More On Free Comp Checks

[hastalavista]

The real answer is, not if he keeps a work file and a signed certification for 5 years.:new_all_coholic:

That would have been my point.
No need to go through the vaudeville act; take the assignment as an appraisal and complete it as an appraisal.

 

[JSmith43]

That would have been my point.
No need to go through the vaudeville act; take the assignment as an appraisal and complete it as an appraisal.

Them is the rules, but I remain a critic of the situation, since it gives incentive to mime activity:new_llying: and burdens appraisers that would do the right thing anyway with all this work file horse hockey.

What if drivers on toll ways had to certify they would not exceed the speed limit and drive recklessly? Most drivers resent having to slow down to pitch quarters into the bowl, let alone fill out mandated paperwork.

Many speed off and some drive recklessly. The patrol spots some of the speeders and pulls them over. About 1% of all tollway drivers are selected for random audit or are stopped at the end of the toll section based upon a phone call from another driver (who may have been slowed down or otherwise irked by a law abiding driver).

The law abiding driver gets pulled over based upon random audit or is "turned in" & can't produce his signed certification that he wouldn't speed or drive recklessly because his pen ink froze up. Got him on a technicality! What a boost to the public trust.

 

[psmith2170]

Proponent of the Free Comp check.

The real answer is, not if he keeps a work file and a signed certification for 5 years.:new_all_coholic:

With the market falling every day, free comp checks are a necessary value added service to the general public. But, they must be USPAP compliant. Appraisers must realize a comp check is an oral report and as such IS covered by USPAP. We complete comp checks as "Restricted Use Oral Reports". Standard 2, page U-26 in the 2008 USPAP book clearly states the requirements for a restricted use report. We simply follow the rules, keep our files attached to a signed certification and we are off to the races! Most of the comp checks are a waste of time, but there are enough it makes it worth while. Of course in ten months, comp checks will be a thing of the past anyway, so it really doesn't matter.

 

[Offshore]

Of course in ten months, comp checks will be a thing of the past anyway, so it really doesn't matter.

I hope you’re correct and that comp checks will cease to be in ‘09, but I fear that too many thrive in the current climate and will not go down without a fight. I have a hunch that the MBs along with their sleazy fee shop associates will put up a battle that will surpass the one currently being waged by Hillary and Bill.

 

[Webbed Feet]

Broker competition, where they pretend to own appraisers and/or appraisal results, screws me over every day. In spite of that, I feel that restraint of public lynching of someone's particular site and/or business practices is not becoming of a site for professionals.

Lynching non-specific sites and certain types of business practices is OK, IMO

Mentor,

Good! No need for me to restrain myself then! Since it is professional of me to be unrestrained..

Webbed.

 

[Webbed Feet]

Correct me if I'm wrong Mike, but if you stop the appraisal process because the estimated value is "unreasonable", then isn't this a USPAP violation?

Rescom,

Not at all! Everyone of us can complete a real estate appraisal, based against a benchmark, with a SOW calling for completion and reporting if a "not equal to and less than" value conclusion is reached.

Webbed.

 

[Mike Kennedy]

With the market falling every day, free comp checks are a necessary value added service to the general public. But, they must be USPAP compliant. Appraisers must realize a comp check is an oral report and as such IS covered by USPAP. We complete comp checks as "Restricted Use Oral Reports". Standard 2, page U-26 in the 2008 USPAP book clearly states the requirements for a restricted use report. We simply follow the rules, keep our files attached to a signed certification and we are off to the races! Most of the comp checks are a waste of time, but there are enough it makes it worth while. Of course in ten months, comp checks will be a thing of the past anyway, so it really doesn't matter.

Of course in time, during ongoing investigations of major lenders and several major national broker firms, and AMCs, the lightbulb will finally go on and the charade will be ended.

ANY request for a "preliminary value", "ballpark figure", "range of values", "best guess" PRIOR TO ORDERING AN APPRAISAL - regardless of the format of the report - for the SAME LOAN, SAME CLIENT, SAME BORROWER, ON THE SAME PROPERTY, FOR THE SAME INTENDED USE - TO SECURE A MORTAGAGE - is legal.

Accepting and rendering an opinion of value is legal.

Accepting a SECOND ORDER which IS conditional upon favorable results of the first is what it is.............a violation of the USPAP and many State Appraisal Laws.

DEMANDING a prequal valuation in any form prior to ordering an appraisal in a format which is ACCEPTABLE to "do the deal"......... whether paid for or not - is Extortion.

 

[JSmith43]

Accepting a SECOND ORDER which IS conditional upon favorable results of the first is what it is.............a violation of the USPAP and many State Appraisal Laws.

Mike, I didn't make the rules and find certain rules impractical/unworkable. I find the Mike Kennedy judicial declaration less than convincing in this instance

Look at the time line of the logic you present. The new assignment is the one to be done, presumably a URAR with interior/exterior inspection. Is it really your view that USPAP prohibits new assignments to be taken if the results of a prior assignment is favorable to the outcome of the new assignment?

I am considering a back to the future scenario as a possible explanation for that view. But, I guess I will just assume that your view is that appraisers should also not touch an assignment if they may have appraised a potential comparable for the subject in the past.

 

[Mike Kennedy]

Mike, I didn't make the rules and find certain rules impractical/unworkable. I find the Mike Kennedy judicial declaration less than convincing in this instance

Look at the time line of the logic you present. The new assignment is the one to be done, presumably a URAR with interior/exterior inspection. Is it really your view that USPAP prohibits new assignments to be taken if the results of a prior assignment is favorable to the outcome of the new assignment?

I am considering a back to the future scenario as a possible explanation for that view. But, I guess I will just assume that your view is that appraisers should also not touch an assignment if they may have appraised a potential comparable for the subject in the past.

Accepting a SECOND ORDER which IS conditional upon favorable results of the first is what it is.............a violation of the USPAP and many State Appraisal Laws. { for the exact same intended use }





ring.......... Hello ABC Appraisals how can I help you?

Hi - im Jack Schitt from WeLoanonAnything-R-Us...... wonder if you can gimme a ballpark on a property Ive got a Cash Out Ref Loan on at 123 Shouldneverhaveboughtthisdamnhouse Lane, Anywhere, USA ......

No problemo Jack .....hang on ........ ok......thats 19999 and...lets see....... ok.......ML says 23 sales in last 12 months ...from $150000-350000 as of today......

Well ya see ...... um......well can you narrow that a bit .....the house is a superdooper totally renovated Raised Ranch bout.oh ....2400sf .......

..............Sure no probl lets see.......... ok......8 of the sales were Raised Ranches....... from $195-215k -the most recent 3 months .......

Well um ..okay .....i need $225 to do the deal .....are we close????

Well hang on ........ lemme see.................. well......theres 1 colonial ........bout same size....... at $265kkkkkkk...............so ........ok........that replaces the 195..... so we got $215, $215 and $265k ...........so yeah no problem ....id say .....$225 should be no problem. ........ Lemme shoot you a summary appraisal sheet.

.............Great!........lemme run sum numbers......past the borrower and ill be back atcha................

...........hey whats yur fee............

...........we extend this service to our customers because we are team players and believe it to be Good customer service policy. No charge.

...........EXCELLENT...........GONNA BE THERE? ILL CALL YOU RIGHT BACK........

...........SURE.


APPRAISER TYPES UP SUMMARY OF PHONE CALL ORDER, SERVICE RENDERED, PRINTS MLS .....SHEETS....... GRABS FOLDER..... INDICATES RESULT OF THE VERBAL APPRAISAL ....... EMAILS THE MLS SHEETS ALONG WITH DISCLAIMER CERTIFICATION 1 PAGE SUMMARY WITH EXTRAORDINARY ASSUMPTIONS ETC...... ALL NICELY PACKAGED IN A MANILA FILE FOLDER....... SUCCESSFULL APPRAISAL ORDERED/PERFORMED/COMPLETED........USPAP COMPLIANT.

..........................
10 minutes pass.........

RINGGGGGGGGGGG HEY MIKE ......JACK SCHITT AGAIN........GOOD TO GO ............ ...........CALL MR. JONES THE OWNER RIGHT NOW HE'S EXPECTING YUR CALL......... COLLECT YOUR FEE.....(oh what is it ).... ok......$350 no problem......he'll have it waiting...........can you get there like..............WITHIN AN HOUR? //////// NEED THIS ONE FASTTTTTTTTTTTT

..........................SURE JACK - NO PROBLEM.......FIRST SEND OVER THE APPRAISAL ORDER .............. INDICATE COD AND THE FEE...... GIMME HIS NUMBER ILL CALL EM RIGHT NOW...........

HEY MIKE...........THANKS BABE.......YU DA MAN !!!!!!
.......................

 

[hastalavista]

Accepting a SECOND ORDER which IS conditional upon favorable results of the first is what it is.............a violation of the USPAP and many State Appraisal Laws. { for the exact same intended use }

I think you mis-stated here, Mike.
Accepting a second order that is generated because a prior order returned favorable results is no violation.
Accepting a second order where the appraiser agrees in advance that the result will be the same as the first (pre-determined) is a violation.