Revision Request

[residentialguy]

Ok, then, perhaps you can explain it. If asking one to address sales is always pressure, then why does the DF AIR provision specifically allow it? The biggest error in your posts is the presumption of pressure. If that presumption were accurate, the DF would not allow what it allows. What it allows is questioning of the appraiser. What it doe snot allow is pressuring the appraiser. Unfortunately, some appraisers cannot see the difference.

One thing we agree upon is that it was written poorly. However, you can't have "appropriate" in the sentence and include an exception in the very same sentence. These comps need to be vetted.
You agreed that it is wrong for a lender to do this, then you tried to weasel out of this by pointing the finger at the agent, saying "I'm just passing his comps on to you" But you, as the lender, make it a requirement to review these target value comps. You aren't just passing a letter, you're mandating it. That is inappropriate behavior and yes, deliberate value pressure as they are doing it to bump the mv so that they (and you) get a fat commission check.

 

[George Hatch]

As is my custom, I solicited - and received - a list of sales from the broker that they thought were relevant to my assignment yesterday. Of course, virtually all of them are worthless in terms of being directly comparable to my valuation. But I find it useful to let them take their best shot at the outset of my assignment - so I can dismantle them in my report - as opposed to getting them after the fact. Having acted proactively on these comps I am confident there will be no ROV.

What I want to know is if I should turn myself into the feds for subjecting myself to external pressure.

 

[residentialguy]

As is my custom, I solicited - and received - a list of sales from the broker that they thought were relevant to my assignment yesterday. Of course, virtually all of them are worthless in terms of being directly comparable to my valuation. But I find it useful to let them take their best shot at the outset of my assignment - so I can dismantle them in my report - as opposed to getting them after the fact. Having acted proactively on these comps I am confident there will be no ROV.

Same here

 

[Joe Flacco]

I don't mind being asked to consider different sales but a email reply saying they are no good should be sufficient. Creating a new report and explaining why each sale is not good takes time and is annoying and there is nothing that says that's how rov works.

 

[Joe Flacco]

Some people make it sound like the appraiser is obligated to create a new report and comment on each sale. Ridiculous.

 

[Joe Flacco]

Maybe it should be email reply - Free. New report with comments = Fee.

 

[hastalavista]

Maybe it should be email reply - Free. New report with comments = Fee.

I agree with you that an email reply to an ROV would meet my minimum requirements.

From my post way back at the beginning (#3) (bold below for emphasis):

Now, here is the deal as far as I'm concerned:
You are not required to address the client's concerns in the appraisal. So, if you don't want to , you don't have to. Simple enough.
A likely reason the lender is requesting it be included in the appraisal is because it probably came from the borrower (or his/her agent). The lender is effectively telling the borrower, "You asked and we passed it on. It is all addressed in the report. Here's your loan based on your LTV."
Whomever made the ROV request is probably going to get your reply whether you put it in the report or not; from what you have stated, you don't have an issue responding; you just don't want to respond in the report. This is a business decision, and one that is completely up to you.

So, if your policy is not to address ROVs in appraisal reports, that is the way it is. If the client doesn't like it, so be it. If there is negative fallout because of this with the client, that's a risk (but if they were to lower your rating/assignment volume over this, maybe it isn't a client you want to keep).

 

[jturner01]

Has anyone ever received lower sold comps than used in a sale appraisal?

Yep, I still maintain that Realtors are ridiculous at determining value.

 

[Meandering]

Ok, then, perhaps you can explain it. If asking one to address sales is always pressure, then why does the DF AIR provision specifically allow it? .

Oh please.

It is allowed for the purposes to make or support.
In areas where many people sell outside of an MLS system, if someone knows of other sales in the neighborhood that the appraiser may not be aware of, those sales can be given to the appraiser PRIOR to the appraiser completing their work.

Throwing it out as the Dodd Frank, ignores the Requirement of the Dodd Frank for the Fed Board to address this, which they did in the IFR, and what the IFR said is in the Truth in Lending Act.

ROV is exactly in contradiction to the TILA from the IFR as it is an atempt to influence the appraiser's judgement.





https://www.gpo.gov/fdsys/pkg/CFR-2012-title12-vol8/pdf/CFR-2012-title12-vol8-sec1026-42.pdf

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[hastalavista]

Is the VA's Tidewater protocol exempt from TILA?