Hybrid Appraisal Extraordinary Assumptions

[Meandering]

Thanks for reading and adding more quotes from the Federal Law,


Because I know you know, but it's important to restate a little bit of USPAP here:

COMPETENCY RULE

An appraiser must: (1) be competent to perform the assignment; (2) acquire the necessary competency to perform the assignment; or (3) decline or withdraw from the assignment. In all cases, the appraiser must perform competently when completing the assignment. The appraiser must determine, prior to accepting an assignment, that he or she can perform the assignment competently. Competency requires:

Being Competent
1. the ability to properly identify the problem to be addressed; and
2. the knowledge and experience to complete the assignment competently; and
3. recognition of, and compliance with, laws and regulations that apply to the appraiser or to the assignment.


Comment: Competency may apply to factors such as, but not limited to, an appraiser’s familiarity with a specific type of property or asset, a market, a geographic area, an intended use, specific laws and regulations, or an analytical method. If such a factor is necessary for an appraiser to develop credible assignment results, the appraiser is responsible for having the competency to address that factor or for following the steps outlined below to satisfy this COMPETENCY RULE.


Oh, but the AMC did not tell you the borrower was getting a higher priced mortgage, you were only told to "just do a desktop".

No excuse, you have a MUST and have to know PRIOR to accepting the assignment.

Oh but Mr Res, I did want to highlight one thing in what you copied and pasted.......

Here are the exceptions in paragraph (c)(2)
(2)Exemptions. Unless otherwise specified, the requirements in paragraph (c)(3) through (6) of this section do not apply to the following types of transactions:.

Because these things are too wordy to copy and paste in one shot here, let's go over those requirements in paragraph (c)(3) through (6)

(3)Appraisals required
(4)Additional appraisal for certain higher-priced mortgage loans
(5)Required disclosure -
(6)Copy of appraisals -

Now, those transactions that are exempt from those above requirements, as Res pasted:

(i) A loan that satisfies the criteria of a qualified mortgage

(ii) An extension of credit for which the amount of credit extended is equal to or less than the applicable threshold amount, which is adjusted every year to reflect increases in the Consumer Price Index for Urban Wage Earners and Clerical Workers, as applicable, and published in the official staff commentary to this paragraph (c)(2)(ii);.[/QUOTE]

Now perhaps you are thinking oh, that's $250k or the deminimus.

Contrary to popular thought, oh friends of mine, please read the below excerpt from the Federal Register regarding just one type of threshold, as it's too wordy to post the whole thing, but definitely worth a read to everyone. The citation for this copy and paste, and worth the read, is this link:

https://www.federalreserve.gov/newsevents/pressreleases/files/bcreg20161123c1.pdf








Not $250,000



And appraisers MUST KNOW THAT PRIOR TO ACCEPTING THE ASSIGNMENT.

 

[BRCJR]

An Appraiser is not required to know it is a higher priced mortgage. That has nothing to do with the Competency Rule, period.

The lender is required to get an appraisal completed when it is higher priced. That has to do with lending regulations, period.

 

[TRESinc]

Comment: Competency may apply to factors such as, but not limited to, an appraiser’s familiarity with a specific type of property or asset, a market, a geographic area, an intended use, specific laws and regulations, or an analytical method. If such a factor is necessary for an appraiser to develop credible assignment results, the appraiser is responsible for having the competency to address that factor or for following the steps outlined below to satisfy this COMPETENCY RULE.

funny word IF....

 

[Meandering]

An Appraiser is not required to know it is a higher priced mortgage. That has nothing to do with the Competency Rule, period.

The lender is required to get an appraisal completed when it is higher priced. That has to do with lending regulations, period.

Ahhh, but,

The appraiser is REQUIRED to know that, THE APPRAISER must go inside the home, when the loan qualifies, because, it is a LAW that is applicable to THE ASSIGNMENT.

It is because of USPAP competency that the appraiser has to know if the assignment even qualifies for a "desktop", "Hybrid", "bi-f" Scope of the Work.



And the funny thing is that there is no caveat in the Federal Law, or in USPAP, for the appraiser to rely on the word of an AMC, that the assignment qualifies for any of these make believe products, because, yet again, the USPAP has made the SOW decision, the appraiser's and yet, it's the appraiser with the least amount of information available to even make the decision.

Get the USPAP Changed.

.
.

 

[residentialguy]

Get the USPAP Changed.

Don't stop there. Fannie Mae needs a complete overhaul.

 

[George Hatch]

Ahhh, but,

The appraiser is REQUIRED to know that, THE APPRAISER must go inside the home, when the loan qualifies, because, it is a LAW that is applicable to THE ASSIGNMENT.

It is because of USPAP competency that the appraiser has to know if the assignment even qualifies for a "desktop", "Hybrid", "bi-f" Scope of the Work.



And the funny thing is that there is no caveat in the Federal Law, or in USPAP, for the appraiser to rely on the word of an AMC, that the assignment qualifies for any of these make believe products, because, yet again, the USPAP has made the SOW decision, the appraiser's and yet, it's the appraiser with the least amount of information available to even make the decision.

Get the USPAP Changed.

.
.

Whatever conflicts there are between banking regs and the lenders on the issue will eventually be resolved, one way or the other. If they haven't been already. If a regulator and a lender have already come to terms then it is what it is.

 

[Meandering]

Don't stop there. Fannie Mae needs a complete overhaul.

Fannie is not a regulator, and can not waive Federal law.

Sorry, it's appraisers understanding in the laws and regulations they work under, that needs complete overhauls

 

[timd354]

Fannie is not a regulator, and can not waive Federal law.

Sorry, it's appraisers understanding in the laws and regulations they work under, that needs complete overhauls

The GSE don't purchase covered loans (which only includes loans on primary residences) that are higher priced loans....such loans are ineligible for delvery to the GSE's.

B2-1.4-02, Mortgage Loan Eligibility (12/19/2017)
HOEPA and State Higher-Priced Mortgage Loans
A mortgage loan that is subject to the Home Ownership and Equity Protection Act of 1994 (HOEPA), as described in Section 32 of Regulation Z, is not eligible for delivery to Fannie Mae.

In addition, Fannie Mae does not purchase or securitize mortgage loans that meet the definitions under the following laws of the state in which the property is located (“state higher-priced loans”), regardless of whether any provision of such state law is preempted by federal law with respect to a particular loan or for a particular originator

Anyone who has a basic working knowledge and competency regarding the secondary mortgage market and federal mortgage lending laws and regulations should already know that.

 

[Meandering]

The GSE don't purchase covered loans (which only includes loans on primary residences) that are higher priced loans....such loans are ineligible for delvery to the GSE's.

B2-1.4-02, Mortgage Loan Eligibility (12/19/2017)
HOEPA and State Higher-Priced Mortgage Loans
A mortgage loan that is subject to the Home Ownership and Equity Protection Act of 1994 (HOEPA), as described in Section 32 of Regulation Z, is not eligible for delivery to Fannie Mae.

In addition, Fannie Mae does not purchase or securitize mortgage loans that meet the definitions under the following laws of the state in which the property is located (“state higher-priced loans”), regardless of whether any provision of such state law is preempted by federal law with respect to a particular loan or for a particular originator

Anyone who has a basic working knowledge and competency regarding the secondary mortgage market and federal mortgage lending laws and regulations should already know that.

As I said, the laws are wordy, I posted excerpts and everyone can and should read them themselves.


Now,
You have the law or regulation that says lenders and their agents are responsible for the Scope of the Work of an Appraiser?

Where is the regulation that says Lenders and their agents are responsible for limiting the scope of the work of appraisers?

.

 

[Meandering]

I ask you because;

5.Qualifying for exemption— subsequent changes

. A transaction does not meet the condition for an exemption under § 34.203(b)(2) merely because it is used to satisfy and replace
an existing exempt loan, unless the amount of the new extension of credit is equal to or less than the applicable threshold amount.


and again, the exemption limit, at least until this June is $25k not $250k.

https://www.federalreserve.gov/newsevents/pressreleases/files/bcreg20161123c1.pdf


And we see by the list of fines that lenders are so very responsible and would never do anything under handed.

..