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For the veteran reviewers

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DeKay Bayliffe

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Oct 16, 2006
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Certified Residential Appraiser
State
Alaska
I was sent an order for a field review, which I declined. I don't do them, but have a question. If the reviewer doesn't agree with the final value, do they have to come up with a value? If so, I think that is doing an acutal appraisal. Where do they draw the line of reviewing and appraising?
 

Tim Hicks (Texas)

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Jan 15, 2002
Professional Status
Certified Residential Appraiser
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Texas
It depends on the scope of work of your assignment. Let me ask you this, if you disagree with the value, is that an appraisal?
 

David Wimpelberg

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Mar 30, 2005
Professional Status
Certified General Appraiser
State
New York
Ditto Tim.

IMHO, one of the biggest problems with review appraising for lenders is that many people use the Fannie Form as the the template and think that's the way reviewing should be done. If you check off either box in #10 in the first section, you have performed a review and an appraisal. Not all review work is done that way; depends on SOW.
 

Restrain

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Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
Sometimes it is strictlyto determine if the value was not supported. Sometimes, it is both to determine if the value was not supported, what alternative sales, if any, would be more appropriate, and what the value should have been at the time of the appraisal.

It depends on the SOW.

You said you don't do reviews. I would suggest that even if you lose some money on a review that you do some. It will make you a better appraiser.
 

alebrewer

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Joined
Mar 11, 2008
Professional Status
Certified Residential Appraiser
State
Texas
USPAP's take

USPAP has issued guidance on the issue in AO-20; a lot of whether or not you've performed a two-stage assignment (review & appraisal) depends on the verbage you use in reporting the assignment. In general, if you use verbage such as, "the estimate of value has not been adequately supported", that's not an appraisal. If you imply a direction, such as, "the estimate of value is too high", then you've performed an appraisal.
 

Sid Pachter

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Feb 26, 2008
Professional Status
Banking/Mortgage Industry
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Florida
I am an in hlouse reviewer for a due diligence company. I perform an extensive review which I have witten about in another thread last month, so I won't repeat myself. However in my SOW direction from clients is if the value conclusion in the orignial appraisal report is not supported for whatever reason, they want me to determine and provide my opinion of value. I have data sources available to me for most of the US, and depending on the comprehensiveness of the data combined with my phone interviews of participating realtors or home owners, I can arrive at a value conclusion. I have to provide my supporting data as well. However if I do not have great data then I go to plan B, with options being ordering another appraisal report, a BPO or field review.
 

Kevin Mc

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Jun 7, 2004
Professional Status
Certified Residential Appraiser
State
New York
I have a big problem with this process.

I am an in hlouse reviewer for a due diligence company. I perform an extensive review which I have witten about in another thread last month, so I won't repeat myself. However in my SOW direction from clients is if the value conclusion in the orignial appraisal report is not supported for whatever reason, they want me to determine and provide my opinion of value.


Which I consider an appraisal. You may be able to determine if a reported value is high or low based on limted data but if you are pinpointing a value from 1000 miles away that is flat out bad business. I have seen the "reviews" out of Plano,Tx. and other various locations from around country on NYC properties and more often than not they should be lining litter boxes. If a lender wants to determine a true value of a questionable appraisal, hire a Geo-competent appraiser. I am not getting on you Sid, you are doing your job. I just find it ridiculous that someone in Texas or Florida is going to determine values of properties they have not seen in areas they know nothing about.
 

Sid Pachter

Sophomore Member
Joined
Feb 26, 2008
Professional Status
Banking/Mortgage Industry
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Florida
Kevin before judging me you should first get to know me and understand the comprehesiveness of my review process. I have 15 years in the mortgage industry, former fee appraiser, staff appriaser for an S&L, underwriter for an S&L, underwriter trainer for an S&L, underwriting and processing manager for a bank and now reviewer for the past 4 years for an due diligence company.

As a mater of fact I have reviewed 4000+ appraiasal reports in the past 4 years, many in NY, Brooklyn, Queens, Staten Island, Long Island. I have good data for these areas and have discovered many instances of negligence and fraud in the reports I have reviewed. Many of the local appraisers in the NY area are so incompetent the reports produced are not fit "to line litter boxes". So please don't lecture me. Go to mortagefraudblog.com and read the article dated 11/7/07 about Parish Marketing and Development. My initial reviews of the appraisal reports pertaining to homes buiilt my that company and my discovery of fraud led to my client filing an SAR with the Minnesota Attorney General's office which led to the prosection of the above and their subsequent guilty pleas. Lets see I'm in Florida the subject was in Minnesota, geographic comtetency..himmm...?

Like everything else there are good and not so good persons who do reviews for a living. With comprehensive data sources today inclduding market statistics and the internet including high resolution satellite photos, the amount of poor quality work submitted by field appraisers more lenders will be hiring persons like me. Based on what I see, I'll have job security for many years!
 

Kevin Mc

Elite Member
Joined
Jun 7, 2004
Professional Status
Certified Residential Appraiser
State
New York
Not judging you at all Sid.

Like everything else there are good and not so good persons who do reviews for a living. With comprehensive data sources today inclduding market statistics and the internet including high resolution satellite photos, the amount of poor quality work submitted by field appraisers more lenders will be hiring persons like me. Based on what I see, I'll have job security for many years!

No doubt you see more garbage than not. What I am questioning is the process in which reviewers(long distance) decide that comps#5-6(reviewers) are better than comps #1-4(appraisers) and change values accordingly. If the value is questionable additional field work should be the norm. It isn't. Unfortunately the field review process has gotten to the point where lenders are going for fastest and cheapest thus leaving the process to typically the worst in the field. Folks like myself and many others on this board who are experienced and professional don't do appraisal review anymore because of it. I have no problem with questioning values from long distance. I do have a problem with assigning new values to properties site unseen.
 

Sid Pachter

Sophomore Member
Joined
Feb 26, 2008
Professional Status
Banking/Mortgage Industry
State
Florida
depending on issues with the rport some lenders won't request adtional information fromt he appriser for fear that the result will be the same poor quality. Also turn around times can be long for recieving additional conditions. That is why in house reviwers are needed. furhter more with my level of experience, combined with some of the positive attributes of the original report, the use of on line data sources including viewing interior photos of comps the use of high resolution photos, my interviewing realtors and parties to transactions, many time I have found comps omitted by the appraiser that are better. With this level of data plus my thorough verification process I have no isseus about presenting an opinion of value and neither do my clients. When my resoruces are not comprehensive for a certain region, then I'll order a field review,second appraisal and or a BPO and reconcile. The in house review process is needed and will not be going away.
 
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