Appraisal With No Inspection By Appraiser?

[Evincere]

Just as big a question, whoever ends up taking these photos for the hybrids, what law will force them to be as unbiased as appraisers are to be? Of course they can save money and pay next to nothing for Joe six pack to go take photos. But to be assured the person taking the photos is as unbiased as appraisers would require them to be licensed as well, with similar rules and regulations, which hopefully would result in the new set of photo takers charging about the same appraisers already charge. The bottom line, if it is all about money, most likely the person taking the photos will not have the same unbiased nature expected of the task, because it would be the only way the money savings would result as much as hoped.

I think everyone agrees with you. As unlicensed, unlike appraisers these photographer inspectors would be accountable to who or have what to loose other than looking for income elsewhere? Is there a photographer license? lol

 

[DWiley]

Yes, appraisers do not have a "formal training." in inspection requirement. Why is it only now, to pave way for hybrids is this being raised ....to discredit them? f?

I have been tap dancing around this, but I am just going to say it. Any argument that appraisers' inspections are inherently superior would be quickly defeated by any "power user" that wanted to. Anyone who does any volume could almost certainly produce appraisal reports discrediting the inspection process being performed today by the so-called "trained" appraisers you refer to. Just think about the reports you personally review. How many times does the sketch not even match the photos?

Or, look at state board complaints. See how many examples you find of homes not being measured correctly, critical items being omitted, condition being misreported, external factors being ignored, etc. When FHA reports appraisers a huge percentage of the time it is due to inspection-related matters.

You have to remember that not all in the appraisal pool are as good as you.

I am not raising these issues to pave the way for anything. I just want to show the logical fallacy so appraisers with valid concerns don't get shot down as simply trying to protect their own incomes. My views on "hybrids" are certainly not a driving factor to those who are pushing this now.

 

[Evincere]

I have been tap dancing around this, but I am just going to say it. Any argument that appraisers' inspections are inherently superior would be quickly defeated by any "power user" that wanted to. Anyone who does any volume could almost certainly produce appraisal reports discrediting the inspection process being performed today by the so-called "trained" appraisers you refer to. Just think about the reports you personally review. How many times does the sketch not even match the photos?

Or, look at state board complaints. See how many examples you find of homes not being measured correctly, critical items being omitted, condition being misreported, external factors being ignored, etc. When FHA reports appraisers a huge percentage of the time it is due to inspection-related matters.

You have to remember that not all in the appraisal pool are as good as you.

I am not raising these issues to pave the way for anything. I just want to show the logical fallacy so appraisers with valid concerns don't get shot down as simply trying to protect their own incomes. My views on "hybrids" are certainly not a driving factor to those who are pushing this now.

Dance all you like

When appraisers make mistakes they pay for them one way or another - by losing the client, removed from an eligibility list, state boards sanctions and /or fines.

Here’s a question to dance around. What do you suppose will be the level of experience expected of an inspector. What would qualify them as an “inspector” because that term in and of it self suggests having an appropriate background and qualifications.

Beyond embellishing and exaggerating a shacks characteristics into a most desirable palace, Realtors have little to no accountability or responsibility for a properties defects because they cover themselves with Sellers property disclosures.

What would a HO reasonably expect from a person coming to their home and calling themselves "inspector" - experience, knowledge, liability insurance, errors and omission's?

 

[George Hatch]

You guys know what's going to happen when people specialize in "inspecting" homes, right? When they're a one-trick pony who only has to learn how to do the one thing they're going to become pretty proficient at it pretty quickly.

 

[Evincere]

You guys know what's going to happen when people specialize in "inspecting" homes, right? When they're a one-trick pony who only has to learn how to do the one thing they're going to become pretty proficient at it pretty quickly.

And proficient or not they will make mistakes, same as some appraisers do.

 

[Eli]

You guys know what's going to happen when people specialize in "inspecting" homes, right? When they're a one-trick pony who only has to learn how to do the one thing they're going to become pretty proficient at it pretty quickly.

Is just like you say: do what you say and say what you do. That needs to be disclosed on truth in lending disclosures. IRS may jump in too along with State law without new fair lending legislation. Like the $500 BPO somebody mentioned. All that relates to fair lending, antitrust law, unlicensed individuals and renegades. IRS laws.

If truth in lending disclosures were right? Line item for inspector. Line item for AMC, line item for appraisal.

There are so many laws being skirted, it is scary.

 

[hastalavista]

Well, I did something I suggest everyone do to address this situation and get some additional information so they can make their informed decision: I called my state regulator and asked them if they would consider, an appraiser who is hired to do the inspection component for a hybrid appraisal and who was not doing the valuation nor signing the certification, would fall under the USPAP as far as their enforcement jurisdiction was concerned (in other words, if the appraiser lied about physical characteristics or didn't know how to measure a house and therefore screwed up, would that be a potential USPAP violation subject to enforcement action?).

The answer was, "In general, it certainly would appear to be." (Each case is subject to its specifics).
I further asked if the USPAP requirements were Ethics and Competency? The answer was "Yes, and Jurisdictional Exception; but not the Standard Rules."


Your regulator may vary.

 

[Eli]

I assure you direct engagement lenders likely have little to worry about.

 

[TJSum]

We haven't addressed the biggest question yet, what legal authority will make sure these "property inspectors" don't pee in the bushes (sorry, had to bring up an old forum joke).

 

[George Hatch]

Well, I did something I suggest everyone do to address this situation and get some additional information so they can make their informed decision: I called my state regulator and asked them if they would consider, an appraiser who is hired to do the inspection component for a hybrid appraisal and who was not doing the valuation nor signing the certification, would fall under the USPAP as far as their enforcement jurisdiction was concerned (in other words, if the appraiser lied about physical characteristics or didn't know how to measure a house and therefore screwed up, would that be a potential USPAP violation subject to enforcement action?).

The answer was, "In general, it certainly would appear to be." (Each case is subject to its specifics).
I further asked if the USPAP requirements were Ethics and Competency? The answer was "Yes, and Jurisdictional Exception; but not the Standard Rules."


Your regulator may vary.

Yeah, before all this is over I'm thinking the ASB is going to have to directly address how a freestanding 3rd party inspection service fits the definition of "Appraisal Practice" as opposed to a generic "valuation service" to which USPAP doesn't necessarily apply. I'll be interested to see how they do that.

Actions of the individual (not their licensure status) and the expectations of the users.