FNMA retrospective field reviews

[JENIFFERW]

The assumption is the original appraisal accurately described the condition of the property at that time, unless there is something obviously wrong with their rating. We typically have very good detailed MLS information with interior photos here, which helps. I wouldn't assume they were misleading unless I had some proof.

I am careful. I used to be a cop, and we wouldn't go into a vacant building and search without two of us, guns drawn, and the radio channel was even cleared for us. Many times, we would also have a big dog that could sniff someone out and liked to bite real hard. Now, I usually make a bunch of noise, ring the bell, knock a bunch, let them (potentially) know I am just the appraiser, and leave the front door open while I measure around the outside first in case they want to leave. If I am really suspicious, I will call someone and let them know where I am, and make them stay on the phone while I make sure no one is inside. It is a potentially dangerous situation though. I have left inspections before when things just weren't right.

 

[JENIFFERW]

I should start a new CE class...."REO building searches for appraisers"...LOL

 

[Karl]

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.

BINGO!!! With the exception of quality, the quality refers more to the quality of the original report more, than quality of the home.

Again the BIG boys are NOT going to take the blame; IF you had Trainees doing reports be NERVOUS be extremly NERVOUS!!! Remember even Trainees learned real quick in order to get work they MUST get the number!! & yet they have NO connection to the final report. YES they ALL did the job 100% above board cause they loved their Mentor!!

 

[JENIFFERW]

I kinda think they already suspect significant fraud on the ones they are ordering, because what I have gotten so far is really far off the mark.

 

[Karl]

I kinda think they already suspect significant fraud on the ones they are ordering, because what I have gotten so far is really far off the mark.

Again another BINGO!!! but why worry?? They'll never take an Appraiser ALIVE!!! From some of the posting's, many feel as though the Appraiser is invincible!!

 

[Kevin Mc]

I kinda think they already suspect significant fraud on the ones they are ordering, because what I have gotten so far is really far off the mark.

which it will be more work for you, I hope you are charging accordingly.

 

[The Warrior Monk]

"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.

FWIW, look at the foreclosure rate of the common lender we work for...not the whole bank, just that division. So far I've seen one Lis Pendens filed in my area (we didn't do the appraisal), and given the LTV ratio that was applied to this property, they can sell it at a large discount to market and still cut a nice profit. The same is true of other similar divisions and local lenders.

If they care, the only thing that is affecting their bottom line right now is the poor economic conditions...not their foreclosures. Those that didn't care are taking their rightfully deserved beating.

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Back in the day, during the end of the last cycle, I had done some reviews for Freddie. The reports were outright fraud. However, unlike what I saw when I did reviews about two years ago, the reports didn't display obvious total incompetence on the part of the appraiser. What was done was all information on the form was accurate, except that the sales price of the sales were boosted. I haven't seen that since...more recently it has been just ridiculous comp selection.

 

[Metamorphic]

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.

Sounds like you're bird-dogging for the real hunters.

 

[Kevin Mc]

FWIW, look at the foreclosure rate of the common lender we work for...not the whole bank, just that division.

No doubt. Amazingly enough, not just that division but for the most part the whole operation(wholesale included) behaved responsibly during the huge give away.