IMPORTANT QUESTION?

[Terry Russell]

IMPORTANT QUESTION? (Note: This is not breaking news.)

In regards to the improvement of the overall appraisal process as it applies to the Real Estate Lending industry, there are

critical areas in which changes in rules, procedures and practice could work to facilitate the appraisal industry. If applied in a

manner that empowers the independent appraiser, the results could be a profound gain in expediting his or her assignment. And

most importantly, the appraiser may again realize their independence while conducting tasks in a professional and ethical manner.

Upon applying collective observation, the dedicated professional appraiser has so many shadow issues to overcome, the pure

act of appraising real property somehow seems secondary in nature.


My question is….If a concerted effort to assert change in the administrative agency was assembled ………..What primary and

what secondary impediments to completing YOUR assignments would you change or eliminate?

It would be great if the responses were kept on a professional platform. In addition your reply is very important, because no one else knows what you are facing.

The data gathered here will be put to work.

Terry

Attempt the end and never stand to doubt.
Nothing is so hard.
But search will find it out.

 

[Terry Russell]

Nevermind, it is not important.

Yes, I do get impatient and I have tried various ways to overcome this unproductive trait.

But it takes so damn long!

Thank you, Terry

 

[Pamela Crowley (Florida)]

Terry,

#1) Take the lender out of the appraisal order process - this includes AMCs, especially ones owned by the lender.

#2) Clear up USPAP.

#3) A review system that is set up to catch the number hitters and incompetents plus SIMPLE specific guidelines for the State Boards.

#4) The training/apprentice system is crazy right now and needs to be something that is worthwhile for both the trainee and supervisor.

(Don't give up so quickly!)

 

[Stephen J. Vertin MAI]

Terry:

Pam is right. This is a slower moving board than the General forum. It takes time to respond. A lot of people who are active in this section travel. These are additions to Pam's suggestions which I should say are not bad.

1) Stop allowing State Boards to implement their personal version of USPAP as State rules. Most do not have the foresight or knowledge to fully understand the implications of their enactments.

2) Keep the uniform standard uniform. It will take a while but soon the education process will take hold and everyone will be on the same page.

3) Stop making major changes to USPAP annually. Allow for the appraisal community to catch up with many existing changes. It says a lot when appraisers and regulators alike are having tremendous difficulties grasping all of the changes that are rapidly occurring in standards.

4) Have some type of active, effective federal oversight body that allows for appeals and interpretation of standards on a national level.

5) Stop allowing our boards to be politically appointed. This is a major problems that is only going to get worse as time goes on.


Steve Vertin

 

[David C. Johnson]

Inspiringly wise posts.

dcj

 

[xmrdfghap]

<span style='color:brown'>You might find this strange coming from me, but I would like to see the appraisal profession becme less regulated, but have those regulations that are enforced, enforced with teeth.

First, a review appraisal licnese should be a separate license from general/residential appraising. You should not be able to carry both.

I believe appraisals should be ordered and owned by the buyer/seller/property owner. When a person decides to put their house on the market, they should get an independent valuation to assist them in pricing the home. When a buyer decides to purchase a property, he should get an independent valuation to ensure they are buying what they think they are buying.

When the buyer goes to the lender for financing, the buyer andor seller should provide a copy of their appraisal to the lender. If there are any "problems" with the appraisal, it should be sent (by the lender) to a reviewer.</span>

 

[Lee SW IL]

I do not agree that an appraiser cannot also be a review appraiser. In my opinion the review appraiser would loose the realility of appraising in a difficult market.

I think the appraisal associations should promote more about their appraisers. Desipline them when they produce bad appraisals, for lack of knowledge or fraud.

The reasons most people get a CMA on their home before they list the property is because its FREE. The appraisal organizations should be advertizing what we do, and you get what you pay for.

USPAP needs to be more direct and clear. USPAP has too many holes, too many issues viewed differently by appraisal regulators.

 

[xmrdfghap]

Lee, the reason an apprasier and a reviewer should be different trades is simple. It is far to easy to shred your competitons product. But, it is my opinion that a good review takes more time than the original appraisal. You have to not only look at what the appraiser did do, but you have to look at what he didn't do.....consequently the fee for a review shoud be about twice what it is for the appraisal.....and by doing that, reviewing wuld be a good profession....and it could be kept separate from the apprasing side of the profession.

 

[Tim Hicks (Texas)]

Greg, reviewing is a two sided sword. I personally hate doing reviews because they are double work and my fee ($325) doesn't justify the time, but it took years to get it that high. Second, when I do appraisal reviews is when I realize the mess that our profession is in. I don't think most reviewers are out to crucify our competion. I think the competion just doesn't want their shoddy, questionable products to be reviewed. I could care less about minor USPAP violations. The far biggest sin in any appraisal is to manufacture a value fo a client and it is done far to often. I would much rather do only appraisals, but I am never going to give up the opportunity to rid our profession of as many "crooks" as I can while I am here. I would love for you to come to my office and see some of the appraisals I have reviewed. It would change your opinion. If I had to choose between one or the other I would give up reviews, because there is not enough review work to support my business and far few reports are reviewed in our profession. That is why we have so many "seedy" appraisers, they have very little fear of being caught and very little fear of any discipline one appraisal will bring. It is much easier to just satify your clients and continue to get paid than it is to do your job as it is designed.

 

[George Hatch]

Unethical reviewers = unethical appraisers. It's two sides of the same coin. The same people who hit the numbers as an appraiser will also shred a competitor's report so as to reduce the competition. If you're concerned about unprofessional conduct from a reviewer, you handle it exactly the same way as you do with unethical conduct by an appraiser. You send them up.

As far as I'm concerned, if a reviewer agrees with the factual data in the report but expresses a different opinion of value and it's within 5% of the value opinion on the original appraisal, two things should be happenning: The reviewer had better have a good reason to even deviate at all, seeing as how they weren't inside the property; and the reviewer should prominently state that such differences are common among appraisers and do not necessarily reflect an inadequacy of any type on the part of the original appraiser. A reviewer should not automatically expect to have an identical opinion of value as the original appraiser, and neither should the reader.

George Hatch