Licensed vs. Certified

[Code Jennings]

Can a licensed appraiser do a field review on a appraisal completed by a certified appraiser that was valued over a million dollars? I wouldn't think so but I've never considered this situation before.

 

[hastalavista]

Can a licensed appraiser do a field review on a appraisal completed by a certified appraiser that was valued over a million dollars? I wouldn't think so but I've never considered this situation before.

There are two components to the answer to your question (IMNSHO)- and I assume we are talking about a review for a mortgage finance transaction or lender purpose.

The first is the transaction value. This is typically the loan amount but could be the market value under certain circumstances (like a foreclosure).

The second is if the review assignment requires the reviewer to provide his/her own independent valuation (this is usually the case- even if you say "you agree", that is providing a value). So I would think that a licensed appraiser could perform many types of reviews under limited circumstances as long as the review criteria did not include an opinion of value. I'm sure others would disagree- and, the circumstances may be so limited as to not have any real-world practical application! :new_smile-l:

The interesting twist to the second point is, what if the reviewer concludes that the value is less than one-million dollars?
(I'd say then it was OK to complete the review, but it certainly gets gray!).

Regardless of the transaction amount, the complexity of the assignment should also be considered.

Good luck!

 

[Ultraviolet]

The first is the transaction value. This is typically the loan amount but could be the market value under certain circumstances (like a foreclosure).

Denis,

In AZ the licensed category restriction is based on the property VALUE ($1,000,000 and $250,000 for complex) - not transaction amount.

Personally, I would not solo review a report that was not within the limits of my license level. I have assisted on such assignments for experience with the certified appraiser as sole signer and an acknowledgement of my contribution in the addendum.

 

[hastalavista]

UV-

This is the second time today someone has been able to clarify my posts by pointing out that specific jurisdictions may have more restrictive rules than the minimum federal standards (thanks!!).

the licensed category restriction is based on the property VALUE ($1,000,000 and $250,000 for complex) - not transaction amount.

Such a rule is unambiguous- someone had posted a while ago that the definition of value limits was going to be redefined to equal market value on the federal level also; I don't believe it has happened yet. The sooner the better!:new_smile-l:

 

[Ultraviolet]

I hope my reply didn't come across as short, Denis. I forgot to include a

My brain is a bit foggy. I sat through a second day of reading Fannie appraisal guidelines - all of them ... word for word ... and then discussing. :Eyecrazy: Need any clarification on those?

I agree with your advice to the OP, also.


Born and raised in AZ - GO WILDCATS !!!!! :icon_mrgreen:

 

[Code Jennings]

Thanks for the replies. That is exactly what I was thinking.

And, just so you know, I saw that Wildcat comment...I'll let it slide this time.....LOL

 

[hastalavista]

I hope my reply didn't come across as short, Denis. I forgot to include a :icon_mrgreen:

Not at all!! :Emoticon_hug:

It does go to show that many answers should be prefaced by a "check your local regs, but where I'm from, this is how I understand it..." :new_smile-l: