Appraisal Institute suspended from The Appraisal Foundation

[AnonApprsr]

It exists and conforms to the neighborhood. If it did not conform to the neighborhood, the AVM might not be a good indicator of the property's value.

It's a matter of risk. A high credit score and low loan to value used to mean that a ballpark AVM might be good enough so long as someone confirmed the subject was not an anomaly.


I am somewhat surprised to hear that anyone is getting 2075 assignments. I thought they went away a number of years ago. Perhaps the AVMs are getting better.

I charge the same for a 2055 that I do a 2075, so I really don't mind them, but they are a bit silly. I've probably done about 20 this year.

 

[Webbed Feet]

Calvin...I find that I must place myself in reverse and back up a bit. <....snip....>
This would be inconsistent with the opinion from Oregon.

Once again, all is right in the universe.

You need to reverse your reverse and get all weirded out again.... that "opinion" was from the Inter-Agency Work Group as requested in answer to questions poised by the ASB.

 

[Bob Ipock]

The 2075 is not an appraisal...nor does it claim to be. It does not conform to the USPAP definition of an appraisal.

I don't care to mess with a 2075.....the pizza delivery guy can have them all.

There is a reason the client wants an appraiser to sign this non-appraisal.....and it seeks to create credibility where there is none.

 

[Joyce Potts]

The 2075 is not an appraisal...nor does it claim to be. It does not conform to the USPAP definition of an appraisal.

I don't care to mess with a 2075.....the pizza delivery guy can have them all.

There is a reason the client wants an appraiser to sign this non-appraisal.....and it seeks to create credibility where there is none.

It seeks to create liability, not credibility.

 

[Lee Lansford]

The 2075 is not an appraisal...nor does it claim to be. It does not conform to the USPAP definition of an appraisal.

I don't care to mess with a 2075.....the pizza delivery guy can have them all.

There is a reason the client wants an appraiser to sign this non-appraisal.....and it seeks to create credibility where there is none.

Why wouldn't the communication of what is contained in a "2075" be "credible" if developed and communicated by a competent and ethical appraiser?

 

[Ken B]

The 2075 is not an appraisal...nor does it claim to be. It does not conform to the USPAP definition of an appraisal.

That is exactly my point. However, it is used in place of an appraisal for certain lending decisions. When I was doing them, I had more than one borrower call me and want to know where the value was reported on them. I learned that if I complimented them on their obvious outstanding credit, as inferred by the use of the form in the lending decision, they went away instead of griping about paying for an appraisal and not getting one.

 

[Bob Ipock]

Yes there is a false hope of liability and credibility. It looks official. I don't see that there is any real liability if whoever fills it out does so truthfully and does not stray from the form.


It is NOT an appraisal. It does not meet the definition. The form calls it an "Inspection".

There is no reason it can't be credible......but I am really referring to what a non-appraiser might think is credible. A layperson might well think it is an appraisal. It has been signed by an appraiser. It looks "official". As an "appraisal" the 2075 has zero credibility.....it may well be credible as something else....just not as an appraisal.

If there is no appraisal required...then the lender can order them all day long. They can call it an eggplant if they wish but it is not an appraisal. Back in those days if the lender had a 2,3,4 or 5 year old appraisal....all they wanted to know was that it was still standing. After all...back in those days the concept of a real estate crash was just crazy talk. Everybody knew that real estate could only go up...and that old appraisal was s good as gold.

It is just a personal thing with me. I find it to be misleading to the public to have a form that is not an appraisal but has been created to appear "official" and is signed by a professional appraiser. It just never did feel quite right to me but I am sure they are still being done. I suppose it may be easy money.

 

[Joyce Potts]

The 2075 is not an appraisal...nor does it claim to be. It does not conform to the USPAP definition of an appraisal.

I don't care to mess with a 2075.....the pizza delivery guy can have them all.

There is a reason the client wants an appraiser to sign this non-appraisal.....and it seeks to create credibility where there is none.

Is it not an appraisal because it's not communicating a value? But does it fall under USPAP because it communicates other significant facts to the client on which they may base their lending decision?

Just throwing that out there without having looked at the form.

 

[Bob Ipock]

The USPAP definition of an appraisal would not include the 2075. However some state real estate board could argue that it falls under the umbrella of Appraisal Practice where parts of USPAP might apply...Ethics Rule. It could also be argued that this 2075 is NOT part of appraisal practice and would be a "Valuation Service" an appraiser could perform while not misrepresenting etc.

Who knows? Only the USPAP Police in each state.

 

[Bob Ipock]

I am way too lazy to type it...but the current 15 Hour USPAP Course mentions "other services" under appraisal practice. The 2075 would apply as the client has contacted an appraiser and is entitled to the expectations that the individual will act in the role of an appraiser (impartial, objective and independent).



Part 2-33

2. Appraisal Practice
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