Significant Appraisal Assistance (1004p)

[DWiley]

The basic brain block is why would the appraiser want to insert they had significant assistance when it increases their liability dramatically because by signing the certification, he/she would be accepting full responsibility for all elements of the certification, for the assignment results, and for the contents of the appraisal report. Reading the third party's report does not confer by the appraiser the person engaged by Bigger Bank had the competence, training or experience required.

When the appraiser declares and certifies they received 'significant assistance " they are also implying they trusted or engaged a person or persons who they believed were experts in their trade or profession and the reader and users of the report would most likely also assume the appraiser had experience with this person.

Therefore in my opinion even the most incompetent real estate attorney in the country would- Scream why did you accept full responsibility for the assignment results and confirm it by signing the certification. Now you own this bad-boy and we may as well just tell Judge Roy Bean that you wanted to pound a square peg into a round hole.

For Gods sake we could have laid off 2/3 the liability on Big Bank because after we received the third party inspectors resume under discovery the guy submitted a hand written note that stated he was a 55 year old who had previously been a handyman but he obtained his real estate license because he heard from other agents that Big-Bank was paying $75 bucks just to measure and take a few photos.

NOW BIG BANK'S five Harvard Law Grads are sitting in the conference room with Big-Cheshire Cat-Grins on their silly faces because that Signed Certification is going to make this case impossible to defend. And please put that USPAP manual away because those guys said you had no idea how to interpret USPAP and they said FAQ'S do not establish new standards or interpret existing standards and do not constitute a legal opinion of the ASB and I confirmed that with a local AQMD Certified Instructor..

JG - i hope you read this Glenn is 100% right. If you get what you are lobbying for, and the inspection is considered significant real property assistance, then you have to accept this part as well. that's right - once you say that then YOU are responsible for it

 

[Eli]

George, your not that out of touch. How long has it been since you took appraisal principles? Me and you should take it again together.

 

[CANative]

George, your not that out of touch. How long has it been since you took appraisal principles? Me and you should take it again together.

sigh

Me and you... me and...you. smh

 

[Eli]

We’ve also considered this new process in light of USPAP Advisory Opinion 31. It says, “[a]n appraiser often uses assistance that does not constitute significant appraisal assistance. Although it is the appraiser’s responsibility to determine the role of any individual providing assistance, tasks such as, but not limited to, writing down measurements the appraiser provides when measuring a structure, taking photographs of the subject property, and providing clerical duties are not considered significant appraisal assistance.”

The above from the Fannie newsletter- USPAP AO 31 :it is not significant appraisal assistance if an individual is WRITING DOWN MEASUREMENTS the appraiser provides, which indicates the assistant is on site with the appraiser (or else how can they be writing down what the appraiser provides?)

Which is different from the individual measures the property. What would USPAP FAQ answer for the individual measures the property vs writing down measurements the appraiser provides.

J, you know I like you. This is perhaps your best thread ever. It needs to be whatever where they memorialize it.

 

[J Grant]

Funny you would pick that particular example. One of the recent files to hit my desk involved a certified appraiser in Florida who included the finished basement in the GLA. It seems such an issue is not limited to apps

agree, anybody can screw up - if the appraiser inspected though they own the screw up..

 

[DWiley]

agree, anybody can screw up - if the appraiser inspected though they own the screw up..

Yes. And THAT is exactly why you really don't want the third party inspection identified as significant appraisal assistance - because then YOU own it rather than the inspector That is why significant assistance is in the cert.

 

[J Grant]

The basic brain block is why would the appraiser want to insert they had significant assistance when it increases their liability dramatically because by signing the certification, he/she would be accepting full responsibility for all elements of the certification, for the assignment results, and for the contents of the appraisal report. Reading the third party's report does not confer by the appraiser the person engaged by Bigger Bank had the competence, training or experience required.

Hate to tell you but not having a signification assistance disclosure still means appraiser has the liability and full responsibility for the report results...What do yo mean by all elements of the certification ? The certification is a signature for the appraisal in its entirety, it is not an alacarte menu of some sections are covered under our certification while others are not.,

I asked my E and O some months back about hybrids when Tehran party inspects - she said the E /O does not cover the inspector, it only covers the appraiser . I asked her what happens if report has misleading or wrong results due to the inspection, her answer the appraiser is responsible for report results . I'd have to ask again to get updated or more in-depth answers- , we all should be asking our E and O for their perspective/our knowledge.

 

[George Hatch]

Desktop SOW means the appraiser is responsible for what they do at their desk.

Just because the form (inadvisedly) resembles a 1004 where the appraiser personally inspected doesn't mean it actually is a 1004 where the appraiser personally inspected.

How would you handle it if you were doing the desktop assignment and there was no inspection at all by anyone?

 

[J Grant]

Yes. And THAT is exactly why you really don't want the third party inspection identified as significant appraisal assistance - because then YOU own it rather than the inspector That is why significant assistance is in the cert.

Perhaps, I will have to check again with my E and O since I never phrased the question to them in this specific way.

 

[Eli]

Perhaps, I will have to check again with my E and O since I never phrased the question to them in this specific way.

LOL, don't work for free. Let them call Peter with LIA or their own lawyer. LOL