Hybrid Appraisals

[DWiley]

So, why is FNMA / FHA et al such sticklers for rather nonsensical repairs?

The repairs/inspections required by the GSEs are related to items that affect the long term viability of the property.

One of the most commonly overlooked items in appraisal reports is water in the basement/crawl space. Clearly that is something that could lead to, or be the result of, a structural issue, and the appraisal should be subject to an inspection by an appropriately qualified a professional.

 

[Zoe]

The repairs/inspections required by the GSEs are related to items that affect the long term viability of the property.

One of the most commonly overlooked items in appraisal reports is water in the basement/crawl space. Clearly that is something that could lead to, or be the result of, a structural issue, and the appraisal should be subject to an inspection by an appropriately qualified a professional.

Yeah. in downtown Memphis basements are common. They were more like place for the boiler system. but experts can go in and put a drain system in where the water goes into the sewer system. It is not cheap but effective. Another option is dig all around the outside foundation and put a vapor barrier in and drainage system in.

They do about a 2 foot to 3 foot dig out and put the drainage system in. Similar to a french drain.

 

[Zoe]

Danny, can you get fees separated on truth in lending disclosures?

I know I am haunting you. It is on purpose. LOL

 

[Zoe]

On those old unfinished basements many people stored canned goods in the little cellar. The temperature was cooler underground and some were called fruit cellars.

Nice for storm shelter in a tornado. the cooler underground temperature was good for storing many things.

 

[Non Sequitur]

Posted to FB this morning. Appraisers believe what they can see (note the AMC setting a max fee):


:

 

[George Hatch]

sure there is.

Check out 2020-2021. Page 147. Lines 76-87.

“Assistance is related to the appraisal process and requires appraisal competency. Therefore, only those acting as an appraiser sign a certification, or are identified as providing significant appraisal assistance in a certification.

Examples of significant appraisal assistance may include:

research and selection of comparable properties and data; inspection of the subject property and comparable properties; estimating accrued depreciation; or forecasting income and expenses.


An appraiser often uses assistance that does not constitute significant appraisal assistance. Although it is the responsibility of the appraiser to determine the role of any individual providing assistance, tasks such as, but not limited to, writing down measurements the appraiser provides when measuring a structure, “

You are partially right though, if during the appraisal inspection, you’re only task is to write down the measurements that the certified appraiser gives you, then that does not constitute significant assistance. So the good news is, you are partially right. Being an USPAP instructor you should be proud of yourself for partial credit.

Don’t get me wrong, I’m 100% the snake oil folks will soon come to spin away and pick a word here and there to mean that anyone can do anything and it’s ok because an inspection isn’t even required. I know the game and it’s been going on forever. It’s why for the best appraisers I’ve ever known, this isn’t even a career anymore, just a side gig.

But even better news for you is I’m sure your friends have got that paragraph removed or revised. You don’t seem like a bad guy, but you’re always on the side of scumbags in this profession for some reason. I don’t see you in the Breakfast club photo. You aren’t getting an invitation, it’s ok to criticize the unethical stakeholders.

Being on the side of high ethics and morals is always difficult. There is evil everywhere you turn. I’m used to the fight.

And why is it acceptable for a professional to tell another professional to “shut up?” I’m being serious when I ask this, is there something wrong with you?

Firstly, your reference is to an AO, not USPAP or SR1 on the development side of the assignment.

Secondly, the title of AO is "Assignments involving more than one appraiser"
The term "appraiser" is a defined term which does not apply to people who are not acting as appraisers. Nobody who engages a 3rd party to inspect (only) expects them to do anything else in the assignment as would be expected of a trainee .

You keep mentioning state laws referring to supervised inspection in an appraisal assignment without the reference to the way those regs are actually worded. Here's what your state's regs actually say:

"Trainee" is a defined term in the NC Appraisers act:

--------------------
As for supervision the references in your state's rules are to supervising trainees, there is no mention to supervising "appraisal assistance".





None of this says what you wish it said. Nor has it ever said what you wish it said. Starting with the point that the appraiser's SOW in those assignments does not involve performing a personal inspection. Really, the entirety of this discussion ends right there. Even if you want to whine about assistance the hardwired verbiage explains exactly where the appraiser got their info so there isn't even a non-disclosure argument for you to make.




There is no inspection by anyone in the appraiser's assignment itself. What the appraiser is doing is reading someone else's report in exactly the same way they are reading an MLS listing or title report or a termite report or whatnot.

 

[chad hampton]

Like I said. Well done with the word salad.

Of course we’re talking about the appraiser. It was unthinkable that anybody but a cert or trainee Appraiser would be doing appraisal inspections. It’s the folks you support who have bastardized the entire profession.

 

[chad hampton]

Posted to FB this morning. Appraisers believe what they can see (note the AMC setting a max fee):


View attachment 98710:

Haven’t you heard, appraisers set their fee.

I haven’t been asked for an updated fee sheet in at least 6 to 8 years.

 

[shrubberyvaluation]

Like I said. Well done with the word salad.

Of course we’re talking about the appraiser. It was unthinkable that anybody but a cert or trainee Appraiser would be doing appraisal inspections. It’s the folks you support who have bastardized the entire profession.

We could "modernize" the medical profession this way too. Send out someone with a checklist with no experience. We tell the doctor they have to rely on that to information to diagnose and we try to trick them into thinking they have no liability if anything goes wrong.

 

[George Hatch]

Like I said. Well done with the word salad.

Of course we’re talking about the appraiser. It was unthinkable that anybody but a cert or trainee Appraiser would be doing appraisal inspections. It’s the folks you support who have bastardized the entire profession.

The dividing line between pass/fail on the instructor's course is the ability to stick to what the text actually says and to refrain from loading in anything else. That's where your understanding of this situation is failing you.

The difficulty you're running into is that you're injecting into the laws and regs and USPAP elements which are not present. Not now, not ever. If you were taking the course you would flunk it. Nothing has changed in the last 30 years on these particular issues except for the users' exercise of their prerogatives. Whether anyone realizes it this way or not, they could have done the hybrid thing from the outset if they thought it made sense to them to do so. Heck, the exterior-only assignments didn't involve a 360* inspection or measurement of the exterior or an interior inspection either, so you can't even say the GSEs have only ever used the conventional 1004.

You can't say Fannie is being misled when it's Fannie's form, their explanation, their disclosure verbiage and their written appraisal policy. Fannie/Freddie aren't appraisal entities but they are users who are entitled to decide for themselves what extras above and beyond the actual minimums in USPAP they will require in various assignment types.