Am I losing my mind?

[Tim Hicks (Texas)]

I got a call from Nations Valuation Services in California, Friday. They asked if I could handle an REO appraisal in my neighborhood. I said sure. They asked my fee. They said sure. I asked if the accepted PDF. They said sure, but we prefer ACI. They asked about my turn around time. I said one week. They said great and faxed me an order. Then the fax arrived today. You know the one, the order confirmation, fax us status, when is the inspection date set, we require appointments set within 24 hours of receipt of the order. Then in small print " if value present and appears that it will not be met, STOP and call us". Sorry, but when I know the value I am done!

Anyway, I am considering sending my own fax back with their appraisal the day I e-mail it. What do you think?

APPRAISAL RECEIPT CONFIRMATION


PLEASE FAX THIS SHEET TO RAS ASAP:




Property Information

Borrowers Name: ____________________

Address: ____________________

Loan Number: ____________________


SPECIAL COMMENTS

1) Have you received the appraisal? _______________

If not, contact Tim Hicks at (zzz) zzz-xxxx

2) Have you sent payment yet? ________________

Note: All appraisal assignments require check payments issued with 24 hours of receipt of appraisal. These conditions are set when appraisal appointment notices delivery dates are required by the ordering company.

Date of Check Issue: _________________

3) USPAP prohibits accepting an appraisal order with a preconceived or projected value. Does the ordering company accept these conditions set by Uniform Standards of Appraisal Practice. ___________

FAX TO (zzz) zzz-XXXX

Thank you for your business!



I already know about you pay at the door appraisers, but I can't believe you can do it on REO appraisals. I figure they need some of their own medicine, what do you think?

 

[Pamela Crowley (Florida)]

I like it!!!

 

[Jo Ann Meyer Stratton]

At the bottom of MY order form I have several statements:

"Client's signature above represents acceptance of full financial responsibility for this appraisal assignment, regarless of loan closing or cancellation of the loan process. Any exceptions to the above should be promptly discussed with the appraiser prior to the commencement or completion of this appraisal process.

In Compliance with the Uniform Standards of Professional Appraisal Practice, the engagement and compensation of the appraiser in this assignment will not be contingent upon developing or reporting predetermined results, opinion of value or direction of value, attainment of a stipulated result, or the occurrence of subsequent event directly related to the intended use of the appraisal assignment."

 

[Dave Doering]

It is my understanding that this is beginning to be a hot button issue for the state appraisal examiners and auditors. On orders with a target value we send the following immediately back to the client:

[TRANSMITTED BY FACSIMILE]

(date)

(requesting party name)
(client company name)
(street or PO address)
(city, state, zip)

RE: Appraisal Request
(borrower’s name)
(property street address, city, state, zip)

Dear Mr./Ms. (requesting individual’s name):

We have received letter of engagement or appraisal order for the above referenced property. In reviewing the order, we note that you have indicated that the estimated value is ($ state amount ), that you “need” that or some other amount or that you have instructed the appraiser to notify you before proceeding if it does not appear that the property will appraiser for the indicted amount.

Before we can proceed with processing your appraisal request several things should be clear with respect to the value related information you have supplied: So long as the amount stated is only to inform us of your objectives or someone else’s opinion, and are not a condition of your placement of this assignment with our firm, we can proceed. Further, with respect to notifying you if it is not possible to support a value at or above that indicated, your request is acknowledged. However, it is important for you to be aware that we must develop an appraisal before we can advise you whether the property will or will not support the value indicated. Finally, it is also important for you to be aware that your statement of the value amount with this request for service does not, in our view, establish a “condition” for our performing the appraisal.

However, if that amount is a condition of this assignment or condition of payment for completion of the assignment, accepting an assignment under that condition violates professional ethics and may be construed as an unacceptable appraisal condition under the Uniform Standards of Appraisal Practices (USPAP). In the absence of any response to the contrary, we will proceed assuming that no such conditions exist and that assignment is not subject to a predetermined value, direction of value or the occurrence of a subsequent event in order to receive compensation and/or employment for performing the appraisal. If this is not your intention please inform us immediately.

Sincerely,



(name or sender)
(title)


copy: Appraisal File

 

[Mountain Man]

Dave,
Good CYA. Do you generally get a response back, or do you mostly invoke the "no response" clause?

 

[Dave Doering]

To: M Leggit

Very seldom do we get a response back. However, occasionally we will get an indignant call from a high pressured lender saying that "this is unacceptable and that they have never had an appraiser refuse to call them as a courtesy if it doesn't 'look' like the value is going to 'make it'".

Our position remains firm, that despite what "every other appraiser" will or will not do, that the Standards are clear and we cannot accept an assigment with such a condition.

Frankly, we are glad to nip these issues early before we do the work, get the pressure and all the anger and still not get paid.

 

[Richard Carlsen]

Received one today that tripped my trigger. It read:

PLEASE CONTACT LOAN OFFICER FIRST IF YOU FEE THERE IS ANY PROBLEM IN OBTAINING THE ESTIMATED VALUE LISTED ABOVE. (Their underline and bold)

Now it seems we are into the touchy/feelies of appraisal work. First it was an estimate of value. Then it was an opinion of value. Now it is what you feel that value is. Where will that all end?

I wonder if they want me to call them if I have trouble figuring out an adjustment or if we can't get hold of the tax people to get the taxes for the year?

The final straw was when they asked me to attach a copy of my resume (okay), license (okay) and E & O Insurance (NO WAY!!!) to the report. Can't you just see the borrower, a not-so successful lawyer sitting at closing and getting a copy of my report with the E & O Insurance memo? Those are not closing docs in front of his eyes; they are dollar signs.

 

[Mike Garrett RAA]

Yes, you are crazy....but then aren't we all?????

 

[Doug in NC]

Nations seemed like a reasonable company to deal with until they merged with some other company in the past 6 months +/-. I did a few assignments for them and they gave no pressure about values. Recently, however, they seem to have adopted the other company's bad habits. I haven't gotten any requests from them recently either.