ramrcdk
Senior Member
- Joined
- Jan 15, 2008
- Professional Status
- Certified Residential Appraiser
- State
- North Carolina
Working RE Article 11/16/22
Sins of the Past Are Back to Haunt Appraisers
by Richard Hagar, SRA
IMPORTANT HIGHLIGHTS: Read the Article
Since 2018+-, The list of sloppy appraisal practices is almost endless, and over the past few years were accepted. Why? Because banks, borrowers, and agents were screaming that slow appraisal turn-around times "harmed" their buyers (and the agent's commission). So, sloppy work was tolerated, but now our world has changed.
One of Many Changes
Federal law states that all appraisals must be reviewed and to that point, Fannie Mae recently sent out a notice "reminding" lenders of their requirement to perform post-closing appraisal reviews. Personally, I believe they should have reviewed appraisals prior to funding
Now under Federal law, if a lender, Fannie Mae, or (any other person-article error? (EDITED) becomes aware of USPAP violations likely to have an impact on the value conclusion, then the appraiser must be reported to appropriate state licensing agencies.
Check List of Results: Check to determine that the appraiser is not on Fannie Mae's AQM list.
And a final instruction: If the reviewer identifies material errors in the appraisal report that invalidates the appraiser's opinion of market value…the lender must self-report to Fannie Mae. So, what are they going to do if Fannie Mae or the lender spots a problem? Well, they are going to turn the appraiser into the state as a way of protecting themselves if the loan goes sideways. This way lenders can shift blame forcing the appraiser to pay for the lender's losses.
............................ Well, for the most part, it's based on the quality of the appraisals delivered to lenders over the past five years. Do you believe that the quality of your work ranks you as a tier 1 appraiser or do you have a little concern about your rating? Tier 1 appraisers have little to fear but tier 2 and 3 appraisers…
Sins of the Past Are Back to Haunt Appraisers
by Richard Hagar, SRA
IMPORTANT HIGHLIGHTS: Read the Article
Since 2018+-, The list of sloppy appraisal practices is almost endless, and over the past few years were accepted. Why? Because banks, borrowers, and agents were screaming that slow appraisal turn-around times "harmed" their buyers (and the agent's commission). So, sloppy work was tolerated, but now our world has changed.
One of Many Changes
Federal law states that all appraisals must be reviewed and to that point, Fannie Mae recently sent out a notice "reminding" lenders of their requirement to perform post-closing appraisal reviews. Personally, I believe they should have reviewed appraisals prior to funding
Now under Federal law, if a lender, Fannie Mae, or (any other person-article error? (EDITED) becomes aware of USPAP violations likely to have an impact on the value conclusion, then the appraiser must be reported to appropriate state licensing agencies.
Check List of Results: Check to determine that the appraiser is not on Fannie Mae's AQM list.
And a final instruction: If the reviewer identifies material errors in the appraisal report that invalidates the appraiser's opinion of market value…the lender must self-report to Fannie Mae. So, what are they going to do if Fannie Mae or the lender spots a problem? Well, they are going to turn the appraiser into the state as a way of protecting themselves if the loan goes sideways. This way lenders can shift blame forcing the appraiser to pay for the lender's losses.
............................ Well, for the most part, it's based on the quality of the appraisals delivered to lenders over the past five years. Do you believe that the quality of your work ranks you as a tier 1 appraiser or do you have a little concern about your rating? Tier 1 appraisers have little to fear but tier 2 and 3 appraisers…
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