How to End Appraisal Pressure Once and For All

[Fred]

past performance and USPAP rating

And whoever makes the USPAP and performance rating can influence the results.

 

[c w d]

Technology is great and wonderful. But, it's no replacement for ethical behavior. Unfortunately, technological solutions have become just that in the eyes of the overseers....I mean regulators. Say the computer did something some way when there are issues of ethical behavior and all is right since computers can do no wrong. And if they did wrong it was obviously a bug, not an "override". It's as if the fact that computers can be made to do whatever their masters tell it to do is completely forgotten or worse ignored. Computers have become for their masters the scape goat. It allows them "plausible deniability". I wonder if the system that is the subject of the article "records" the overrides?

 

[Metamorphic]

What an *** hat. He sets up the premise to fit his conclusion and he's not even sneaky about it. Right up front:

"As long as commissioned loan officers or mortgage broke r s
pick and talk to appraisers, there will be appraiser press
u r e, inflated values and mortgage meltdowns like the
one we have just experienced. "

So now that he's set up the straw dog he proceeds to burn down the appraisal business.

How bout this as starting premise. Mr. Murphy. ""As long as commissioned loan officers and mortgage broker's who dont have any interest or responsibility for the long term fulfillment of the loan are part of the process, they will find a way to put unqualified buyers into over overvalued homes that the buyers could not afford even if they were valued correctly." Take it from there and see where it leads.

 

[LA Woman]

What an *** hat. He sets up the premise to fit his conclusion and he's not even sneaky about it. Right up front:

"As long as commissioned loan officers or mortgage broke r s
pick and talk to appraisers, there will be appraiser press
u r e, inflated values and mortgage meltdowns like the
one we have just experienced. "

So now that he's set up the straw dog he proceeds to burn down the appraisal business.

How bout this as starting premise. Mr. Murphy. ""As long as commissioned loan officers and mortgage broker's who dont have any interest or responsibility for the long term fulfillment of the loan are part of the process, they will find a way to put unqualified buyers into over overvalued homes that the buyers could not afford even if they were valued correctly." Take it from there and see where it leads.

Ditto! Well Said!

 

[Mike Kennedy]

Monday?
monday monday

did I miss something?

um.........hypothetical "next monday". :laugh:

 

[Mike Kennedy]

Mr Kennedy, the contract is an important piece in the appraisal puzzle, how else is the appraiser going to know what $$ will make the deal work.


But seriosly, if you are looking for market value "the most probable price..." then I think a valid sales contract might have some weight given that a buyer is willing to pay X amount for the property.

Diego - your first sentence answers your question.


1 seller and 1 buyer do NOT make a market (unless of course both are stranded on a deserted island and Gilligan and the Skipper haven't already finished crafting a raft that actually floats- yet).


A contract illustrates ONLY the hopes, dreams, wants, desires, and cravings of A seller and A buyer. Period.

Market Value is what the market says it is ......regardless of whether a contract exists or not or what the intended use of the appraisal report is. Appraise the Property - not the Contract. The ONLY reason a Lender provides, or requires (IF AVAILABLE) contract review by an Appraiser lies below.................they know it, the sellers know it, the buyers know it, and Appraisers know it........

FACT: if reviewing a contract was MANDATORY, the OCC, the USPAP and the GSE regulations would state "NO APPRAISAL WILL BE ACCEPTED UNTIL A CONTRACT IS PROVIDED TO AN APPRAISER BY THE LENDER". They do NOT. Ergo - it IS actually possible to appraise a property at market value ABSENT any "helpful assistance" from Lenders. Amazingggggg Concept. :Eyecrazy:

END THE CHARADE......Revoke the USPAP Contract and the GSE Contract Review "recommendations" and watch 30-50000 (a)ppraisers go back to MacDonalds and Walmart.

"Objective and Independent, arms-length, Opinion of Value" MEANS what it says.

 

[The Warrior Monk]

I personally like to get my hands on the contract for numerous reasons; hitting the number is not one of them. During the period that I was doing review work, I collected all sorts of contracts (since I insisted on them in order to the review), which provided me with otherwise unobtainable market data showing sales and other concessions. Try running an AVM without that info.

Problems would also arise with regard to licensure laws and transaction amounts without sales prices/loan amounts.

Problems aren't due the availability of sales contract; the problem arises when numnutz appraise to sales price.

 

[Lloyd Bonafide]

I also want to see the contract. If there is a trade involved, a large concession, or personal property included, I want to know that. I want to know what the buyer is really paying for the property.

 

[Marcia Langley]

I'm sending this article to the same parties I've been sending comments to regarding the HVCC. Here is an overt admission that AMCs do not insulate appraisers from coercion.

I hope others do the same. Anyone who wants amunition to fight against AMCs taking over should be able to use this.

 

[panappr]

1 seller and 1 buyer do NOT make a market (unless of course both are stranded on a deserted island and Gilligan and the Skipper haven't already finished crafting a raft that actually floats- yet).

A contract illustrates ONLY the hopes, dreams, wants, desires, and cravings of A seller and A buyer. Period.

Market Value is what the market says it is ......regardless of whether a contract exists or not or what the intended use of the appraisal report is. Appraise the Property - not the Contract.

Mike, How is it that the professor was able to make a transmittable radio out of a coconut, but could not fix the hole in the boat?

I believe the latter half is true. I'm working on a sale today, in a -36% area since January, 07' was pretty much stable at -0.07%. The only listings available are REOs and short sales. Both agents are expected to meet me at the property, no doubt with old comps, trying to make the illusion a reality. I will keep my mouth shut, that will be my best defense.