Hybrid

[hastalavista]

Anyone have a case where an AMC was fined in California for anything? How about a predatory lender? Just because the enforcement hasn’t caught up, doesn’t mean laws aren’t on the books, and could be enforced at any time.

Yes. There is one case against an AMC (posted on BREA's website) where the complete complaint (written like a legal pleading) is posted. You can find it here: http://brea.ca.gov/html/EnforcementActions.asp
(Diligent Asset Valuation; it is on the box at the top of the web page that lists complaints)

 

[Terrel L. Shields]

if it is done correctly

If a frog had a pocket to carry a pistol he wouldn't be afraid of snakes. I also have made the wordsmithing argument. One miscue, inappropriate caveat and the whole limiting conditions can be compromised. It is amazing how difficult it is to proof your own reports. Just got my proof on a book I'm writing back from an English teacher today. run, ran. Identify, identity. Where, were....read 'em a thousand times but it takes someone else to 'see' a mistake.

 

[George Hatch]

Maybe I missed it, but I never heard of an appraiser getting dinged by anyone because they "scoped away" the measurement/interior walkthrough as an assignment condition of a 2055. Where have all you inspection fundamentalists been for the last 35+- years we've been doing 704s (yeah, that's what they were called) and 2055s?


If I a lender is casual enough about these properties to trust an appraisal where nobody saw the interior or verified the measurements then whatever problems ensue that would have been caught during a 1004 inspectin becomes the lender's problem, not the appraiser's problem.

 

[J Grant]

Maybe I missed it, but I never heard of an appraiser getting dinged by anyone because they "scoped away" the measurement/interior walkthrough as an assignment condition of a 2055. Where were all you inspection fundamentalists then?

But that's an exterior inspection, A hybrid that uses a third party for interior inspection is another product, especially if the third party, whether a trainee or non appraiser is not acknowledged as giving significant appraisal assistance or even named...who inspected the subject, Casper the Ghost?


We can't know what board complaints or consumer lawsuit issues might arise as hybrids with int third party inspections for origination loans with the weird non disclosure are relatively new and not yet hitting the pipeline volume. .

It's a lender decision to use hybrids and frankly that part of the discussion is of no interest to appraiser's welfare....I would not do one for purchase assignment and only on refis for very simple properties (which I rarely see) ...for ext only/short form evaluation appraisals makes more sense.

 

[George Hatch]

especially if the third party, whether a trainee or non appraiser is not acknowledged as giving significant appraisal assistance or even named...who inspected the subject, Casper the Ghost?

Why would you assume that these inspections will commonly pass as unattributed?

As far as I'm concerned these are just another appraisal service - among several that I sell. They will be priced according to whatever the market will bear.

Fortunately for us all, this here's still America and we still retain our freedom of association; and can pick/choose what kinds of business we'll traffic in. If you or I no like, we no do.

 

[J Grant]

Tmd answered that in his post and I've opinions on it for disclosure -where do you see that the inspector will be named or disclosed as having given significant appraisal assistance?

 

[timd354]

Verification is part of the appraisal process.

I will dub your group the 'scope away bandits'. Good appraisal practice is not your strong suit.

So you verify that the proeprty is free from all possible hazards, including possibly hidden environmental hazards, stuructural issues, etc? Yeah, I did not think so...Understanding USPAP is obviously not your strong suit

 

[J Grant]

https://theappraisercoach.com/do-third-party-inspectors-violate-USPAP/

of interest
Where will FHA appraisals fit in with this paradigm will they cave too..

https://www.nationalmortgagenews.co...ppraiser-visits-fannie-mae-pilot-asks-why-not

 

[timd354]

Tmd answered that in his post and I've opinions on it for disclosure -where do you see that the inspector will be named or disclosed as having given significant appraisal assistance?

I did not say that the inspection was unattributed, what I did say is that the appraiser did not sign off as the supervisor and nobody else signed off anything on the behalf of the property inspector, who in the case of one large lender is a trainee who is employed or engaged by that lender's captive AMC.

 

[djd09]

The Appraisal Foundation should be proud of this public trust promotion. Surely they will list all the inspectors on their website for transparency sake. sell outs.