BPO's And Cma's What Standard & Condxs

[Ms. Janet]

If regulating appraisals has been deemed necessary, how on earth can BPO's be allowed to simply circumvent the process?

As far back as I can remember, realtors have sometimes charged for BPO's. I think the argument that the majority of people think a BPO is an appraisal is laughable. They order a BPO because they don't want to pay for an appraisal. My point is, a coupon for a free BPO in no way reduces its value to the user. I've already said I agree it needs to be better regulated. See below...I said that!!

No doubt about it, I agree 1000% that there are inadequate standards in place for these products.

Austin,

However you make your money suits me just fine! If you don't want to join MLS or NAR, that is your business as well. And as far as realtors ignoring standard 11, so why can't we appraisers do the same with USPAP..............that is also a decision you are free to make. And if the users of your appraisals don't care, then you'll probably continue to spit them out and be paid for them.

 

[Stone]

Originally posted by janet rabin@Jan 17 2006, 10:13 AM
Michael, I've already said I agree it needs to be regulated. See below...I said that!!

That wasn't exactly what I was trying to get at. Frankly, actual regulation of BPO's would only further enforce the idea with the general public that they are the same as appraisals.

If they are regulated, then I see two possiblities:

1. they are regulated like we are, including education and standards, which means they will not continue to be done as they are now and they will not really be actual competion. I don't see this as ever happening.

The more likely option:

2. They fall under less stringent regulation without all the hassle of defined market values or education and real standards. If that is the case, then it is way worse than right now, because the government will have stamped their approval on these as being similar to appraisals, without actually regulating them.

Regulation would, in the end, only assist in BPO's circumventing the process.

If one is going to provide an opinion of value for anything other than an appraisal, it should be treated as an appraisal. Otherwise, do away with all the appraisal licensing and level the playing field.

 

[Ms. Janet]

deleted

How's that? Sorry, I didn't realize it had already posted and deleted the wrong one

 

[Stone]

Janet - now that you have moved your post, it is harder to follow. Not sure why you did that. It isn't a double post when you move it in the order of the discussion and it sort of puts other posts out of context.

You continue to say that you feel BPO's should be regulated. As to my last post, that only would make things worse, IMO.

I didn't say that people think appraisals and BPO's are the same. I said many think of them as two valuation services, one which is a down and dirty number and the other containg a bunch of extra stuff that is necessary to close a loan.
They don't want to order an appraisal because they feel the number is equally valid from a BPO. That isn't laughable.