Investing in the Future of Appraising

[George Hatch]

I have my doubts about that situation. But yeah, you're basically right about it being the market for appraisal services which effectively determines how much or how little development and reporting is sufficient for their usage. (aka "meaningful" to their intended use) Not the appraisers.

 

[djd09]

did someone try to correlate morals and the IAC?

 

[Mejappz]

One thing that hasn’t been mentioned about the PAREA sham is this: Most Lender’s don’t allow trainee’s to inspect by themselves even if the State and GSEs do.

So the PAREA form-fillers(and there soon to be employers (CoreLogic and Clear Capital) will have a competitive advantage over the small mom and pop appraisal shop.

 

[djd09]

their usage. (aka "meaningful" to their intended use)

so what is meaning full. such they cut every corner knowing that the taxpayers pick up the tab. smh

 

[George Hatch]

so what is meaning full. such they cut every corner knowing that the taxpayers pick up the tab. smh

That problem is occurring far beyond any decision making TAF can make.

Appraisers cannot make users value the elements that those users consider to be extras. It will take the power of govt to impose those additional requirements on these users, which makes this a political problem, not an appraisal standards problem.

BTW, USPAP isn't just used for mortgage appraising, and many of those other users have very different needs than the lenders have.

 

[George Hatch]

One thing that hasn’t been mentioned about the PAREA sham is this: Most Lender’s don’t allow trainee’s to inspect by themselves even if the State and GSEs do.

So the PAREA form-fillers(and there soon to be employers (CoreLogic and Clear Capital) will have a competitive advantage over the small mom and pop appraisal shop.

It is not the role of TAF to protect the business interests of some appraisers. The small mom and pops (of which I am one) are not entitled to any protections from the vagaries of commerce. Least of all from TAF.

If it comes to pass that the self-employed appraiser becomes an obsolete business model the appraisal profession and some form of appraisal standards will surely continue on just fine without us.

 

[djd09]

That problem is occurring far beyond any decision making TAF can make.

Appraisers cannot make users value the elements that those users consider to be extras. It will take the power of govt to impose those additional requirements on these users, which makes this a political problem, not an appraisal standards problem.

BTW, USPAP isn't just used for mortgage appraising, and many of those other users have very different needs than the lenders have.

sure they can. if they are just roll overs then they are as useless as my. oh never mind.

 

[djd09]

It is not the role of TAF to protect the business interests of some appraisers

yes i agree because obviously they are not here to protect the public. see financial crisis. also note that no changes were made to them. carry on

 

[George Hatch]

sure they can. if they are just roll overs then they are as useless as my. oh never mind.

How? What could TAF do to compel lenders to refrain from using the appraisals they're choosing to buy?

yes i agree because obviously they are not here to protect the public. see financial crisis. also note that no changes were made to them. carry on

What changes could be made to anything TAF has done over the last 15 years that would have further protected the public from the decisions the lenders were making? Not approve PAREA? The argument can be made that all that would have resulted in would be lenders continuing to move to competing alternatives for their valuation work, thereby hastening the decline of our market share.

You need to come to terms with the fact that the appraisal profession itself is at least as much a special interest group as are the lenders. We wouldn't even be here if not for the heavy hand of the govt imposing us on the lenders against their will. We should be happy enough that the govt hasn't yet retired our entitlement.

You're barking up the wrong tree here. What you need is for the govt to impose more limitations on these lenders and prohibit them from acting through the AMCs, and prohibit and effectively prevent them from paying less than the C&R fee or using any appraisal product other than the 1004 appraisal product which you prefer to sell. You need the crutch because without it your interests are suffering.

 

[Mejappz]

I have my doubts about that situation. But yeah, you're basically right about it being the market for appraisal services which effectively determines how much or how little development and reporting is sufficient for their usage. (aka "meaningful" to their intended use) Not the appraisers.

According to the GSEs and almost all Lenders, this is "meaningful" to their intended use.

From Fannie Mae:

Fannie Mae Guidelines require Sales Comparison adjustments to be "Market Derived," including the Sales and Financing Concessions adjustments.



From a Big Box Lenders 21 page engagement letter:




Not to mention USPAP requires "evidence and logic."

If you think the majority of secondary market appraisal adjustments are market-derived well, you live in a dream world.

What happens is the appraiser who goes through the process to comply with these guidelines, i.e., mandates, are punished, and the ones who flaunt them get rewarded.