MLS Comp Photos WTF!

[CANative]

Maybe it's not a good excuse but it does reflect reality. If the GSEs were concerned about appraisers really inspecting all the comps then they would have done what FHA did.

 

[PropertyEconomics]

Maybe it's not a good excuse but it does reflect reality. If the GSEs were concerned about appraisers really inspecting all the comps then they would have done what FHA did.

Neither the GSEs or the FHA can make an appraiser be honest and ethical. Either an appraiser does their job or they dont. Either an appraiser is honest and ethical or they are not ... if they cut corners on something so simple ... what corners do they cut on things more complex?


Those that are not ethical have no place in our business ... get them out ... watch fees go up, quality go up, and the housing crisis get better.

 

[timd354]

Maybe it's not a good excuse but it does reflect reality. If the GSEs were concerned about appraisers really inspecting all the comps then they would have done what FHA did.

Many appraisers seem not to have noticed that Freddie has changed its guidelines to require original photographs of the comparable sales unless photographs of the comparable sales cannot be obtained and the appraiser provides a reasonable justification for using a MLS photo. Here is the applicable Freddie Mac guideline (from the Freddie Mac Single Family Seller/Servicer Guide):

44.12: Standard exhibits (03/31/09)
Each appraisal or inspection report must include at least the exhibits required for the assessment type. The exhibits must meet the requirements provided in this section.
(a)Exhibit requirements
1.Photographs
Photographs must be clear and may be either in color or black and white. They must be original photographs, electronic images or facsimiles that are illustrative of the property. The photographs must be clear, appropriately identified and must clearly show the completed improvements or any conditions that have a material effect on the market value or marketability of the subject property.
•If black-and-white photographs of the subject property are used, the appraiser must have noted in the report any information that would have appeared in color photographs but is not apparent in black-and-white images that could adversely affect the market value or marketability.
•For any comparable sales, if an original photograph cannot be obtained, a clear copy of the photograph of the comparable sale from a multiple listing service (MLS) is acceptable. The appraiser must have provided a reasonable justification for using the MLS source.

 

[Lloyd Bonafide]

Good for Freddie -

Hmmm.... For those using MLS photos for conventional loans, you may want to rethink the way you do things, because you don't really know who the loan will eventually be sold to.

 

[Mike Kennedy]

TIMD- perhaps Fannie & Freddie should have lunch and Freddie can convince Fannie of the error of "her" ways.

 

[Couch Potato]

If this issue was before the Florida Real Estate Appraisal Board, they would revoke his appraisal license, as they have done before when the appraiser did not personally drive by the properties used in Fannie form reports.

Yes, FREAB will hand down a revocation, and then the appraiser files an appropriate appeal and wins. Not that I agree with how it works out, but you might be surprised if you investigate how often the FREAB is overturned when a case is appealed, or a lessor penalty is agreed to before the appeal is completed.

 

[Mr Rex]

It's like the Nickelback lyrics. "Figured you out".

 

[Mike Kennedy]

Is it Permissible to Use MLS Photos for Comparable Sales?
Question:
[FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]I use "standard" pre-printed appraisal report forms that contain a statement saying I personally inspected the exterior of the comparable sales. The assignment conditions require me to comply with this statement and do not permit any alterations. One of my clients now requires two additional sales of comparable properties to be included with every appraisal report. However, the client told me not to inspect the exterior of these additional sale comparables and to just use the MLS photos. May I comply with the client’s request?
[/FONT][/FONT]Response:
[FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]No, because you are being asked to not inspect the comparable sales when the form states that you have. You must either inspect the sales or change your report to indicate you did not inspect the sales.

[/FONT][/FONT]Is it Permissible to Use MLS Photos for Active Listings?
Question:
[FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]I use a pre-printed appraisal report form that contains a statement saying I personally inspected the exterior of the comparable [/FONT][/FONT][FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]sales[/FONT][/FONT][FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman], but it does not address active listings. One of my clients now requires two additional active listing comparable properties to be included with every appraisal report. However, the client told me not to inspect the exterior of these active listings and to just use the MLS photos. Am I compliant with USPAP if I do not physically inspect the exterior of these properties and only use the MLS photos?
[/FONT][/FONT]Response:
[FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]Yes, because USPAP does not require physical inspections or photographs. However, both are often required by clients. If an inspection of the active listing comparables is not required for credible assignment results, and it is not contrary to assignment conditions or [/FONT][/FONT][FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]specific statements in the report, then using an MLS photo and not performing an exterior inspection would be acceptable. [/FONT][/FONT]

http://www.appraisalfoundation.org/s_appraisal/bin.asp?CID=12&DID=1181&DOC=FILE.PDF

 

[Joyce Potts]

I swear, this topic will start to circulate as often as the comp check threads.

And keep throwing those regs on the wall, Mike. Perhaps some day, a few will stick.

 

[Stone]

I swear, this topic will start to circulate as often as the comp check threads.

And keep throwing those regs on the wall, Mike. Perhaps some day, a few will stick.

Not with people continuing to make up excuses as to why it is OK for them to say one thing and do another.