How Do I Respond To A Reviewer

[xm39hnu]

Originally posted by USPAP@ SR3, line 1123-1126:
The COMPETENCY RULE applies to the reviewer, who mus correctly emloy those recognized methods and techniques necessary to develop credible appraisal review opinions and also avoid material errors of commission or omission. A misleading or fraudulent appraisal review report violates the ETHICS RULE.

If a reviewer in CA had sent me a request for comps in TN, I'd quote the above (which refers to geographic competence as well) and tell him to stick it. Now, how the hell can he determine the merit of your comparables from CA? Does he have even a passing familiarity with your market?

Now, if he requested to know why I ddin't use the sale at 114 Podunk Street, that'd be a different matter. But simply demanding additional comps...no, he can go fly a kite.

If someone were to send me a report to review which came from California, my fee would include round-trip air fare, a week's stay at a decent hotel, estimated meal and car rental expenses, and the usual appraisal review fee. If I felt like taking the assignment.

Hey Steven Santora! You need any reviews done in your neck of the woods? Fee's high, but I'll take'em.

 

[John Niumata]

Thanks Jim

I thought it was unusual for a reviewer to be in a different state. Just wanted to know if it was common.

The reviewer seems competent enough and is asking valid questions in this case so I was not too worried about him being in california.

 

[bradellis]

Pam,

Careful- reviewers who work directly for lenders on staff quite often DO ask for additional data- or even to have the appraiser address why a particular sale was not used.

This is well within their purview and is quite customary.

In this case, that would apply since a CA appraiser is not doing a local field review in FL.

Brad Ellis, IFA, RAA

 

[Walter Kirk]

I have told this story on this forum before but I once had a reviewer question my selection of comparables for a subject located one block from the beach at the New Jersey seashore. After asking the reviewer several times why she was unhappy with my choice of comparables I learned that she was located in Iowa and had never even seen an ocean. I of course refused to make any changes to my report.

 

[DB]

I agree with whoever said to politely tell them if there were better comps we would use them. Also, being in the boonies ... If they ask for more comps, I ask for more money. When the report is signed and approved, my fee is earned. If they want more, they pay more. I even had one underwriter ask me to go back to a subject, 2 counties away, just to take new front and rear pictures, after the yard was mowed! Sometimes I think that they just have to prove that they are actually reviewing these things and the way to do it is to make requests of us. If the "get more/pay more" factor doesn't get them, initiation in the KMA club, usually does! LOL

Thanks!!

 

[bradellis]

Doug,

All fine and well AND I fully agree that asking you to go take a picture of the mowed lawn is just dumb- unless, of course, it indicated a REAL potential problem with maintenance. BUT...

If you had seen the stuff I have seen, you might think differently. For example, would it be inappropriate for me to ask an appraiser why he went 9/10 mile away from the subject for comps when there "appeared" to be 7 model matches in the subject subdivision that he did not use? How do I know they are model matches? Well, I DON'T- but if they are exactly the same SF built in the same year and within .05 miles- well, you tell me what the chances are that they not?

You see, lots of firms have MLS access to numerous markets and to databases- if you are in one of those markets where databases are good. Reviewers CAN and DO often find things you might not expect them to turn up. Of course that may not be the case in your market, but it is the case in many markets.

I'll tell you how I used to approach appraisers with this (I do not have direct contact with the field folks anymore)- if such a circumstance happened, I'd call, write, e-mail and give the appraiser the addresses and ask, "Is there a reason why these were not used?" Sometimes there ARE very good reasons- views, golf course frontage, etc.

As an alternative, if this were a broker originated deal, I'd simply let the loan seller know that my data looked to be very solid and that I would not fund the loan until/unless I got those answers. Then, the appraiser is forced to deal with his/her client. That can sometimes be a very sticky situation- especially if it is a good and generally reliable client.

Yep- I know most appraisers use what they think are the best comps, so you won't get me asking for "better" ones- but I might ask for "more" if what I got was not convincing. And, there is nothing wrong with asking "why".

Please remember that it is an appraiser's job to paint the picture so that the client- and their successors/assigns can understand it. For too many do not- and I'm not talking JUST about those bogus folks who are making up numbers. Sometimes, the number is right but no one can figure out how you got there.

Just like bad appraisers, there are bad reviewers. But most are not bad and are legitimately trying to get the WHOLE truth. Can't paint them all with a single brush stroke.

My advice is this- do what is needed and CHARGE for it. If the request is truly dumb, let the loan originator and funder fight it out. But, if there is something you left out, well, that's on you.

When business is not so hectic, you might be thankful that you have exercised reasonable judgement in client relations.

And I hope everyone takes this away from this discussion- your appraisals ARE being read. Sure, now and then by someone who hasn't got the sense to come inside during a tornado, but more frequently, it is someone with a lot of knowledge asking very pointed questions.

Have a great day

Brad Ellis, IFA, RAA

 

[DB]

I found nothing in your reply to argue with. I agree 100%. If I left something out, or failed to paint the picture, then I would go out of my way to correct it and never balk a bit. If I have truly done my job, then there should be a picture that explains it all. I have been told by my CG that I go a little overboard in my picture painting (as I guess you can tell from some of my posts. LOL). But I really do have to wonder sometimes if the things we are asked to do are truly legitimate concerns or just someone trying to justify their Alpo. I will agree that most requests are legitimate and I guess I was really addressing the "where did that come from" things that we have all been asked. The particular piece of property in my original post was vacant. I would think that going back for a picture of a mowed lawn was a waste of the underwriters time, the lenders time, the customers time and mine. One company even called to tell me that I needed to get a copy of the deed, under the guise that I didn't complete the NH description. I went to the court house and got the deed adn faxed it to them. 2 days later they called back and told me that the fax wasn't good enough. They wanted the deed incorporated "in" the appraisal. I offered them my stapler. I defer to you obvious experience and take everything you said to heart. I don't want you to think that by making light of some of the things I have been asked by reviewers and uunderwriters, that I did not understand your original point. Sincerest thanks for your advice!!

 

[Rich Hahn]

ive reviewed for over 15 years never asked for 'better' comps
supplied them myself. thats what the client typically wants.

this week we did find the address line to be one thing and everything else to belong to another address. 'appraiser to correct sale #x'

couple months back we reviewed such a bad appraisal 'this appraisal should not be used for loan purposes' that was a one and only.

another first tomorrow,,, im going to do an interior inspection for a review. the inspection will clear up alot of questions....we hope..

sure there has been plenty others submitted to the state for further investigation..

sub titles in croutching(sp) tiger would have been nice

why do appraisers think they will never be reviewed???

I think all reg. appraisers should have to review the appraisals floating out there now...

 

[DB]

Rich .... I think that is a great idea ... as a general rule, my CG does not do or want me to do reviews. I have, however, had the opportunity to look at some appraisals that have been rejected by lenders and they have contacted me to complete another complete appraisal (for another fee, naturally) and some of those have been a painful embarassment to our profession. My CG has told me many times to "do the job right and negotiate the fee to match it, not match the quality of the job to the fee you have negotiated." There is only way to do the job and that is "right". I would love the chance to review appraisals, but not for the reasons you might think. I honestly believe that I could learn from looking at the way other appraisers operate and comparing them to things I have been taught. Evolution is a wonderful thing, when you are learning the business. Would you pass me a banana?? :lol:

 

[xm39hnu]

I don't think any of us objects to honest queries, such as, "Why didn't you use the model home at 112 Podunk Street?" If a reviewer asks such a question, he'll get a prompt and responsive answer from me. If he wants a better description, so be it. Had one reviewer/underwriter gripe that we hadn't stated that the subject was compatible with the neighborhood. Well, I looked it over, and we hadn't, though we thought its compatibility was sorta obvious from the comp photos and the rest of the two-page comment addendum. But we hadn't made the statement. Made the correction and apologized for the oversight.

If a reviewer is looking for more comps from which to form his own opinion of value, however, he can get'em from the same source I did, or call a different local appraiser and arrange for a fee split. If he knew going in that he lacked the resources to complete the job, then he should have declined.