FHA Appraisal Audit/review - Punishment

[CANative]

This doesn't sound like the whole story. I talk to Brad P fairly regularly and something like what the OP is posting about is completely opposite of the way he describes the process at SAHOC.

Did you make additional adjustments for the spa?

 

[RSW]

I did several hundred FHA field reviews for REAC back in 1999 to 2001 and found many deficiencies in appraisals. I just did a field review on a FHA appraisal for one of my clients and I could not believe the things I found just from the street that the appraiser did not mention or did not follow per FHA appraisal protocol.

 

[Mike Garrett RAA]

Another fine reason.....

It does sound like we need to hear "the rest of the story".

Appraisers are no longer hired for their expertise but rather for their ability to write a perfect report.

 

[TMG]

This doesn't sound like the whole story. I talk to Brad P fairly regularly and something like what the OP is posting about is completely opposite of the way he describes the process at SAHOC.

Did you make additional adjustments for the spa?

Point taken, and it is prudent to think there is more to the story. However, there is not. I gave two honest examples of what they called me on, and yes, I was forced to adjust for the spa. Since I was unable to bracket it I adjusted very conservatively based on cost new minus depreciation and mkt return on a spa in that neighborhood. I had at least one paragraph commenting such, and believe me, if there had been a relevant poo/spa comp within 12mos and relevant distance I would have used it.

In my opinion, FHA is up in an ivory tower and has no idea what the "peasants" are thinking. I used to get about two FHA orders per month averaging a whopping $100 take home (staff split) per assignment.

If FHA thinks they can treat me like a red-headed stepchild, and I will beg for more orders, they are gravely mistaken.

In my opinion, at this rate, FHA could run out of appraisers who are willing to accept their increased liability and potential punishmen.

FHA does not review looking to see if the value is supported, they review strictly looking for mistakes/differences of opinion. Can anyone show me a report without a mistake/difference of opinion? The issues they called me on were non-value changing differences of procedure/opinions. I honestly do not think I can get a report through an FHA auditor, and I am unwilling to risk seeming their love of punishing appraisers.

My hope is that some day they are out of appraisers, and are calling me to accept assignments. And I will......for a "reasonable" fee.

 

[TMG]

I did several hundred FHA field reviews for REAC back in 1999 to 2001 and found many deficiencies in appraisals. I just did a field review on a FHA appraisal for one of my clients and I could not believe the things I found just from the street that the appraiser did not mention or did not follow per FHA appraisal protocol.

If someone did not bracket a spa, but had commented extensively on the lack of the bracket, would you make them take 21 hours of classes?

 

[factsandtruth]

Last year, I was a lucky one of 150 Ca. appraisers selected for a random audit. FHA pulled three of my reports and reviewed them. They found approx. five non value changing SUBJECTIVE issues on each report.

Example: My subject had a pool/spa, and I could only find a comp with a pool and was unable to bracket the spa. I commented extensively on my search parameters and lack of a spa comp. They claimed I had not performed enough due diligence in finding a comp with a spa.

Example 2: "MLS shows sale # 1 GLA at 1,825sf, whereas pub records shows 1,750sf". Again, this was addressed/commented on, but apparently not well enough to appease the FHA gods. And more stuff like this was found, etc etc subjective minutia.

I would usually be ok with a critique, but they levied me with a 7 hour FHA course and a 15 hour USPAP course - with proctored exam. All in all I lost 3 days and $400 in course fees.

I feel my punishment was extremely harsh and bordered on harassment. They did not allow me to appeal, only gave me a deadline to turn in proof of course completion or they would escalate to the OREA. I doubted the OREA would care if I bracketed a spa, but I had no choice but to appease FHA.

I completed their punishment, but I have not accepted an FHA order since, and probably never will again. If this is how they treat their appraisers, someday they wont have any more to kick around.

Thanks for the heads up TMG...

 

[OSU Beavers]

What were the other three items?

Sounds like the last USDA order I did back in 2008. It was a flip that looked good on the newly painted surface, but had some problems which I disclosed and appraised at about 10% under the sales price. My comps sucked as the market was already slowing and what I had to work with needed large adjustments. So they called Skippy in from the next county over to save the sale. Of course that "Perfect" comp always closes a month after your report at an unexplainable high price.

Alan from USDA in Portland called to tell me how Skippy's report was so much better and to council me. I asked for a copy and it was cr#p. Skippy used very low adjustments and placed all the weight on that high sale. Alan continued to tell me that Skippy's report was superior because all the gross and net adjustments were smaller than mine. They used his report and closed the sale.

The subject was repossessed a year ago and now sits vacant. I hope that USDA had to eat that loss.

 

[Pilgrum]

Wait.....pool/spa.

I quit doing FHA reports when AMCs failed to comprehend the additional exposure and compensate for it. Send it down the line to some other lucky tool.

In a bit of a row with an AMC right now. They don't understand the additional risk. Not just legal but physical. Falling off ladders. Confronting snakes, rats and other critters. You got to pay me more if you want me to take the risk.

 

[RSW]

If someone did not bracket a spa, but had commented extensively on the lack of the bracket, would you make them take 21 hours of classes?

I wouldn't make them do anything. It is above my pay grade.

 

[Mr Rex]

I agree that there is part of the story not being told. Just as every homeowner thinks their house is the finest in the neighborhood and ignore the rotting handrails et al, every appraiser sanctioned by any body able to do so minimizes the supposed transgessions. My apologies to the OP if you disagree, if so, copy and paste the whole of the admonishment from FHA along with redacted copies of the reports in question before you can expect we will take your word for it. :icon_idea: