BPO for PMI Removal???

[Susan Klimaszewski]

This was a new one for me today. Had a fella call because his lender said that he would need an appraisal to have his PMI removed, but when he got the forms from the bank, it had specific directions to call any licensed REAL ESTATE BROKER for a Broker's Price Opinion. It specifically said that an appraissal was not needed.

Jeeze................

 

[Doug in NC]

You should check with your state appraisal board on this. It is illegal in NC to use a BPO for this purpose. If real estate agents want to earn money for valuing property, they should have to meet the same standards, complete the education, and pay all of the same fees that we do.

 

[jay trotta]

agree with Doug, can't do it in our State either, Realtor would be providing an appraisal by regulations.

License.......removed

 

[KenRossman]

FWIW, Freddi-Mac (and others) have allowed BPOs for PMI Elimination since the late 90's.

I'm not saying it's right, it just is what it is...

FYI - http://eappraiser.ws/fred994.pdf

 

[Joyce Potts]

You should check with your state appraisal board on this. It is illegal in NC to use a BPO for this purpose. If real estate agents want to earn money for valuing property, they should have to meet the same standards, complete the education, and pay all of the same fees that we do.

I'm probably begging for it, but if the loan is from an out-of-state lender and that lender accepts a BPO on their form to satisfy removal of PMI, who is North Carolina to say that's unacceptable? Who is NC going after if a Realtor simply does a BPO for what they believe is a listing or generic purpose?

 

[hastalavista]

As an aside, I've started to order BPOs for some QC work. My impressions (so far) are these:
A. No, it is not an appraisal.
B. The one's that I've seen are pretty accurate on the values, although they get to it a lot quicker and easier than I would.
C. And, the price I pay is about 1/3rd what I charge for a regular appraisal- and they are quicker than me too (that's not saying much, however ).

I wouldn't want to make a large or a risky lending decision using a BPO, but I'm not as quick to discard them as a valuation tool now (as an actual user) as I was before.

 

[Mountain Man]

agree with Doug, can't do it in our State either, Realtor would be providing an appraisal by regulations.

License.......removed

Sometimes I wish that were so in GA. But then again, I've financed a lot of flippers via BPO's and AVM's.

 

[Thomas Fiehler]

Joyce-Seems to me if the Realtor/Broker is licensed in NC, then the state may have control.

 

[Joyce Potts]

Joyce-Seems to me if the Realtor/Broker is licensed in NC, then the state may have control.

Please go back and re-read my post.

I stated that if the Realtor renders a generic BPO, not knowing it's for PMI removal, how is that a violation?

 

[Elliott]

Let me get this right.....we had the $500 Billion S&L crisis....
so we had to had U.S. licensing of appraisers....we are currently
going through the meltdown of the sub-prime market (where
apparently the solution is a 'bail-out' so the "major" investors
and "insurance" types won't get really, really hurt....

and so the way to get rid of PMI is a BPO? But some states
have legit BPO's and some states don't? I guess we have a
incredibly weak ASC? Have we heard from them since the
PA board/FNC thump on the nose?

WTF