Help! I've Violated The "tidewater Act"

[Jim ATherton]

VA appraisal-value estimate lower than sales price. Submitted appraisal, LO e-mails me that I have violated the "tidewater act' by not notifying the real estate agent and the lender that the value estimate was less than the sales price, - prior to submitting the report. I am guilty of that.

My intent was to give all parties the basis of the value opinion, and let the process of appeal take place. I believe this is proper undsr USPAP.

I remember in the last VA meeting the VA representative telling us that when we were coming in less than sales price we were supposed to contact the POC (point of contact). He also commented that VA appraisals were not intended to be USPAP compliant! My thought at the time-that's interesting, but what about our licence requiring us to be USPAP compliant.

Now the LO is beating me on the head. I have been reported!!!

What say you all? I'm an old guy, appraising for 35 years, VA for 25. Like to hear from the other "old guy" Mike.

 

[Pamela Crowley (Florida)]

Try contacting either Mike Garrett:

http://appraisersforum.com/forum/index.php?showuser=6

or Don Clark:

http://appraisersforum.com/forum/index.php?showuser=169

Use the Personal Message or email if available via their forum member profile.

Let us know what happens on this and hope it all works out well for you! I really don't like what VA has done on this issue.

 

[Carnivore]

So much for the confidentiality section of USPAP and intended Users.

heh heh

Its never going to end or get any better.

Remember when we had this discussion way back when. I made a lot of people nervous and angry with me.

Now I concede to VA if they are considered a government entity and there Handbook and letters are supplemental standards per USPAP.

 

[David S. Roberson]

Originally posted by Andrew Picarsic@Apr 5 2005, 06:24 AM
Now I concede to VA if they are considered a government entity and there Handbook and letters are supplemental standards per USPAP.

The way I understand it, Supplemental Standards can SUPPLEMENT USPAP, but not replace or overide them. Am I wrong?

 

[David S. Roberson]

(Just a rhetorical question, of course, sinceI know I'm not wrong.)

 

[Jim ATherton]

Thanks Pam. But I was hoping Don and Mike (sounds like a radio talk show) would reply to this post because I think it's an issue for all appraisers, especially those doing VA

 

[JSmith43]

OK. I'm going to guess based upon years of observing psychotic behavior in agents when a deal looks like it is going South. The tidewater act he is referring to must be one of many pollution control acts designed to keep bay waters clean.

Perhaps the violation he envisioned implied you may be in risk of sleeping with the fishes? :rofl:

 

[The Matrix]

I would be proactive and ask the POC to provide supporting sales data. If the POC provides sales support for a higher appraised value, I would amend the appraised value. If not, I would provide a written explanation why the sales did not change your opinion of value. The L/O is correct that as a VA appraiser you are required to provide notification to the POC when it appears that the comparables sales you are using in the appraisal report do not support the contract price. To get picky Tidewater is an initiative not an "Act". What you did is not like violating an act of Congress.

 

[Don Clark]

B) VA Loan Guaranty Information Letter #26-03-19 of December 24, 2003 and VA Loan Guaranty Information Letter 26-04-7 of May 18, 2004 and VA Loan Guaranty Letter 26-04-06 of may 18, 2004 all apply.

The referrence to "Tidewater" is where the procedure was tested, in my market in Virginia sometimes called Tidewater and sometimes referred to as Hampton Roads which is really a confluence of major rivers into the Xhesapeake Bay, In the 2003 letter it outlined the procedures(26-03-19). In ltr 26-04-7 VA Declared itself to be the CLIENT in all appraisal done for the Department of Veterans Affairs. It also requires that VA be used in place of a lenders name on the report, and that the statement "Intended User-Any VA Approved Lender" be inserted in the address line. In 26-04-6 VA instructs the VA Appraiser to notify the POC(Point of contact) when it appears that the appraised value will be lower than contract price. It prohibits the appraiser from discussing value with anyone except the SAR/Underwriter approved by VA that works for the lender. If a POC is not identified, the VA appraiser then must notify the SAR/Underwriter in writing. The POC then has 2 days in which to get back to the appraiser with any information they wish to submit to him/her to consider. They suggest that the information be in the same format as the grid on a URAR. However, the VA Appraiser must consider any information that is presented, in whatever fashin it is given to them. There is nothing that says the appraiser has to use it, just consider it and say you have considered it. If you do not have copies of those letters contact your regional office for copies or they will tell you how to get them. None of the above violates USPAP. I asked that question myself way back in 2003 when it was still being tested. I spoke in confidence with a member of the Appraisal Foundation and was advised that there was no violation. But, no one has ever told me or inferred that USPAP does not apply. Just the opposite. I have always been told to do what is necessary to comply with USPAP. So is someone said USPAP does not apply, I would have to know in what context they said that. I see no USPAP violation. Confidentiality is with the client, the client is VA. VA ask us to do what the letters require.

 

[Tom McDowell]

ALL VA APPRAISALS MUST BE USPAP COMPLIANT!!!!!

What area are you in. I can't imagine one VO's or AVO's making a statement like that.

You need to contact either the contact person or the requestor. You are not to discuss value issues, you request additional information.

You should not speak with anyone except the SAR or the VA rep once the appraisal leaves your office. If the LO or anyone else is not happy with your final opinion of value they can appeal it through the SAR in writing once the NOV has been issued. If they are not happy with those results they can appeal it to the VA through the SAR in writing.

ALL VA APPRAISALS MUST BE USPAP COMPLIANT!!!!!