If you don't want to dance, don't go to the dance hall!

[Doug Smith SRA]

Soup Nazis

And, Doug Smith, if the client is so uninformed that an SFR is a manufactured house, instead of a site built house, it demonstrates an utter lack of fact gathering necessary to determine what type of loan program a borrower should be placed in.

It is NOT my job, as the appraiser, to complete basic information gathering that the loan officer should have obtained through discussion with the borrower and/or searching the public records.

If the lender pays the full appraisal fee up front, then I will be happy to schedule time to work for the lender. However, my scope of work does NOT include halting work upon discovery of some information that conflicts with the lender's predetermined value or grease the skids to closing efforts.

No soup for you!

Great business plan!

You read a lot into my post and frankly I resent the implication. Stick to your own soup kitchen.

Doug

 

[aussie ken]

Appraisers cannot make a blanket rule to complete an appraisal without regard to what is discovered during the assignment without considering the steps in the Scope of Work Rule.

Quote:

Quote:

Some in previous posts have suggested that it doesn't matter if the property turns out to be in a flood plain or that there are expensive repairs necessary. Pay these no mind, just finish the appraisal and expect to be paid. NO SUCH RULE IS CONTEMPLATED BY USPAP.

If more than ordinary repairs are required, there is obviously has to be a reconsideration of the scope of work with the client given the option to either go ahead with the 'as is" value or consider an "as repaired" or "subject to repairs" value. To stop communicating with the client once the order is received is a violation of USPAP if there is anything discovered that might cause the appraiser to reconsider the scope of work.

I have never seen such bad advice about any subject. It isn't a matter of just "mind your manners", USPAP guides appraisers to make communication a two way street and anything that changes the scope of work demands going back to the client. What happens when an order comes in for a single family unit and the property is a doublewide manufactured home. In the full speed ahead scenario, the appraiser just shifts over to 1004C and produces the ordered appraisal without telling the client. Jeesh...pay attention...

Doug

Doug you seem to have a sense of goodwill to try and look after the client and thats commendable..............unfortunetly the clients dont give a stuff about you to the same degree...............Nevertheless, what I do is fully complete the assignment and before I send it I give them a call to discuss its completion and to fully explain any issues involved.

 

[xmmcsmielr]

Doug Smith, sorry you resent my implication. Resentment goes all around.

Your statement: "I have never seen such bad advice about any subject." raised not only resentment, but a deep sense of insult, because I do pretty much what you think should not be done.

The scope of work that applies to my residential appraisals for mortgage loan purposes is the basis of my being hired by the lender. That scope is identified up front.

It does not matter what condition I discover the property in. My scope of work does not change, before I complete the appraisal report, after receiving payment. If that is not acceptable to the lender, then they do not hire me at the onset.

The conflict in USPAP, if there really is any, between scope of work and no predetermined value and no favoring the clients' needs, is resolved by my emphasis in my initial scope of work that I will not report any predetermined value or ignore any conditions in my report that may prevent loan funding.

During the first several years of my career, dozens of loan officers demanded that I lie, and several refused to pay the appraisal fees due to my reporting some condition that kicked the transaction out of underwriting. I collected all but one of those fees.

While LOs still ask me to lie, even today after all the publicity about mortgage fraud, at the beginning of my ~ 4th year as an appraiser, I incorporated a policy that I receive payment prior to completion of any report, except for established clients, who I know want honest values, and who will pay the fees, no matter what my reports say.

Looking after LO clients, who regularly ask me to lie, is NOT in my business plan and never will be. I don't want their business, unless they want honesty.

It's time for appraisers, as a group, to become militant about the pervasive corruption in our profession. Licensees, who regularly lie for their LO masters, should be revoked and suspended. The most egregious cases should be prosecuted to jail time and large fines.

 

[AirBourne32603]

Some people believe the fiction that that open and free unregulated market will always do the right thing. Even though it never has and never will. The rule of law is the only way to prevent corruption. regulation and enforcement are necessary. The only people who deny this are the corrupt or their puppets. It is amazing to me still how peoples view of the world is dominated soley by their own interest and little by the truth. Maybe some people have such good and honest clients that it is inconceivable to them that any client would ever not pay them for their work or black list them for telling the truth. Perhaps they are elitist who care not for any one who must take work from anything less than perfect ethical clients in order to survive in business. Maybe they don't want to see how corruption is allowed to spread through the industry when laws already on the books are simply not enforced. People see the world how the choose. And were all going to live forever in paradise in the end.....

"Fiction causes all the (unnatural) problems in the world PERIOD!"

I agree with stronger penalties. We need higher standards in both LO , Brokers and Financial institutions in general. The Price of freedom is eternal vigilance. as the people find ways around the rules we have to constantly update them. its the only way....