"REVIEW Appraisals" are back-in favor during these Slow-Times > USPAP Violations > State Boards

[J Grant]

Mr. Hagar's Article appears to be a forewarning, as said.
Yes, Appraisal Review has been in effect historically. Also required by the State for AMC licensure.

APPRAISAL REVIEW An appraisal management company shall review the work of all independent appraisers that are performing real estate appraisal services to validate that the real estate appraisal services are being conducted in accordance with USPAP. An appraisal management company may chose a representative sample of each appraiser's reports. An appraisal management company must review each appraiser's work at least once a year, and shall keep records of such reviews for a period of five years from the date they are done

What do those AMC "reviews" consist of?
My understanding is many of them are QC housekeeping /checklists which are imo worthless except as window dressing.

 

[J Grant]

Not all reviews originate because of a complaint, especially wrt a client/lender res report review.

Could be a portfolio review from nervous investors, or triggered by a red flag read of an appraisal or borrower going into arrears.

 

[glenn walker]

What do those AMC "reviews" consist of?
My understanding is many of them are QC housekeeping /checklists which are imo worthless except as window dressing.

We did QC: Tech Review -And then pulled a percentage say 5% out for random reviews. After Loan is funded lender does a Post Closing review before selling it to investor or GSE.

It's not possible to do full reviews on every file as its too labor intensive and costly. Plus in many cases the reviewers are as bad as the appraisers reports they are reviewing. There is no Standard Processes in review and the entire system is broken and that's why I see less and less dependence on Appraisals in the future there are better tools to use for risk management.

 

[ramrcdk]

They've always been able to do that in Texas... not sure about other states.

Any BODY ??? """ Assembly Bill 948 (here in CA that is) where any Tom, Dick, or Harry whom has no knowledge of the appraisal process can check a box and throw the appraiser under the bus """

Then via Your Post ...
your " any body-question " has been answered. Yes, IN Texas. Not sure about other States.

As answered, NC has a Vetting System for the Compliant prior an Investigation.

 

[alebrewer]

Any BODY ??? """ Assembly Bill 948 (here in CA that is) where any Tom, Dick, or Harry whom has no knowledge of the appraisal process can check a box and throw the appraiser under the bus """

Then I guess that question has been answered. Yes, Depends.

In Texas, ANYONE can turn an appraiser in - there's no requirement that they be associated with the transaction. It's always been that way. That is WAY different, however, than random folks being REQUIRED to turn appraisers in...

 

[Vermonter]

I don't see anything in the article indicating review appraisal orders will increase

I didn't either, but anecdotally I normally see 1 or 2 field reviews per year.....and I've done 11 so far this year.

 

[Surf Cat]

What do those AMC "reviews" consist of?
My understanding is many of them are QC housekeeping /checklists which are imo worthless except as window dressing.

This is a correct assumption. My mentor whom is an AG, took a gig with an AMC to do “spot check” reviews a few years back. He thought it would be easy cash however, being from an AMC, they want so many per hour.

It worked out if the appraisals were well supported, bracketed, etc. As you can probably already guess, most were not. All these appraisals had so many problems, so many errors that he couldn’t give them a pass. It was like this….

He didn’t last a week.. Lol

 

[Surf Cat]

There is no Standard Processes in review and the entire system is broken and that's why I see less and less dependence on Appraisals in the future there are better tools to use for risk management.

We're Doomed....

 

[Sadie]

Still nothing to do with requiring 'random citizens' to turn appraiser in... see the difference in 'requiring' and 'not being prohibited from'?

I don't see where the article said random citizens were required to turn appraisers in.

 

[alebrewer]

I don't see where the article said random citizens were required to turn appraisers in.

OP re-worded the article...