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New one for me.

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wyecoyote

Thread Starter
Senior Member
Joined
Jan 15, 2002
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Washington
This is a new one for me so here goes. I did the appraisal on a house just completed the appraisal and sent it off. The Credit Union has requested a field review on it and sent over the request for a field review on the one I just completed. Now we are an LLC two members myself and another appraiser. We have completed field reviews in the past for the client and they like our Field Reviews and appraisals to the point that we are the only appraisers they having been utilizing for the past 4 months. Their problem is that we are currently the only appraisers in this area that they will hire for appraisals. The other thing is that there quality control requires so many field reviews a year on files. They realized this month that they need several field reviews done per year (2 a month average). So they have asked if we could do those field reviews. The appraiser that does the appraisal would get reviewed by the other apprasier in the office. Our first response was to laugh then decline due to conflict of interest. However, the credit union manager (head honcho) called and stated that would be ok with him and there is no conflict in there credit union charter, bylaws and federal laws? :?

So we called the state board and talked to them about it. We were told by the state that we can do the field reviews provided that we disclose completely in the Field Review that 1. The original appraisal was completed by another apprasier in the office. 2. Member X did appraisal and Member Y is doing the field review both have an interest in XYZ appraisal company. 3. Note any and all report discrepancies.

So what does this forum think of this? What are your 0.02 cents? :?:

My thoughts and partners thoughts are great could you see a lawyer having fun with that. :twisted:

Ryan
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Will the state put their answer in writing?

No matter, I don't think it would be a good idea. Probably OK, but not a good idea. :?
 

Ray Ohler

Sophomore Member
Joined
Jan 15, 2002
CU says its OK. State says OK with disclosure. I STILL have to side with Pam on this one. CU may portfolio their loans BUT you never know what's going to happen two years from now, or, the way things are going two HOURS from now. However, YOU have to make the call. And another WHAT IF? But I sure don't want to go there. Everybody has bad days. Good luck with whatever you decide to do.
 
B

Bemis Pownall

Guest
Not a good idea, seen it before.
As suggested dont go there, let someone else review.
They dont even let me do reviews on guys I know or worked for 10 years ago. Dont take the chance,,could really PO yur client later on.

If you do the review use very large fonts(Mike Garret can show you how) and DISCLOSE the heck out of it about 10 times in every review...

my 2 cents(opps thats my 401K these days)
 

David S. Roberson

Senior Member
Gold Supporting Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
Ryan;

Follow your instincts. This is a no-no.
 

George W Dodd

Senior Member
Joined
Jul 9, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
Actually, I don't see any problem with this as long as you disclose. And as long as you state and support your findings (of which I have no doubt). You all will probably be harder on each other's reports than anyone else.

The other option you have is to suggest a appraiser to your client that you feel would do an honest job.
 
A

Anonymous

Guest
As long as you have full disclosure, I see no problem, except you might not talk to each other after a bad review......

Seriously, I did get a letter in writing from the regulators when I first started business because the bank my brother worked for as a branch manager was needing appraisers desperately. I disclose this on every appraisal, even though my brother is now more of a firefighter for the bank, working in different branches and doing asset valuations on problem loans...i.e.- he works with the repo department and otherwise evaluates properties with very low LTV ratios that do not need certified appraisals.
 

Blue1

Elite Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
California
I have a question......if you have been doing appraisals for them and they are satisified, why do they need to do reviews in the first place? Sounds like their QC department is in "overdrive." I'd just tell them it's a conflict of interest and let them figure it out from there. Not your problem.......
 

wyecoyote

Thread Starter
Senior Member
Joined
Jan 15, 2002
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Washington
Blue 1,

It is a requirement in there by laws. QC is just doing their job as specified by the by laws. Seems this all came about from the late 70's to early 80's colapse at least someone remembers that. The Head Honcho was there at the time and remembers it well that is why there is never an estimate/HO opinion of value placed on there requests and the LO's (who don't get commisions) are instructed to never and they mean never discuss values. They want just the facts. Have even checked the boxes Fair condition/quality, rural and twice had to put uninhabitable/condemed on reports.

Ryan
 
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