IVS (International Valuation Standard) vs USPAP

[bnmappraisal]

I'm talking about like the adjustment guidelines that existed before, comps within 12 months, and comps in and out of projects and stuff like that.

That's why I think some/many appraisers (especially RES only appraisers) need to pay a little more attention to USPAP and NOT just Fannie and Freddie guidelines

If they'd only explain a little more about what/why they did certain things, I doubt there'd be as many "revision" requests

 

[DWiley]

As a matter of your education,
1. Fannie Mae has: Chapter B4-1: Appraisal Requirements

Fannie Mae Selling

selling-guide.fanniemae.com

2. Standards are mandatory actions or rules that give formal policies support and direction. https://frsecure.com/blog/differentiating-between-policies-standards-procedures-and-guidelines/
3. Thus Fannie Mae has appraisal standards. In fact they have many standards, and terms such as mortgage lending standards, underwriting standards you should be familiar with.

And these GSE standards are at the national level.

Small hint: Did you notice that what you posted from a GSE is directed at lenders (also known as Sellers - that is why it is in the Selling Guide, not the Appraisal Guide), NOT appraisers? I might agree that they are loan standards

In the MH example I cited earlier there is no "standard" on how to conduct such an appraisal. Rather, there is a description of what is required for a loan on such a property to be eligible for sale, by a lender, to a GSE. Unfortunately, many misread the guides, or don't read them at all (kinda like USPAP)

 

[bnmappraisal]

Unfortunately, many misread the guides, or don't read them at all (kinda like USPAP)

Yyyyyyyyup!

 

[George Hatch]

Small hint: Did you notice that what you posted from a GSE is directed at lenders (also known as Sellers - that is why it is in the Selling Guide, not the Appraisal Guide), NOT appraisers? I might agree that they are loan standards

In the MH example I cited earlier there is no "standard" on how to conduct such an appraisal. Rather, there is a description of what is required for a loan on such a property to be eligible for sale, by a lender, to a GSE. Unfortunately, many misread the guides, or don't read them at all (kinda like USPAP)

Uhhh, I wouldn't say that to Bert if I were you. Bert doesn't settle his disagreements straight up like everyone else here.

 

[Joe Flacco]

That's why I think some/many appraisers (especially RES only appraisers) need to pay a little more attention to USPAP and NOT just Fannie and Freddie guidelines

If they'd only explain a little more about what/why they did certain things, I doubt there'd be as many "revision" requests

What I am saying has nothing to do with revision requests or explaining. I am saying the guidelines had a big impact on appraisal development, the appraisal process, and appraisal results. The impact still being here today even though a lot of the language was removed.

 

[Mejappz]

What I am saying has nothing to do with revision requests or explaining. I am saying the guidelines had a big impact on appraisal development, the appraisal process, and appraisal results. The impact still being here today even though a lot of the language was removed.

Absolutely! Whatever you want to call it guidelines, standards. Who cares, the Bottom line is it is one disaster after another, whether it be the 1004MC debacle—the 15-25% adjustments—the form which is ancient and should never have seen the light of day, to begin with—the latest disaster with excess land. The list goes on and on. The GSEs have managed to create an armada of form-filling zombies. The ruination of this industry.

 

[bnmappraisal]

What I am saying has nothing to do with revision requests or explaining. I am saying the guidelines had a big impact on appraisal development, the appraisal process, and appraisal results. The impact still being here today even though a lot of the language was removed.

Flacco, I'd still counter that the "guidelines" that are set forth, many RES (I used to be one of them) appraisers interpreted them as "gospel" or "USPAP"

The whole 15% net/25% gross or the comps being within a certain time frame (i.e. 90-180 days etc) ...

What I am saying is that too many RES appraisers take that to mean they are NOT allowed to use anything outside those "guidelines"

I get that question often enough from borrowers/homeowners or agents (even seasoned agents) of "Can you exceed 1 mile/6 months, etc"

My answer is generally an emphatic YES!!!!

My job, as an appraiser, is to find the most similar/comparable sales available. If that includes older/dated sales or sales "outside" a mile ... so be it

Generally I start my search criteria within the "guidelines" (90-180 days/within 0.5-1.0 miles - I'm in an urban/suburban area) ... but when I need to exceed that criteria, I have no problem doing it!

It just means I have more explaining to do as to WHY I exceeded the "guidelines"

And THAT's what I think a lot of appraisers fail to do, IMO. I think many clients/lenders (and underwriters) are left wondering WHY an appraiser may have "exceeded" the guidelines

 

[RCA]

Small hint: Did you notice that what you posted from a GSE is directed at lenders (also known as Sellers - that is why it is in the Selling Guide, not the Appraisal Guide), NOT appraisers? I might agree that they are loan standards

I think the point you were trying to make is that Fannie Mae does not set appraisal standards. My point is that they have hard solid requirements for appraisals and appraisers and that these, therefore, constitute a standard. From the perspective of the global IVS, it is a national or local standard. From IVS 60.1: "A “departure” is a circumstance where specific legislative, regulatory or other authoritative requirements must be followed that differ from some of the requirements within IVS. Departures are mandatory in that a valuer must comply with legislative, regulatory and other authoritative requirements appropriate to the purpose and jurisdiction of the valuation to be in compliance with IVS. A valuer may still state that the valuation was performed in accordance with IVS when there are departures in these circumstances."

So, you could say that IVS does not deal with national or local standards, only to defer to them and require an explanation in the report to that effect, in particular, an explanation of why following the local standards were necessary.

 

[RCA]

Flacco, I'd still counter that the "guidelines" that are set forth, many RES (I used to be one of them) appraisers interpreted them as "gospel" or "USPAP"

The whole 15% net/25% gross or the comps being within a certain time frame (i.e. 90-180 days etc) ...

What I am saying is that too many RES appraisers take that to mean they are NOT allowed to use anything outside those "guidelines"

I get that question often enough from borrowers/homeowners or agents (even seasoned agents) of "Can you exceed 1 mile/6 months, etc"

My answer is generally an emphatic YES!!!!

My job, as an appraiser, is to find the most similar/comparable sales available. If that includes older/dated sales or sales "outside" a mile ... so be it

Generally I start my search criteria within the "guidelines" (90-180 days/within 0.5-1.0 miles - I'm in an urban/suburban area) ... but when I need to exceed that criteria, I have no problem doing it!

It just means I have more explaining to do as to WHY I exceeded the "guidelines"

And THAT's what I think a lot of appraisers fail to do, IMO. I think many clients/lenders (and underwriters) are left wondering WHY an appraiser may have "exceeded" the guidelines

Yes, the term "guidelines" is a farce as far as I am concerned. A cruel joke. No, the reality is that Fannie Mae's so-called "guidelines" for appraisers are full of hard requirements and very serious threats. A residential appraiser is far more likely to suffer at the hand of Fannie Mae's Appraisal Standards - than USPAP.

 

[George Hatch]

You can't cross a user's (legitimate) expectations without also crossing USPAP at the same time. Unless it's an unreasonable expectation, user expectations are otherwise always part of the assignment.