FNMA retrospective field reviews

[JENIFFERW]

I thought I would share what I am doing for my latest client, and find out what everyone's thoughts are on it. I've been doing more and more retrospective field reviews for an AMC, with their client being FNMA. They are mostly on appraisals that were done between 2005-2007. It is a lot of work, but the fee is fairly reasonable. The instructions on the orders say "...your field review will be used by Fannie Mae for the purpose of quality assurance, and may be used as part of a state licensing or regulatory referral". Most of the properties have been foreclosed. My feeling is that while a little late, at least they are now possibly dealing with the problem. I asked the reviewer at the AMC if this will potentially lead to me being subpoenaed to court. They said that it was not likely because they would get an expert witness if it went that far. I kinda feel like it's a perfect fit for me, so I like doing them. I have a little bit of a concern with the fact that I am scared to be doing work for FNMA, as I wouldn't consider myself and "expert" reviewer, or and "expert" in FNMA guidelines, and I don't know for sure what the outcome of the assignments will be in the long run. I just try to do a thorough and fair job. I would like to hear what you guys think, and/or any advice you have.


P.S. This post is also intended to let some readers know that they might not be out of the woods for those jobs they pushed the value on a few years ago.

 

[Lawrence R.]

Hmmm.... "expert"... I don't think anyone ever refers to themselves as an expert...I think if you are an expert, people will refer to you as such, and that is how you might know whether or not you are.

However, Field reviews(retrospective) probably don't require an "expert". Just someone who is competent.

If that is you, don't worry. But, realize you have now raised your profile as someone qualified to judge the work of others--and you darn well better be.

When you raise your profile as you have done, you do stand the risk of heightened scrutiny.

I am sure you are up to it, but if it gets too hot, you can always get out of the kitchen.

Just keep your ear to the ground on this type of assignment. All you need to do is ding the governor's brother in law and presto! it may be you in need of an "expert".

 

[Karl]

Unfortunately, IF most of the assignment that are being sent out to you are like the ones we get here in Pinal county AZ. IF you stayed awake during Appraising 101 you'll be able to defend your rerview against the Appraisal by simply doing the job the Appraiser did not do & just do as instructed.

Guys & girls I'll say again someone needs to be blamed for the mess we're in. & the Banks have Billions, Mortgage Co's have Millions & Appraisers have Time. Fines & Time will make the typical citizen happy that someone paid for their mistake.

You can't all believe that Fannie & Freddie are going to take the blame can you??

Think of all those that have already been indited across the USA in June 2008, I bet they still haven't shut up. Worse than that; Think of the ones that are talking so they won't be indited!!!!

 

[Randolph Kinney]

Karl,

The prisons are full here. The courts are back logged. The OREA is under staffed and back logged. I don't see going after every individual appraiser that has a home or homes in foreclosure that they appraised as a reality.

The more responsible priority would be to target AMCs and appraisal firms with many appraisers that come up repeatedly having egregious appraisals involved in foreclosures.

 

[Lee Lansford]

Jennifer, if for the assignments that you accept you are competent, work in an ethical manner, and develop and communicate the appraisal without serious error...all should be well.

 

[Wendy]

...The more responsible priority would be to target AMCs and appraisal firms with many appraisers that come up repeatedly having egregious appraisals involved in foreclosures.

That would be nice!

 

[The Warrior Monk]

I'm curious as to how these reports are being done.

1. Are they being reported on one of the FNMA review forms?
2. What is the focus?..."quality assurance" is very vague. Are they looking for compliance with their guidelines, or USPAP, or both?

P.S. This post is also intended to let some readers know that they might not be out of the woods for those jobs they pushed the value on a few years ago.

FWIW, this is one of the major reasons I started focusing my energies elsewhere in the appraisal profession a few years ago. I doesn't matter whether you are a good appraiser or not, if you work for clients with lax lending standards (subprime, etc.), properties that you appraised are going to go into foreclosure, and the report will come up if investigated.

 

[JENIFFERW]

I'm curious as to how these reports are being done.

1. Are they being reported on one of the FNMA review forms?
2. What is the focus?..."quality assurance" is very vague. Are they looking for compliance with their guidelines, or USPAP, or both?

Yes to the FNMA form (form 2000 03/05). As far as "quality assurance"...that struck me as a little odd too. Seems like it's a little late to be assuring the quality a couple of years later, after the house has already been foreclosed. My guess is that they are being used to determine if they are gonna sue or turn in the appraiser.

 

[Kevin Mc]

I doesn't matter whether you are a good appraiser or not, if you work for clients with lax lending standards (subprime, etc.), properties that you appraised are going to go into foreclosure, and the report will come up if investigated.

"Lax lending standards"? you just described virtually every national lender in the past several years. I more often than not have no idea what the lending standards were for the end user of my reports, nor do I care. As for FNMA running their reviews through an AMC, they have to be kidding me.

 

[Conservative in Virginia]

Jennifer,
How do you judge retrospective condition? From what I am hearing many of the foreclosed are destroyed now. If I appraised a home in 06 in good condition, owner quit paying in 07... walked out with the kitchen sink and painted the walls black on their way out the door at 2 am..

Do be careful going in to these vacant homes - I suspect some house the homeless now.

CIV