FNMA Property Data Collectors Program Violates WV Law

[Mejappz]

Well, another “conspiracy” theory comes to life. Don’t doubt me.

The Fannie Mae Property Data Collectors program seems to have run afoul of West Virginia law. This program allows for the collection of data related to real estate appraisals by unlicensed third-party data collectors, which is in direct violation of article 38 of the state’s Real Estate Appraiser Licensing and Certification Act. The act specifically states that only a casual or drive-by inspection can be performed when it comes to consumer loans secured by real estate, and no opinion can be rendered as to its value nor any fee charged for such an inspection.

ARTICLE 38. THE REAL ESTATE APPRAISER LICENSING AND CERTIFICATION ACT.
§30-38-1. Real estate appraiser license required; exceptions.

(a) It is unlawful for any person, for compensation or valuable consideration, to prepare a valuation appraisal or a valuation appraisal report relating to real estate or real property in this state without first being licensed or certified as provided in this article. This section shall not be construed to apply to persons who do not render significant professional assistance in arriving at a real estate appraisal analysis, opinion or conclusion. Nothing in this article may be construed to prohibit any person who is licensed to practice in this state under any other law from engaging in the practice for which he or she is licensed.

(b) No person other than a person licensed or certified under this article may use the title of licensed appraiser or certified appraiser or any title, designation or abbreviation likely to create the impression that the person is licensed or certified by the state.

(c) This article does not apply to:

(1) A real estate broker or salesperson licensed by this state who, in the ordinary course of his or her business, gives an opinion to a potential seller or third party as to the recommended listing price of real estate or an opinion to a potential purchaser or third party as to the recommended purchase price of real estate, when this opinion as to the listing price or the purchase price is not to be referred to as an appraisal, no opinion is rendered as to the value of the real estate and no fee is charged;

(2) A casual or drive-by inspection of real estate in connection with a consumer loan secured by the real estate, when the inspection is not referred to as an appraisal, no opinion is rendered as to the value of the real estate and no fee is charged for the inspection;

Fannie Mae has put itself in a difficult position here due to its negligence towards following state laws governing appraisal activities – something that should have been taken into account prior launching this initiative across multiple states with varying regulations on such matters. Not only does this create potential legal issues for Fannie Mae but also puts borrowers at risk if inaccurate information is collected from their properties due to the lack of qualified personnel performing these inspections under applicable laws and standards set forth by individual states like West Virginia.

It’s important that companies operating within different jurisdictions are aware about local regulation before engaging in business activities – especially those involving sensitive areas like property valuation – as not doing so could lead them down an expensive road filled with fines, penalties or even criminal prosecution depending on severity level breach committed against given statute.

Fannie Mae should take steps immediately to ensure that its Property Data Collectors are compliant with all relevant state laws if they wish to continue offering this service without facing legal repercussions.

While other states may have similar statutes governing appraisals, it is important for all appraisers to familiarize themselves with their own regulations before engaging in any appraisal activity so they do not run afoul of local laws. If you know of similar statutes in other states, please comment below.

FNMA Property Data Collectors Program Violates WV Law

FNMA Property Data Collectors program which allows unlicensed individuals to collect data on properties is illegal according to WV Article 38

appraisersblogs.com

 

[djd09]

how many times do you think the hybriders have broken State laws since the top secret hybrid pilot started 5 years ago?

 

[glenn walker]

How do you take a license when someone doesnt have one ? I think Fannie would beat them in a Court Case all day long .

 

[Surf Cat]

They'll just skip the data collection process and do a waiver....problem solved.

 

[Mejappz]

have broken State laws

 

[djd09]

Appraisal Data Collectors: What You Should Know​

What has changed in the appraisal data collection process?​

Some appraisal management companies (AMCs) now send “data collectors” to take video, pictures, and measurements of properties instead of an appraiser. They may use cameras or applications from smart phones. The data is then sent to the AMC who determines whether an appraisal is necessary or whether the financier will grant a waiver to the appraisal requirement. If an appraisal is required, the AMC shares the data with an appraiser who generates the appraisal.

When did this separation of duties begin?​

Traditionally, appraisers collect all information they use in an appraisal. Beginning in 2019, Freddie Mac, a quasi-government company that guarantees and helps fund mortgages for home purchases, started a program called property data report (PDR)(link is external) and a pilot program to research the efficacy of separating the data collection from the appraisal. Fannie Mae has since followed suit.1 These pilot programs are not nation-wide, yet, but they will likely expand. The intent is to make data collection more standardized, to reduce costs, and to further ensure impartial and objective appraisals.

Who are data collectors?​

Data collectors(link is external) are persons hired by an AMC, not the appraiser. To date, there are no federal or state regulations on data collectors, though Freddie Mac requires that they have a background check, but does not specify what that should be. Appraisers are required to have a background check, and REALTORS® have the NAR Code of Ethics, local board oversight, as well as a tight-knit community of professional colleagues to observe and censure bad behavior. This lack of oversight for data collectors means that the consumer cannot assume a minimum level of professionalism and should vet the data collector who will enter their home.

REALTORS® as data collectors?​

Some companies have recruited REALTORS® to act as data collectors. This provides an opportunity for some extra income and leverages the agent’s market expertise. However, legal grey areas remain and are not yet clear. Before entering work as a data collector, one should investigate these legal questions and discuss with their broker:

• Does applicable state law allow the agent to enter a home to perform data collection pursuant to the broker’s license or otherwise?
• Could the agent or broker be legally liable if the data is not collected correctly, whether with a third-party application or not?
• Should an agent that is a party to the seller or buyer in the transaction be allowed to collect the data?
• Does the agent’s insurance provide coverage for data collection work?

What consumers do if they are expecting an appraisal:​

Appraisal Data Collectors: What You Should Know

Some appraisal management companies (AMCs) now send “data collectors” to take video, pictures, and measurements of properties instead of an appraiser. Learn more about what has changed in the appraisal data collection process.

www.nar.realtor

 

[John Hassler]

How do you take a license when someone doesnt have one ? I think Fannie would beat them in a Court Case all day long .

I would be extremely surprised if WV's appraisal board didn't have a law/reg that gave them authority over non-licensed persons when the activity required a license. Else why get a license?

 

[chad hampton]

No such thing as a data collector.

There’s a reason the snake oil salesman scum bags had to come up with a new term.

Reeva members are on flights as we speak to Charleston WV to start buying politicians off.

 

[chad hampton]

How do you take a license when someone doesnt have one ? I think Fannie would beat them in a Court Case all day long .

In a lot of state laws, working under a license you don’t hold turns it into a misdemeanor or a in some cases a felony. Try operating on someone in your kitchen without a medical license.

 

[glenn walker]

I would be extremely surprised if WV's appraisal board didn't have a law/reg that gave them authority over non-licensed persons when the activity required a license. Else why get a license?

Because in most States unless you are opining a "Value" measuring homes and taking photos is not something that requires a license. What differentiates an appraisal from a Evaluation or BPO or measuring a home or taking photos is not a USPAP requirement. Nothing becomes an appraisal until someone give an opinion of value. Most things we assume require licensing do not its just e are used to having lenders require certain things to be done by appraisers.

Now thats changing the Lenders, GSEs and other Agencies are saying no we do not require the appraiser to do the physical inspection or take photos. The FACT IS USPAP has never required physical inspections or photos or measuring to be taken by appraisers - Again those were just what Lenders and the GSEs asked for but not State or Federal Laws.