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More On Free Comp Checks

How often do you actually get an appraisal order if they want a free comp check first and you won&#3

  • Never

    Votes: 207 30.8%

  • Maybe 1 out of 100 calls like that

    Votes: 107 15.9%

  • About 1 out of 50 calls like that

    Votes: 94 14.0%

  • About 1 out of 10 calls like that

    Votes: 117 17.4%

  • About 1 out of 5 calls like that

    Votes: 94 14.0%

  • I ALWAYS talk them into the order without giving a value first

    Votes: 53 7.9%
  • Total voters
    671
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psmith2170 said:
How & why would an Oral Appraisal be illegal????
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Because some states have passed legislation making it illegal. Ohio is enforcing this new law, I am not sure how much Michigan is.
 
psmith2170 said:
When we were still allowed; did you ever do a re-assignment??????
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Mr. Smith,

See this is one of the interesting things. We never were "allowed" to do that. Only in myth. Supplemental standards never allowed client name changes. Only a lender could "assign" an appraisal over to another lender. The appraiser never could do that. Maybe before USPAP.

Webbed.
 
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psmith2170 said:
How & why would an Oral Appraisal be illegal????
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Mr. Smith,

Let's cut to the chase shall we? How about forum members make arrangments for two well USPAP understanding forum members, located near your office, to drop by with one of your State board enforcement administrators. We let them randomly go through the last year or two of your files looking for your work files on these "Restricted Use Oral Appraisal Reports" and spend the day auditing them for compliance. Then use your written logs to match them up to any following appraisals completed on the same subject addresses and audit those too.

Your in compliance... so you have nothing to fear.

Webbed.
 
Webbed Feet said:
Only a lender could "assign" an appraisal over to another lender. The appraiser never could do that. Maybe before USPAP.

Webbed.
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Amen to your post #384, Duck.

Although it is most likely true that the appraiser never could do that, it is important to remember that USPAP is a changing document. Earlier versions were not nearly as clear on this subject as current. It was widely believed that readdressing was permissible in the early years of USPAP. It was probably never allowed, but when I first started hearing that it was not allowed, back in about '94 or '95 the reason given was that it would be a misleading report. At that time, I would readdress and spell out in the comments that the appraisal was originally ordered by another client and has been readdressed, therefore, avoiding the misleading issue. One of these readdressed reports was pulled for audit by MREAC in about 1996, and they did not have a problem with it.

There is not doubt in my mind that they would have a problem with it if they pulled such a report today. Now, there is no doubt! The way the client relationship is spelled out in USPAP, any report sent to a different client with the new client's name on it is a new appraisal. (Perhaps it always was and we were just not bright enough to have figured that out back then.) As a new appraisal, it requires that the appraiser consider the appropriate Scope of Work, sign a certification, and meet all other requirements of USPAP, as well as any reasonable needs of the new client.

Oral reports?

I've never done one. I don't believe that they should be illegal, but probably should be for lending work. Just MHO.
 
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Oral reports are not illegal in Ohio, comp checks are as well as pressuring for value. Oral reports must be compliant with USPAP in Ohio. So if you are in Ohio, comp check away...give it all orally and for free all day long, but you better have a work file.
 
I made a decision years ago not to do comp checks. Occassionally if the subject was in a large readily defined subdivision I'd give them the high and low sales within the year and give them the assessed value. I quit even doing that because it wasn't enough - they wanted a number.
Also correct me if I'm wrong but statement 18 prohibits giving a preliminary value and if you do anyway and sign the report you are committing a fraud.
 
Also correct me if I'm wrong but statement 18 prohibits giving a preliminary value and if you do anyway and sign the report you are committing a fraud.
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The VA requires a heads up, but they are special, I guess:)
 
the VA

Mentor said:
The VA requires a heads up, but they are special, I guess:)
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Do you mean the Veteran's Administration? I've been on their panel for 16 years and have never had a comp check request or anything remotely similar.
 
sbb04 said:
Do you mean the Veteran's Administration? I've been on their panel for 16 years and have never had a comp check request or anything remotely similar.
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My reply was to the gentleman quoted and referred to statement 18 (I believe he means Certification #18 of the 3-05 URAR.

Note the statements VA makes in their bulletin, since this heads up, for the stated purpose of minimizing reconsiderations of value could easily pass as stealth pressure on an appraiser one way or another while in the process of developing an estimate of value. A lender's attorney couldn't have handled it any better:)

http://www.vba.VA.gov/ro/atlanta/rlc/INFO/261-04-05.htm
 
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