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AI Letter To The VA

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Michigander

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Certified Residential Appraiser
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Michigan
Worth a read in my opinion. Well thought-out response on the possibility of using non-appraiser 3rd parties in the field.
 

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  • 10.10.17 AI letter to VA.pdf
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jay trotta

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Feb 8, 2004
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Certified Residential Appraiser
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Connecticut
Agreed, not knowing Who is providing the "Inspection"; IE: How were they Qualified ? Is there a "Background Check" on file with the "Client or AMC ?

A "Trainee" has started the process by meeting the basic skill level or better under the "Supervisor/Certified Appraiser" and gaining knowledge along the journey.

When cutting costs in the wrong area, the expense generally out weighs the preliminary thought process; IE: cheepo Brake replacement parts can get you killed, but you won't know that until they are needed in a life or death situation. IE: the No Income / No Asset (Lier Loans) are a prime example of using inadequate Risk/Check factors.
The amazing part this time around is the Fed (Or relevant FIRREA task enforcers) backing these types of products
 

Non Sequitur

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Professional Status
Certified Residential Appraiser
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Louisiana
Appraisers have always pushed back against any effort to hold them responsible for the site/subject inspection. The screaming and hollering every time FHA asks for something, whether it’s operating appliances, a head and shoulders view of attic space, and let’s not get started on the whole defective paint issue has been heard loud and clear; The hooting and hollering and the pages of boilerplate in the typical 1004 discliaming any responsibility for the inspection has finally come home to rooste.

So here we are, the inspection part of the process is going away. I’m sorry, but the argument that appraisers can’t rely on third party inspections, especially when appraisers refuse to take responsibility for their own inspections, would be laughable if it weren’t so sad. Good luck with trying to convince the users of our services (on the residential mortgage side) that a trained third party inspector isn’t more reliable than an appraiser who pushes back when asked to take a photo of water heater straps.
 
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sandpiperapp

Senior Member
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Apr 5, 2011
Professional Status
Certified Residential Appraiser
State
New York
Lender overreach trying to turn us into engineers is an entirely different story. Do you really think they are going to TRAIN someone to inspect. They are going to find a real estate salesperson that is not making money selling, to inspect for $25 a pop.
 

hastalavista

Elite Member
Joined
May 16, 2005
Professional Status
Certified General Appraiser
State
California
Lender overreach trying to turn us into engineers is an entirely different story. Do you really think they are going to TRAIN someone to inspect. They are going to find a real estate salesperson that is not making money selling, to inspect for $25 a pop.

What is the VA appraisal fee to an appraiser? Let's say it is $450.
$100 to the site-inspector and $350 to the appraiser who doesn't have to do the interior inspection (but let's say they have to do an exterior inspection of the subject and comps; as awkward as that may sound, it is feasible to develop such a system... especially in high-volume VA markets. Chances are good that if VA does this, so will FHA... or vice versa).

Does the above fee-structure sound plausible such that there will be takers on the VA panel (this is a sincere, not an antagonistic, question)? :shrug:
Sounds plausible to me... especially with VA actively trying to expand its panel as it has determined that it needs more fee appraisals (when FHA needed more appraisers, the radically reduced the steps necessary to become FHA approved and altered their assignment-process).

VA/FHA appraisers should be thankful organizations such as the AI and others are trying to get ahead of this curve. :cool:
 

Eli

Elite Member
Joined
May 12, 2007
Professional Status
Certified General Appraiser
State
Tennessee
VA has a reverse financial incentive compared to an AMC. The VA is insuring a portion of the loan, so a person trained and accountable to them is more security to the VA and the public including the Veteran.

The AMC stands to make money off the picture taker.

You know based on this letter posted by the OP that some chief appraisers of AMCs who are also AI members don’t like the letter.

Think about this. AI could say if you are an AI member, you won’t be using some unregulated party that don’t answer to anybody. Other organizations could too. Think about it.
 

hastalavista

Elite Member
Joined
May 16, 2005
Professional Status
Certified General Appraiser
State
California
Think about this. AI could say if you are an AI member, you won’t be using some unregulated party that don’t answer to anybody. Other organizations could too. Think about it.

Have you brought this proposal up at your local AI meeting or the other organizations you are a member of?
 

DWiley

Elite Member
Joined
Apr 4, 2007
Professional Status
Certified Residential Appraiser
State
Tennessee
Appraisers have always pushed back against any effort to hold them responsible for the site/subject inspection. The screaming and hollering every time FHA asks for something, whether it’s operating appliances, a head and shoulders view of attic space, and let’s not get started on the whole defective paint issue has been heard loud and clear; The hooting and hollering and the pages of boilerplate in the typical 1004 discliaming any responsibility for the inspection has finally come home to rooste.

So here we are, the inspection part of the process is going away. I’m sorry, but the argument that appraisers can’t rely on third party inspections, especially when appraisers refuse to take responsibility for their own inspections, would be laughable if it weren’t so sad. Good luck with trying to convince the users of our services (on the residential mortgage side) that a trained third party inspector isn’t more reliable than an appraiser who pushes back when asked to take a photo of water heater straps.
Those who would argue that an appraiser inspection is superior would have a stronger case if the criteria for obtaining appraiser credentials contained any actual training on inspecting :)
 

Eli

Elite Member
Joined
May 12, 2007
Professional Status
Certified General Appraiser
State
Tennessee
Those who would argue that an appraiser inspection is superior would have a stronger case if the criteria for obtaining appraiser credentials contained any actual training on inspecting :)

I just got through taking a course on it.
 
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