Appraisal Independence Comments

[Fritz in NY]

I love the crap they make us type so they feel warm and fuzzy. It is scary that someone was paid to write it and someone was hired to make sure it was in every report. None of my Credit Union work or VA work EVER asked for verbatum statements like that and they are still solvent.

 

[Mile High Trout]

BlueDog, we used to have a joke about this, when there was actual HVCC issues.

"You cannot, bribe, intimidate, coerce, collude, or threaten yourself."

So if you were looking for "language":

I have not bribed myself, intimidated myself, coerced myself, colluded with others, or threatened myself.

So BlueDog, that's the skinny of it.

When these requests for compliance language come in, what they are really looking for is statements of admission that you're an independent party.

Sadly, they usually require such statements of proper process alongside ridiculous stips that are more reflective of driven process, not necessarily independent process.

But that's the deal Blue Dog.

You can't coerce yourself.

 

[TX ladybug]

ok So I have not run into this after HVCC died. I am being asked to add an Appraiser's Independence Report.... Does anybody know WTF this is???

 

[Mike Kennedy]

So these comments are no longer necessary by FNMA?

"No employee, director, officer, or agent of the lender, or any other third party acting as joint venture partner, independent contractor, appraisal management company, or partner on behalf of the lender, shall influence or attempt to influence the development, reporting, result, or review of an appraisal through coercion, extortion, collusion, compensation, instruction, inducement, intimidation, bribery, or in any other manner."

They never were required to be stated by an Appraiser an appraisal report for the GSES. A statement by the Appraiser confirming whether any of the parties noted above attempted to influence or compromise independent development and reporting of an appraisal MAY have been a Lender's assignment condition.

Doofus-Funk Title XIV Mortgage Reform and Predatory Lending Act of 2010

SEC. 1472. APPRAISAL INDEPENDENCE REQUIREMENTS.
(a) IN GENERAL.—Chapter 2 of the Truth in Lending Act (15
U.S.C. 1631 et seq.) is amended by inserting after section 129D
(as added by section 1461(a)) the following new section:

‘‘§ 129E. Appraisal independence requirements
‘‘(a) IN GENERAL.—It shall be unlawful, in extending credit
or in providing any services for a consumer credit transaction
secured by the principal dwelling of the consumer, to engage in
any act or practice that violates appraisal independence as described
in or pursuant to regulations prescribed under this section.
‘‘(b) APPRAISAL INDEPENDENCE.—For purposes of subsection (a),
acts or practices that violate appraisal independence shall include—
‘‘(1) any appraisal of a property offered as security for
repayment of the consumer credit transaction that is conducted
in connection with such transaction in which a person with
an interest in the underlying transaction compensates, coerces,
extorts, colludes, instructs, induces, bribes, or intimidates a
person, appraisal management company, firm, or other entity
conducting or involved in an appraisal, or attempts, to compensate,
coerce, extort, collude, instruct, induce, bribe, or intimidate
such a person, for the purpose of causing the appraised
value assigned, under the appraisal, to the property to be
based on any factor other than the independent judgment of
the appraiser;
‘‘(2) mischaracterizing, or suborning any
mischaracterization of, the appraised value of the property
securing the extension of the credit;
‘‘(3) seeking to influence an appraiser or otherwise to
encourage a targeted value in order to facilitate the making or pricing of the transaction; and
‘‘(4) withholding or threatening to withhold timely payment
for an appraisal report or for appraisal services rendered when
the appraisal report or services are provided for in accordance
with the contract between the parties.
‘‘(c) EXCEPTIONS.—The requirements of subsection (b) shall not
be construed as prohibiting a mortgage lender, mortgage broker,
mortgage banker, real estate broker, appraisal management company,
employee of an appraisal management company, consumer,
or any other person with an interest in a real estate transaction
from asking an appraiser to undertake 1 or more of the following:
‘‘(1) Consider additional, appropriate property information,
including the consideration of additional comparable properties
to make or support an appraisal.
‘‘(2) Provide further detail, substantiation, or explanation
for the appraiser’s value conclusion.
‘‘(3) Correct errors in the appraisal report.

 

[Non Sequitur]

Fannie NEVER required any statement, HVCC NEVER required any statement, and Dodd-Frank DOES NOT require any statement from the appraiser. AMCs who make crap up to justify their existence may require those nonsense statements.

 

[sputnam]

I add...."The comparables used were selected after extensive research and consideration and are the most relevant sales and listings found. Any request for additional 'comparables' will be met with disdain, ridicule, and utter disregard. Deal with it."