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

[Sadie]

What does this have to do with requiring random people to turn appraisers in for perceived USPAP violations?

The article refers to review appraisers, who are appraisers. Also, there is no prohibition on who can file a complaint against an appraiser. If your job is reviewing appraisals and you find a bunch of crap appraisals, then turning them in could be very appropriate. If it is part of their job, then they are required, not by USPAP, but by their employer to turn in crap appraisals.

 

[Sadie]

I tend to agree that reviews will increase, but not primarily due to slow-down. Usually forensic type reviews pick up as distressed assets pick up - which is happening now. AND - based on the mandatory reporting requirements, I'd expect to see an increase in states receiving complaints. And I FULLY agree that appraisers were sloppy during the maelstrom, so yeah - there are probably going to be more than a few hands slapped...

I think it is both reasons. With the slowdown there is more time and maybe more available appraisers to preform reviews. I have come across crap appraisals when doing 1004Ds for repairs that I cannot believe made it through underwriting.

 

[ramrcdk]

I don't see anything in the article indicating review appraisal orders will increase -even though it is highly likely some home appraisal "values " were pushed/ poorly supported
It may be in the pipeline and over months some review orders might increase but right now I am not seeing it.

Federal law states that all rappsaisls must be "reviewed" is toothless as a "review" can be a QC only compute or clerical staff checklist. Though if homeowners start defaulting or more loans go into arrears- or nervous lenders start re evaluating loan portfolios we could see a return of "real" std 2 reviews - field reviews or desk -

Making a USPAP violation mandatory reporting from a lender or client /AMC has been in effect for years and many of such "violations" are housekeeping and cant have nothing to do with a supported value or credibility.

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

 

[alebrewer]

The article refers to review appraisers, who are appraisers. Also, there is no prohibition on who can file a complaint against an appraiser. If your job is reviewing appraisals and you find a bunch of crap appraisals, then turning them in could be very appropriate. If it is part of their job, then they are required, not by USPAP, but by their employer to turn in crap appraisals.

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

 

[alebrewer]

I think it is both reasons. With the slowdown there is more time and maybe more available appraisers to preform reviews. I have come across crap appraisals when doing 1004Ds for repairs that I cannot believe made it through underwriting.

There is a cost to the lender for obtaining unnecessary appraisal reviews - even when times are slow. They're not going to expend more $ than they are required to do - especially in financially distressing times (which this certainly is for lenders).

 

[JTip]

USPAP violations turned in by anyone OTHER than certified appraisers should be subject to the '98oz steak challenge' rule.

You eat it all, or call out an appropriate USPAP violation, then its free, but, if you are wrong (can't finish the steak), you will be subject to a $10,000 fine.

 

[Surf Cat]

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…

If the tier ratings the article is referring to is by AMCs.....I don't give a crap what their rating of me is. I only care that I have a defensible work file. You'll get a lower tier rating from an AMC if you turn it in an hour late or don't answer their call because you're busy.

The tier rating is an AMC proposition perpetrated by the man trying to keep a poor appraiser down and hustling.

 

[djd09]

There is a cost to the lender for obtaining unnecessary appraisal reviews - even when times are slow. They're not going to expend more $ than they are required to do - especially in financially distressing times (which this certainly is for lenders).

poor lenders

 

[Surf Cat]

This article also seems to be related to 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 because they don't like the opinion of value from the appraiser. It's not just about USPAP. I don't know....maybe I'm just being cynical.

Bill Text - AB-948 Bureau of Real Estate Appraisers: disclosures: demographic information: reporting: continuing education.

 

[alebrewer]

This article also seems to be related to 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 because they don't like the opinion of value from the appraiser. It's not just about USPAP. I don't know....maybe I'm just being cynical.

Bill Text - AB-948 Bureau of Real Estate Appraisers: disclosures: demographic information: reporting: continuing education.

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