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Ao-25, Ao-26, Ao-27 And The Revision To Ao-3...

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Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
This is sort of a continuation of a conversation that started on another thread... but should stand alone with above caption.
~~~~~~~~~

I happen to like Danny Wiley, but not everyone approves of recent USPAP changes. Just wait til they get a gander at the newest ones :rolleyes: . I have a pretty good idea of what the Board in general, and Danny in particular are attempting to accomplish with the latest revisions: my very recent refresher is that I listened to MR. Wiley for 7 hours of CE last Friday... :p

How many of you all have copies of the most recently adopted AO's (June 2003?) ? Get 'em as soon as you can...These are apparently not yet posted at the Appraisal Foundation website :angry: ... sorry I have no direct suggestion as to how to acquire em.

Quite frankly I think it best if one DOES attend a class taught by Danny or one of the other current ASB members to hear in person EXACTLY what is MEANT by AO-25, AO-26, AO-27 and the revision to AO-3...

My copies and careful reading and re-reading are clear ONLY with supplimentation of the careful in-class notes I recorded. These will be carefully filed with the actual AO documents AND the names and numbers of certain fellow classmates who were there during the explanation. I fear in the case of litigation I might possibly need them :( .

The 'new rules'... are in my opinion an honest attempt to clarify the awkward issues of "Client", "Intended User", "Intended Use" and that terrifically awkward "whadda ya do when Lender B needs a 'new' Harry/Harriet Homeowner (of 123 Their Street) appraisal".

The new rooles in MY opinion could leave an appraiser twistin' in the wind with any semi-competent attorney hired by Joe Mortgage Broker A pulling the rope. Cause Joe is gonna get hungry if rates continue ot rise, and may take up Appraiser Sue-Surfing as a primary source of income production.

As for me and my appraisal house we will still be getting a release from any prior clients before performing a NEW appraisal within a short period of time, regardless of the new rules: as I see it, the big hole is the 'legitmate business intent' of the original client. I would want my classmates standin behind me in any litigation defense :eek: ...

The reasonably safe alternative is to have a different appraiser from the same office perform the NEW assignment :twisted: . which still could be argued in court.... but with a lessor chance of sucess B) .
 

Richard Carlsen

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Michigan
What a wonderful system.

3 new Advisory Opinions and a revision to an existing AO and there is no way for the appraiser to whom they are directed to read them.

Makes Amtrak economists look like rocket scientists.
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
Lee Ann:
Are you talking about the Second Exposure Draft to the Appraisal Standards that everyone was to comment on before June 20, 2003? And I understand was pretty much adopted in NYC June 27 with some slight variations?

Yes, I agree appraisers need to start reading (and should have been when they first appeared!) so they will be prepared when January 1, 2004 comes around!

To find that exposure draft:

http://www.appraisalfoundation.org

Click on Appraisal Standards

Click on Second Exposure Draft, June 20, 2003

Read and enjoy!
 

Farm Gal

Elite Member
Joined
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Professional Status
Licensed Appraiser
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Nebraska
sheesh
Jo Ann You are FAST! you posted inbetween my posts!

Nope I am not referring to the Exposure drafts but the what is to my understanding 'real thing'.
Actual Real LIVE Adopted Version(s): which were apparently adopted/revised on June 11, 2003. (I think?) now I am all confuseled... the copies I have appear to indicate adoption as of the above date...

I am not sure why they are not yet available on the website :question: and am going to try to grease the wheel for the benefit of all appraisers :angel:

(mom always said the horns hold my halo on straight...).:twisted:
Which would be precisely why I posted this...

CALL them :argue:, write them :gunfire: , and raise h .. e .. double toothpicks! :eek:nfire:

Yup, yup yup! We oughtta HAVE these things available :angry: .
That said, it is pretty hot off the press...
I got my copies (two days ago) only by being in a class...

Given the speed with which apriasers adapt to change :rolleyes: I think it best that they get out there in folks' hands ASAP.

Lets rock em!

{darn emoticons won't behave :angry: }
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
Now I am really, really, really curious to see the real live ones!

The exposure drafts were very interesting--how far off base will we be if we read the exposure drafts now? Then when the real live ones come out--maybe we won't be going into shock like so many people did at the idea that "recerts" don't exist!
 

Fred

Elite Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Virgin Islands
Lee Ann,
My question is the same as Jo Ann's. Three AO's were exposed and re-exposed:
1. defining "normal course"
2. "re-addressing" reports
3. re-appraising a property you appraised before
Is this what you are referring to?

I read the Exposure Draft when it came out and issued a response. What impending peril did I overlooki?
(And FWIW, changes to AO's are not changes to "USPAP.")
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
IF anyone has the ability to scan and post to a website I would be willing to fax my copy to them... as an interim solution to the accessability problem... when I initiated the post that lead to this thread I thought I could find 'em on-line :( .

Steven et al,

The new changes are far less wordy than the exposure drafts, and make an honest attempt to clarify an unwieldy set of priorities and protect all parties...

I quite agree that AO's are not LAW... that is part of the problem: when the doc is unclear and the AO's are also, the interpretation of the LAW is left entirely to the legal beagles. And as we all know BOTH ends of that critter bite.

Like Koert, I also will be glad when the AO's are seperated from the actual USPAP doc (as I understand will occurr next year).

The interpretation of the actual AO's is best delivered by a knowlegable person... Like I said, take NOTES.

It is my opinion that it would have been far easier to just say , Yeah appraisers CAN do another appraisal and have been done with it. Maybe with the Physicians caveat: First, do no harm.

I see a very specific hole, which still needs work, but can't argue the fine points til we are all reading the same pages!:

The titles are
AO-25 Clarification of the client in a Federally Related Transaction
AO-26 Readdressing (Transferring) a Report to Another Party
AO-27 Appraising the Same Property for a New Client
and a revision to AO-3 Update of a Prior Assignment.

These are best taken as a whole and with plenty of Maalox.
 

jtrotta

Senior Member
Joined
Jan 16, 2002
Just a thought here; if it's an "AO" and has not been approved or added into USPAP and won't take affect until the new year, whats the hubub about :question:

it could be revised several times before it gets approved; are we gittin way ahed of ourselves here :question:

now the question really comes into play here is; how much is the Lending Industry influencing the language :question: and is this the preperation H for us in the very near future with the rates begining to rise, so that they'll have some "scapegoats" for future problems :question:

:ph34r:
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
As usual....."clear as mud".

I appears to me the best way to hand the issue is to say..."If you want an appraisal of that property I can do it. It will be a new appraisal, my fee is $zzz, otherwise forget it!"

No recerts, no transfers, no re-addressing. If you don't like it....contact the Appraisal Standards Board they make the rules not me.

Actually....I think I like this!
 
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