FOX BUZ NEWS VIDEO "Appraisers hurting the housing market"

[Lloyd Bonafide]

Most of our appraisals are being reviewed by recent high school grads working as cheap underwriters or AMC processors.

That's true, if you want to call it reviewing.

I have a couple of clients who order thru Mercury Network, (a great system for appraisers), and I find it pretty hilarious when I turn in a report that is very complex, with a lot of mediocre comps, and a ton of comments and explanations in an addendum. (The kind of report where a real appraisal reviewer would take at least 10-15 minutes just to read through the report). I can see who looks at the report, and how long they have the report open until they accept it, and sometimes it's as little as two minutes and they are done. (And of course the person who "reviews" it is not a licensed appraiser.) So effectively there is no appraisal reviewing going on, and the report is sent off to underwriting.

 

[CANative]

In the context of this thread i.e. mortgage loan appraisals

1. Ethics Rule, Line 226
2. Competency Rule, Line 327
3. SOW Rule, Acceptability, Assignment Conditions, and Lines 365, 373, 374, 380, 391, 392-304, 404-405, 407-408
4. SR 1, Line 454
5. SR 1-1 (a), (b) comment
6. SR1-4 Lines 556-557

as applicable:
FNMA http://www.efanniemae.com/sf/guides/ssg/. 532 Overview

FHA 4150.2, Pgs D-9, D-10 Items 3, 4, 7, 10, 12, 13, & 15

FNMA URAR 1004_05, SOW #4, Certification #s 1, 3, 7, 10, 13, 15

Nice try. No cigar. The USPAP does not state that an appraiser must consider ALL available market data prior to completing an appraisal report.

It states ALL INFORMATION NECESSARY FOR CREDIBLE ASSIGNMENT RESULTS.

SR1-1 (c) Comment: (line 485) Perfection is impossible to attain and competence does not require perfection.

 

[Ryan Achenbach]

That's true, if you want to call it reviewing.

I have a couple of clients who order thru Mercury Network, (a great system for appraisers), and I find it pretty hilarious when I turn in a report that is very complex, with a lot of mediocre comps, and a ton of comments and explanations in an addendum. (The kind of report where a real appraisal reviewer would take at least 10-15 minutes just to read through the report). I can see who looks at the report, and how long they have the report open until they accept it, and sometimes it's as little as two minutes and they are done. (And of course the person who "reviews" it is not a licensed appraiser.) So effectively there is no appraisal reviewing going on, and the report is sent off to underwriting.

I noticed that "appraisal management company" software has review features that will go through the report automatically....I assume it to be no different than my Clickforms software that will review and note boxes I might have missed, etc. This probably explains many of the 2 minutes reviews before the files are sent out for real underwriting. I believe most of the smaller AMC's use such review models.