Freddie Mac vs Appraiser Bias

[TerryRohrer]

Deleted duplicate.

 

[Sadie]

I appreciate your confirmation that inspection is not required by USPAP.

Yes, by necessity, a personal inspection has been commonly conducted. For decades photos were commonly taken with a camera that used film and reports were delivered on paper. As technology changes the things that were formerly common and/or necessary also change. And I can tell you from first hand experience, because I was an appraiser when both of those changes happened, many appraisers resisted those changes as well. Heck, I remember the uproar when my firm bought forms software - the appraisers could not fathom typing their own reports.

Thank you for the unnecessary history lesson. And for validation of my comment. And the appraisers in my office did appreciate the change from film to digital. You must have had someone else typing and compiling your reports if you resisted the change. Change has always been a part of any industry, including the appraisal industry. However, not all change is positive. If the change to 3rd party results in less credible reports and also does not save time, is that positive?

 

[TerryRohrer]

Take photo at certain angle that doesn't show a crack in the flooring or wall or anything that might be a negative influence

Or the thousand subtle hints that the DIY updates are not equivalent to professional quality.

 

[TerryRohrer]

I see a lot of requirements RE whether a trainee can inspect on their own, but I don't see any requirements that the trainee MUST perform some minimum amount of inspections... am I missing something?

Montana required that trainees had to be accompanied by their mentor for at least the first 50 inspection

 

[DWiley]

If the change to 3rd party results in less credible reports and also does not save time, is that positive?

No, of course not. But, in testing no assumptions are made about the effect on credibility. That is measured with actual data. And, when that data is analyzed it is not done in a vacuum - it is done in comparison to appraisals done with a traditional inspection.

Those traditional inspections are not 100% error free. I know that from both data and personal experience.

 

[Elliott]

No, of course not. But, in testing no assumptions are made about the effect on credibility. That is measured with actual data. And, when that data is analyzed it is not done in a vacuum - it is done in comparison to appraisals done with a traditional inspection.

Those traditional inspections are not 100% error free. I know that from both data and personal experience.

DW, wouldn't it add to the credibility of the bias study and the condition study if an independent third party would review them regarding the original thesis, data sources, and conclusion biases? And in the long run, what is the goal and what is trying to be accomplished by Freddie?

 

[Dale Floyd]

Relying on third party data for the appraisal is not eliminating the appraisal or the appraiser. It is specifically retaining the appraiser and the appraisal as part of the process.

GSEs should never be the ones who decides. It should be our decision, and the FreddieMac certifications should state the liability of the report is solely the appraisers. Then appraisers could utilize others without GSEs or lenders trying to mess with our businesses.

Change Certification 19.

Old verbiage: I personally prepared all conclusions and opinions about the real estate that were set forth in this appraisal report....blah blah blah

New verbiage: I personally accept responsibility for all conclusions and opinions about the real estate that were set forth in this specific appraisal report and have disclosed the sources and parties found utilized in this assignment accordingly......blah blah blah.....

You are welcome, as my son would say.

BTW - Nobody is more overwhelmed and slower than surveyors these days, and I don't see anybody trying to force them to hire third party measurers for surveys. It's just ridiculous.

 

[Dublin ohio]

What held you back from getting your CR?

What is with the license shaming. That is the second time you have asked that question. I answered it the first time (in another thread). I can guarantee it wasn't because of the "man" holding me down.

 

[DWiley]

BTW - Nobody is more overwhelmed and slower than surveyors these days, and I don't see anybody trying to force them to hire third party measurers for surveys. It's just ridiculous.

I would say that there is a HUGE difference between appraisers and surveyors. For a surveyor, measuring IS the job.
For an appraiser, measuring is just part of data collection that helps enable the job. What is being tested is using another data collection source to enable the job.

 

[ramrcdk]

I think all opinions and comments from every forumite has validity....
But at the end of the day it's all about RISK....
And it appears that the rules makers are heading slowly towards the conclusion that the RISK is minimal enough to alter the industry....

RISK
Nothing appraisers can do to change the Future of The Modernization of The Appraisal

"Appraiser" sounds so much like we inspected the property

On the Form is there Disclosure who is doing "what".?

I would wager: when surveyed by the masses (USPAP CREED: protect the overall public trust in appraisal practice)
it's extremely likely the Public thinks the appraisal process includes
The Appraiser completed THE appraisal inspection.

Will the The Third Party be introducing themselves as "The Third Party" and not embellishing their Role
to include words & phrases such as: Appraiser, completing the """appraisal""" inspection, I am associated with the appraiser, etc etc etc.

Fairly, "we won't know who these people are" but will take ON their liability. Disclosure will Help!

HOW educated WILL the Loan Representative for the Borrower BE
to EDUCATE the Borrower to the Modern Process ?

Can we obtain a signed Copy of the Disclosures of the Roles that were disclosed during the loan-process??
for our Work File to hold for 5-7 Years?

See again "communication" aids in understanding,,, which aids to REDUCE fear of change & the "new" liability.