Hybrid

[George Hatch]

So now after all these years you've done a 180* turn and are now in favor of licensing and regulation? Good to know.

I'm sure a 40hr course and another 40 hours of practicum could yield adequate results for measuring and photographing homes. It ain't as hard as appraising.

 

[timd354]

So now after all these years you've done a 180* turn and are now in favor of licensing and regulation? Good to know.

I'm sure a 40hr course and another 40 hours of practicum could yield adequate results for measuring and photographing homes. It ain't as hard as appraising.

He is apparently all for licensing of everyone else aside from appraisers

 

[Meandering]

First off, that's not necessarily true. There's nothing to say a "team" can't include non-appraisers or other experts.
.

Maybe in California

But out c'here you need a license to engage in appraisal practice.

.

 

[timd354]

PITTSBURGH, PA—A resident of Presto, Pa., has been indicted by a federal grand jury in Pittsburgh on charges of bank fraud conspiracy, bank fraud, and wire and bank fraud conspiracy, United States Attorney David J. Hickton announced today.

The three-count indictment, returned on Oct. 25, named James Lignelli, 57.

According to the indictment presented to the Court, Lignelli was a appraiser who provided fraudulently elevated appraisals in support of fraudulent loan applications in connection with two different mortgage fraud schemes. The first scheme involved Michael Pope, who operated Pope Financial Services, and Tiffany Sprouts, who operated Sprouts Mortgage. The indictment alleges that Lignelli participated in a conspiracy by preparing a fraudulently elevated appraisal for the property located in McMurray, Pa., which was sold through the conspiracy for approximately $1.2 million. The second mortgage fraud scheme involved Michael Staaf, who operated Beaver Financial Services. The indictment alleges that Lignelli, as part of the conspiracy, prepared fraudulently elevated appraisals for office buildings located at 8150 Perry Highway, Pittsburgh, Pa., and 993 Brodhead Road, Moon Township, Pa.

The law provides for a maximum total sentence of 150 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

U.S. Attorney’s Office October 26, 2011

• Western District of Pennsylvania

https://archives.fbi.gov/archives/p...1/appraiser-charged-in-mortgage-fraud-schemes

Right in the heart of AMC land.

.

Another case of appraisal fraud not involving a bifurcated appraisal....not exactly helpful or supportive of the argument that you are trying to make

 

[Meandering]

The CPA is certified. I only use licensed foresters. So such data are typically signed off. The inspector? No license. No real training. A dog in the fight (a Realtor with possible conflicts?)

I took a timber cruise class at the Community College. They brought in a forester and the final exam was a bunch of leaves and bark and you had to successful name the species and if the species was primary succession, hardwood, softwood or shrub.

Maybe I should go do timber cruises for $20 and get the state DCNR foresters to sign off on them and give them a value.



Yeah that'll save some time.

 

[Meandering]

Another case of appraisal fraud not involving a bifurcated appraisal....not exactly helpful or supportive of the argument that you are trying to make

Hey Tim,

How come no "Robo signers" went to jail?

They had to know they were committing fraud, signing other people's names.

Could it be because they were employees and not licensed subcontractors?

.

 

[djd09]

Can an appraiser have someone else measure the property

There is nothing prohibiting an appraiser from having someone assist in the preparation of an appraisal. However, there are two items of primary concern:

1) The appraiser is required to disclose any significant real property appraisal assistance provided by another appraiser in the preparation of the appraisal. The name of the individual(s) perfoming such assistance must be disclosed in the certification of the report, and the specific duties performed by the individual(s) must be stated in the report; and

2) The appraiser is required to sign a certification that states, among other things: "the reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions."

Therefore, if the appraiser's husband measured the property and he is an appraiser, the appraiser would have to disclose that assistance. If the husband is not an appraiser, the appraiser should identify the source of the data (i.e., square footage of the property) and take responsibility for the analyses, opinions, and conclusions by signing the certification.

http://appraisal.answerbase.com/2165372/Can-an-appraiser-have-someone-else-measure-the-property

 

[Evincere]

Gotcha...OK, so If I have the trainewe do it them they get Experience credit from State for Licensing...If ABC Lender via AMC ABC hires the Trainee person then they just make money, but NO EXPERIENCE CREDIT!

Well that Sucks for the Trainee.

Righto. They won’t be trainees hired by the Lender because there are not enough of them. And to what end would they take such assignments if they remain anonymous and get no credit for the inspection? They wouldn’t exactly be furthering their Appraisal careers

 

[Meandering]

There still is no credible use for these products in the lending world.
The IAEG is being violated with these products.
EAs concerning condition are not allowed
and there is no way to verify the condition unless you go inside.

And let's not even start on,
the effective date of value is the day of the inspection
you are reliant upon.

Consumer fraud
plain and simple.

..

 

[J Grant]

Fraud and bifurcated have nothing to do with each other and should be separate topics. It's more about ethics in general since a "pushed" or weak appraisal may not rise to the level of fraud, and competency/experience. A good appraiser will do a good job on a bifurated appraisal or on an appraisal they inspected, and a bad or less competent appraiser will do a bad job on either one.

The problem with bifurcated, if it becomes widespread for origination loans, is a bad, or marginal appraiser can do a heck of a lot more of them. The reason "stakeholders" are pushing them is to squeeze more production out of appraisers, and by paying both the appraiser less for their portion and paying the inspector a low rate their margin for profit increases. There is no public trust or competence reason that drives this experiment, it;s all about greed and speed, like a day quicker turn time is going to mater on a thirty year loan and purchase or borrowing decision involving hundreds of thousands of dollars.

The potential problems in this system of hybrids as with so much else on res lending side when decisions are made about what benefits lenders and AMC;s rather than what benefits public trust, the dynamic favors the bad actors. Those appraisers who will appraise over large areas now since someone else is inspecting and do fast crank out work and the inspectors who produce high volume as well.

Doing hybrids with someone else inspecting allows an appraiser to vastly increase their coverage area. Is this good or bad? It might depend on point of view, but experience in an area is important overall to good results. There may be assignments where this is not the case, but one never knows when it is the case.

The more ethical appraisers might not feel competent appraising 200 miles away in an unfamiliar are for a hybrid, while the less ethical will say what the heck, they are reducing our pay, they hire anyone why should't I profit too? ( they have a point) And that less ethical appraiser will suddenly expand their coverage area to a great geo distance since some schmoo is inspecting and appraiser does not have to travel. This will put even more pressure on the remaining competent or ethical appraisers...should they expand their coverage area to compete or avoid hybrids? How does any of this serve the public trust?.

It is not difficult to train someone to measure a property and take photos. And it can be done by a non appraiser . But the problem is all the nuances or value related influences these people might not report, or report differently than we would ( since they do not see the property through the lens of an appraiser), and then the appraiser's disconnect from the third party results can add to that in diminished resuts.

Will see how widespread it becomes, if FHA allows it etc. I can certainly see it for drivebys but they are limited in scope anyway so ext inspection , other than revealing aspects of the neighborhood was never as critical to results. If int inspection hybrids become widespread will not know results until they play out in real world conditions of cheap/fast and enough reports enter the system and enough years go by to see the results.