Evaluations & USPAP - Question from a bank staff appraiser

[Zoe]

With the various opinions and positions on Evaluations---all I can say is they are legal and lenders use them.

If nothing in your state law prohibits:

A commercially competent residential Appraiser would do well to contract with local lenders and do commercial Evaluations on properties with transaction values up to 500,000.

They can be done in less time than a URAR at twice (or more) the fee.

Do not like them do not do them, period.

Fight the change, swim against the current, do what you want but, the Evaluation will become a more common product, since the transaction threshold was raised to 500,000, for commercial transactions.

Added to the demand will be the loss of the CG as they age out and retire.

You left out a caveat. Is the lender holding the loan or selling the loan?

I can tell you are smart. Is the liability of loss on the bank or on somebody they sold the loan to?

 

[Tiffany Gibbons]

Ironic his name was Mike. You likely know the head or chief appraiser I was referring to. I don't think he would mind me sharing his name. He was broker and owned Statewide Appraisal Services in Tennessee. He went through a divorce and met a lady deep in congressional appraisal business in a Midwest State.

Mike Orman had independent appraisal offices in Memphis, Nashville and Knoxville. He was national president of NAIFA or IFA. NAIFA was also known as IFA. He told me they offered him too much money to turn the position down at a big bank. It is a mid-west State. I still call him from time to time on certain things. But I am not sure he could help anybody in Wisconsin on this issue posted in the original post.

He worked hard in trying to get appraisal and AMC fees separated on truth in lending disclosures and for appraisers to be paid for their intellectual data/datum.

I still think either a State bank regulator or a State appraisal board member or lawyer would be the best person for the Original poster to ask in Wisconsin.

I think when they commingled fees on APPRAISAL/AMC is when Mike Orman threw in the towel on independent fee appraiser.

I know it is not the same Mike because he is a licensed appraiser. IFAS.

Another big kicker there is I am sure he wanted to be with his new wife and she didn't want to move to the Memphis area.

The appraisal board member in Wisconsin would probably refer the OP to the lawyer that represents the appraisal board.

A State bank regulator lawyer would be a good one to ask also.

Your paying for the legal advice already in your licensing fees and State taxes in Wisconsin.

No, it's the same Mike. I worked at Starewide for 15 years. He was my mentor for my CR and another guy (he died years ago) at Statewide was my CG official supervisor when I earned my CG. but I still got some of my commercial hours with Mike and he was a far superior appraiser. Before Mike trained me, I worked for Susan and John Burrow as a secretary, then office manager. Mike hired me when I took Appraisal 101 from him at State Tech (now Southwest. MIike encouraged me to get my IFA and later on my ASA. He would pay a bigger split if you earned a designation, which was a good incentive for me. I never became his competition. I still call him for questions. I feel sorry for people who didn't have a good mentor like I did.

 

[Zoe]

No, it's the same Mike. I worked at Starewide for 15 years. He was my mentor for my CR and another guy (he died years ago) at Statewide was my CG official supervisor when I earned my CG. but I still got some of my commercial hours with Mike and he was a far superior appraiser. Before Mike trained me, I worked for Susan and John Burrow as a secretary, then office manager. Mike hired me when I took Appraisal 101 from him at State Tech (now Southwest. MIike encouraged me to get my IFA and later on my ASA. He would pay a bigger split if you earned a designation, which was a good incentive for me. I never became his competition. I still call him for questions. I feel sorry for people who didn't have a good mentor like I did.

His daddy was in appraisal business way before him. I like him and have known him longer than you. I don't think he can help this person in Wisconsin on what they need to do. States are so different in how they operate. Lenders are too.

 

[Zoe]

Mike asked me to take over his commercial side of the business. I said Mike I would like to but I can't. He said I will pay you well and we can work things out in the long run. I said I can't Mike.

I had a couple of local MAIs wanting me to take over their commercial business. I said sorry, not in my business plan.

 

[Zoe]

No, it's the same Mike. I worked at Starewide for 15 years. He was my mentor for my CR and another guy (he died years ago) at Statewide was my CG official supervisor when I earned my CG. but I still got some of my commercial hours with Mike and he was a far superior appraiser. Before Mike trained me, I worked for Susan and John Burrow as a secretary, then office manager. Mike hired me when I took Appraisal 101 from him at State Tech (now Southwest. MIike encouraged me to get my IFA and later on my ASA. He would pay a bigger split if you earned a designation, which was a good incentive for me. I never became his competition. I still call him for questions. I feel sorry for people who didn't have a good mentor like I did.

This may have been his father. Because Mike is not old enough to be a world war 2 vet. I thought you said the Mike you are referring to was a world war 2 vet.

I remember the name John Burrow. He may have been the one that took over the commercial side but Kim was his right arm and maybe it was her and John that took the business over. His office that his daddy owned was on elmore park rd in Bartlett. He sold it I think. Or he may still rent it.

Big guy? Pretty big boy.

 

[Terrel L. Shields]

You left out a caveat. Is the lender holding the loan or selling the loan?

I can tell you are smart. Is the liability of loss on the bank or on somebody they sold the loan to?

You really do not understand when and how evaluations are used do you? They do not sell these loans normally. These are almost always for in house use. They could be a small loan backed up by big property, a re-valuation after a balloon loan, or any number of reasons to evaluate their own portfolio. They are not for origination into the secondary market.

 

[BRCJR]

You left out a caveat. Is the lender holding the loan or selling the loan?

I can tell you are smart. Is the liability of loss on the bank or on somebody they sold the loan to?

Evaluations are supposed to be limited to the use of the lender and are not to be relied upon by any other party, per the regulations.

From IAEG:

An institution generally should not rely on an evaluation prepared by or for another financial services institution because it will not have sufficient information relative to the other institution’s risk management practices for developing evaluations.

 

[Zoe]

Evaluations are supposed to be limited to the use of the lender and are not to be relied upon by any other party, per the regulations.

From IAEG:

An institution generally should not rely on an evaluation prepared by or for another financial services institution because it will not have sufficient information relative to the other institution’s risk management practices for developing evaluations.

Makes sense. But what about State law and State bank regulators in Wisconsin? I don't know. State Bank Regulators and State laws differ. Even if a Federally Insured lender operates in a State, the State still has control. A Federally insured institution still has to be licensed with the State they are doing business in.

They are audited by both federal and state regulators.

Appraisal rules differ among states.

I guess what I am asking is "does IAEG control state government?"

 

[Zoe]

No, it's the same Mike. I worked at Starewide for 15 years. He was my mentor for my CR and another guy (he died years ago) at Statewide was my CG official supervisor when I earned my CG. but I still got some of my commercial hours with Mike and he was a far superior appraiser. Before Mike trained me, I worked for Susan and John Burrow as a secretary, then office manager. Mike hired me when I took Appraisal 101 from him at State Tech (now Southwest. MIike encouraged me to get my IFA and later on my ASA. He would pay a bigger split if you earned a designation, which was a good incentive for me. I never became his competition. I still call him for questions. I feel sorry for people who didn't have a good mentor like I did.

John Burrow didn't take it over. It was Kim and Doug after Mike left them for the chief appraiser at big bank in Oklahoma I think.

His new wife was there. Where would I go?

Kim and Doug are both great appraisers. Kim focuses on residential. Doug focuses on commercial.

 

[Zoe]

I am a certified general appraiser who is employed as a full time employee by a mid-sized bank. I currently order, manage and review all commercial appraisals.

The bank would like to expand the scope of my responsibilities and have me start handling some evaluations for loans that meet the criteria.

Do evaluations completed by an appraiser, who is an employee of a bank need to conform to USPAP?

Are there any bank staff appraisers the perform evaluation duties? How do you deal with USPAP?

We need an update you from you. Are you okay?

Earth to Wisconsin? Hello? Are you there?