Hybrid

[ucbruin]

Appraisers will not be doing the inspections, nor offered the opportunity to do the inspections for most of this work . What part of that did you miss? I assume the #3 crowd are not participating or concerned about profession in general.

Expansion of hybrids/bifurcated replacing traditional appraisals will mean less work for the appraisers who refuse to do these products.

I've been contacted by 2 different AMCs inquiring if I was interested in performing the inspections....
I don't know if this is the exact same product as is being discussed but it sounds similar if not the same....

 

[J Grant]

I will do them if i can pick the inspector. Why is it only they who picks?

Speed and control, I doubt they will allow appraiser to pick inspector....also issue arises if appraiser does pick the inspector, the appraiser can then be more liable for inspector's results since it was the appraiser's judgement to pick them....my E and O said they will not cover the inspectors' portion of report.

I can see a legit reason, the company wants inspectors neutral, not to form alliances/favorites with appraisers...even if we were picking the inspector for their work quality.

 

[J Grant]

I've been contacted by 2 different AMCs inquiring if I was interested in performing the inspections....
I don't know if this is the exact same product as is being discussed but it sounds similar if not the same....

Why don't you find out?

If appraisers are contracted to do inspections only might be a good opportunity for those appraisers who want to do them. There is also an appraisal product that is a stand alone inspection . .

 

[djd09]

Speed and control, I doubt they will allow appraiser to pick inspector....also issue arises if appraiser does pick the inspector, the appraiser can then be more liable for inspector's results since it was the appraiser's judgement to pick them....my E and O said they will not cover the inspectors' portion of report.

Speed? Control? Of course they will not let us pick. That is the point of the gig.

Independent means not controlled by others. True story.

Edit. And i will not pick the inspector but hire a third party to pick them. Parse that.

 

[ucbruin]

Why don't you find out?

If appraisers are contracted to do inspections only might be a good opportunity for those appraisers who want to do them. There is also an appraisal product that is a stand alone inspection . .

It sounds as if it is the same but Tim posted that because the appraiser is not required to sketch that it wasn't the fannie pilot and I've lost track which product everyone is now discussing....

1 company has not provided any inspections and a 2nd wanted me to provide them with a photo id and I told them no....
So I'm not approved to work for them...
The funny thing is I can full appraisals for this same company without providing a photo id....
Pretty stupid huh???
Or maybe hybrid product is supervised by a different dept (which I seriously doubt)....

 

[ucbruin]

Speed and control, I doubt they will allow appraiser to pick inspector....also issue arises if appraiser does pick the inspector, the appraiser can then be more liable for inspector's results since it was the appraiser's judgement to pick them....my E and O said they will not cover the inspectors' portion of report.

I can see a legit reason, the company wants inspectors neutral, not to form alliances/favorites with appraisers...even if we were picking the inspector for their work quality.

"...my E and O said they will not cover the inspectors' portion of report."

Did your e/o think appraisers would be liable for the inspectors' portion of the report?

 

[George Hatch]

It seems to me that the most pressing (appraisal) concern at the moment is to minimize the appraiser's exposure to claims of misleading to intended users. TO ME, this means not using the 1004 format itself for these assignments.

1 - Because they visually resemble the 1004 and imply to some readers that they're the same thing; and
2 - Because dealing with the additional - and critical - disclosures in an addendum will amount to allegations that the info was buried in fine print as a means of obscuring it.

Now I can understand the point that the various *other* data systems at the lenders and the GSEs that use the XML formatting may necessitate the data fields themselves, but I think the formsware "shell" that appraisers load that data onto can be visually tweaked to have their own distinctive look, and have their own specific-to-purpose labeling, disclosures and hardwired verbiage from beginning to end.

If we know there is a large percentage of appraisers who only appraise to the form then it becomes even more critical that the formatting and structure of that form be cleaned up to better serve the legitimate interests of both the intended users AND the appraisers. If Fannie wants an 1004MC-type analysis or some new analysis in these appraisals then this is their opportunity to roll that analysis into the basic form itself and dispense with treating it as an addendum. If Fannie wants appraisers to analyze exposure time this is their opportunity to add such a section into the form itself and refrain from relying on appraisers to stick it "somewhere" in the report for reviewers to hunt for. Etc; etc.

 

[George Hatch]

Why don't you find out?

If appraisers are contracted to do inspections only might be a good opportunity for those appraisers who want to do them. There is also an appraisal product that is a stand alone inspection . .

An appraisal report includes an opinion of value. If it doesn't include an opinion of value it isn't an appraisal report. Neither SR1 nor SR2 apply to inspections or inspection reports.

 

[George Hatch]

"Appraisal practice" - which is what you seem to be aiming at - has a definition. And you're not going to like it.

APPRAISAL PRACTICE: valuation services performed by an individual acting as an appraiser, including but not limited to appraisal and appraisal review.

Comment: Appraisal practice is provided only by appraisers, while valuation services are provided by a variety of professionals and others. The terms appraisal and appraisal review are intentionally generic and are not mutually exclusive. For example an opinion of value may be required as part of an appraisal review assignment. The use of other nomenclature for an appraisal or appraisal review assignment (e'g', analysis, counseling, evaluation, study, submission or valuation) does not exempt an appraiser from adherence to the Uniform Standards of Professional Appraisal Practice.

Since it's referenced in the definition of APPRAISAL PRACTICE, the term VALUATION SERVICES also has a definition.

VALUATION SERVICES; services pertaining to aspects of property value.

Comment: Valuation services pertain to all aspects of property value and include services performed by both appraisers and others.

Long story short, appraisal practice is a subset of all valuation services. Not the other way around.

Given the above are hardwired definitions , let me ask you this: If you were taking a test and one of the questions was whether a freestanding property inspection and property inspection report fall under the category of APPRAISAL PRACTICE or VALUATION SERVICES as defined, which would be the correct answer?

 

[George Hatch]

Further, if we were to apply USPAP to the service of providing a property inspection then how would it apply?

What is the role of the property inspector?

What are they asserting they are doing?

What are the expectations (by the users of those services) for what these inspectors are doing?

What would an SR that's specific to property inspection look like, and how similar could such a standard possibly be to the existing SRs that apply to the activities of appraisal and appraisal review?