More On Free Comp Checks

[Joyce Potts]

Isn't this based on mearely interputation of what USPAP is saying? And who is it that interputs USPAP and regulates us on a state by state basis?
Shouldn't the states be telling us what they think is right based on their reference to USPAP GUIDELINES? I know that many of you have been doing this longer than I have, but it really doesn't matter what we think in the long run. It's what the states decide they want to interupt as the main guideline that we have to go by. Heck a state we go after a good or a bad appraiser just based on a complaint and no supporting evidence, ask Ray about that.

What everyone fails to realize is that no matter what we think, it's what the boards think is right, whether it is a correct interputation or not. YOu can not judge any for what they are doing merely by what you think is the right interputation, it's utlimately not your decision, it's the states for which we are liscensed and certified.

WE need to work as a group to get thru this and not bad mouth anyone who is doing comp checks if they have a valid and INTERPUTED use of USPAP that the can justify in court, then who's to say that they are wrong? Not you not me just the judge and the board trying to get them. Or maybe they are right in their interputation and comp checks are not wrong if they are done within the guides of a desktop type of appraisal with a workfile and all documentation to support the value or range of value that they give.
If they don't want to charge for it, it is no ones busniness but theirs, if i wanted to charge $25 for an appraisal, I could as long as I was USPAP compliant, who can stop me.......

Welcome, Dave H.

Well said and I rest my case.

 

[Steve Owen]

It has a track record of being a defense against criminal charges, if the person is found to have been induced to commit an act that he/she would not otherwise have done.

It has a track record of being an unsuccessful defense because the alleged criminal forgot to consider the highlighted area. This is almost as tricky an area as the difference between a comp check and an appraisal... except, in that case, there usually is no difference.

If a prostitute (appraiser) is standing on the corner and an undercover cop (regulator) comes along and says "how much?" It is not entrapment... that is a sting. It becomes entrapment if the cop says "how much?" and the lady on the corner says "I'm not that kind of girl" and the cop continues to entice. And, even then, it only becomes entrapment if the lady on the corner can prove that she was not inclined to do the crime, but got talked into it by the cop. "Prove" is a hard word in most courts... but then, I'm not an attorney, so you don't have to take my word for it.

Like the whole issue, there is a fine line between what you can and cannot do. I can talk to MB's all day about the general market, number of raw sales in an area, or previous history of the property in question. What I cannot do is what they are asking me to do... to tell them if it will come in at $xxxs so they can order an appraisal.

Crossing that fine line is where you might get into trouble. Like the issue of entrapment, the ethically challenged often have difficulty determining where the line is.

 

[Workbox]

Well said Steve.

 

[JSmith43]

Crossing that fine line is where you might get into trouble. Like the issue of entrapment, the ethically challenged often have difficulty determining where the line is.

When entrapment can be successfully argued, it may be used to threaten political damage and strike favorable deals. Sometimes that is nearly the same thing as winning.

Btw, your level of knowledge of the workings of prostitutes sounds impressive

 

[JSmith43]

The greater point, IMO, is that such types of sting operations can be made to look rather trivial, right along with those that instigate the programs. The argument would be something like: Why are you wasting scarce public resources on that activity when you can be doing......

Whether it is petty or not, there is a danger in being made to look petty.

Heck, I can come up with better ways to stir up some profound enforcement action than that! Pam's suspicious address list is a far better better resource, as long as the contributed addresses continue to be contributed for non-petty reasons. They should think of ways to utilize it, perhaps contribute to or sponsor expansion/promotion.

 

[mgloege]

I had to generate three documents for the "Comp Check Appraisal" to be USPAP compliant. They can be found at http://www.ifanw.com/archives/. I'd like to think I can accept criticism gratefully -- usually I'm pretty good at it. Then there are times..............

 

[Greenback]

Comp. checks suck!

 

[Mike Kennedy]

Ohio State Does

Isn't this based on mearely interputation of what USPAP is saying? And who is it that interputs USPAP and regulates us on a state by state basis?

"Shouldn't the states be telling us what they think is right based on their reference to USPAP GUIDELINES? IWhat everyone fails to realize is that no matter what we think, it's what the boards think is right, whether it is a correct interputation or not. YOu can not judge any for what they are doing merely by what you think is the right interputation, it's utlimately not your decision, it's the states for which we are liscensed and certified.

ABSOLUTELY CORRECT, IT IS YOUR STATE >> OHIO TOLD YOU:

There has been a lot of talk lately about the recently-enacted Senate Bill 185. The new law, which went into effect on January 1, 2007, attempts to curb the unscrupulous lending practices that got a lot of media attention last year. These practices were, in part, responsible for Ohio having the highest foreclosure rate in the United States.​

S.B. 185, entitled The Homebuyers’ Protection Act, is one of the toughest anti-predatory lending laws in the country. The new law brings many changes for Ohio’s lending industry, as well as for Ohio’s certified, licensed and registered appraisers. ​

The new law requires that all appraisals completed for mortgage-related loans be performed by a licensed or certified appraiser. Prior to SB 185, only federally-related transactions having a transaction value greater than $250,000 required a licensed or certified appraiser to perform the appraisal. This new provision will give the Division of Real Estate & Professional Licensing’s appraisal enforcement staff more regulatory authority when they process complaints related to these transactions. The Division received more than 350 appraiser complaints in 2006.​

The new law also makes it a fifth-degree felony for anyone to directly or indirectly compensate, instruct, induce, coerce or intimidate a licensed or certified appraiser to secure a certain value for any dwelling offered as security for repayment of a mortgage loan.​

This could deter those mortgage brokers or loan officers who are inclined to coerce or influence an appraiser’s value judgment. ​

“It gives appraisers something to point to when they’re dealing with a forceful person telling them to reach a certain value,” said Kelly Davids, the Division’s Superintendent. “It also gives teeth to law enforcement to prosecute those guilty of coercion.”​

§ 4763.12. Certified appraisal or report; contingent fee; form of appraisal or specialized service report.

[FONT=Arial,Arial](A) A person licensed or certified under this chapter may be retained or employed to act as a disinterested third party in rendering an unbiased valuation or analysis of real estate or to provide specialized services to facilitate the client or employer's objectives. An appraisal or appraisal report rendered by a certificate holder or licensee shall comply with this chapter. A certified appraisal or certified appraisal report represents to the public that it satisfies the standards set forth in this chapter. [/FONT]​

[FONT=Arial,Arial](B) No certificate holder or licensee shall accept a fee for an appraisal assignment that is contingent, in whole or in part, upon the reporting of a predetermined estimate, analysis, or opinion or upon the opinion, conclusion, or valuation reached, or upon consequences resulting from the appraisal assignment. A certificate holder or licensee who enters into an agreement to provide specialized services may charge a fixed fee or a fee that is contingent upon the results achieved by the specialized services, [/FONT]

[FONT=Arial,Arial]PROVIDED that this fact is clearly stated in each oral report rendered pursuant to the agreement and the existence of the contingent fee arrangement is clearly stated in a prominent place on each written report and in each letter of transmittal and certification statement made by the certificate holder or licensee within that report. [/FONT]
​

KNOCK YOUR SOCKS OFF IN OHIO - also recognize that acceding to every request or instruction to REMOVE THE REQUIRED CONTINGENCY FEE STATEMENT by ...........any End User will require you to violate OHIO STATE LAW.

 

[Mike Kennedy]

I had to generate three documents for the "Comp Check Appraisal" to be USPAP compliant. They can be found at http://www.ifanw.com/archives/. I'd like to think I can accept criticism gratefully -- usually I'm pretty good at it. Then there are times..............

http://www.ifanw.com/archives/CompCheckForms/1%20%20CC%20Agreement%20Generic%20Text.pdf

"In the event the proposed loan is intended to support a sale, an analysis of such sale is considered applicable and necessary for the intended use of this report. Accordingly, all sales agreements, including addenda, summaries of licensed home inspections etc. must accompany the order for Comp Check Appraisal services.​

When the oral report is phoned to you and you subsequently want to go ahead with a Full FannieMae Appraisal :Eyecrazy: ​

you must fax or email a new (second) request for an appraisal indicating a FannieMae format (1004,
2055 etc.) as the type of appraisal. Each type of appraisal report must carry its own file number.​

It is understood that Appraisal fee for a full (subsequent) FannieMae appraisal is collected from the loan applicant or Mortgage Broker at the time of or prior to the Inspection (COD). Loan applicants are required to
a sign a disclosure acknowledging the lender as “Client” notwithstanding the method of the payment of fees. Post dated checks are not acceptable. Appraisals are not delivered until checks for the payment of the appraisal fee have cleared, unless written guarantees of payment are made by the lender."​

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"FULL(SUBSEQUENT)" = Same Client, Same Borrower, Same Subject, Same Intended Use ​

Contingent "full" (subsequent) Appraisal. Period. FREE OR FEE, Contingent IS as Contingent DOES.
______________________________________________________________________​

ORAL APPRAISAL CERTIFICATION: http://www.ifanw.com/archives/CompCheckForms/1%20%20CC%20Certification%20Generic%20Text.pdf

"My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that FAVORS the cause of the client, the amount of the value opinion, the attainment of a stipulated result,​

or the occurrence of a subsequent event DIRECTLY RELATED to the INTENDED USE of this appraisal." ​

i.e. the SECOND appraisal assignment.​

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http://www.ifanw.com/archives/CompCheckForms/1%20%20CCA%20Cover%20Letter%20-%20Generic.pdf​

Comp Check Agreement Cover Letter Example

"The general purpose (intended use) of a "Comp Check Appraisal" is to aid you in making an informed business decision. The attached agreement covers us with the State and Feds."​

** IN OHIO - PROVIDED YOU STATE THE CONTINGENT RELATIONSHIP BETWEEN BOTH ORDERS ""PROMINANTLY" IN THE SECOND APPPRAISAL REPORT. (SEE ABOVE).

"I would also ask that requests for Comp Check Appraisals be ordered for applicants who have expressed a solid interest in your products and whose credit worthiness has been properly pre qualified."​

**(CONFIRMATION OF INTENDED USE "be ordered for applicants" WHO HAVE APPLIED FOR A LOAN)​

" ​

One final word. Even with all this front end work, not all appraisals are going make it. You and I can only do so much."

USPAP ADVOCACY AND CONDUCT IMPLICATIONS: It IS the responsibility of an Appraiser to render an IMPARTIAL opinion of Value; without consideration of "making the number".

It is NOT the responsibility of an Appraiser to "do so much" in an effort to "HIT THE BULLSEYE" NOR SUPPORT A LOAN APPLICATION.


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AS PRESENTED: there is no doubt, any SECOND "full" assignments are DIRECTLY predicated on "successful results" of PRELIMINARY "first" assignments.

Any completed, "fulls", will likely FAIL to be acceptable to End Users - due to REQUIRED Statements confirming the CONTINGENCY relationship between each order (IN OHIO).

 

[JSmith43]

(B) No certificate holder or licensee shall accept a fee for an appraisal assignment that is contingent, in whole or in part, upon the reporting of a predetermined estimate, analysis, or opinion or upon the opinion, conclusion, or valuation reached, or upon consequences resulting from the appraisal assignment.

Mike: That section says they can't accept a fee if they report a predetermined estimate

KNOCK YOUR SOCKS OFF IN OHIO - also recognize that acceding to every request or instruction to REMOVE THE REQUIRED CONTINGENCY FEE STATEMENT by ...........any End User will require you to violate OHIO STATE LAW.

This part appears to only refer to a class of contingent fee based assignments allowed in OH, such as tax appeals.


In the last two posts there were lots of words, but really, you were essentially just copying Benji when he said "Comp checks suck"