FNMA Announcement 9-14

[DWiley]

Do you consider "read(ing) every report and sign(ing) them as the Supervisory Appraiser the same as "Directly supervising the appraiser" as you certified when you signed on the right?

Greg,

Feel free to call my office and ask any of the staff if they are directly supervised or not.

I am sorry if my brevity left the wrong impresison. I do more than just read the reports. I look at field notes. I do my own research regarding comps, market conditions etc. My finger is in every one of those reports.

One of the great advantages of having multiple appraisers is the old two heads are better than one thing. We often get everyone together for a few minutes to discuss issues.

DW

 

[CANative]

I imagine if I actually called your staff and asked that question I'd get an earful of expletives. LOL

Like I said, my questions were rhetorical and answers were not expected. Especially not from you. But the brevity of the response is important because it allows "chinks" in our armor. IMO, it's not a good idea to be brief in explaining these things. It has allowed toxic loan application takers to self-interpret rules and cajole weak appraisers into waffeling.

 

[DWiley]

Like I said, my questions were rhetorical ...

Your rhetorical questions make very good points. I regretted my brevity as soon as I read your post. (I chose to provide a follow up rather than edit my original, lest one of the disciples pounce on me for editing a post.)

There is a big difference between just reading a report and directly supervising an appraiser. Too many appraisers sign on the right side without fully considering the implications.

A lot of what we have seen over the last few years is a direct result of the current training process. Many trainees are "set loose" with very little training, and they can work for years after that with little oversight. Many appraisers, including some very good ones, are essentially self-taught. It is no coincidence that so many states have adopted (or are looking to adopt) stricter trainee policies.

 

[Workbox]

A lot of what we have seen over the last few years is a direct result of the current training process. Many trainees are "set loose" with very little training, and they can work for years after that with little oversight. Many appraisers, including some very good ones, are essentially self-taught. It is no coincidence that so many states have adopted (or are looking to adopt) stricter trainee policies.

I was talking to a buddy that has contact with a big national lender and they told him the same thing. They could not believe that it is that big of a problem and rather compare them to BPO's. Every so often they get the gem of an Appraiser, and once they do find them, they find out that they are leaving the Biz or retiring.

 

[TJSum]

IMO there is a big difference between signing off on a report done by a trainee vs. signing off on a report done by another certified appraiser who might even have more experience than the supervisory appraiser has. That is a major flaw in the forms, the way they are set up, it seems to equate the two. There should be different ways to co-sign a report depending on the situation.

IMO the way DW does it is much better than the appraisal shops where the owner does not co-sign the report. If the owner of the company is not willing to take responsibility for the report, it should not go out the door. It is also very hard to review one's own work, no matter how good or experienced we are, having a co-signer review the report and take as much responsibility for the report as the inspecting appraiser is a good thing. But it is far different then when a trainee is involved...

 

[BRCJR]

.................. As an example, I sometimes send work to an associate who is certified and has over 20 years experience, and I will still sign off on the right side as a service to my clients that want to see my name on the report. As long as the "did not inspect" checkbox is marked, it is acceptable appraisal practice.

I find that acceptable appraisal practice is the appraiser that the letter of engagement is addressed too perform the appraisal.

What right do you have to re-assign an appraisal request to you, to another appraiser, without notifying the client beforehand?

If you do not notify the client how do you know that they will approve/accept this?

Is the appraiser that you "assigned" the appraisal to (sub-contracted) on that clients approved list of appraisers?

I work for a lender that addresses letter of engagement to the individual and expect that individual to accept or decline, not sub out.

 

[Lobo Fan]

A number of appraisers sign on the left when they never set foot on the property. All the field work was performed by an apprentice. The apprentice is cited as having contributed significant professional assistance, but the apprentice does not sign the report.

 

[TJSum]

I find that acceptable appraisal practice is the appraiser that the letter of engagement is addressed too perform the appraisal.

What right do you have to re-assign an appraisal request to you, to another appraiser, without notifying the client beforehand?

If you do not notify the client how do you know that they will approve/accept this?

Is the appraiser that you "assigned" the appraisal to (sub-contracted) on that clients approved list of appraisers?

I work for a lender that addresses letter of engagement to the individual and expect that individual to accept or decline, not sub out.

You are correct, that should be made clear when accepting the assignment. It all should be handled at time of engagement, and is, at least with my company. I still think it is better practice when both the inspecting appraiser and the owner of the company sign off on the report, when the owner doesn't, they are then too similar to an AMC.

The point is, there is a huge difference between signing off on a trainee vs. signing off on another certified appraisers work, and the form seems to equate the two which IMO is wrong.

 

[imchrisporter]

I am a Trainee in Utah. I have helped my husband run his custom home building business for 15 years, as well as his small real estate brokerage business. He is also an MAI Appraiser. I have inspected hundreds of homes in all stages of construction and remodeling, and understand in depth the real estate brokerage business. In Utah, you have to have 400 points to get your licence. You can get up to one point per single-family home. You have to have your supervisor with you for the first 100 inspections. I have about 120 points after 9 months. So, I have to wait about two more years before I can inspect on my own, since it will take me that long to get my license. I am more qualified to do inspections than many to most appraisers. My trainee friend didn't read the memo that came out at the beginning of the year. She is close to getting her license, but is just shy of her 400 points. She and her boss have been blacklisted by several lenders because of he signed the report. They did comment that the Trainee did the inspection.

 

[Elliott]

Mr. Wiley said, But this is my company, and I choose to read every report and sign them as the Supervisory Appraiser.

imchrisporter said, She and her boss have been blacklisted by several lenders because ... he signed the report. They did comment that the Trainee did the inspection.

The beauty of the announcement is it allows both situations, increases liability to
the appraiser, also punish appraisers who can't understand it, promotes larger
shops over smaller shops and actually makes signatures more confusing.
I see a promotion of the author in the future by Fannie.