July 2008 ASC Q&a- Wink Wink Comp Comp

[Elliott]

So we've pretty much figured out how many comp checks can fit on the
head of a pin, but were left with an unethical system of appraiser
shopping, and has there ever been one appraiser who faced any
sanctions for providing a 'comp check'? Has a lender ever filed a
complaint against an appraiser for providing him with a 'comp check'
that didn't have a supporting work file. Seems like were whistling
past the grave yard.

 

[Workbox]

So we've pretty much figured out how many comp checks can fit on the
head of a pin, but were left with an unethical system of appraiser
shopping, and has there ever been one appraiser who faced any
sanctions for providing a 'comp check.'

I really wonder, in about what time did Comp Checks take off like crack? How was it before that? let me guess...........was it a rouge MB? a lender? a desperate appraiser? lack of enforcement? the Bush girls? FNMA? USPAP? Government?.........What dynamic forces caused this?

Because once we know, we can hunt it down and kill it.

 

[George Hatch]

I think comp checks started in SoCal. They were already around in the mid-1980s when I got into the business. It was the rise of the wholesale end of the mortgage banking business that spread it across the nation. Brokers doing business over the phone all across the U.S., dealing with appraisers they don't know on a 1-time basis. It got worse with the rise of the internet because of the anonymity factor and the decline of personal relationships.

 

[Carnivore]

GH,

Frankly the CC is something the Mortgage Industry wants and needs because it fits into their business model of QLC(quick, lean, cheap). Like everything else we appraisers did what we could to comply with the changes. We even encourage the CC use when we agreed as a group to conduct appraisals and issue reports that was much less then a traditional 1004; The 2055! WE furthered the legitimacy of the CC by then completing 2075's which lenders saw as a appraisers willingness to do even less for less then even a CC, as an additional service.

So there is no crime in the actual conduct of the CC(an appraisal). The crime is in not only failure to comply with USPAP Standards 1 & 2 but in also not complying with ALL four subsections of the Ethics Rule. Interestingly this compliance from the ASB perspective only applies to FRT's. In a few states (I don’t which ones or how many) USPAP is not mandatory. If I understand this properly, in those states the Q&A specifically only applies to FRT's. This only adds to the confusion.

My thought is that the ASB erred in issuing this particular Q&A because it was neither specific enough nor all-inclusive. The additional err in their response was attempting to surmise what the petitioner was actually asking. For example, was the petitioner asking a business question, standards one and two question or ethics related question?

I am a suspicious cynical old bast_rd. Why now! Why again when they have answered this all in the past as cited in this latest Q&A. Think about how this appears. They felt the need to bring it up again and even use their prior FAQ as the authority. Not exactly a ringing endorsement of their prior writings or ability of USPAP to communicate to the very people it regulates.

I took several things away from this and someother recent Q&A's.

1. This clearly will be an issue the ZAIOISTAS can not ignore. The whole ZAIO business model is built around the contingency aspect as it relates to ethical conduct addressed in the Q&A.

2. Appraisers from across the nation must now vett this with there respective state appraisals boards for their intepretation and apllication of USPAP.

3. I am now convinced more then ever that appraisers should not address questions directly to the ASB. We should only be sending questions to our respective State Boards since they are the immediate ruling body as it pertains to licensing.

 

[SANDY]

What is an ethical appraiser to do......

Would you like someone from TAF to come and sit by your side holding your hand?

I feel your pain, but this is really pointless unless we go to the source. Why not stop the abuse where it is with the MBs and AMCs?

How many more times must I say it? Going to the so-called source of the problem is much more out of our hands than going to the source of those that regulate us. Ok- I hope that's settled now.

Next issue that I am tired of is all of you that post versions of this one--- Ok Sandy post your USPAP changes perfect solutions so we can shoot them down!!! Sorry not falling for that one---besides why would think that a lowly trainee would be the only one that would have the perfect solution? Wouldn't it make more sense for you folks to put that onus on the people that are sitting in the big chairs at TAF. Like I said before, if your supposedly at the top of your profession and your profession is in shambles, it is incumbent upon you to do something about it, not those at the bottom of the food chain!

Ok that's the last time I am responding to those issues---if ya don't get it by now, then I suggest you spend your time talking to Mr. Socrates.

 

[Lee Lansford]

...

It all comes down to how one can understands and how one practices.

We have had the answers all along.

"woodyva", you nailed it!

 

[Lee Lansford]

OK, where in USPAP is the Definition of "Comp Check" ever mentioned or part of USPAP? why even allow it as a definition or give it creadance? The TAF should have known better.

Workbox, the ASB addressed "comp checks" because it is an obvious issue for many appraisers. The ASB didn't define the term but they did, rightfully and consistent with the USPAP, point out that an appraiser who communicates a range of, or pinpoint, "price" or "value" has developed and communicated an appraisal. Further, the ASB again points out that appraisers cannot accept an assignment that is contingent upon a minimum or predetermined value. So...what's new?

 

[Lee Lansford]

... Like I said before, if your supposedly at the top of your profession and your profession is in shambles, it is incumbent upon you to do something about it, not those at the bottom of the food chain!
...

While I don't know if I'm at the top of my profession, I know that I in fact "do something about it"...I elect to do things the right way. Just as I don't shoplift, but am aware that others do, what can I do to alter the behavior of those who elect to do wrong? THAT"S the question that others have been asking of you! With that perspective, the task is fairly difficult, yes?

 

[SANDY]

Carnivore:

Right on!!! It's not a big stretch to see who has been pulling TAF's strings in the past with their dumbing down of the reporting formats. Next chapter yet to unfold is when the lenders start to figure out the huge potential for them to abuse the scope of work rule.

Lee--- I applaud you for your contribution to the solution as you see it which is that you just say no. But you know very well that you and the others that are following the high road are on a sparsely travelled unpaved road while too many others are on a super highway.

 

[Carnivore]

Sandy

Dont take me as supporting you on what you want. What you want the TAF/ASB can no give you. You must turn to your individual state legislature for a solution.

We are 180 degrees in our thinking. You want to give the ASB power, I on the other hand want to strip them of power.


I thought this would be an appropriate link to show how endemic the problem is to our industry:

http://appraisersforum.com/showthread.php?t=136953