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Refresher on Signed Certification

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William K

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Sep 21, 2007
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Certified Residential Appraiser
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Illinois
Just a note and refresher to all appraiser's that perform appraisals on Fannie Mae and Freddie Mac forms and still wish to continue providing "Comp checks" and the alike please read certification #18!


"18. My employment and/or compensation for performing this appraisal or any future or anticipated appraisals was not conditioned on any agreement or understanding, written or otherwise, that I would report (or present analysis supporting) a predetermined specific value, a predetermined minimum value, a range or direction in value, a value that favors the cause of any pary, or the attainment of a specific result or occurance of a specific subsequent event ( such as approval of a pending mortgage loan application)."


You might want to learn this backwards and forwards because this is somehting you will be asked to explain when you are hauled into court or before your licensing board after evidence is presented that you performed your "COMP CHECK".

Have all your USPAP compliant crap in your file but understand it will not help you when you are asked.....

"Did you collect a fee for the appraisal after performing your USPAP COMPLIANT "comp check"?
 

Mike Kennedy

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Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
it IS ........black and white .....

"OR ANY FUTURE OR ANTICIPATED Appraisals"

those who continue to assert it's gray are only looking at the GREEN.

STATE LICENSING BOARDS MUST SHOW THEM .......THE....RED.

and the "DOOR" >>>>>>>>>>>>>
 
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George Hatch

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Not that I'm an advocate for this sort of thing, but....

The problem with your apparent line of reasoning is that if a "new assignment" really is a "new assignment" (and it is); and if USPAP doesn't require appraisers to charge for every assignment they do (and it doesn't), lack of payment for one assignment doesn't automatically demonstrate an improper assignment condition for a subsequent assignment. Your connection is by implication at most.

What if the appraiser includes an invoice for $5 (or $50) with their desktop appraisal and then doesn't bother to try to collect it? An appraisal board might 'know' the appraiser is accepting assignments with improper contingencies but they'd be hard pressed to prove it without violating the licensee's rights. "I know a bad appraisal when I see one" might work in some banana republic, but here in the USA the burden of proof is on the state.
 

PropertyEconomics

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Jun 19, 2007
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Certified General Appraiser
State
New Mexico
Serious question .... if you are performing an appraisal for an individual that is not FNMA or Freddie .... does this apply?
I think the certification states this no matter whether its preprinted or one that must be included as a result of USPAP being applicable.
If USPAP isnt applicable does this certification apply?
 

George Hatch

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California
I suppose it could come down to how a state appraisal board's regulations are written and enforced. In California, if you sign it as a licensee then you're on the hook for whatever it says.
 

PropertyEconomics

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Certified General Appraiser
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New Mexico
I suppose it could come down to how a state appraisal board's regulations are written and enforced. In California, if you sign it as a licensee then you're on the hook for whatever it says.


George I was under the impression a great many appraisals performed in California did not even require a license ... am I wrong?
 

Brad Ellis

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Feb 7, 2006
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Certified Residential Appraiser
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California
William,

"Did you collect a fee for the appraisal after performing your USPAP COMPLIANT "comp check"?

I think the wording is really what causes all the problems. And I think that because of the word "comps". In order to be a comp something must be comparable and that requires judgement on the part of an appraiser. It then becomes an appraisal. So, a USPAP compliant "comp" check is an appraisal and must be performed according to USPAP.

Whether or not you charge for it is up to you and USPAP does not, as George notes, speak to that at all.

To avoid this being an appraisal one could try to educate the client a bit. For example, if I received an order that asked for all the sales in Lake Point Tower without mention of anything being a comp. I'd assume (or clarify with my client) that they seek only the raw sales data and I could provide that without it being an appraisal. But the moment I begin to interject my opinion it becomes an appraisal. Without the opinion, I am providing appraisal services but not an appraisal, appraisal review or appraisal consultation. Ethical rules apply but the standards will not.

Of course, I am fully aware of what the clients are asking for- an appraisal. So why not just tell them you will be happy to perform that limited scope appraisal and quote them your fee? Why do it for free?

Brad
 

William K

Thread Starter
Senior Member
Joined
Sep 21, 2007
Professional Status
Certified Residential Appraiser
State
Illinois
If you sign a certification with this statement it doesn't matter who your client is? USPAP compliant Comp Check or not! LENDER, BUYER, CONSUMER, it does not matter who your client is!

If you charge a fee ($5) for the Comp Check and you perform an appraisal for the same client charging your appraisal fee, good luck trying to convince your board or a jury or a judge that your...

"employment and/or compensation for performing this appraisal or any future or anticipated appraisals was not conditioned on any agreement or understanding, written or otherwise, that I would report (or present analysis supporting) a predetermined specific value, a predetermined minimum value, a range or direction in value, "

Appraisers keep confusing USPAP and the certification they have signed!

IF I accept an assignment for a property that "if I appraise it for $xxxxxx, I will then recieve 30 more orders" (all different NEW assignments) I have violated the certification I signed. New assignments or not!

Again the question :"Did you collect a fee for the appraisal after performing your USPAP COMPLIANT "comp check"?
 

Don Clark

Elite Member
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Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
[I said:
"I know a bad appraisal when I see one"[/I] might work in some banana republic, but here in the USA the burden of proof is on the state.


George,
'
That applies everywhere but in North dakota. Read some of Oly Olafsons post in that regard.

I wish what you said were true, but in many states it is not. Many states, North dakota is one, even ignore the findings of an administrative law judge and do what the want to do regardless. Now, I am not a fan of Comp Checks and don't do them, but, interpretation is often done by people on state boards that may not be as up on USPAP as you and I have to be. Some even waive the requirement that a member of a state board take the required CE as long as they are on the board.

My best advice, although there are AO's that seem to imply that a comp check can be done and be USPAP compliant; don't do them. And, an AO is not part of USPAP.
 
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