Certification 25 3.6

[Zoe]

And the courts don't always go with the boil plate statements, as they are referred to, on any paperwork.

Boilerplate in legal contexts refers to standardized, formal language found in contracts that governs administrative mechanics like dispute resolution, governing law, and interpretation, rather than the substantive exchange of goods or services. While these clauses are generally legally binding and enforceable, courts may interpret them against the interests of the party offering the clause if they were not individually negotiated.

especially when a lawyer is going after class action type gains that hurt the general public.

 

[Zoe]

I can still remember when all appraisers thought they would be paid for their appraisal data. We had to remove that language from limiting conditions and certifications. Many appraisers had that limiting condition and in certifications where the data could not be used by anyone except the client without the appraiser's consent.

Yes, appraisers should be paid for proprietary property data and intellectual property data.

 

[Zoe]

Just got another email concerning it from Working RE:

(UAD 2.6) 21. The lender/client may disclose or distribute this appraisal report to: the borrower; another lender at the request of the borrower; the mortgagee or its successors and assigns; mortgage insurers; government sponsored enterprises; other secondary market participants; data collection or reporting services; professional appraisal organizations; any department, agency, or instrumentality of the United States; and any state, the District of Columbia, or other jurisdictions; without having to obtain the appraiser's or supervisory appraiser's (if applicable) consent. Such consent must be obtained before this appraisal report may be disclosed or distributed to any other party (including, but not limited to, the public through advertising, public relations, news, sales, or other media).

Now let's look at UAD 3.6's Certification 25, which opens with the same list of recipients.

(UAD 3.6) 25.: The lender/client may disclose or distribute this appraisal report to: the borrower; another lender at the request of the borrower; the mortgagee or its successors and assigns; mortgage insurers; government sponsored enterprises; other secondary market participants; data collection or reporting services; professional appraisal organizations; any department, agency, or instrumentality of the United States; and any state, the District of Columbia, or other jurisdictions. Any of the foregoing persons or entities who receive this appraisal report may choose to store, copy, reproduce, analyze, use and distribute the data in the appraisal report for internal or external purposes without having to obtain the appraiser's or supervisory appraiser's (if applicable) consent. Consent must be obtained before this appraisal report may be disclosed or distributed to any other party (including, but not limited to, the public through advertising, public relations, news, sales, or other media). A person or entity who receives a copy of an appraisal report does not become an intended user, unless the appraiser identifies such person as an intended user. The appraiser and supervisory appraiser (if applicable) shall have no liability for any use of this appraisal report not related to the mortgage finance transaction and related activities for which this appraisal report was prepared.

The bolded section is what has some appraisers up in arms.

The bolded part is where it got stretched.

 

[Zoe]

I hit buttons and poke holes and nobody has opinion to:

Any of the foregoing persons or entities who receive this appraisal report may choose to store, copy, reproduce, analyze, use and distribute the data in the appraisal report for internal or external purposes without having to obtain the appraiser's or supervisory appraiser's (if applicable) consent. Consent must be obtained before this appraisal report may be disclosed or distributed to any other party (including, but not limited to, the public through advertising, public relations, news, sales, or other media). A person or entity who receives a copy of an appraisal report does not become an intended user, unless the appraiser identifies such person as an intended user. The appraiser and supervisory appraiser (if applicable) shall have no liability for any use of this appraisal report not related to the mortgage finance transaction and related activities for which this appraisal report was prepared.

 

[Zoe]

I could go to invasion of privacy but I can think of other avenues.

It is the bolded part that opens the door on liability to the appraiser.

Okay, if they use it on data mining or whatever, the liability goes back to the appraiser.

Basically the cert is saying we can use your appraisal for whatever we want.

Intended use and user just got a new meaning.

 

[Zoe]

The above should concern TAF.

 

[Zoe]

I'm listening @Francois K. Gregoire

@DWiley

 

[FLRealEstateValuator]

I hit buttons and poke holes and nobody has opinion to:

Any of the foregoing persons or entities who receive this appraisal report may choose to store, copy, reproduce, analyze, use and distribute the data in the appraisal report for internal or external purposes without having to obtain the appraiser's or supervisory appraiser's (if applicable) consent. Consent must be obtained before this appraisal report may be disclosed or distributed to any other party (including, but not limited to, the public through advertising, public relations, news, sales, or other media). A person or entity who receives a copy of an appraisal report does not become an intended user, unless the appraiser identifies such person as an intended user. The appraiser and supervisory appraiser (if applicable) shall have no liability for any use of this appraisal report not related to the mortgage finance transaction and related activities for which this appraisal report was prepared.

I saw this yesterday too, and I don't like it. I'm trying to find software that won't exploit appraisal data. But, if Fannie & Freddie can do whatever they want with it, because of statements built in 3.6 we forcefully agree to, then does it really make a difference if we also PAY software companies to profit off of it? Sure - yeah - at the moment they make our jobs easier - that's how it's all sold. But - if we become data entry-ers for software bigwigs / AI feeders, how much longer will our human businesses last? So frustrating.

 

[Tom D]

Quiet children, let the data vampires feed off of you. The masters have blessed us for this purpose. hahahahhaha. I have garlic and a cross on my computer, but i'm not sure that it is protecting me.

 

[alebrewer]

I saw this yesterday too, and I don't like it. I'm trying to find software that won't exploit appraisal data. But, if Fannie & Freddie can do whatever they want with it, because of statements built in 3.6 we forcefully agree to, then does it really make a difference if we also PAY software companies to profit off of it? Sure - yeah - at the moment they make our jobs easier - that's how it's all sold. But - if we become data entry-ers for software bigwigs / AI feeders, how much longer will our human businesses last? So frustrating.

Trying to understand the 'data theft' argument. What, exactly, are you concerned with the GSE's (or anyone else) stealing/mining? Probably 90% of an appraisal report is factual data that can be picked up by anyone. The other 10%, obviously, being the appraiser's opinions and conclusions. Is that what folks are concerned about being mined? If so, which opinions and conclusions do you think would lead to our demise if mined? It can't be property condition/GLA - as they can get that info via a PDR if desired. I guess I'm naive, but I just am failing to connect the dots as to what it is that they're trying to mine that will end us?