Re-assign prohibition reference

[tamsch]

It may be true FDIC allows that, but USPAP does not. We have to follow USPAP guidelines which are clear we have to treat it as a new appraisal. I explain to my clients why that is and offer them a lesser rate to do a new appraisal since most of the work has already been done. USPAP does not regulate the fees we charge.

 

[WOOKIEG]

Re-assigning, Readdressing htey all spell trouble. I don't and wont. Also there is now some case law for breach of confidentiality for reappraising a property in less than 3 months from the prior appraisal.

 

[CANative]

Re-assigning, Readdressing htey all spell trouble. I don't and wont. Also there is now some case law for breach of confidentiality for reappraising a property in less than 3 months from the prior appraisal.

I heard it was 4 months.

 

[Bob Ipock]

Someone posted a copy of part of this....here is the link.


http://www.FDIC.gov/news/news/financial/2003/fil0384a.html



The agencies' appraisal regulations address appraiser independence and require that an institution, or its agent, directly engage the appraiser. The only exception to this requirement is that an institution may use an appraisal prepared for another financial services institution, provided that the institution determines that the appraisal conforms to the agencies' appraisal regulations and is otherwise acceptable. Independence is compromised when an institution uses an appraiser who is recommended by the borrower or allows the borrower to select the appraiser from the institution's list of approved appraisers.

 

[Mike Garrett RAA]

Please cite your case law?

 

[WOOKIEG]

Re Addressing

The case was a mortgage broker who sued a friend of mine in Cook County court for loss of commissions. I leave the names out but it cost more in legal fees than the commission for the loan. Also here in Phoenix regression is so bad that we are including absorption rate analysis as part of the report and no comp over 3 months old. The values here are changing so fast that you don't dare do a recert of value because it has changed so nobody is messing with anything over 3 months and yes we do have areas that there is in excess of 24 months of unsold inventory and they are still building houses in those areas. Insanity is rampant, the inmates are running the asylum and the foreclosure sales in some neighborhoods are actually good comps because of the regresssion.

Also I use Alamode Software and the copywrite options are right in the forms.

 

[Mike Garrett RAA]

Interesting...my step-brother is a builder/developer in Scottsdale. Those high rise million dollar condos are one of his projects.

 

[WOOKIEG]

Scottsdale Condo's

Some are selling and some aren't. We just saw the ones in Biltmore that started at $750,000 for a one bedroom go out to auction with the 3 bedrooms selling at $400K. Most of the condo conversions are back to appartments and I know the corpoate CEO of the poproject , just spent the week end with her and the well is starting to run dry because of the saturation. Imagine a 6500 SQ. Ft House in Paradise valley that is over $1,500,000 on a lot so small you can touch the neighbors wall. The crunch jhas started hitting the upper end luxury. Thats what I love about FHA. Easy work , good pay and no hassles.

 

[Russ Kitzberger]

The Appraisal Institute addressed this issue in a 2006 Update of a 2001 white paper.

This was on page 10-14 of Valuation Magazine, 3rd Quarter 2006.

The name of the Article was

2006 Update:

Readdressing, Reassigning, Reappraising: Do’s and Don’tsby Stephanie Coleman, MAI, SRA, Appraisal Institute Director of Screening

Link is here (must be member of AI or must purchase):

http://www.appraisalinstitute.com/vip/current_toc2.aspx?year=2006&number=2

Link to order copies of Valuation Magazine:

http://www.appraisalinstitute.com/vip/Default.aspx
​

 

[Capitol Bob]

Hey Carnivore,
Advisory opinion 27 states that you can appraise the same property for anoher client. What AO-26 is saying is that they just don't want you to JUST change the name. You MUST create a new relationship with the new client. In other words they must order an appraisal. The may order it requesting the same date that you had inspected it for another client. You are then establishing a new scope of work required for the NEW ASSIGNMENT. If the client wants the same inspection date as you did it for another client, then you can charge what you want, right. You still have to look at the data and make sure you chose the best comps available as of the date of inspection. You must do all the work required by USPAP, but you do not have to reinspect the property if you are using the original inspection date. You can even come up with the same value conclusion.
See below from A)-27:

As can be seen in the definitions, both the client and the assignment results are specific to an assignment. If there is a new potential client, valuation services performed for that new client would constitute a new assignment and the assignment results would be specific to that new assignment. Therefore, acceptance and performance of the new assignment to appraise the same property would not be considered revealing the first client’s assignment results to the second client, even if the value conclusions were the same. It should be noted that the value conclusion could easily be different if the effective date or the s cope of work changed in any manner. It should also be noted that USPAP requires the appraiser to provide an unbiased opinion of value to each client.