BPO for PMI Removal???

[hastalavista]

USPAP isn't required to be followed by everyone. One can be required to follow it (by licensing) or by volunteering to do so.
But, without those two ingredients, and unless it is part of the contractual engagement, must one follow it to meet the client's expectations of competence and impartiality?
I don't think so.

(new bold)

Isn’t it the other way around? By meeting the client’s (or other reasonable) expectations for competence, impartiality, etc., isn’t the person already “following it?”

(my bold)

They are "following it", but simulating (even replicating) the process without acknowledging that the process is USPAP compliant (which the certification does, no?) does not make it a USPAP compliant appraisal.
And, that's the key: It certainly is an appraisal. It just isn't an appraisal that-
(from the certification)

my analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice.

(my bold)

Opinions developed and report prepared. So, having the development process in compliance with USPAP but preparing the report (communicating the results) in a non-compliant manner may result in the most credible appraisal around. It does not result in a USPAP compliant appraisal. And, that's the only distinction I draw.

 

[Fred]

Opinions developed and report prepared. So, having the development process in compliance with USPAP but preparing the report (communicating the results) in a non-compliant manner may result in the most credible appraisal around. It does not result in a USPAP compliant appraisal. And, that's the only distinction I draw.

It seems to me that a "development process in complliance with USPAP" must "result in a USPAP compliant appraisal." The distinction I get from you is that the appraisal did not come packaged in a USPAP compliant report (no cert page).

 

[hastalavista]

It seems to me that a "development process in complliance with USPAP" must "result in a USPAP compliant appraisal." The distinction I get from you is that the appraisal did not come packaged in a USPAP compliant report (no cert page).

Steven-

That is exactly the distinction I draw.
And, remember, the BPO (which was the start of this) is a "written" report. Per USPAP, a written appraisal report must contain certain items which the BPO does not.
Therefore (according to my reasoning), the BPO (or, substitute AVM, cocktail napkin, etc.) with a development process that is exactly the same as what would be required in USPAP is not a "USPAP compliant" appraisal because it does not comply with the written report requirements.

In summary:
BPO (with USPAP compliant development process) + provided in a written format (without USPAP required reporting items) = Appraisal that is not USPAP compliant.

 

[Fred]

USPAP compliant development process)
+ provided in a written format (without USPAP required reporting items)
= Appraisal that is not USPAP compliant.

It still doesn't add up because your bottom line has to be:
= report that is not compliant; instead of
= appraisal that is not compliant.

The reason I keep pointing out that discrepancy is because I think someone who mixes up the appraisal and the report while expressing an opinion about someone else's appraisal is making a more a significant error than the person who omitted the cert page.

 

[hastalavista]

It still doesn't add up because your bottom line has to be:
= report that is not compliant; instead of
= appraisal that is not compliant.

The reason I keep pointing out that discrepancy is because I think someone who mixes up the appraisal and the report while expressing an opinion about someone else's appraisal is making a more a significant error than the person who omitted the cert page.

No, I understand what you are saying. And, I thought about stating "appraisal report" in my prior post vs. "appraisal", but intentionally decided not to because of what I read in USPAP being an "if, then" requirement:
If the the appraisal opinion is to be written, then all written reports are to have.....

IMO, the development process can be pure USPAP and conclude its opinion. When communicating the opinion in writing, the communication must have certain USPAP required items to be USPAP compliant. In retrospect, I should use the term "compliant appraisal report", and I am going to get myself in the habit of being more precise (because I appreciate the distinction).

Unless one would argue that USPAP compliance can be based on the development process alone? But, I think that would be something like Zeno arguing that the arrow doesn't really move? :Eyecrazy: Since appraisal assignments call for appraisal results, not having to provide the appraisal results would really be a Tom Sawyer achievement!:new_smile-l:

 

[Fred]

not having to provide the appraisal results would really be a Tom Sawyer achievement!:new_smile-l:

Harry Houdini, even.

 

[Oregon Doug]

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................

The simple answer is that it all depends on you state's regulations. Licensing is mandatory in most - but not all - states. Most of the mandatory states require licensing for ALL appraising with a few exceptions allowed for Realtors to provide BPO/CMA's to obtain a listing ONLY, lawyers, accountants and a few others may provide appraisal services to their clients if it falls within the scope of their client servicing. These exceptions are specified in the statue.

OR is a mandatory state, so if Dennis in CA asks some Realtor in OR for a BPO/CMA for any purpose other than to obtain a listing and I find out about it, I'll take that Realtor to the mat for unlicensed appraisal activity.

So, ask your state's appraisal regulatory board.

Oregon Doug

 

[hastalavista]

OR is a mandatory state, so if Dennis in CA asks some Realtor in OR for a BPO/CMA for any purpose other than to obtain a listing and I find out about it, I'll take that Realtor to the mat for unlicensed appraisal activity.

Fear not, Doug-
For now, Denis is keeping his appraisal services within the boundaries of the Great State of California!

 

[Fred]

so if Dennis in CA asks some Realtor in OR for a BPO/CMA for any purpose other than to obtain a listing and I find out about it, I'll take that Realtor to the mat for unlicensed appraisal activity

So, a BPO must be an appraisal.

 

[Susan Klimaszewski]

OCCUPATIONS CODE
TITLE 7. PRACTICES AND PROFESSIONS RELATED TO REAL PROPERTY AND
HOUSING

SUBTITLE A. PROFESSIONS RELATED TO REAL ESTATE
CHAPTER 1101. REAL ESTATE BROKERS AND SALESPERSONS
SUBCHAPTER A. GENERAL PROVISIONS


§ 1101.001. SHORT TITLE. This chapter may be cited as The
Real Estate License Act.

Added by Acts 2001, 77th Leg., ch. 1421, § 2, eff. June 1, 2003.


§ 1101.002. DEFINITIONS. In this chapter:
(1) "Broker":
(A) means a person who, in exchange for a
commission or other valuable consideration or with the expectation
of receiving a commission or other valuable consideration, performs
for another person one of the following acts:
(i) sells, exchanges, purchases, or leases
real estate;
(ii) offers to sell, exchange, purchase, or
lease real estate;
(iii) negotiates or attempts to negotiate
the listing, sale, exchange, purchase, or lease of real estate;
(iv) lists or offers, attempts, or agrees
to list real estate for sale, lease, or exchange;
(v) appraises or offers, attempts, or
agrees to appraise real estate;
(vi) auctions or offers, attempts, or
agrees to auction real estate;
(vii) deals in options on real estate,
including buying, selling, or offering to buy or sell options on
real estate;
(viii) aids or offers or attempts to aid in
locating or obtaining real estate for purchase or lease;
(ix) procures or assists in procuring a
prospect to effect the sale, exchange, or lease of real estate; or
(x) procures or assists in procuring
property to effect the sale, exchange, or lease of real estate; and
(B) includes a person who:
(i) is employed by or for an owner of real
estate to sell any portion of the real estate; or
(ii) engages in the business of charging an
advance fee or contracting to collect a fee under a contract that
requires the person primarily to promote the sale of real estate by:
(a) listing the real estate in a
publication primarily used for listing real estate; or
(b) referring information about the
real estate to brokers.

Hmmmmm