BPO's

[CANative]

Compliance with USPAP is required when either the service or the appraiser is obligated to comply by law or regulation, or by agreement with the client or intended users. When not obligated, individuals may still choose to comply.

Lines 159 - 161, 2010/2011 USPAP

It is my understanding that an appraiser must comply with USPAP at all times. If an APPRAISER gives an opinion of value, they have performed an appraisal. Yes, even giving a neighbor an opinion over the back fence. If an appraiser performs an appraisal, it must comply with USPAP. So yes, an appraisal can perform a BPO; however, it must comform with USPAP... contain Appraiser's Certifications... etc. If you want to add all this to a BPO and comply with all USPAP requirements... for $50, feel free to do so.

 

[Doug Wegener]

clever BPO provider

I'm not saying it's right or that I agree with it but could not a clever and optimistic BPO provider just write the following statement on their BPO: "The intended purpose for this BPO is to............ a l*st*ng."? Problem solved?

Saying it doesnt make it so. Some of these BPO mills NEVER give a listing so its clear that can't be the purpose.

 

[Doug Wegener]

legal or illegal

Saying it doesnt make it so. Some of these BPO mills NEVER give a listing so its clear that can't be the purpose.

What I would like to know is if FNMA,Freddie Mac, All Federally insured institutions, AMC's, Real Esate Agents and Brokers are engaged in illegal appraisal activity under the guise of BPO's and is OREA and the Department of Real Estate giving them a wink and a nod?

 

[CANative]

What I would like to know is if FNMA,Freddie Mac, All Federally insured institutions, AMC's, Real Esate Agents and Brokers are engaged in illegal appraisal activity under the guise of BPO's and is OREA and the Department of Real Estate giving them a wink and a nod?

No.

0123456789

 

[Laughing Heir]

The PA appraisal board just whacked an appraiser assistant / Realtor $1,500 for doing three BPOs. I know the agent, she works for a broker in my area. She lists many homes for RRReview's primary client (Select Portfolio Servicing). Oddly enough, the disciplinary action went on her record as an appraisal assistant only; I think it should be recorded on her real estate salesperson record OR both records.

As a result of this action by my board, I know of two brokers that have ceased BPO operations from their businesses.

 

[jnordquist]

http://webcache.googleusercontent.c...d=1&hl=en&ct=clnk&gl=us&source=www.google.com


This is Pennsylvania. Does this means the BPO mills are not operating in Pennsylvania? Or does it mean that Pennsylvania agents are routinely violating the law with no enforcement from the state authorities?

BPO's are stilll completed in Pennsylvania by agents. The most common type is when an agent is going to list an REO property. The correct way to do this would be complete a CMA. The lenders and asset managers don't want to change their structure so the agents complete BPO's. Recently there have been a few cases of agents getting blasted with fines by the PA Appraisal Board for completing BPO's and being paid directly by an AMC (PA prohibits this). I don't complain too much when they complete a BPO for actual listing purposes, thats part of their job (but should be a CMA). If I ever get my hands on a BPO for independant valuation, review of an appraisal or lending purposes, I will send it straight to the state.

Two weeks ago I was taking my USPAP update and the class had about 10 ServiceLink employees. The USPAP instructor brought to their attention that BPO's were illegal in PA, they had no idea, nor do I think they cared. The PA AMC regulations in process prohibit the ordering of BPO's by AMC's, we will see if this regulation makes it to the final draft.

Jon N