My First Field Review?

[Carnivore]

This has probably been mentioned above or some version.

1. Lenders do order a review as a Quality Control tool - This may just be a random Sample
2. They also order reviews as a Random Sample to Evaluate the AMC Phone Monkey Performance -
This i know because Ramchk and I were completing reviews last year for one AMC to check up on another AMC AKA Corelogic.
FTR - Most Corelogic Appraiser Suck Not on their Opined Values, But more How they got there! LOL
Most of them are Rookies and it showed in their reporting! You could also see the Turn Time Pressure on the Rookies.
4. Credit is King Collateral is 2nd Fiddle - So many reviews are ordered to help facilitate closing the loan approval because the credit was marginal.
5. Some Subjects are weird non-conforming types and again this goes to collateral versus credit
6. Some Reviews are ordered as a sample for a NEW Funding Source.
7. Some reviews are ordered because the Borrower/homeowner is a whining little know it all and his house is a Castle and is worth a million-trillion dollars

So I would not worry about it. You just learned a lesson that we all have been reviewed at one time or another.

 

[Johnny Knucks]

The turn time pressure gets to me too, partly due to my heavy workload, but mainly due to my age. I just can't do these all-nighters like I used to.

All the above are true, especially the marginal credit and Corelogic. What an appraiser needs to worry about is if his/her appraisals are continually reviewed. Mine rarely do, but when they do, I know it because of the revisions come back and when. Most times it's a simple fix, but once or twice a year one comes back with about 20 revisions, at least half of which are because the reviewer never read the report.

 

[Carnivore]

The turn time pressure gets to me too, partly due to my heavy workload, but mainly due to my age. I just can't do these all-nighters like I used to.

All the above are true, especially the marginal credit and Corelogic. What an appraiser needs to worry about is if his/her appraisals are continually reviewed. Mine rarely do, but when they do, I know it because of the revisions come back and when. Most times it's a simple fix, but once or twice a year one comes back with about 20 revisions, at least half of which are because the reviewer never read the report.

The Insanity is beyond comprehension. FTR: I now have Solid PROOF that AMC's not the Lenders are making up some of these the non-nonsensical STIPS

I actually have an order that has two sets of Reporting Requirments: One from the AMC and One is Lender Specific!

Here is my recent response to Silly and Nonsensical Stips and Requirements: I could have said this a little better, but I admit I am aggravated by the nonsense.

Lender/Client Specific Reporting Requirements & Explanations:

Opinion of Subject MV exceeds Neighborhood Predominate Value:

Explanation:
All neighborhoods typically have a Low, Median and High range.

The subjects neighborhood has a range of Value. The subjects Market value as-is is above the predominate/median range of the neighborhood but
below the high range. The reason it is above the predominate is a function of condition, quality and differences in features. It is not a function of being
under-improved or over-improved. The property has had recent updates and interior renovations. Additionally all comparable sales are historical.
So as time goes on in an increasing market the range of value in this neighborhood may rise and vice versa if the market begins to decline. Currently
the market is increasing at a reasonable sustainable rate. NOTE: The explanation above also applies if comment is needed for a Subject Market
Value that is below the predominate value but above the minimum range of value in the subject neighborhood.

Page 13 FHA 4001.

2. The following table provides instruction for completing the “One-Unit Housing” price and age
trends section of the report form. Field Protocol Price ? Enter the low, high and predominant prices
found within the neighborhood/market area. ? The range should include the minimum and maximum
ends of the range, excluding outliers. ? The predominant value should reflect a point in the range
where most of the prices occur.

Reference: FNMA Selling Guide: B/411.303
Price Range and Predominant Price
The appraiser must indicate the price range and predominant price of properties in the subject neighborhood.
The price range must reflect high and low prevailing prices for one-unit properties, two- to four-unit properties,
condo units, or co-op units depending on the property type being appraised and the appraisal form being
used. Isolated high and low extremes should be excluded from the range, which means that the predominant
price will be that which is the most common or most frequently found in the neighborhood. The appraiser may
state the predominant price as a single figure or as a range, if more appropriate.
-------------------------------------------------------------------------------------------------------
Explanation for Comparable Sale date greater than six months from Appraisal effective date and
Distance greater than one mile.

Comparable Sale #2 and #4: have a Sale date greater than six months from Effective date: 1/03/2020.
Comparable sale with sale date within six months were also used in the report. The two sale are located within
the Subjects subdivision. The search for other comparable sale most similar in physical/economic attributes
was limited to the subject subdivision and two directly competing subdivisions; The Crossings & Yorkshire.
The lack of sale within the prior six months is not due to a weak market. Its just more of a seasonal high sale
activity is primarily spring and summer. We are in the Lower seasonal sale market of fall and winter.The
importance is to use physically/economically similar comparable.

Comparable sale three is greater than one mile from the subject, but is more recent with a sale date within
four months. Again this comparable was selected based on similar physical and economic attributes and is
located in a directly competing subdivision.

 

[Johnny Knucks]

I'm not sure if they run these through Corelogic or if anyone actually reads the commentary, but I can tell you that most of my commentary is automatically generated through a spreadsheet that I have developed that plugs in nicely with my appraisal software worksheet, which in and of itself is worthless, except that it perpetuates most of the fields of my spreadsheet directly into the report. If I could get my MLS to allow me to get more info from the tax records such as prior sales and basement sf, and my software vendor to allow all the info into the report (several fields won't transfer, which is absolutely maddening), my reports would practically write themselves with very little problem, so it's almost like I've developed my own version of Corelogic. Too bad I can't get ahold of theirs. AMC's now generate error messages, most of which are useless, but maybe they'll get better with time.

 

[Tom D]

The Insanity is beyond comprehension. FTR:

Explanation:
All neighborhoods typically have a Low, Median and High range.

The subjects neighborhood has a range of Value. The subjects Market value as-is is above the predominate/median range of the neighborhood but
below the high range. The reason it is above the predominate is a function of condition, quality and differences in features. It is not a function of being
under-improved or over-improved........

best part of our blog, i like it when appraisers show their actual language in their reports. i like one of your lines a lot here, adding it to my paragraph. see, even very old dogs can find a little bone that is just excellent. thanks carni.

as far as the review. long, long ago, i got a nasty review. nothing wrong with the value, or anything. but for whatever reason, where ever the reviewer didn't like my written word, he used the words 'fraudulent & misleading'. now i am good at this. when i got done reviewing the reviewer, i pointed out several of his mistakes in the review, i was however, kinder about my use of certain words. didn't hear back from the lender, still have that lender.

 

[Deleted member 80407]

What would worry me is they sent the initial field review to him with 1 year experience on his own. I started getting requests for field reviews as soon as I was licensed many moons ago...I thought I wasn't ready for that and passed on some. Seems they should wait until people are more seasoned to do reviews but once on someones "order" list I guess they don't care as long as its done.
[/QUOTE]

Agree to disagree.
< Agree that 1 year experience is not an ample amount of experience to complete a Standard 3 Review.
< Disagree in that some clients are just looking for a rubber stamp which a less experience reviewer might provide.

 

[Cotton Cornell]

I worked for a lender that ordered a field review on 20% of their appraisals. It was totally random. Rarely did the review result in anything other than a confirmation of value. When an appraiser did disagree it was usually about neighborhood boundaries, zoning or condition rating of comps. If it was opinion based it held no merit. If it came down to incorrect factual based items than you got a problem. If we had USPAP issues then we would reach out to the appraiser and allow them to correct the mistake. Our stance was why ruin someones profession if they are willing to address it. That is how I complete field reviews to this day. I will never turn someone into the state.

 

[DTB]

The appraisers here that may be fearing scrutiny need to watch The Pharmacist on Netflix, the dichotomy between the scrutiny of appraisers and the Dr. is ridiculous. Hint, one makes millions and it takes heaven and earth for some official scrutiny and USPAP (as interpreted by local boards) casts a large scary shadow.