More On Free Comp Checks

[CANative]

Very stupid definition. Especially as Fannie, Freddie, VA, FHA, Ginnie Mae, and maybe some others were all given exclusions under the FRT standard and therefore have not been FRT for about as long as I've been in this business.

Is it the other way around? Federally regulated institutions have determined that Fannie Mae guidelines represent an industry standard therefore are good enough for them?

So CA, in it's vast wisdom, defined almost all secondary mortgage market real estate appraisals to not be real estate appraisals... LMAO!!!! THAT one is going to hold up very well I bet... NOT!

That's not what the CA BPC is saying. It's saying that the code applies to federally related appraisal activity.

 

[CANative]

Like I said, just let this one play out in civil court if and when any seller or buyer comes back later with legal action against the appraiser whose "comp search" was used to renegociate a sales contract with.

If USPAP compliance was not agreed upon and did not apply how can USPAP be the basis for a legal action? And would an appraiser have to be involved in a civil action of a sales price rengotiation? What is the damage? Some paid too much or someone sold for too little? You'd have to prove there was an error but what standards would be used to determine this if no standards were used?

 

[PropertyEconomics]

Greg .. in some states USPAP is mandatory ... so in many instances the compliance is governed by law ... not in your state apparently ... which I find interesting since CA is one of the biggest subprime states in the country ... I think if I were you guys Id be lobbying to make USPAP law instead of how its handled now.

 

[evelynwheeler]

If it is available online, I'll tell them what the county assessor has it assessed for. I'll also tell them the sale price, if it has sold recently. That's all. Public information.

 

[fifteen]

MB's kept me busy when the banks were slow. If I can get a reputable MB to deal with, then why not do a comp check. Reputable ones have always kept me busy, no pressure. Besides, it's always bugged me taking money from the homeowner, who was barely making it, and then not making value. As a public service why would you want to take someones money if you know the value isn't there? Isn't that a little bit like selling a box of pizza at full price knowing there's only a slice in the box.

USPAP states a value must be numerically expressed for there to be an appraisal. You guys really still think that without an expression of value an appraisal has been done??!! As long as a value isn't "numerically expressed" there is not an appraisal. Ca. is right and you guys are wrong. Ha ha. At least practically as it'd be impossible to prove in court verbal agreements in much the same way a verbal contract means squat.

An appraisal must be numerically expressed as a specific amount, as a range of numbers, [FONT=Times New Roman,Times New Roman]or as a relationship (e.g., not more than, not less than) to a previous value opinion [/FONT]or numerical benchmark (e.g., assessed value, collateral value).

 

[PropertyEconomics]

MB's kept me busy when the banks were slow. If I can get a reputable MB to deal with, then why not do a comp check. Reputable ones have always kept me busy, no pressure. Besides, it's always bugged me taking money from the homeowner, who was barely making it, and then not making value. As a public service why would you want to take someones money if you know the value isn't there? Isn't that a little bit like selling a box of pizza at full price knowing there's only a slice in the box.

USPAP states a value must be numerically expressed for there to be an appraisal. You guys really still think that without an expression of value an appraisal has been done??!! As long as a value isn't "numerically expressed" there is not an appraisal. Ca. is right and you guys are wrong. Ha ha. At least practically as it'd be impossible to prove in court verbal agreements in much the same way a verbal contract means squat.

An appraisal must be numerically expressed as a specific amount, as a range of numbers, [FONT=Times New Roman,Times New Roman]or as a relationship (e.g., not more than, not less than) to a previous value opinion [/FONT]or numerical benchmark (e.g., assessed value, collateral value).

A comp check as you are referring to is a measurement against a value ... ie greater than ... so yes there is a numerical value expressed.

When are appraisers like you going to get it through their thick skull that its not the BORROWER you are helping .. it is the LENDER you are helping. A value below the lending threshold is NOT a value that doesnt MAKE the loan .. it is a value which keeps the lender from making a mistake in lending.
Did you ever think there is a REASON the borrower is not your client????? There is a reason the LENDER hires you ??????

I swear if I read one more person talking about NOT MAKING THE LOAN ......

GOD I long for the old days when appraisers knew what the hell our mission was.

 

[Michigan CG]

MB's kept me busy when the banks were slow. If I can get a reputable MB to deal with, then why not do a comp check. Reputable ones have always kept me busy, no pressure. Besides, it's always bugged me taking money from the homeowner, who was barely making it, and then not making value. As a public service why would you want to take someones money if you know the value isn't there? Isn't that a little bit like selling a box of pizza at full price knowing there's only a slice in the box.

USPAP states a value must be numerically expressed for there to be an appraisal. You guys really still think that without an expression of value an appraisal has been done??!! As long as a value isn't "numerically expressed" there is not an appraisal. Ca. is right and you guys are wrong. Ha ha. At least practically as it'd be impossible to prove in court verbal agreements in much the same way a verbal contract means squat.

An appraisal must be numerically expressed as a specific amount, as a range of numbers, [FONT=Times New Roman,Times New Roman]or as a relationship (e.g., not more than, not less than) to a previous value opinion [/FONT]or numerical benchmark (e.g., assessed value, collateral value).

USPAP, FAQ 130 pp F59-F60:

"..........................This range of value is defined as an appraisal under USPAP; therefore, the appraiser would be obligated to comply with STANDARDS 1 and 2.

 

[JSmith43]

USPAP, FAQ pp F59-F60:

"..........................This range of value is defined as an appraisal under USPAP; therefore, the appraiser would be obligated to comply with STANDARDS 1 and 2.

Unless having a verbal conversation with a potential client in CA?

Waiting for the surfer........

 

[Ken B]

Regardless of the "what is an appraisal" question, if

1) one accepts an assignment to provide an appraisal in exchange for a fee,
2) discovers during the appraisal process that one cannot "make value",
3) calls the client and tells them so,
4) then cancels the assignment and does not collect the fee,
5) one has violated USPAP by accepting an assignment contingent upon a desired outcome.

There are no "ifs, ands, or buts" about it.

 

[PropertyEconomics]

Regardless of the "what is an appraisal" question, if

1) one accepts an assignment to provide an appraisal in exchange for a fee,
2) discovers during the appraisal process that one cannot "make value",
3) calls the client and tells them so,
4) then cancels the assignment and does not collect the fee,
5) one has violated USPAP by accepting an assignment contingent upon a desired outcome.

There are no "ifs, ands, or buts" about it.

Say it aint so Opie!! All of the sudden our business finds itself with a TON of Barney Fifes as appraisers .... and their valuation guns are loaded .... Look at how they already killed the economy and they are not even good shots!!