Judge Rules Appraiser/Lender Owe no duty of care

[Zoe]

I don't blame FHA or lender.

People further up the chain messed up. I can see if appraiser would have just said I don't know. and let lender and FHA know.

But the problem started way before that.

 

[George Hatch]

Her point is that if the appraiser had done their job to specs (and without so many errors) that she wouldn't have been able to commit to an error with her uninformed judgement of the "as is" attributes. FHA would have protected her from her opinions by declining her application. Which that may be the fact if FHA has entirely or mostly been acting in adherence to the criteria being cited in situations like this.

 

[Zoe]

Disclosures are important. You know I have been a huge advocate of separation of fees between AMC and APPRAISER.

Just one more example of why.

 

[George Hatch]

Actually, the more I think about the internet is forever, the more I'm struck by the possibility that the OP may have thought we'd react differently to the legal liability issue, enough so to cite such a me-too chorus in support of her legal arguments. If that was her intention that could possibly contribute to the manner in which she controlled the amount of information in making her arguments to us.

Then again, I'm an appraiser so trust-but-verify will always be part of my defaults when listening to one side of the story.

 

[Tiffany Gibbons]

Well, when it was posted on Appraiser Blog, she got lots of positive responses from appraisers

 

[djd09]

they only punch out appraisers out if we use the no no words or come in lowballed...otherwise good luck

 

[George Hatch]

Well, when it was posted on Appraiser Blog, she got lots of positive responses from appraisers

I didn't know. I don't hang out there. If she's looking for validation then maybe their me-too is all she needs.

Having seen them in action in the past I'd be a fair bit surprised if their inquiry extended past what we covered in the first 5 pages of this thread. But maybe I'm wrong about that and maybe they had an extensive back-n-forth between themselves.

 

[Tiffany Gibbons]

I didn't know. I don't hang out there. If she's looking for validation then maybe their me-too is all she needs.

Having seen them in action in the past I'd be a fair bit surprised if their inquiry extended past what we covered in the first 5 pages of this thread. But maybe I'm wrong about that and maybe they had an extensive back-n-forth between themselves.

She posted the Appraiser Blog link here as an update, almost the whole thing, in her original post on THIS thread, lol

 

[George Hatch]

So how many affirmations do you think she collected over there? Because I can almost guarantee that if some of us had gone over there that discussion would have ended up looking like this one here.

 

[Fido330]

Her point is that if the appraiser had done their job to specs (and without so many errors) that she wouldn't have been able to commit to an error with her uninformed judgement of the "as is" attributes. FHA would have protected her from her opinions by declining her application. Which that may be the fact if FHA has entirely or mostly been acting in adherence to the criteria being cited in situations like this.

After looking through 94 pages of this. The Appraiser did not mention anything about the Septic System because the area around the drain field was dry, probably due to lack of usage. No other items were required repair. If the Appraiser did write up the observable MPRs the buyer or the owner would have completed the repairs for the loan.
Even if the Appraiser check the boxes of well and septic, there may not be evidence that the distance between them was sufficent for FHA Requirements, even the home inspector could not find it. The borrower and owner had the tank pumped, and flow tested, there were no reports of problems? This buyer would have bought the home, they were unlucky, that after 3 months of use the system failed.