Questions Needed For A Panel Discussion

[Tim Cullen]

Background:

California NAIFA is hosting a 3 day Ed Conference on June 4th, 5th and 6th.

The main events include:

1. Free 2 hour OREA approved Ethics Class for those attending the Panel Discussion.
2. An Open Panel Discussion with Fannie Mae, HUD, OREA, TAF and 2 Chief Regional Appraisers as panel members.
3. 52 hours of CE

I promised to provide the panel members 1-2 questions prior to the event that they can expect the Master of Ceremonies to ask them. After these questions are asked and answered each panel member will answer any questions from the appraisers in the audience. It will be an open Q/A. The panel members will have no prior knowledge of what will be asked by the audience.

The Panel Members are:

1. Bill Schuler, Chief, Technical Branch 1, HUD/SAHOC
2. Bill Albaugh, Chief, Technical Branch 2, HUD/SAHOC
3. Bill Pena, Appraisal Analyst, Fannie Mae
4. Greg Harding, Supervising Property Appraiser Investigator at OREA
5. John Brenan, Director of Research & Technical Issues at the Appraisal Foundation
6. Lewis Allen, Chief Appraiser of Option One Mortgage
7. Glenn Davis, Chief Appraiser of Indymac Bank.

Dilemma:

I need help in formulating the questions to ask the panel members that they can expect to be asked. I would like to ask tough, meaningful and timely questions. Hopefully, the answers will benefit appraisers. I need to supply the questions to the panel members NLT May 15th.

Solution:

I am requesting those who participate in the AppraisersForum chat room to help me in providing a list of appropriate questions to ask each panel member. I also asked the same question in the NAIFA general chat room.

I plan on posting a summary of the questions and answers on my website sometime after the event. I will provide a hyperlink for everyone to access the Q/A session.

Thanks in advance for you input.

Tim

California NAIFA 2004 SoCal Ed Conference

 

[BarbaraNJ]

I can't take credit for the following; they have recently been the most discussed and debated at this forum.

1. What is your reaction to the lowered financial ratings given to mortgages issued with the support of AVM (appraisal) technology ???

2a. Do you see any conflict of interest or loss of impartiality when lending institutions own the management companies who hire the appraisers ??
2b. How does it impact impartiality when the lender will hire ONLY those appraisers who are affiliated with that management company ??
2c. When the management company requires the appraiser to sign a "non compete" clause demanding they do not solicit their clients independently, does that affect the independence of the appraisal profession ??
2d. Since the lender owns the management company and since the appraiser cannot work for the lender without being on the roster of the management company, is the appraiser now an employee??

 

[Tim Cullen]

Barbara,

Thank you for your reply.

Your questions are the type that I feel appraisers want answers to.

Tim

 

[Bill Rose]

I would ask:

Is it not an ethical compromise for Loan Officers to engage the services of appraisers?

 

[George Hatch]

There are questions that are worth asking because we don't know the answer, and then there are questions that are worth asking for the purpose of addressing and dispelling the many urban legends that have been perpetuated in our industry.


You might ask the Fannie rep what their long range plans are for replacing appraisals with AVMs. Or when they're going to revise their appraisal forms to better comply with USPAP requirements for laying out scope of work, intended use and intended user, etc. Or better yet, ask them why they don't simply get out of the appraisal form business and solicit The Appraisal Foundation to build some better forms. Or what the chances are for them rearranging their appraisal guidelines by first and foremost requiring USPAP compliance and then laying out their additional requirements as supplementals, and maybe even arrange them so they are more consistent with the FIRREA requirements. In other words, how about dispelling the perception that they make all their own appraisal rules irrespective of what is required in USPAP or FIRREA? I'd love to hear the answer to that one.

You might ask the HUD officials the same question about AVMs and their appraisal policies. Require USPAP compliance right up front and lay our their additional requirements as supplementals, and maybe even arrange them so they are more consistent with the FIRREA requirements. It would mean a lot less review and revision work for them to simply issue some supplementals rather than having to reinvent the wheel.

You can ask the OREA investigator to address the perception that the OREA ignores complaints that are filed by other appraisers. Ask them abut the permissibility and advisability of reviewers turning in the worst of the worst, client permission or not. Ask them if they have any internal guidelines or recommended practices that aren't published but are used by the OREA to determine professional conduct by a licensee. How about what their priority is for finding and eliminating the single signer fee shops; the ones comprised of mostly licensed and unlicensed trainees whose work is signed off by a supervisor who checks 'did inspect' when in fact they did not. Or what consistutes an inspection sufficient to qualify as 'did inspect'; is it exterior only from a video or digital image or does it include a personal interior/exterior inspection?

You can ask The Appraisal Foundation representative about their policies with respect to soliciting and responding to the concerns and enforcement issues raised by the states. Ask them if there are any plans to resolve the conflict a lot of the states have with TAF conducting their deliberations behond closed doors, which puts the states with "Sunshine Laws", like Florida in a pickle because policies like appraiser qualifications that are intended to be adopted by the states is being decided in private meetings rather than in public. Or what the chances are for TAF setting up training specifically geared toward assisting appraisal regulatory boards to develop and implement consistent and cohesive interpretations of USPAP for enforcement purposes.

Like I said, some of these questions have already been asked and answered, but it never hurts to reiterate them in a public forum.

 

[Rudy Canoza]

I would like to know that if the move from the Fee Panel to Lender Select appraisal ordering has improved the quality of the loans FHA is insuring?

 

[Tim Cullen]

Bill,

I have to apologize to you. Apparently, you called me last week and I did not respond to your call.

I deleted your message from my answering machine without taking your phone number. Sorry! If you could email me privately with your number I will respond promptly.

FYI, Fred Ruffel called me shortly before your call and told me to expect a call from you.

Tim

 

[Brenda Friesen]

Look forward to a rewarding encounter -

I have attended many NAIFA National Conventions - Arkansas, New Orleans, Tulsa, Tampa, Austin, Baltimore, St Louis(meetings) , Las Vegas

The quality of the education courses and of the speakers were top notch.

Bill Pena - FNMA - always gives helpful input..

Anyone, who possibly can, should try to attend.

Brenda Friesen, IFA

 

[Bill Rose]

"How about what their priority is for finding and eliminating the single signer fee shops; the ones comprised of mostly licensed and unlicensed trainees whose work is signed off by a supervisor who checks 'did inspect' when in fact they did not. Or what consistutes an inspection sufficient to qualify as 'did inspect'; is it exterior only from a video or digital image or does it include a personal interior/exterior inspection? "


Please address this, if possible.

 

[Restrain]

Given that most foreclosures and mortgage fraud are found on homes beneath the de miniums level, why is the de minimus set so high that over 80% of the housing is below the de minimus?