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

[Sadie]

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.

So you think its ok when an appraiser makes substantial errors in the report that are picked up by a non certified appraiser person it should be a pass? What about licensed appraisers? What about the homeowner who sees notable errors in the description of the subject (ie bed/bath count, year built etc)? That should be a pass too? Most state boards are pretty good at filtering out the frivolous complaints.

 

[alebrewer]

So you think its ok when an appraiser makes substantial errors in the report that are picked up by a non certified appraiser person it should be a pass? What about licensed appraisers? What about the homeowner who sees notable errors in the description of the subject (ie bed/bath count, year built etc)? That should be a pass too? Most state boards are pretty good at filtering out the frivolous complaints.

I don't think that was what he was saying... I think he was saying that if someone turns an appraiser in, there should be some skin in the game...

 

[Sadie]

OP re-worded the article...

Not by much. Here is what the original article said. :
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.

Now under Federal law, if a lender, Fannie Mae, or any other person 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.

Its only the value conclusion, not all the minutia we appraisals get wrapped up in.

The ability for any random person to turn in an appraisal has been around for a while. The requirement is new as of? Recently I think. Maybe the saving grace for this is the requirement the other (random) person must be aware of a USPAP violation which implied they have at least a cursory knowledge of USPAP.

 

[alebrewer]

Not by much. Here is what the original article said. :
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.

Now under Federal law, if a lender, Fannie Mae, or any other person 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.

Its only the value conclusion, not all the minutia we appraisals get wrapped up in.

The ability for any random person to turn in an appraisal has been around for a while. The requirement is new as of? Recently I think. Maybe the saving grace for this is the requirement the other (random) person must be aware of a USPAP violation which implied they have at least a cursory knowledge of USPAP.

This is the part OP edited... seems to me that's a pretty important piece to edit.

 

[Sadie]

I don't think that was what he was saying... I think he was saying that if someone turns an appraiser in, there should be some skin in the game...

Don't necessarily disagree, but I see both sides of this. If a random person come across an appraisal and they know there are substantial errors in it, should they be prohibited from turning the appraisal in?

On a practical note, I don't see anyone ever doing this, but for the sake of argument.

 

[Sadie]

This is the part OP edited... seems to me that's a pretty important piece to edit.

The edit doesn't change the gist of the article, it still says the same thing. As I pointed out, the turner inner has to have some sort of knowledge of USPAP. I think (hope) this rules out most people.

 

[alebrewer]

Don't necessarily disagree, but I see both sides of this. If a random person come across an appraisal and they know there are substantial errors in it, should they be prohibited from turning the appraisal in?

On a practical note, I don't see anyone ever doing this, but for the sake of argument.

Of course they should. I've stated ad nauseum that I believe an appraisal should be credible regardless of who is reading it - intended user or not. It's either credible, or it's not. That's not to say that folks who don't know appraisal terminology or methodology may misconstrue stuff, but that's why the state has investigators.

 

[alebrewer]

The edit doesn't change the gist of the article, it still says the same thing. As I pointed out, the turner inner has to have some sort of knowledge of USPAP. I think (hope) this rules out most people.

To wit:
Now under Federal law, if a lender, Fannie Mae, or any other person 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.

Take from the article whatever you like. The logical rendering of the above sentence is as follows: If any other person becomes aware of USPAP violations, then the appraiser MUST be reported to the state" Which is absolutely incorrect. Random folks cannot be required to turn appraisers in to their respective states for investigations.

 

[glenn walker]

Well my experience is there is no such thing as a Bullet Proof Report. Give me any report and two hours and I will find a USPAP Violation somewhere in it. It's a Handbook designed to be used like a Grand Jury-You know a Ham Sandwich can be convicted in a Grand Jury. The most dangerious person or reviewer is one who becomes a USPAP Zealot. We had to let those reviewers go because, they never saw a report they liked. Most had no back ground in forensic reviews and most often confused Unintentional errors or omissions with fraud. Extremely judgemental people who had no ability to take their emotions and feelings out of their reviews.

In Summary: This entire industry will come to a screaming halt if we turn every Tom-Dick and Harry into a USPAP expert LMAO

 

[TerryRohrer]

In Summary: This entire industry will come to a screaming halt if we turn every Tom-Dick and Harry into a USPAP expert LMAO

Well, that would be a gentle ride as most of us are already halted and screaming!