BPO for PMI Removal???

[Renee Healion]

This week an elderly lady had the snap to find me on the internet, interview me and hire me. She said she was planning her estate and her attorney had told her to get an appraisal. Her daughter later called to cancel saying she had a real estate agent, a friend if the family to do it. We have had lawyers and judges using CMA's and BPO's for years in place of appraisals, despite having a law that only appraisers can give an opinion of value. (I know they have accepted brokers doing value opinions for probate.)

For years, agents could only do their CMA/BPO's in pursuit of a listing. They could not collect a fee. Now they can charge for "expenses". They never enforced the law on agents and now they just sweetened it by letting them charge. No juice here. I used to be proud of the state for having the law...

 

[Fred]

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.

Isn't there a contradictin between B and A?

 

[Joyce Potts]

Irony

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

The sad irony is where I read (Working RE Magazine) that (generally speaking), results of AVM'S proved to be MORE reliable than many appraisals--especially given the high volume of 'inflated' appraisals.

Don't read or take that the wrong way. I'm no way an advocate of AVM's.

 

[Elliott]

Joyce,
I'm listening to KTLK and its about how SC is about no doc loans
and we ain't seeing the drop in RE prices Yet (???). They are
clueless. Why do the values of RE prices triple when your wages
don't triple. Detroit has properties that are worth less than cars.

Its surreal.

 

[Workbox]

They can save money and charge the client a regular appraisal fee.

 

[Joyce Potts]

I've said it before and I'll say it again. A foreclosure tsunami is about to hit the shores of the U.S. economy.

I hope I'm wrong.

 

[hastalavista]

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.

Isn't there a contradictin between B and A?

If there is, I don't see it?
The BPOs I've seen are relatively accurate.
They aren't appraisals because that's not what the client wants (as in USPAP appraisal)... The client just wants to know what the value is!:new_smile-l:

When I say "quicker and easier", I mean the level of written report is minimal and cuts to the chase using the sales comparison approach only:
A quick description of the market, 3 or 4 closed sales, 3 listings and the MLS for listings, and four values:
As-is List
As-is Sale
Repaired List
Repaired Sale
(The "repaired" part assumes the client informs the broker there is a problem, or the broker discovers a problem in her/his research).

All of this is on one-page, and there may be a paragraph of comments on a second page (sometimes there is no "addendum" page).

I suppose the development is the same as I or another appraiser would complete if it were our assignment, but I doubt it.

 

[Mr Rex]

Denis has been able to discern the fine line between a provider and a user of valuation services. I'm pretty sure his his stretching exercises will be standard fare in the near future for old rigid appraisers before carpal tunnel syndrome sets in and USPAP and AARP are synonymous. USPAP is letting the appraisers down, while opening the door to the NAR and their care providers. I'm looking for a class in Yoga for USPAP devotees. Based on recent posts about certain designated appraisers, it is apparently offered for the gurus, just not acknowledged publicly..

 

[hastalavista]

I'm looking for a class in Yoga for USPAP devotees. Based on recent posts about certain designated appraisers, it is apparently offered for the gurus, just not acknowledged publicly..

Mike-

At that level, it isn't Yoga. It's more like becoming an escape artist. You'll need to study under Penn & Teller, or get your hands on some of Houdini's notes.

 

[TEL2002]

Denis, if you can, would you be kind enough to send me a typical BPO blank form or one that has been stripped of identifiers?

I think in a few weeks I'm going to undertake the challenge of reinventing the wheel.

My fax number is 803-9180 the area code is 216.