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July 2008 ASC Q&a- Wink Wink Comp Comp

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still alive and well in 2008 ( 1004_05)

CERT.18. My employment and/or compensation for performing this appraisal or any future or anticipated appraisals was not conditioned on any agreement or understanding, written or otherwise, that I would report (or present analysis supporting) a predetermined specific value, a predetermined minimum value, a range or direction in value, a value that favors the cause of
any party,

or the attainment of a specific result or occurrence of a specific subsequent event (such as approval of a pending mortgage loan application).
 
CERT.18. My employment and/or compensation for performing this appraisal or any future or anticipated appraisals was not conditioned on any agreement or understanding, written or otherwise, that I would report (or present analysis supporting) a predetermined specific value, a predetermined minimum value, a range or direction in value, a value that favors the cause of any party,



or the attainment of a specific result or occurrence of a specific subsequent event (such as approval of a pending mortgage loan application).

The whole thing should be bolded.

As with every other law, rule or regulation, an accuser has to be able to demonstrate that the act involved all of the elements of the offense, not just some of them.​

The fact that I return an appraisal that meets a borrower's expectation cannot automatically be assumed to be a violation. Neither does the fact that I got paid for it. Lucky for us, too, because if a client has reasonable expectations - and some clients do - then the appraisal will usually meet them.​

The elements of this violation of the Management section include:​

- accepting the assignment and/or compensation; and,​
- returning the desired value or direction of value; AND


- doing both of the above pursuant to a take-it-or-leave-it contingency.



It takes all three elements, not just the first two, to comprise this particular violation. Merely being aware of what the client wants is not enough; nor - on a practical basis - can it ever be enough. Otherwise just being aware of what the intended use of the assignment is would be enough to put us all in violation. Establishing the first two elements is usually pretty easy; but without the third element there literally is no violation.​

That's why your apparent allegation that all multi-staged assignments are by definition a violation of this part of the Management section of the Ethics Rule is incorrect and unsupportable. Repeating it over and over again isn't going to make it any more correct or any more supportable. Prove the contingency ALWAYS exists (which you can't, because it doesn't) and you'd have a shot at it.

You need to find a different angle. Attempting to present sections of text out of the context provided by the remaining qualifiying elements isn't working for you.​
 
still alive and well in 2008 ( 1004_05)

CERT.18. My employment and/or compensation for performing this appraisal or any future or anticipated appraisals was not conditioned on any agreement or understanding, written or otherwise, that I would report (or present analysis supporting) a predetermined specific value, a predetermined minimum value, a range or direction in value, a value that favors the cause of
any party,

or the attainment of a specific result or occurrence of a specific subsequent event (such as approval of a pending mortgage loan application).
Mike while I agree with you, your post may be construed by some to be unfair. It forces them to confront situational ethics which has always been the demon in this issue that they have no wish to face. :)
 
Explicit is as explicit does George.

(or present analysis supporting) a predetermined specific value, a predetermined minimum value, a range or direction in value, a value that favors the cause of any party,


(such as approval of a pending mortgage loan application).
 
Mr. Hatch do you not believe that those who spend their time with no compensation for the first assignment are going to be more inclined to move toward a value that will end in a paid assignment in the next stage whether they wish to admit it or not?
 
Explicit is as explicit does George.

(or present analysis supporting) a predetermined specific value, a predetermined minimum value, a range or direction in value, a value that favors the cause of any party,


(such as approval of a pending mortgage loan application).


Prove it .. beyond a reasonable doubt!!

I am in agreement with you that comp checks should not be done, but that is a personal business decision, its not against USPAP and its not against the law. Is there a question regarding the second assignment? You bet. Thats a main reason I dont do them (well one of the reasons anyway). As far as proving the second value was predicated upon the first, I personally think it would be very very difficult to prove, especially if the first report states that the value could change upon full and complete inspection of the property and preparation of a full report.

I dont disagree with your thoughts, but that doesnt mean they are correct in the "legal" sense, nor does it mean that a comp check and second report cant be done in compliance with USPAP. That is what I believe the ASB has stated.
 
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Mr. Hatch do you not believe that those who spend their time with no compensation for the first assignment are going to be more inclined to move toward a value that will end in a paid assignment in the next stage whether they wish to admit it or not?
I can't answer for George, but I can answer for myself - No, it's not more likely.

If your "professional" relationships are all with fly-by-night-what-have-you-done-for-me-lately clients that are likely to be gone before the check clears, you may be influenced.

If your relationships are with clients who understand that not every answer can be "yes", it shouldn't influence you one bit. Believe it or not, there really are users of appraisal services who actually value our opinions.
 
Mike while I agree with you, your post may be construed by some to be unfair. It forces them to confront situational ethics which has always been the demon in this issue that theT have no wish to face. :)
Ah, never missing an oppurtunity to cast aspersions.
 
Explicit is as explicit does George.

(or present analysis supporting) a predetermined specific value, a predetermined minimum value, a range or direction in value, a value that favors the cause of any party,


(such as approval of a pending mortgage loan application).


Mike, when you appraise a pending sale, to you refuse/return the order if they send a contract to you with a sales price on it?
 
I can't answer for George, but I can answer for myself - No, it's not more likely.

If your "professional" relationships are all with fly-by-night-what-have-you-done-for-me-lately clients that are likely to be gone before the check clears, you may be influenced.

If your relationships are with clients who understand that not every answer can be "yes", it shouldn't influence you one bit. Believe it or not, there really are users of appraisal services who actually value our opinions.
The comp check disgrace isn’t about desk top assignments for A paper clients; it’s about high volume for B & C products. If these “clients” are to be remain satisfied, the high end of the range must be reached and each assignment stage must be satisfactory. If this is not the case, why is most of Orange County a prospect for a short sale? I’d like stick around all day and joust, but unfortunately I’m not in an ivory tower. I have to go inspect a 1997 Oakwood doublewide that died 8 months ago. An impressive assignment sure, but they didn’t demand a comp check before sending the order.
 
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