Revision request from Lender. -remove/replace the term "walking distance".

[Zoe]

Definition of REALM

kingdom; sphere, domain; a primary marine or terrestrial biogeographic division of the earth's surface… See the full definition

www.merriam-webster.com

 

[Dale Floyd]

I think you are focusing on the wrong term in the phrase, "independent fee appraiser." Instead of "independent," look at "appraiser."

From USPAP:

one who is expected to perform valuation services competently and in a manner that is independent, impartial, and objective

Would the expectation to be objective not apply to the language used in reports? Is there an objective standard for "walking distance"? And, is it really a huge challenge to cite the actual distance instead?

Ah yes... Because all of this reveals valuable insight upon an opinion of market value. It's beyond ridiculous and reveals the obsessive disorders of many rule makers.

I would love to meet that one person who truly gets confused about an appraiser's conclusions after reading "average" or "adequate" in a report. Haven't met them yet.

 

[DWiley]

Ah yes... Because all of this reveals valuable insight upon an opinion of market value. It's beyond ridiculous and reveals the obsessive disorders of many rule makers.

I would love to meet that one person who truly gets confused about an appraiser's conclusions after reading "average" or "adequate" in a report. Haven't met them yet.

I fail to see how your comments address the concept that I posted about - the expectation of appraisers to perform objectively.

Since you brought up the term "average," I would say that is an excellent example of a word that is used very differently by different people. Suppose the subject property is one where maintenance has been neglected. The paint is peeling. The roof is near the end of its life. etc. If the majority of nearby homes are in similar condition, is the condition of the subject property "average" (as compared to the homes in the immediate area), or is the condition "fair" or "poor" (as compared to the whole housing stock)? I think we know appraisers in both camps. I am not sure that was the best example for you to use.

Also, for lenders appraisal reports are risk management tools (its not just about the value), and one of the risks is litigation risk related to the content in the appraisal report. You may have seen an article or two about such litigation over the past few years. Even if one thinks the litigation is frivolous, it is in a lender's (and appraiser's) best interest to avoid it. Using objective language, rather than subjective language, is not only consistent with the very definition of "appraiser," it reduces, to some degree, the litigation risk for all concerned (including the appraiser).

 

[Zoe]

Ah yes... Because all of this reveals valuable insight upon an opinion of market value. It's beyond ridiculous and reveals the obsessive disorders of many rule makers.

I would love to meet that one person who truly gets confused about an appraiser's conclusions after reading "average" or "adequate" in a report. Haven't met them yet.

It doesn't matter Dale. You know your market on real property rights as well as anybody. Way better than FNMA or FHMLC or AMC.

 

[Zoe]

"Please review the following update from Freddie Mac regarding certain words and phrases: https://sf.freddiemac.com/articles/...-phrases-for-more-objective-appraisal-reports

Please review the appraisal to remove/replace the term “walking distance”. (Neighborhood Description, page 1)"

Original text: "Walking distance of 5-25 minutes to schools, shopping..."

Correction "Non-driving distance of 5-25 minutes to schools, shopping..."

Remove the language "walking distance". How hard is that?

I am on your side. Remember that.

You have notated what are considered positive and negative influences on subject real property rights. You are more than welcome to expound on those issues.

Always focus on the subject property real property rights. Don't lose focus. Ever.

 

[Dale Floyd]

Duplicate - sorry

 

[Dale Floyd]

I fail to see how your comments address the concept that I posted about - the expectation of appraisers to perform objectively.

Since you brought up the term "average," I would say that is an excellent example of a word that is used very differently by different people. Suppose the subject property is one where maintenance has been neglected. The paint is peeling. The roof is near the end of its life. etc. If the majority of nearby homes are in similar condition, is the condition of the subject property "average" (as compared to the homes in the immediate area), or is the condition "fair" or "poor" (as compared to the whole housing stock)? I think we know appraisers in both camps. I am not sure that was the best example for you to use.

Also, for lenders appraisal reports are risk management tools (its not just about the value), and one of the risks is litigation risk related to the content in the appraisal report. You may have seen an article or two about such litigation over the past few years. Even if one thinks the litigation is frivolous, it is in a lender's (and appraiser's) best interest to avoid it. Using objective language, rather than subjective language, is not only consistent with the very definition of "appraiser," it reduces, to some degree, the litigation risk for all concerned (including the appraiser).

I'm unsure how you fail to see.

Allow me to elaborate - Whether an appraiser states "within walking distance" or "within 1-2 miles" will not result in any difference in the opinion of value nor will any reader be confounded and perplexed when reading the report. What investor, judge, or commission would ever question that and for what reason?

Your point was to use the specific distance, and that's fine, but it will not change anything other than causing delays for another revision request because Fred and Fan will now require it. It seems today we are getting stipulation requests for every revision of every word lacking enough specificity. Our work is a PROFESSIONAL OPINION about value, and I believe we are being held to standards of a corporate computer program instead. I was in court the other day and counted scores and scores of non-specific words used by both counsels, the judge, and in the final verdict. For some reason, nobody seemed to misunderstand or question any of those words that day. Fred and Fan weren't parties to the suit, so perhaps it's just them.

Our work is going to be ALWAYS be a product of opinion. Trying to force us into using different words will never change that. And as I told you before - I still think your parents, you as a parent, and your children as parents understand completely when a teacher tells you that Junior or Sally are performing above average, average, or below average with respect to the other children in the class.

 

[Zoe]

Comprende?

 

[Zoe]

I'm unsure how you fail to see.

Allow me to elaborate - Whether an appraiser states "within walking distance" or "within 1-2 miles" will not result in any difference in the opinion of value nor will any reader be confounded and perplexed when reading the report. What investor, judge, or commission would ever question that and for what reason?

Your point was to use the specific distance, and that's fine, but it will not change anything other than causing delays for another revision request because Fred and Fan will now require it. It seems today we are getting stipulation requests for every revision of every word lacking enough specificity. Our work is a PROFESSIONAL OPINION about value, and I believe we are being held to standards of a corporate computer program instead. I was in court the other day and counted scores and scores of non-specific words used by both counsels, the judge, and in the final verdict. For some reason, nobody seemed to misunderstand or question any of those words that day. Fred and Fan weren't parties to the suit, so perhaps it's just them.

Our work is going to be ALWAYS be a product of opinion. Trying to force us into using different words will never change that. And as I told you before - I still think your parents, you as a parent, and your children as parents understand completely when a teacher tells you that Junior or Sally are performing above average, average, or below average with respect to the other children in the class.

Okay, you forced me. Danny had to appear before appraisal bias committee. He did okay imho. LOL

It was more CYA after huge bailout to GSEs.

 

[Zoe]

Let me remind you Danny was also chief appraiser at a very well-known AMC. He don't want to get on my bad side like Joan Trice did.