How can we compete with this?

[tjcou812]

When lenders continue to lose millions if not trillions of dollars and there is no one to help bail them out maybe then they will rethink the way they operate and run their business.

 

[David Beasley]

Interior BPO - This 3 page report provides a detailed value of the property with interior and exterior photos. This report is similar to an appraisal but less expensive. Our clients commonly use this for Appraisals Reviews, and 2nd Broker Price Opinions.

We have to adhere to USPAP why lenders seem to do everything in there power to get an opinion of value except pay the people who have the Licensure and qualifications to render one.

Here in NC, we don't have to compete with BPOs for lending purposes. The NC Appraiser's Act (the act that governs appraisers, adopts USPAP as the standard, etc for appraising in NC) says that BPOs can only be used for clients of the broker, as in a listing or sales situation. Since "brokers" are not allowed to "appraise" in NC per the NC Appraiser's Act, then brokers cannot have lending institutions as clients so far as mortgage lending transactions. They can list lenders' REOs and presumably do BPOs on those...but that's fine with me. They can have all those they want...then I won't have to deal with the smell.

 

[Pamela Crowley (Florida)]

Here you go:

http://appraisersforum.com/showthread.php?t=126687&highlight=puzzle

 

[JRS at OBX]

Here in NC, we don't have to compete with BPOs for lending purposes. The NC Appraiser's Act (the act that governs appraisers, adopts USPAP as the standard, etc for appraising in NC) says that BPOs can only be used for clients of the broker, as in a listing or sales situation. Since "brokers" are not allowed to "appraise" in NC per the NC Appraiser's Act, then brokers cannot have lending institutions as clients so far as mortgage lending transactions. They can list lenders' REOs and presumably do BPOs on those...but that's fine with me. They can have all those they want...then I won't have to deal with the smell.

Unfortunately, it's hard to get anybody to enforce that law. I've tried. I filed a complaint with the appraisal board, the real estate commission, the banking commission and the NC attorney general. Nobody cares.

 

[ddnma]

When lenders continue to lose millions if not trillions of dollars and there is no one to help bail them out maybe then they will rethink the way they operate and run their business.

They lost millions with an appraisal in every sub-prime loan package. Now they are ordering BPO's to find out what the homes are really worth.

In reality, I wonder how many reviews were thrown out of the files so the lender could fund the loan... I lot, at some companies.

 

[Stone]

poundage is no longer needed-if the phone doesn't ring it's the lenders

10 is the answer.

The question was "what number post will SANDY weigh in using the term 'poundage'?

As always, if you want to be a broker and spit this stuff out without the responsibility of being an appraiser - go ahead. Don't, however, pretend it is about how much extra work that USPAP requires. The "poundage" you refer to in virtually every BPO thread isn't that much. Appraisers can produce short, low "poundage" appraisals right now.

The difference is the responsibility level, not the size of the report.

 

[Mr Rex]

Poundage. Reminds me of the Simpleton that thought the weights on diapers referred to how much "stuff" they would hold between changes.

 

[panappr]

Yes they are very similar to an appraisal except without any liability from the agent, and they usually have to come up with 3 seperate values "as-is Low" "as-is High" "Suggested list price" and "repaired value" if needed as well as "repaired list price". All for $38.00. I recently looked at a series of BPOs preformed for a large lender and they wanted 3 closed comps and 3 listings as well as the whole market analysis, number of direct sales in competition, number of listings, declining market analysis, monthly percent of decline, etc.

I don't think I could do this for less than $350.00....

 

[Stone]

Yes they are very similar to an appraisal except without any liability from the agent, and they usually have to come up with 3 seperate values "as-is Low" "as-is High" "Suggested list price" and "repaired value" if needed as well as "repaired list price". All for $38.00. I recently looked at a series of BPOs preformed for a large lender and they wanted 3 closed comps and 3 listings as well as the whole market analysis, number of direct sales in competition, number of listings, declining market analysis, monthly percent of decline, etc.

I don't think I could do this for less than $350.00....

That is because you have the responsibility that comes with being an appraiser. It doesn't have anything to do with simple "poundage".

The problem is that despite past failures of the system, the people who were set up to be the D3Ps have been circumvented. The answer isn't to relieve appraisers of responsibility, it is to stop allowing other people to perform the same function without any.

 

[jnordquist]

Here in NC, we don't have to compete with BPOs for lending purposes. The NC Appraiser's Act (the act that governs appraisers, adopts USPAP as the standard, etc for appraising in NC) says that BPOs can only be used for clients of the broker, as in a listing or sales situation. Since "brokers" are not allowed to "appraise" in NC per the NC Appraiser's Act, then brokers cannot have lending institutions as clients so far as mortgage lending transactions. They can list lenders' REOs and presumably do BPOs on those...but that's fine with me. They can have all those they want...then I won't have to deal with the smell.

It is supposed to be that way in PA also, but the agents still do the BPO's for lending and reviewing. Next one I see is going to the Real Estate Commission.