More On Free Comp Checks

[Bill_FL]

Why is that a contingency (or what is it)?

Well Compliant, I do not think it is one. But for some reason, there are many here that say, if an LO calls for a desktop to get an idea of what the subject is worth, then orders a full appraisal afterwards, that there is an implied contingency to hit the desktop number. Would there not be an implied contingency in my scenario? What is the difference?

To me, this whole issue can be boiled down to two things.

First, there are unethical appraisers, MB's and LO's that have caused the majority of the problem. We all agree on this. There are simply too many bad appraisers rubber stamping appraisals.

Second - the above caused some appraisers to have knee jerk reactions to the issue. One suggests banning any kind of appraisal that does not include a full interior inspection. When I questioned him on it, he stood by it. Then I asked if he ever did apartment complexes. Did he really think he could get into all 1000 units? He admitted he did not do them, only residential.

My point is, there are way too many people here that put on these blinders and spout off feel good practices they want to be made law without stopping and thinking about it for half a second and the ramifications it could have on the entire industry. Nobody thinks about the legitimate uses for a desk top. Nobody thinks about a legitimately performing a desktop, followed up by a more in-depth scope of work type appraisal. They simply want to ban anything they do not do. That is just down right stupid.

Parsing USPAP down to each little sentence and word of it seeking “Technical” correctness in an effort to show ethics can successfully be skirted is beneath us, or it should be. The difference between “just two assignments,” and a first assignment that leads to unacceptable assignment conditions for a second assignment, is directly the first assignment's intended use and engagement contract in unison.

Webbed - no parsing here. But tell me exactly what the unacceptable assignment condition is? Have you just assumed there was one? There are two assignments, two scopes of work. Instead of assuming that this for a mortgage loan and it is a slimy MB, how about thinking it is a good client that is in the preforeclosure mode on a loan. They ask for a desktop. The clients are evicted and they send you back for a "full" appraisal. Do you accept? What is the difference?

Once again, the problem is not being able to offer your clients a wide range of products that they can use and benefit from. The problem is value shopping. Go after the problem. Attempting to limit the products that appraiser can offer their clients will just finish off the profession. It will simply speed up the use of alternative products.

 

[Webbed Feet]

<snip>.......Webbed - no parsing here. But tell me exactly what the unacceptable assignment condition is? Have you just assumed there was one? There are two assignments, two scopes of work. Instead of assuming that this for a mortgage loan and it is a slimy MB, how about thinking it is a good client that is in the preforeclosure mode on a loan. They ask for a desktop. The clients are evicted and they send you back for a "full" appraisal. Do you accept? What is the difference?

Once again, the problem is not being able to offer your clients a wide range of products that they can use and benefit from. The problem is value shopping. Go after the problem. Attempting to limit the products that appraiser can offer their clients will just finish off the profession. It will simply speed up the use of alternative products.

Mr. Potts,

This is the difference:

If so, those people, the prospective clients of the appraisers, will sign an engagement contract saying they agree to unbiased results that could be drastically different each time.

it was in my prior post. You and I do not disagree. I agree with having a variety of products to offer. Including desktop appraisal services. That is not the issue here in this thread. The issue is having comp check supporters post, and leaving out, as if the intended use(s) and engagement contracts are unimportant. As if these things must not be demanded. Written understanding and agreement to requirements to be unbiased and that results might drastically vary. That such things are all just curious and optional trivia to them. When, in fact, not considering it trivia immediately results in requests for comp checks to get canceled.

In your example I am assuming your prospective REO client would be completely willing to sign written engagement for a clear and credible SOW for both assignments. Including well written EA's for the desktop phase. The devil here, and just like I posted, the other commission driven mortgage clients will not do so. Once they understand they are not getting a promise of future performance for the second assignment.. they aren't interested. I find the ethical few that ARE still interested are happy to accept raw neighborhood data instead of a desktop appraisal report that they are calling a comp search.

Webbed.

 

[Bill_FL]

Webbed, wow, we agree on something.

My fear is that the baby will get thrown out withthe bath water from those who have knee jerk reactions and try to make anything but an interior and exterior walk through and around type of inspection on a 1004 made illegal.

 

[Mike Kennedy]

Webbed, wow, we agree on something.

My fear is that the baby will get thrown out withthe bath water from those who have knee jerk reactions and try to make anything but an interior and exterior walk through and around type of inspection on a 1004 made illegal.

You Rang????/ :icon_mrgreen:


"It is what it is, unless it's not what it is, but it's okay if it's what we THINK it is, unless it's not what it's not, or it's not what the incorrect, inaccurate, outdated, assessment records that include illegal uses in GLA, bpos, and avhumms think it is."

But then ......again ......... just gimme the damn number !!!!!!!!!! IT'S FINE........REALLY...........

(we really don't wanna know. really.) :Eyecrazy:

 

[EVAUSA]

There is no such thing as a preliminary
appraisal. If an appraiser values a
piece of property in any way, it is an
appraisal, and both Standard 1 and
Standard 2 apply. If the appraiser gives
the value orally, the appraiser must
comply with the requirements of
Standard Rule 2-4.

We agree, and when I complete my "Preliminary Value Survey" I am completing an appraisal. With a system is in place, complying with Standards 1 and 2 aren’t difficult. On a similar note, I took a USPAP class recently and it came up that an appraiser can accept attorney work, acting as an advocate, as so long as it is known the appraiser is completing an attorney use product NOT WORKING UNDER USPAP. This is the first I've heard of working on an assignment outside of USPAP as a licensed/certified appraiser. Have you heard of this and if it is allowed, can a "comp check" be completed by acting outside of USPAP?

 

[PropertyEconomics]

We agree, and when I complete my "Preliminary Value Survey" I am completing an appraisal. With a system is in place, complying with Standards 1 and 2 aren’t difficult. On a similar note, I took a USPAP class recently and it came up that an appraiser can accept attorney work, acting as an advocate, as so long as it is known the appraiser is completing an attorney use product NOT WORKING UNDER USPAP. This is the first I've heard of working on an assignment outside of USPAP as a licensed/certified appraiser. Have you heard of this and if it is allowed, can a "comp check" be completed by acting outside of USPAP?

EVAUSA ... I would think your comment about being an advocate would be state specific. In NM our law is USPAP .. thus no advocacy other than for your value conclusions is allowed. EVER.
Others here should be cautioned that their individual state laws may not allow that which you are saying is allowable in California.

 

[PropertyEconomics]

Webbed, wow, we agree on something.

My fear is that the baby will get thrown out withthe bath water from those who have knee jerk reactions and try to make anything but an interior and exterior walk through and around type of inspection on a 1004 made illegal.

Who is having that knee jerk reaction?

 

[EVAUSA]

Mrs Smith: You demonstrate sanity in your reply, with the one question lingering about why a sane person would antagonize torch carrying crusaders

I just don’t believe comp checks are the problem. In this forum, it is implied that appraisers are pushing values to "get the assignment", but in most cases, I don’t believe that is the case. Why the crusade against comp checks? I mean, once we agree THEY ARE APPRAISALS and treat them accordingly, who cares who does them and who turns them down?

 

[Webbed Feet]

We agree, and when I complete my "Preliminary Value Survey" I am completing an appraisal. With a system is in place, complying with Standards 1 and 2 aren’t difficult. On a similar note, I took a USPAP class recently and it came up that an appraiser can accept attorney work, acting as an advocate, as so long as it is known the appraiser is completing an attorney use product NOT WORKING UNDER USPAP. This is the first I've heard of working on an assignment outside of USPAP as a licensed/certified appraiser. Have you heard of this and if it is allowed, can a "comp check" be completed by acting outside of USPAP?

Somebody saying that was in La La Land, or it was taken out of context. It's the attorney that is acting as an advocate. We can certainly accept work from someone that is an advocate. We cannot accept a biased SOW if we have been approached as a real estate appraiser.

Webbed.

 

[John McDonald]

I say....."sorry, I don't do free comp searches! Now if you want to fax the request to me I will do some preliminary work and if it looks like the borrower's estimate of value is way out of line I will let you know and just bill you for the research work." :rainfro: Never get the fax

Thinking about starting all conversations with...."this call is being recorded since what you are asking me to do is a violation of The Uniform Standards of Professional Appraisal Practice".

Honestly, I probably get 3 or 4 such calls a day...all from out of state lenders. Last one that did send the request is now refusing to pay "because I told you I had to have $200,000 and you came in at $195,000". From now on....only COD's. I have over $20,000 in accounts receivable which is beginning to upset me.

If you have $20,000 in past due receivables. It is not receivables, it is a charge off. How, in the world did you get this many past due accounts?