." I remember saying, so what, everything has a scope. Opening a can of tuna has a scope. Going to the bathroom has a scope (and I don't mean the mouthwash).

So go ahead, do away with "scope." I don't care, other than it will be a of fun to watch someone try.