Form 2075 Vs. 2055

[Steve Owen]

Read item #10 on the 1004. Every appraisal report I ever did had similar language.

The appraiser must provide his or her prior written consent before. . . can distribute the appraisal report. . . .

Pieces of information in the appraisal may or may not be intellectual property, depending on their sources and other facts about them, but the analysis and methods used and the way those pieces of information are interrelated probably are. Similarly, the formulas and information in an AVM might be the intellectual property of the maker of that product.

Will that help us to do away with AVM's? Not in this lifetime. However, GLB does apply and that might be a useful tool - putting a section in the appraisal report stating that facts about comparable sales used cannot be distributed without being in violation of GLB might be an interesting concept to pursue for someone interested in legal action. Myself, I've got bigger fish to fry; AVM's don't bother me much because they cannot compete with me and the product I provide. I don't have a problem with FANNIE using AVM's for excellent credit risks with low LTV. (But I do believe the data should come from reliable and legal sources.)

 

[Bill Wintermyer]

Take a look here and let me know what your thoughts are...

http://www.copyright.gov/circs/circ1.html#wccc

 

[Carnivore]

OK,

So did Fannie Mae Hire me? Am I an employee like a chemist at a drug company?

Hmmmmm,

If this info is public then why do they need me? Why are they willing to pay me for my opinion? Why is it called an opinion?

Some food for thought. Did you give permission to re-sale for profit the opinion.

The significance point is the difference in wording between para 10 of the URAR statement of limiting conditions and para 7 of the 2055. Specifically the exception!
This alone should raise eyebrows even from outsiders.

 

[Bill Wintermyer]

Andrew, basically plain and simple, yes. You work for the client that engaged you to provide a product (appraisal) that is being Federally insured...

Rule 1, the one with the deepest and fullest pockets wins.

Not that I disagree with your theory or stance on the principle, but the appraiser is the small fish in the big pond... The only way to make a better argument would be to move the appraisal up in importance, a national data base on each and every home appraised, make the cost of the appraisal inductive of the true Professional Cost it should be ($1500 - $3000) instead of $180 - $400.

Burns my *** when a LO / broker wants me to commit fraud by inflating value for my small fee compared to his larger fee, with no legal recourse on him because all he will say is I never asked that and he is independent. NO< I would never even commit fraud for the higher amount because I dont want to be someone or somethings B!#%# in da big house........

 

[Carnivore]

Bill,

Yes, I understand your position. Class action can make for some pretty deep pockets. Especially if the defendant is a small fish in the big pond. Precedent carries a lot of weight.

Thanks for your insightfulness.

 

[Bill Wintermyer]

Andrew, Thank you......... I wish you and everyone the best in this, you made good solid points in this discussion. I thank you for taking the time and allowing me to see how others view this issue. Your wisdom and knowledge within this forum is well noted.

Bill

 

[Steve Owen]

It seems to me, after skimming the article, that appraisals could indeed be copyrighted if you wanted to go to the trouble.

We are not employees, we are independent contractors. Most bank or lender engagement letters specifically point this out.

Secondly, the intended purpose of the appraisal is not to be part of a compilation, but rather a stand alone product.

Thanks for the link.

 

[Carnivore]

Steve,

Would you consider joining myself and John Henry in an organised effort at civil tort.

 

[Doug in NC]

Andrew,

Try not to cheapen the appraisal consulting market. B) I occasionally get orders for these and I consider my time for them just like I would for an appraisal. In fact, I get about the same fee for a low-priced appraisal.

Consider the opportunity costs: you could be completing a regular appraisal in maybe an hour more of time. You still have research time spent, report writing time, driving to and from property (plus vehicle wear & tear), inspection and photo taking time, and of course processing/clerical associated time and expenses, and time and expense devoted to delivery.

Its a simple report, but lenders value it and are willing to pay a generous amount for it. I generally have not been requested to inspect the interiors of these properties. The only time my fee was questioned on one of these was when I started to get too close to the typical appraisal fee range. I love this form and wish I got many more.

Doug

 

[Will43]

Originally posted by Doug in NC@Jan 27 2004, 03:38 PM
Try not to cheapen the appraisal consulting market. B) I occasionally get orders for these and I consider my time for them just like I would for an appraisal. In fact, I get about the same fee for a low-priced appraisal.

Excellent! I get close to my full fee, but give a little discount. However, there are always appraisers willing to do them for a few bucks like drawls. In my market, appraisers fight over 35-50 drawls. It is not worth starting your car for under $200.