Crappy Hybrid Inspection

[George Hatch]

Only if it was the appraiser who performed that faulty inspection as part of their SOW.

If you're a property owner and you hand me a rent roll that - unbeknownst to me - is fraudulent and I report it in my appraisal that's YOU committing the fraud. Not me. Which is why I attribute that info to its source.


As for your paranoia that appraisers are going to actually get yanked for using - in good faith - inaccurate 3rd party info, you let me know when you find an example of that.

 

[djd09]

(b) not commit a substantial error of omission or commission that significantly affects an appraisal; and

Comment: An appraiser must use sufficient care to avoid errors that would significantly affect his or her opinions and
conclusions. Diligence is required to identify and analyze the factors, conditions, data, and other information that would
have a significant effect on the credibility of the assignment results.

An appraiser must be prepared to support the decision to exclude any investigation, information, method, or technique
that would appear relevant to the client, another intended user, or the appraiser’s peers.

An appraiser must not allow assignment conditions to limit the scope of work to such a degree that the assignment results
are not credible in the context of the intended use.

Comment: If relevant information is not available because of assignment conditions that limit research opportunities
(such as conditions that place limitations on inspection or information gathering), an appraiser must withdraw from the
assignment unless the appraiser can

inspections are not even mentioned in USPAP so they must not be critical, ask DW

 

[djd09]

Who Can I Sue? Lawsuits Against Appraisers​

We all have heard the stories of how the banks are to blame for the real estate bubble burst. Loose lending guidelines and irresponsible underwriting caused people to be able to get loans when they really didn't qualify for them. But up until now other parties involved in the real estate industry have remained relatively unscathed. This is no longer the case for real estate appraisers. Recent court decisions have said that if a buyer can prove that an appraiser deliberately or negligently over-estimated the value of their property when they purchased it, and that property subsequently lost a large portion of its equity leaving the owner upside down, then the appraiser can be held liable for your loss.


The FDIC has instituted multiple lawsuits against both individual appraisers and appraisal companies for causing purchaser's or real property to lose money due to either the appraiser’s careless disregard for market trends and/or conspiring with a lender to over-inflate the value of a property. The FDIC has standing to bring these lawsuits as it insures the lenders who lost money on the loans made because of these false appraisals.


While fraud has always been prosecuted both civilly and criminally it is this liability for perceived negligence that has opened the floodgates for lawsuits against appraisers. The FDIC is also using the language of the USPAP to justify their lawsuits. Uniform Standards of Professional Appraisal Practice, commonly referred to by the acronym USPAP, can be considered the quality control standards applicable for real property, personal property, intangibles, and business valuation appraisal analysis and reports in the United States and its territories.


The FDIC's favorite alleged "USPAP violations" or other alleged errors in its most recent cases have been:

• ·"USPAP required that [the appraiser] analyze whether the level of appreciation was sustainable;"
• ·The comparable is "more than one mile from the subject property;" and
• ·The comparable "involved a sale that was more than six months old."

Some of the allegations of negligence against the defendant appraisers suggest that the FDIC is seeking to hold appraisers liable for things most appraisers would not normally expect. For example, in one lawsuit the FDIC is blaming the appraiser for failing to indicate that "the market was possibly slowing" at a certain price level in 2005 based on one of the selected comparable having been on the market for 91 days.


This has the appraisal community up in arms. Most of the errors and omissions policies appraisers carry do not protect them against this type of lawsuit. This means if you sue your appraiser and win, they are most likely going to be personally liable. To win you have to prove that the appraiser either conspired with the lender or mortgage broker to inflate the value of the property or was so negligent in their research of the property that you were damaged by their valuation.


This is a new and evolving trend in today’s real estate industry and it's one that many people will be following as it can lead to not only appraisers being sued, but any company along the chain of real estate being forced out of business such as the title companies, surveyors or possibly sellers.

Who Can I Sue? Lawsuits Against Appraisers|lawsuits,appraisers

Recent court decisions have said that if a buyer can prove that an appraiser deliberately or negligently over-estimated the value of their property when they purchased it, and th

realtybiznews.com

 

[ValueArtist]

WHICH LENDER IS DUMB ENOUGH TO ALLOW THIS TO BE A HYBRID???

I dabbled with hybrids about a year ago, and out of the fifty or so completed, the majority of them were high value and complex. Granted, as a certified appraiser I was likely getting the "tough ones" that their RE agents were stumped on, however, I did ask myself over and over "why are these being approved for hybrid?". On complex assignments, someone of higher experience and understanding should be collecting the data on the physical.

 

[glenn walker]

I dabbled with hybrids about a year ago, and out of the fifty or so completed, the majority of them were high value and complex. Granted, as a certified appraiser I was likely getting the "tough ones" that their RE agents were stumped on, however, I did ask myself over and over "why are these being approved for hybrid?". On complex assignments, someone of higher experience and understanding should be collecting the data on the physical.

BETA Mode and to get people used to doing and accepting them.

 

[George Hatch]

(b) not commit a substantial error of omission or commission that significantly affects an appraisal; and

Comment: An appraiser must use sufficient care to avoid errors that would significantly affect his or her opinions and
conclusions. Diligence is required to identify and analyze the factors, conditions, data, and other information that would
have a significant effect on the credibility of the assignment results.

An appraiser must be prepared to support the decision to exclude any investigation, information, method, or technique
that would appear relevant to the client, another intended user, or the appraiser’s peers.

An appraiser must not allow assignment conditions to limit the scope of work to such a degree that the assignment results
are not credible in the context of the intended use.

Comment: If relevant information is not available because of assignment conditions that limit research opportunities
(such as conditions that place limitations on inspection or information gathering), an appraiser must withdraw from the
assignment unless the appraiser can

inspections are not even mentioned in USPAP so they must not be critical, ask DW

Reading is fundamental.

An appraiser must not commit....​

Merely having an error isn't a violation. It doesn't become a violation unless/until the appraiser does something they weren't supposed to do. Whether by commission or omission.

WRT to desktop assignments - which is that the appraiser's SOW is with these assignments - there's a 2-part test in the SOWR for that:


Take note of the qualifier they are using. They're not referring to what the users are expecting and the peers are doing in conventional 1004s or any other specific assignment type, they're referring to "the same or a similar assignment". Which will vary by assignment type. Obviously.

So if the users have *designed* this program, have engaged assignments under it and are using those appraisals; and if appraisers have been performing those assignments under that program then that's going to comprise the benchmark. Regardless of what's required for any other type of assignments.

 

[Carnivore]

I dabbled with hybrids about a year ago, and out of the fifty or so completed, the majority of them were high value and complex. Granted, as a certified appraiser I was likely getting the "tough ones" that their RE agents were stumped on, however, I did ask myself over and over "why are these being approved for hybrid?". On complex assignments, someone of higher experience and understanding should be collecting the data on the physical.

Credit is King
Collateral is 2nd Fiddle

Meaning these are low Risk Loans. Why is that Important? The Intended Use is to assist the Lender/Client to make a mortgage decision.
Sufficient Collateral
Fairly Recent Last Appraisal
Low LTV
High Credit Score 800+
Job Security - Successful Business Owner, Medical Doctor, Career Airline Pilot ect
Money invested in Stock Market, mutual Funds etc
Owns other Real Estate

Here is a Biggee : Property is located in a Neighborhood with no history of Short Sale/REO

 

[ValueArtist]

Credit is King
Collateral is 2nd Fiddle

Meaning these are low Risk Loans. Why is that Important? The Intended Use is to assist the Lender/Client to make a mortgage decision.
Sufficient Collateral
Fairly Recent Last Appraisal
Low LTV
High Credit Score 800+
Job Security - Successful Business Owner, Medical Doctor, Career Airline Pilot ect
Money invested in Stock Market, mutual Funds etc
Owns other Real Estate

Here is a Biggee : Property is located in a Neighborhood with no history of Short Sale/REO

I wish there was a low-risk easy button for those over-improved one-of-a-kind, or illegal addition properties. Reconciling a value range $500k+/- wide would have made my job easier. LOL

 

[djd09]

Credit is King
Collateral is 2nd Fiddle

Meaning these are low Risk Loans. Why is that Important? The Intended Use is to assist the Lender/Client to make a mortgage decision.
Sufficient Collateral
Fairly Recent Last Appraisal
Low LTV
High Credit Score 800+
Job Security - Successful Business Owner, Medical Doctor, Career Airline Pilot ect
Money invested in Stock Market, mutual Funds etc
Owns other Real Estate

Here is a Biggee : Property is located in a Neighborhood with no history of Short Sale/REO

that is what waivers are for, the hybriders get the non qm's

 

[djd09]

Reading is fundamental.

An appraiser must not commit....​

Merely having an error isn't a violation. It doesn't become a violation unless/until the appraiser does something they weren't supposed to do. Whether by commission or omission.

WRT to desktop assignments - which is that the appraiser's SOW is with these assignments - there's a 2-part test in the SOWR for that:
View attachment 70736

Take note of the qualifier they are using. They're not referring to what the users are expecting and the peers are doing in conventional 1004s or any other specific assignment type, they're referring to "the same or a similar assignment". Which will vary by assignment type. Obviously.

So if the users have *designed* this program, have engaged assignments under it and are using those appraisals; and if appraisers have been performing those assignments under that program then that's going to comprise the benchmark. Regardless of what's required for any other type of assignments.

AIG unit that had big role in 2008 crisis nears official end​

Dec. 14, 2022Updated: Dec. 14, 2022 1:40 p.m.

AIG was saved by a U.S. funded bailout package that eventually exceeded $182 billion

AIG unit that had big role in 2008 crisis nears official end

NEW YORK (AP) — A unit of American International Group that played an outsized role in...

www.registercitizen.com

the dream remains and has turned around...gaslight the unknowing