Hybrid Appraisals

[Terrel L. Shields]

he caveat being the appraiser has to fill in the gap

FNMA
Competence Must Exist Prior to Assignment: Unlike general USPAP guidelines that allow an appraiser to acquire competence during an assignment, Fannie Mae requires the appraiser to be competent to perform the assignment upon acceptance. That includes property type and geocompetency. So, who defines that? One town? One county? one state? One MLS area? And what about areas (and there are still a few) with few MLS sales? And what about areas where there are overlapping MLSs? I am in an area where you might encounter 4 different MLSs? Am I supposed to spend north of $5,000 just to not miss a sale coming out of an MLS I might not see 3 times in a year?

 

[Terrel L. Shields]

Quite the pickle..... the intended users (the lenders) don't trust appraisers. Obviously, as even with the oversupply of appraisers (this has been established again and again here.... especially by you and DW) they'd rather have an unlicensed, uninsured person, with a 6-hour online Mckissock course under their belt, who does not sign to "anything" do the inspection. Oh, wait....excuse me....the "data collection" that the appraiser has to rely on to form an opinion of value with their license and signature, their E&O insurance..... to state that there's a distrust between both users/AMCs and appraisers..... is an understatement.

Again I am all for letting them do the entire appraisal then holding the bank or AMC criminally liable for any failure along with the FNMA reviewer who approved it.

 

[George Hatch]

Quite the pickle..... the intended users (the lenders) don't trust appraisers. Obviously, as even with the oversupply of appraisers (this has been established again and again here.... especially by you and DW) they'd rather have an unlicensed, uninsured person, with a 6-hour online Mckissock course under their belt, who does not sign to "anything" do the inspection. Oh, wait....excuse me....the "data collection" that the appraiser has to rely on to form an opinion of value with their license and signature, their E&O insurance..... to state that there's a distrust between both users/AMCs and appraisers..... is an understatement.

The way I would frame your observation is that they still trust appraisers more than the can collectors for some assignments, but not for all assignments. They still trust appraisers more than their own machine for some assignments but not for all assignments.

 

[George Hatch]

FNMA
Competence Must Exist Prior to Assignment: Unlike general USPAP guidelines that allow an appraiser to acquire competence during an assignment, Fannie Mae requires the appraiser to be competent to perform the assignment upon acceptance. That includes property type and geocompetency. So, who defines that? One town? One county? one state? One MLS area? And what about areas (and there are still a few) with few MLS sales? And what about areas where there are overlapping MLSs? I am in an area where you might encounter 4 different MLSs? Am I supposed to spend north of $5,000 just to not miss a sale coming out of an MLS I might not see 3 times in a year?

I think its safe to say they demonstrate what they really expect by what they do. If there's a disconnect between what they say and what they do then that's on their end.

Besides, if being competent literally means knowing what there is to know about any particular market segment then a local appraiser could never be presumed competent when appraising in any neighborhood for the first time, including their own neighborhood. New subdivision under construction - not competent. Atypical property in a neighborhood they already know - not competent. Etc, etc.

 

[George Hatch]

Again I am all for letting them do the entire appraisal then holding the bank or AMC criminally liable for any failure along with the FNMA reviewer who approved it.

If a lender proceeds with a 2055 instead of a 1004 they do so knowingly. The more shortcuts they take the more liability they transfer from the appraiser to themselves. When they use an AVM or proceed without any valuation at all then there is no appraiser for them to blame.

These decisions to proceed with less instead of more may objectively prove to have been foolish and unacceptable risks. But so far.......

 

[chad hampton]

We can Count on the appraisal profession to even bastardize the definition of public trust to somehow meaning whatever the clients want. Good Lord.


Public trust is
the confidence citizens have in institutions to act honestly, transparently, and in the community’s best interest.

Read the definition again and let it sink in.

 

[George Hatch]

You're the one who refuses to read the material for what it actually says. That's why you are incompetent with the material.

"whatever the client wants" is a factual misstatement WRT how the SOWR operates. By now even you should understand that for as many times as I have pointed out the reference. Again, if you were taking the test your answer to this question would be incorrect.

It still starts with the relationship between the appraiser and the client and users of the appraisals. That's how your professional reputation is established and how it spreads beyond the appraiser/client relationship.

If your client comes to believe you're dishonest or untrustworthy or incompetent that's going to make the rounds. That's why holding the line is ultimately self-serving.

 

[chad hampton]

My clients have no issues with my appraisals, that’s why this year was one of my best ever appraising. Even part time. But I will always advocate for the profession. Unlike most that are on your side of this issue, I’m not just looking out for myself.

It’s OK to admit that this profession is diseased and it’s rotting from the top down. You can go back and read what an outsider said when she was brought in to straighten out the appraisal Institute. people passed back-and-forth between organizations and regulatory bodies and AMC‘s and GSE‘s, they’re so confused. They don’t know what hat they’re wearing. But in the end, they all watch each other‘s back and the licensed appraiser suffer.

And she was fired for trying to bring some real ethics and morals into the profession.

 

[George Hatch]

My clients have no issues with my appraisals, that’s why this year was one of my best ever appraising. Even part time. But I will always advocate for the profession. Unlike most that are on your side of this issue, I’m not just looking out for myself.

It’s OK to admit that this profession is diseased and it’s rotting from the top down. You can go back and read what an outsider said when she was brought in to straighten out the appraisal Institute. people passed back-and-forth between organizations and regulatory bodies and AMC‘s and GSE‘s, they’re so confused. They don’t know what hat they’re wearing. But in the end, they all watch each other‘s back and the licensed appraiser suffer.

And she was fired for trying to bring some real ethics and morals into the profession.

I didn't say - nor do I believe - that you are dishonest or or untrustworthy or incompetent in your assignments. I said you are incompetent WRT how USPAP (particularly the SOWR) operates. Because that's actually the charitable explanation for your errors in this discussion - that you're saying these things because you just don't know what you're talking about. OTOH, if you DID know what you were talking about but were saying otherwise that would make those comments dishonest and deceptive, which I choose not to believe of you.

It shouldn't escape your attention that the other USPAP instructors have never disagreed with these explanations. We might disagree on other aspects of appraising and the appraisal business, but not on what is/isn't an appraisal.

 

[Mike Ault]

Here's a fact: The GSEs developed their program and documented their expectations, and the appraiser certified to all of it when they signed the report. You can't claim the appraiser misled them in any way or that they didn't understand what they were asking for when they're the ones who developed it all in the first place.

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In the Appraiser's Cert:
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Here's a point of contention. How are these multistate certified AMC appraisers sitting in a cubicle appraising off of PDR's going to comply with this certification which still appears in the hybrid URAR form? Danny (at one time) said the only way he knew to answer this honestly was to actually have experience "appraising that type of property in that market area". They're going to have a great time finding appraisers to do those for $175 in some of the market areas that I cover.



*Edit* Sorry, I see this has been discussed later in the thread than the post I was responding to.