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Did Or Did Not Inspect Property Box

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KYLECODY

Senior Member
Joined
Apr 26, 2003
Professional Status
Certified Residential Appraiser
State
Arizona
Ok,
I recently talked to an appraiser who employs several registered trainees. When they inspect the property the supervisor looks over the report and signs off and checks the box that he did inspect the subject property. He never does of course. His rationale is that he is on the lenders list and has to check the box. He also believes checking the box simply means he inspected the EXTERIOR of the subject and comps(which cant be proven of course).

Does it state somewhere exactly what did inspect the property means, I would assume it means interior?? Or is it up for interpretation?? The state is Colorado. Thanks.
 

hal380

Senior Member
Joined
Apr 26, 2003
Professional Status
Certified General Appraiser
State
Connecticut
A lie is a lie, and thats all there is . The supervisor has the option to indicate that he/she did or did not inspect, and presumably either is acceptable. The supervisor is giving a false sense of security to the underwriter that he/she took a more active role in the preperation of the report.

Why not just tell the truth.

Regards

Hal
 

larryhaskell

Senior Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Nevada
I believe that any reasonable person would rightly assume that a supervisor did the same type of inspection as the trainee/intern if that is what they indicated on the report. To do less would be misleading.
 

Carnivore

Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
If that is what he said then he is wrong per USPAP. Most cert pages say to what extent of inspection was conducted. If he did less than what his cert page said he is in violation of the ethics rule and many others.

by chance is his name Skippy?

Turn his A__s in too the state.

"Help me, help us regain control of our profession."
Andrew Picarsic, appraiser
 

Mike Simpson

Senior Member
Joined
Jan 30, 2002
In my opinion this is one of the worst offenses & one of the biggest problems in our industry. Exterior inspection is insufficient when a licensed appraiser signs "did inspect," (and they know it). The possibilty of getting caught evidently doesn't outweigh the greed these corrupt appraisers posses!

States have been quite clear on this issue & HUD deems it egregious enough to consider this action grounds for removal from the approved appraiser panel! Additionally, if caught, HUD will notify the Department of Licensing in the state in which the guilty appraiser operates.

The "did inspect" appraiser is typically a sweat shop operator training minions of future short-cut artist in the finer points of fraud. The problem is--these 'trainees' invariably go on to start their own business's and in turn teach their employees how to 'cheat the system.' They're as prolific as bunnies.

Turn em in (I have), and you'll be doing us and your profession a favor!

-Mike
 

KYLECODY

Senior Member
Joined
Apr 26, 2003
Professional Status
Certified Residential Appraiser
State
Arizona
So it is implied they have inspected the interior..but is it written down in FNMA guidelines somewhere clarifying the point? The person I know thinks saying they have inspected the Exterior will shield them from all wrongdoing..
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Per Fannie Mae Form 1004B 6-93

Appraiser's Certification: The Appraiser certifies and agrees that:

8. I have personally inspected the interior and exterior areas of the the subject property and the exterior of all properties listed as comparables in the appraisal report. .........

and

SUPERVISORY APPRAISER'S CERTIFICATION: If a supervisory appraiser signed the appraisal report, he or she certifies and agrees that: I directly supervise the appraiser who prepared the appraisal report, have reviewed the appraisal report, agree with the statements and conclusions of the appraiser, agree to be bound by the appraiser's certifications numbered 4 through 7 above, and am taking full responsibility for the appraisal and the appraisal report.

I believe most would assume that if the box is checked that the supervisory appraiser Did Inspect Property, that they did comply with #8, even if they are not certifying to that. Just one more very grey area that I wouldn't want to be the one testing in court. As a trainee, I eventually refused to have my name put the report as the appraiser if my supervisor insisted on checking that he did inspect when I knew damn well he didn't. I felt that would make me a party to fraud.

Another 'it depends' and one that eventually will nail someone.... or many.
 

Chris Harrison

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Utah
Kyle,

It is written in the standard appraiser Ceritfication form (FDMC 439 & FNMA 1004B) item #8

8. I have personally inspected the interior and exterior areas of the subject property and the exterior of all properties listed as comparables in the appraisal report. I further certify that I have noted any apparent or known adverse conditions in the subject improvements, on the subject site, or on any site within the immediate vicinity of the subject property of which I am aware and have made adjustments for these adverse conditions in my analysis of the property value to the extent that I had market evidence to support them. I have also commented about the effect of the adverse conditions on the marketability of the subject property.

It can be changed by the appraiser but would not be acceptable to Freddie or Fannie guidelines.

Chris
 

Peggy Wright

Sophomore Member
Joined
Mar 16, 2003
Along these lines, I know it has been proposed that supervisors are going to have to go out on the first 50 appraisals of all trainees. I have not read anywhere where this is yet a passed USPAP rule. Any thoughts on when this might occur? I'm also wondering, if I am halfway through my training and it does, will we have to have 50 recorded visits with my sup on file before getting license?
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
The supervisory appraiser is not required to inspect the property as long as the client has agreed to the scope of work. If the supervisory appraiser signs as inspected, he/she should have inspected the property in compliance with the certification. Turn the sucker in!
 
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