BPO for PMI Removal???

[Carnivore]

Steven,

In North Carolina I dont think any BPO can ever be USPAP compliant. I believe one would have to be licensed and governed by the state as an appraiser and clearly indicate so in the BPO report. Then it would just be an appraisal misleading identified as a BPO.

You could state that a particular BPO has all the elements of USPAP compliance with exception to the author not being a licensed appraiser.

The BPO would be an appraisal unless the appraiser who prepared the BPO clearly indicated that his appraiser hat was off and broker hat on. In NC a BPO is an appraisal, if a broker did not indicate the BPO was for anticipated potential or actual listing.

 

[Fred]

You could state that a particular BPO has all the elements of USPAP compliance with exception to the author not being a licensed appraiser.

Except - that licensing, per se, is not an element of USPAP.

The idea that the work is non compliant because of who did it might be covered by USPAP some of the time, because of the Ethics Rule requirement not to break the law; but it does not hold up across the board, even in a mandatory state. I can think of two exceptions. I know of cases where the federal court has allowed testimony and relied on opinions where the expert witness was not licensed. I believe a state court could do the same. Another exception is the federally regulated transactions that fall below the FIRREA de minimis that don't require valuation work done by licensed appraisers. This exceptio was upheld in FNIS v Sinclair (the Pennsylvania board trying to regulate an AVM company).

 

[Oregon Doug]

Except - that licensing, per se, is not an element of USPAP.

The idea that the work is non compliant because of who did it might be covered by USPAP some of the time, because of the Ethics Rule requirement not to break the law; but it does not hold up across the board, even in a mandatory state. I can think of two exceptions. I know of cases where the federal court has allowed testimony and relied on opinions where the expert witness was not licensed. I believe a state court could do the same. Another exception is the federally regulated transactions that fall below the FIRREA de minimis that don't require valuation work done by licensed appraisers. This exceptio was upheld in FNIS v Sinclair (the Pennsylvania board trying to regulate an AVM company).

It's true that licensing is not specified in USPAP - but it IS a requirement specified in many (most) state statues.

"...board trying to regulate an AVM company)." State appraiser regularitory agencies license & regulate INDIVIDUAL appraisers ONLY. They do not license nor do they hold authority over companies.

Oregon Doug

 

[Fred]

It's true that licensing is not specified in USPAP - but it IS a requirement specified in many (most) state statues.

In 35 to be precise. The other 15 include NY and CA, which are the most populous. That said, and I know it is a subtle point, the state does not necessarily have jurisdiction over federal things. Yes, the dumb traffic cop can give you a ticket and you do have to go to court and fight it. Ray Miller can explain that better than me.

State appraiser regularitory agencies license & regulate INDIVIDUAL appraisers ONLY. They do not license nor do they hold authority over companies.

Oh great. Just form a company then, and the licensing board can't touch you.
FWIW, the court in FNIS v Sinclair found simply that the state board had no jurisdiction over that category of transactions. The court made no distinction about individuals or whether individuals were DBA as "company."

 

[Oregon Doug]

Oh great. Just form a company then, and the licensing board can't touch you.
FWIW, the court in FNIS v Sinclair found simply that the state board had no jurisdiction over that category of transactions. The court made no distinction about individuals or whether individuals were DBA as "company."

The state agency can go after any person who signs the appraisal - AVM's are computer generated and not signed by anyone. Unfortunately, that's one of the little loop holes in the original Title XI, I have tried to get our state to licence corporations - but to no avail. It's a federal issue and there aint nothing we can do about it.

Oregon Doug

 

[Fred]

The state agency can go after any person who signs the appraisal - AVM's are computer generated and not signed by anyone. Unfortunately, that's one of the little loop holes in the original Title XI,

And where in Title XI would I find the - no signature, no responsibility - clause?

http://www.appraisalfoundation.org/s_appraisal/bin.asp?SID=1&DID=197&CID=14&VID=2&DOC=File.PDF

 

[Alison Swain]

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.

When I was 23 years old (1986) and working in general RE, I did a CMA on a house my dad had appraised six months before. When he heard the address, he dug through his files and found his report. We were $500 apart.