July 2008 ASC Q&a- Wink Wink Comp Comp

[moh malekpour]

Comp check has been an unsolved mystery. It has different meaning to lenders as well as appraisers and for that reason it is a misleading request and should be prohibited. The ASB tries to solve the problem diplomatically but it causes more ambiguity and conflict.
When lenders request for comp check, they are not asking for raw data or AVM. They are asking for a point value or a range of values, which is an appraisal and has to comply with USPAP.
Some appraisers are trying to solve the comp check problem with using a desktop appraisal, which is the correct way to handle it, but the appraiser is doing an appraisal not a comp check which is requested to do. The scope of work is a comp check but the appraiser is doing an appraisal for the client. The notion that there is an ambiguity and bleakness between the client and the appraiser on what is a comp check and what is a desktop appraisal is a misleading function and should be stopped.
What is wrong if ASB issues a warning to appraisers not to take any assignment for comp check and ask clients to request exactly what they want? If they want raw data or selected raw data, they should request for raw data and the raw data doesn’t have to comply with USPAP. If they want AVM, they should request for AVM. If they want appraisal of any kind, they should request for appraisal.
The game of request for comp check, which means an appraisal, should be stopped because it is mbiguous and misleading request.
ASB cannot force clients to learn the USPAP or comply with USPAP but can request from appraisers to stay away from misleading assignment and ask for clarity.
If the request for comp check changed to request for desktop appraisal and it was cleared to the client that the appraiser is doing an appraisal not just looking at some comps, then they know that they have to pay and the will pay.
If they are cheap and don't want to pay, then they should request for raw data and that is what they get that it could be for free.

 

[William K]

Offshore,

I'm confused if maybe you have the hooker and John in the correct order or not.... ... Shouldn't there be a pimp in there somewhere?

Webbed.

Pimp= AMC's:laugh:

 

[William K]

Comp check has been an unsolved mystery. It has different meaning to lenders as well as appraisers and for that reason it is a misleading request and should be prohibited. The ASB tries to solve the problem diplomatically but it causes more ambiguity and conflict.
When lenders request for comp check, they are not asking for raw data or AVM. They are asking for a point value or a range of values, which is an appraisal and has to comply with USPAP.
Some appraisers are trying to solve the comp check problem with using a desktop appraisal, which is the correct way to handle it, but the appraiser is doing an appraisal not a comp check which is requested to do. The scope of work is a comp check but the appraiser is doing an appraisal for the client. The notion that there is an ambiguity and bleakness between the client and the appraiser on what is a comp check and what is a desktop appraisal is a misleading function and should be stopped.
What is wrong if ASB issues a warning to appraisers not to take any assignment for comp check and ask clients to request exactly what they want? If they want raw data or selected raw data, they should request for raw data and the raw data doesn’t have to comply with USPAP. If they want AVM, they should request for AVM. If they want appraisal of any kind, they should request for appraisal.
The game of request for comp check, which means an appraisal, should be stopped because it is mbiguous and misleading request.
ASB cannot force clients to learn the USPAP or comply with USPAP but can request from appraisers to stay away from misleading assignment and ask for clarity.
If the request for comp check changed to request for desktop appraisal and it was cleared to the client that the appraiser is doing an appraisal not just looking at some comps, then they know that they have to pay and the will pay.
If they are cheap and don't want to pay, then they should request for raw data and that is what they get that it could be for free.

My BOLD

Absolutely!.
Sometimes a Comp Check is a request for Raw data.
Sometimes a Comp Check is a request for a value.
I know an Appraisal / and a request for an Appraisal when I see one, you know why? Because I have a definition of what an appraisal is!

 

[Mike Phillips]

For all those that have been, are or will be complaining about the ASB, the fact is they are looking for folks to apply and serve on that board and others, rather than blowing hot air, get involved at the that level where you can have direct input..... in other words actions speak louder than words....

Yeah, well...I obviously don't know how often you post in forums but you should "Google" one of these days to see if anything you've written shows up. If something does show you can bet someone read what you wrote.

Point is, the path you suggest is valid, but individuals expressing their opinions here is equally as valid. The opinions expressed here and in several other forums are being heard by TAF loud and clear. Furthermore, I'm quite certain there is as much hot-air blown at TAF meetings as there is here, and then some.

You might also consider the possibility that some posters might feel the shortest path to success in achieving their goals is to circumvent TAF entirely. To them "taking action" might take the form of "letters to lawmakers."

 

[Hamlet]

That solitude is part of the job description. It has always has been so, and I assume it will always be so.

Solitude doesn't bother me that is one characteristic most appraisers share.

Watching our economy collapse does.

 

[Mike Kennedy]

Mike

The conduct section handles that just fine. Its the management section that causes the problem.

Our business has several aspects to it. When we produce an appraisal service we have rules and ethics to follow. How is this any different then your continueing to receive work from a client because you did a good job on the first assignment. That in itself is a contingency.

Carni - an on-going business relationship with satisified clients based upon completion of prior UN-RELATED assignments.........vs. immediately successive (when the bulleye has already been hit) assignments for the same intended use, originator, borrower, subject, and loan application -

is comparing watermelons to peach pits. Vastly different. There is NO immediate contingency on a second assignment for the SAME LOAN / Intended Use etc. above. :icon_idea:

 

[Mike Kennedy]

http://appraisersforum.com/showthread.php?t=142307 Is there any doubt why Florida is in the front of Pack in Mortgage Fraud?

sure......it's okay if they DEMAND comp checks to guarantee an appraisal HITS THE BULLSEYE. FLORIDA SAYS SO.

 

[Stone]

Carni - an on-going business relationship with satisified clients based upon completion of prior UN-RELATED assignments.........vs. immediately successive (when the bulleye has already been hit) assignments for the same intended use, originator, borrower, subject, and loan application -

is comparing watermelons to peach pits. Vastly different. There is NO immediate contingency on a second assignment for the SAME LOAN / Intended Use etc. above. :icon_idea:

Of course, you do know that they wouldn't actually be for the same intended use, don't you?

 

[Ken B]

Here is an interesting read. It just goes to show that failure to properly enforce existing rules and regulations is endemic to the entire real estate and mortgage lending industry.

http://www.miamiherald.com/static/multimedia/news/mortgage/brokers.html

Hey Mike, you're stealing my thunder.

As I stated, it is obvious the solution to the problem is not more rules and regulations. The solution to the problem is to follow current procedure and enforce current rules and regulations.

Really, why would a reasonable person think new regulations will be effective when current ones are ignored?

 

[Offshore]

Webbed I didn’t intend to slight the “pimps” by excluding them. They are the ones behind the scenes that make the present system function. Much like the colorfully attired street pimps, the comp check pimps are skilled at obfuscating USPAP and justifying their actions based on what they perceive as only giving the public what they desire. A had a college roommate who was a big fan of the old soap opera All My Children (AMC) Anyone remember Billy Clyde Tuggle the pimp with style? This forum is abundant with Billy Clydes who are blessed with USPAP panache instead of the wardrobe. Amazing how acronyms appear so often in this business.