Reveiw or not to review??

[Jeff Horton]

I have always turned down review work in the past. New company is asking me about doing reviews and since I am always looking for new income I am reconsidering this. I could use some input on this subject. I have to re-read USPAP to bring myself up to speed on that.

Basically a review involves going through the appraisal process used and checking comps and data to make sure the appraisal process was done correctly. Right? Then if I disagree of find mistakes I have to show why I disagree. I also assume that turn around time is always ASAP. I am also assuming that most reviews are because of someone has a problem with the report and wants a second opinion.

What are the typical fees? Not know exactly how much work is involved I dont know how to price them. Having never done a review I would appreciate any input.

 

[Bemis Pownall]

why not review, one can learn alot, good and bad by doing review work.
If you have a review in town BFE and a full at the same time, kaching! More work fewer miles..
Reviewed for the past 10+ years and it never changes, no wait some things change the names on the reports change but the BS doesnt.
good luck

 

[Tim Hicks (Texas)]

In many ways reviewing is tougher than appraising. You have to to keep the high road no matter how incensed you become reviewing an appraisal. Report the facts and don't make comments about the appraiser or their ancestry. Just make factual comments regarding data and comp selection. Keep in mind that you may have not been provided the full report and you need the full report before you start blasting appraisers for not addressing exposure time or scope of work, You are bound by USPAP and if you don't agree with the value conclusion, you have a whole new set of rules to follow. I charge a full fee, $325 for a field review. That is because typically it is more work and takes more time than a standard appraisal. I try to give the appraiser the benefit of doubt on most issues until I notice grave infactions (cherry picking comps, not mentioning listing and sales history, ridiculously low living area adjustments, all comps over 500 sf bigger, etc.) As you suggested, there is a reason they need a review on most reports. Many loan officers try to coerce appraisers into rubber stamping another appraisers work under the premise of sending you more work. Don't fall into this trap, they only need you for one reason. It is just as hard to keep morally straight as a reviewer as it is to be an appraiser.

Embrace field review work. You will learn quite a bit. First, you will become very pessimistic about the morals of your competion. Then, it will make you realize things when you do you own reports. I am a better appraiser from doing field reviews. Both by comparison and by learning experiences. Good Luck and read USPAP.

 

[Blue1]

Jeff,

Reviews are educational but not lucrative. You will be not only critique-ing the appraiser's work, but, if you disagree, will be obliged to provide your own comparables with adjustments. In effect, you will be doing an appraisal.

Go to the Appraisal Foundation web site (www. appraisal foundation) and look up Standard 3 as well as the Advisory opinions (AO-20 I think) that will give you guidelines to go by.

I'd say do it.........all in all, you will learn a lot.

Good Luck

 

[Roger]

Jeff,

Not all reviews are due to questions about the original report.

In fact, most of my review work is in what the lender calls 'portfolio analysis'. The secondary market often randomly selects a certain percentage of the loans for review. I can generally tell when one of our local lenders sells a package of loans, as I will often get 2-3 requests for reviews in the same day, then not get any for several weeks.

It is an interesting change of pace for me, and as I am in a non disclosure state, I sometimes get sales data from these reviews, that would not otherwise be available to me.

 

[Red Blumenstock]

Jeff,

I have written a 7 hour seminar on the Art of Review. If you will send me you email address, I will send you information from that.

Red Blumenstock
redbl@attglobal.net

 

[Larry Lyke]

Jeff --

Somebody said review work isn't lucrative. Wrong!

Review work isn't a charity cause. Charge what your time is worth. And, it's kind of fun to see what others think is a passable product or try to pass off as a passable product.

A lot of review work is generated after the loan has closed, so the time pressure just isn't there.

You can tell by the date on the appraisal whether the loan has closed or not -- at least guess about it; usually they tell you if they are waiting to close.

I can't offer you one whit of why you shouldn't be doing review work -- unless you lack enough appraisal experience or confidence. The former, time will fix, hopefully. The latter, a swift kick will get you up to speed in a hurry.

Best o'luck.

 

[wyecoyote]

Jeff,

We do some review work just got 4 in today to review. We charge full URAR fee for reviews. The one thing that I would suggest is that you stick to the facts USPAP errors such as non disclosure of items. State the specific USPAP error just don't say he violated USPAP and according to the DOL were in WA don't state that it is a ethical or competency violation. The easiest violations to prove are USPAP violations. Also I don't know about your state but here in WA we can say that it appears or there may be a violation of USPAP. The actual stating it is a violation is up to the state.

The big no no is correcting someone else's style of work. Just because you splain something one way does not mean that everyone splains it that way. I go into detail in my reports about how I adjust differences, the analysis and I paint a good picture of the house and the market. Other apraisers in my area have canned addendums and you can tell. For instance: Just because there explanation of the market could included about any market in the USA does not mean they violated USPAP.

I agree with others on this. When reviewing others work your own goes up a notch. I have learned from others and even stole from others reports when there good. But when there bad they are bad.

Ryan

 

[Jeff Horton]

I greatly appreciate all the input. I had about made up my mind to try doing reviews but you talked me into it. Is there a form you use? Or do you write it up in a narrataive format?

Again, thanks for the input.

 

[Jo Ann Meyer Stratton]

Jeff:
Most lenders want the 2000 form used. My personal standard operating procedure when I start reviewing is to create a URAR/2055 for that file then I start filling it in either with information from the report that I know is correct or the corrected into (making a note regarding the error) and on down the line. Then once I have filled out the URAR/2055, I start writing on the 2000 commenting on the items that were done correctly (pats on the back for the original appraiser) as wells as comments on any descripancies, the source, why and wherefores I am stating it is a descripancy. The URAR/2055 is for my files (and my data base), the 2000 is for the client. The filling out of the URAR/2055 keeps me focused on what I need to check and verify. And also alerts me to any additional info I should check out. There are some very specific limiting conditions that apply to a review--do not use the 1004! I have a sample template for a 2000 review with an attached limiting condition and USPAP compliance addendum if you are interested. I also (just like all my other reports) have a lengthly addendum that I attach to the 2000 form that goes into more detail regarding any additional info/item that needs to be discussed. So it becomes a combination form/narrative (as do all my reports).