Hybrid Appraisal Extraordinary Assumptions

[George Hatch]

The commentary on SOW decisions is the appraiser is going to get their info on what's expected from their client. If a client is allowed by their regulator to do these on any type of deal then an appraiser would have no reason to doubt the client's ability to order such an appraisal.

We are not required or expected to be omniscient. If a lender makes a mistake in ordering a certain type of appraisal that is not the appraiser's problem.

I have never heard of an appraiser getting jacked for accepting and performing a 2055 assignment that a lender ordered and used by mistake when they were technically required to use a 1004.

 

[DWiley]

Perhaps you could enlighten us to the laws that residential appraisers are supposed to be in recognition of , and comply with

It has been my experience that due to the twisted logic that you tend to apply , there is little I can do to enlighten you. That is why I stated previously that I will no longer engage with you on matters related to laws and regulations. The only thing I will say is that the last time I checked, lending laws applied to lenders

As for USPAP, this discussion illustrates an important concept in USPAP - intended use. The "intent" in intended use is the appraiser's intent, based on communication with the client. If a client has other intentions that are not communicated to the appraiser, that is not on the appraiser.

 

[Meandering]

I must be missing something. Aside from license limitations. What does the mortgage amount have to do with the development and omv in an appraisal. This is a lender issue. Not an appraisal issue. Here is an idea. Why not have the lender provide the mortgage amount with every assignment? Then the appraiser can make the decision.

Let's see if I can hack this out for you.

For extensions of new credit (lending) there are two categories of loans, Qualified Mortgages and Higher Priced Mortgages.

Qualified Mortgages Don't require Appraisals - evals will work, PIWs will work for the valuation requirements of the lenders.

So, unless you have a lender that is suspicious of something, or is very protective, there aren't too many appraisals being ordered for "Qualified Mortgages"., but they might be ordered as evaluations, which means they fall under the IAEG, that does not clarify who performs the interior inspection for an evaluation appraisal.

But with the "Higher Priced Mortgages", those puppies, need appraisals with interior inspections performed by the appraiser, as long as the loan amount is over $25,000 (in June the new amount will be recalculated).

Now those Mortgage Types include all those Appraisal SOW issues like, VA, USDA, FHA, purchases, but not new construction or manufactured homes or boats. The list of "exception" property types is within the links previously posted to the thread.

So the appraisal issue for competency is,
how do you know the "desktop" product is being ordered for an evaluation product, and not being slid in for a Higher Priced Mortgage Loan? You can't EA away competency, and we already have piles of data that many lenders, mortgage brokers, appraisers, and AMCs don't follow the rules as they are supposed to. And while Lenders can pay a fine and keep it moving, that's not always the case for appraisers and others involved in the disregard of requirements.

Back to how you know; Well, if you have a sale contract, you should be able to figure it out, based on the loan amount and interest charges, in relation to the CPI-W as stated in the link I previously provided. But for a refinance, how do you know?
You don't.
But, the intended use is for lending.
So, because lending uses have this variety of SOW availability,
You have to know which SOW is applicable to the loan, as that is the reason the appraisal was ordered in the first place, because the loan is the INTENDED USE FROM WHICH CREDIBILITY IS JUDGED,

No, credibility is not judged simply by the client that ordered the report.

But the lemming option is always available,

and the rest of us will sit back and watch the industry go over the cliff and be killed in the next crash, because appraisers did not follow the rules en mass, so how could they possibly be trusted to value anything, look how they attribute to bad lending practices.

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[Meandering]

.

It has been my experience that due to the twisted logic that you tend to apply , there is little I can do to enlighten you. That is why I stated previously that I will no longer engage with you on matters related to laws and regulations. The only thing I will a is that the last time I checked, lending laws applied to lenders

As for USPAP, this discussion illustrates an important concept in USPAP - intended use. The "intent" in intended use is the appraiser's intent, based on communication with the client. If a client has other intentions that are not communicated to the appraiser, that is not on the appraiser.

No twisted logic Danny,

That's a straight forward question.

Here's the USPAP - NOT my logic, twisted or otherwise

Being Competent
The appraiser must determine, prior to accepting an assignment, that he or she can perform the
assignment competently. Competency requires:
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.

The question is what LAWS is the competency rule referring to?

Thanks.

.

 

[BRCJR]

I think there is a state of confusion here.

Lender laws/regs are for lenders.
Appraiser laws/regs are for Appraisers.

An Appraiser cannot be held accountable for the misuse of a product delivered to a lender.

 

[TRESinc]

So the appraisal issue for competency is,
how do you know the "desktop" product is being ordered for an evaluation product, and not being slid in for a Higher Priced Mortgage Loan? You can't EA away competency, and we already have piles of data that many lenders, mortgage brokers, appraisers, and AMCs don't follow the rules as they are supposed to. And while Lenders can pay a fine and keep it moving, that's not always the case for appraisers and others involved in the disregard of requirements.

can you post any court case, state board decision or anything from any realm of reality that shows where an appraiser was reprimanded/fined/suspended/revoked or any other possible form of punishment as a direct result of them not knowing that an appraisal they had accepted was for a higher priced loan?

 

[Meandering]

I think there is a state of confusion here.

Lender laws/regs are for lenders.
Appraiser laws/regs are for Appraisers.

An Appraiser cannot be held accountable for the misuse of a product delivered to a lender.

Since you know more than Danny about USPAP,

Then you answer the question,
What are the laws applicable to a Residential Lending Appraisal,
that the APPRAISER must recognize and comply with?

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[Meandering]

It is a straight forward easy question.

Just list the darn laws.

You guys all do residential lending work, in one capacity or the other.

List those laws.

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[George Hatch]

What part of Danny's explanation of the client's role in identifying the assignment conditions do you not understand? If the client uses an appraisal for an off-label use (which can include different loan programs that have different requirements) that is not the appraiser's problem. You know this. There's nothing controversial about "intended use".

You haven't come out and said so but you seem to be implying that the only acceptable course of action for appraisers is to refuse to accept any of these assignments because of the possibility some of them may be misused. What are you going to do if/when lenders start including the statement - "This type of appraisal has been deemed acceptable for use in our "xxxx" loan program" in their engagements?

Because I can promise you that sentence will be real easy to add to their engagements if/when it ever becomes expedient for them to do so.

 

[djd09]

(i)In general. Except as provided in paragraph (c)(2) of this section, a creditor shall not extend a higher-priced mortgage loan to a consumer without obtaining, prior to consummation, a written appraisal of the property to be mortgaged. The appraisal must be performed by a certified or licensed appraiser who conducts a physical visit of the interior of the property that will secure the transaction.

It is in Queens English. Made simple for dum dums like me. Especially the part about who conducts the physical visit of the interior. Appraisers only. You even highlight the most important part. Thanks again, Marion.