Help! I've Violated The "tidewater Act"

[Terry Fisher]

Ok, folks, take me to school here. I read the VA circular 26-03-11 which Andrew linked. It states that "...VA fee appraisers are required to notify the listed POC WHEN it appears that the appraised value will come in below the sales price of the subject property...". It does not say that they are to notify them THAT the value will be lower. It further says "...The appraiser will not be at liberty to discuss the contents of the appraisal with the POC at this point beyond explaining that they are calling for whatever additional information the POC may be able to provide." This seems to specifically proscribe mentioning any specific value. I am not seeing the USPAP conflict alluded to in the thread. Would a statement such as "Hi, I am calling because I have formed an opinion of value on such-and-such an appraisal, and to ask if you have any additional information for me to consider." not fulfill the requirements of the circular and also stay well within USPAP guidelines? I can see the POC at that point pressuring for what opinion of value you have formed, but if you resist answering that, and stick to "this is your chance to get any relevant material considered" you should be ok. Right?

 

[Don Clark]

B) Terry,

That is pretty much what I said. But, I do not call them. I fax them and let them know that according to the VA letters attached(I always fax copies of the relevant letters), and according to VA requirements I am notifying them that the appraised value will likely not meet the contract price. I further state that, in accordance with the noted letters, you have 48 hours to supply this information to the appraiser to be considered. I look forward to your response. Also, please note. The appraiser cannot discuss value with anyone except the SAR/Underwriter.

If any state sees that as a violation I would suggest the contact the Secretary, Department of Veterans, Washington, DC.

 

[JSmith43]

I am not seeing the USPAP conflict alluded to in the thread. Would a statement such as "Hi, I am calling because I have formed an opinion of value on such-and-such an appraisal, and to ask if you have any additional information for me to consider." not fulfill the requirements of the circular and also stay well within USPAP guidelines? I can see the POC at that point pressuring for what opinion of value you have formed, but if you resist answering that, and stick to "this is your chance to get any relevant material considered" you should be ok. Right?

That sounds like a good way to nuance the situation. The POC will probably insist on a straight answer (the opinion of value....subject to new info, I guess).

It is kind of clunky since it is basically a heads up. I doubt anyone will get into trouble, however, it is a practice that somewhat mimics the "heads up" that some appraisers give that in effect is a communicated appraisal report. Perhaps a new assignment to immediately follow

The confusion is over a statement by don that essentially said that his communication that the appraised value was going to come in below sales price was not an appraisal. As a stand alone comment, I don't believe it to be correct & offered my evidence. Perhaps it was a small point, but if left unchallenged, it may have given a false impression to a casual reader that reporting that a value is higher or lower than some benchmark (selling price in this case), was not an appraisal.

As you can see, one must point out such things at their own peril. Perhaps I should have been more diplomatic.......naaaaa. :rofl:

 

[Laurie Collins]

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[xm72mhd]

Confidentiality is with the client...

Welcome aboard! Please let the other USPAP instructors know that you have been reformed.

I had a notion I would cross check that with other subsequent comments on the issue of cionfidenitiality, but I gotta do something else.

The rest of you guys, set that comment in cement. As for me I'm going to print two copies of it, frame them and send one to Don.