Appraiser's Help with a ROV

[ZZGAMAZZ]

Lady for whom I conducted a re-fi appraisal several months ago has asked me to help her contest the results of the current re-fi appraisal of a different property by a different appraiser.

I'm still very sketchy about the potential for an appraiser to provide valuation services as a "consultant," although I'm rather certain that my involvement helping her create a ROV would be considered as a "review assignment."

If so....
--Should I sign the ROV and disclose my involvement?
--Does the ROV need to be defined as an "Appraisal Review" in the ROV?
--Are appraiser certifications required if an appraiser is involved?
--Lender advised her that they don't provide a form so she can use whatever format she chooses.
--Because the formal indusstry ROV protocol doesn't seem to indicate whether a lender/AMC/original appraiser should/must accept a ROV from anybody but the borrower, could my involvement kill the ROV?
--Can/should an ROV describe Numerous errors in the original report, or is that beyond the SoW of a ROV?

Thank you.aaaaaaaaaa

 

[Tom4value]

Lady for whom I conducted a re-fi appraisal several months ago has asked me to help her contest the results of the current re-fi appraisal of a different property by a different appraiser.

I'm still very sketchy about the potential for an appraiser to provide valuation services as a "consultant," although I'm rather certain that my involvement helping her create a ROV would be considered as a "review assignment."

If so....
--Should I sign the ROV and disclose my involvement?
--Does the ROV need to be defined as an "Appraisal Review" in the ROV?
--Are appraiser certifications required if an appraiser is involved?
--Lender advised her that they don't provide a form so she can use whatever format she chooses.
--Because the formal indusstry ROV protocol doesn't seem to indicate whether a lender/AMC/original appraiser should/must accept a ROV from anybody but the borrower, could my involvement kill the ROV?
--Can/should an ROV describe Numerous errors in the original report, or is that beyond the SoW of a ROV?

Thank you.aaaaaaaaaa

Fair enough question to give a response. An ROV for a mortgage lending transaction has (finally!) strict and formal guidelines. Mainly, they can only point out FACUAL errors and to provide up to 6 “sales” for consideration.

For the first point, that takes out the need for you, an appraiser, acting as a reviewer. The ROV can point out that the GLA, age, room count, etc. of the subject and/or comps are wrong. It CANNOT provide an opinion (I.e., “comp 2 is not comparable”). This leads to the second point. The “sales” provided are just that. Only the appraiser can determine if they are “comps” and the appraiser needs to explain why they are/aren’t.

Bottom line, you may help the the lady with the above guidance but do NOT present yourself in any way as a REVIEWER. Only the lender, the owner of the appraisal, can engage you for that.

 

[Sadie]

According to USPAP, a review does not have to be associated with a lender. An ROV however is a different thing altogether. So yes you can call yourself a reviewer. I think your client is looking more for a consult than an appraisal or review of an appraisal.

 

[Tom D]

As soon as you state value is ok, high or low, you just did an appraisal, appraiser. A consultant would hire an appraiser, then consult with the owner. So no, you are not a consultant.
With an rov it's only, were the right comps used, and was the house correctly described. House describing you can be a consultant. Right comps used, you just became an appraiser.

Most rov are just showing better comps to the lender, if they are there. And most times, the other appraiser will not change anything. With your rov comps, giving them a short MLS print of them, showing enough from a glace they are better, the lender might do something, but most likely not. Mostly just giving addresses only doesn't change anything.

But then, the other appraiser might be right. Get cash up front.

 

[ZZGAMAZZ]

As soon as you state value is ok, high or low, you just did an appraisal, appraiser. A consultant would hire an appraiser, then consult with the owner. So no, you are not a consultant.
With an rov it's only, were the right comps used, and was the house correctly described. House describing you can be a consultant. Right comps used, you just became an appraiser.

Most rov are just showing better comps to the lender, if they are there. And most times, the other appraiser will not change anything. With your rov comps, giving them a short MLS print of them, showing enough from a glace they are better, the lender might do something, but most likely not. Mostly just giving addresses only doesn't change anything.

But then, the other appraiser might be right. Get cash up front.

I understand agree with most everything you said with one question/exception: does the client and AMC have the authority to review the appraiser's response to a ROV rather than to allow the appraiser carte blanche authority to just refuse the ROV recommendations/response?

 

[J Grant]

The ROV is sent to the client who reads it to see if it in compliance with their ROV form, which is a standard form now. They then pass it on to the appraiser who did the appraisal to respond to.

As far as I know, the client is not going to get too deep into the ROV unless they find it unacceptable ( the form is simple to fill out). However, if the borrower causes trouble and makes a pest of themselves, the client might get more involved.

 

[Tom D]

Poster, are you assuming that value is low. Your market research, or i have the nicest house in he area owner comment.

When a lender has 2 values, they always seem to believe lower one, period.

 

[J Grant]

Whatever sales are sent in an ROV are often rejected by the client (via their appraiser). Is the disgruntled borrower going to take it out on the OP? Stay tuned for drama...