Tony Ebeyer
Junior Member
- Joined
- Oct 7, 2005
- Professional Status
- General Public
- State
- Indiana
StreetLinks has launched a new appraisal desk review product designed to replace AVMs used in underwriting.
As you might be aware, an increasing number of lenders are resorting to the use of inferior products and techniques to review the work of professional appraisers. It has become routine to ask the experienced local appraiser, who has specific geo-competency and has actually visited the subject property and surrounding neighborhood, to validate their valuation against the conclusions of a desk review performed by a non-local market reviewer (who rarely has MLS access), or worse, an AVM. It is StreetLinks’ position that only an experienced, geo-competent appraiser with access to current market data can appropriately analyze qualitative aspects of the subject and comparable pool and subsequently apply the Principle of Substitution for final comp selection.
Unfortunately, AVMs and other inferior review products are often utilized by lenders because they are far less expensive and can be obtained in a more timely fashion than traditional appraisal review products completed by a local market appraiser.
In order to combat the proliferation of these flawed products, StreetLinks has developed two limited-scope desk review products designed to keep reviews in the hands of skilled and experienced local-market appraisers. SCORe (StreetLinks Comparable Opinion Report) will provide a second opinion regarding the appropriateness of the original appraiser’s comparable selection provided by a local, geo-competent appraiser that has access to all of the same public and private data sources that were utilized to develop the original report. SCORe-Plus extends the SCORe scope to include the appraiser’s evaluation of the appropriateness of up to five additional “comps” provided by the lender (usually generated by an AVM). In other words, SCORe and SCORe-Plus allow appraisers (rather than inferior alternative products/methods) to provide the answer to the question most asked by lenders when underwriting an appraisal report: Were the best comps used? Due to the highly restricted scope of work, SCORe products will be competitive with inferior review products in terms of price and timing, while providing a much more credible analysis.
USPAP provides for flexibility in determining the scope of work for an appraisal review assignment in order to provide the lender/client the exact supplemental information needed to adequately reconcile the collateral valuation piece of the loan file. Per USPAP Standard 3-1(b), “The subject of an appraisal review assignment may be all or a part of a report, a workfile, or a combination of these”. The scope of SCORe is limited to the evaluation of the original appraiser’s comparable selection. SCORe-Plus includes the evaluation of up to five additional properties. The assignment will be based on the extraordinary assumption that the subject property’s amenities and condition are accurately described in the original appraisal. The assignment will NOT require the reviewer to analyze adjustments made to the comparables or develop an opinion of value.
SCORe will soon be available in WinTotal, ClickForms, and ACI report writing software packages, and a PDF form will be available for users of other platforms. A sample of the SCORe/SCORe-Plus form is attached for you to review the Scope of Work, Assumptions, and Limiting Conditions. Appraisers with questions may call 1-888-761-2209 to speak with Mike Floyd, StreetLinks’ Chief Corporate Appraiser.
StreetLinks’ initial testing indicates that this assignment will take between 20-30 minutes depending on the availability of comparable information in different markets. After examining the report, scope, assumptions, and limiting conditions, appraisers who wish to do so may inform StreetLinks of the fee that they will charge to provide this product.
Tony Ebeyer, COO
StreetLinks National Appraisal Services
As you might be aware, an increasing number of lenders are resorting to the use of inferior products and techniques to review the work of professional appraisers. It has become routine to ask the experienced local appraiser, who has specific geo-competency and has actually visited the subject property and surrounding neighborhood, to validate their valuation against the conclusions of a desk review performed by a non-local market reviewer (who rarely has MLS access), or worse, an AVM. It is StreetLinks’ position that only an experienced, geo-competent appraiser with access to current market data can appropriately analyze qualitative aspects of the subject and comparable pool and subsequently apply the Principle of Substitution for final comp selection.
Unfortunately, AVMs and other inferior review products are often utilized by lenders because they are far less expensive and can be obtained in a more timely fashion than traditional appraisal review products completed by a local market appraiser.
In order to combat the proliferation of these flawed products, StreetLinks has developed two limited-scope desk review products designed to keep reviews in the hands of skilled and experienced local-market appraisers. SCORe (StreetLinks Comparable Opinion Report) will provide a second opinion regarding the appropriateness of the original appraiser’s comparable selection provided by a local, geo-competent appraiser that has access to all of the same public and private data sources that were utilized to develop the original report. SCORe-Plus extends the SCORe scope to include the appraiser’s evaluation of the appropriateness of up to five additional “comps” provided by the lender (usually generated by an AVM). In other words, SCORe and SCORe-Plus allow appraisers (rather than inferior alternative products/methods) to provide the answer to the question most asked by lenders when underwriting an appraisal report: Were the best comps used? Due to the highly restricted scope of work, SCORe products will be competitive with inferior review products in terms of price and timing, while providing a much more credible analysis.
USPAP provides for flexibility in determining the scope of work for an appraisal review assignment in order to provide the lender/client the exact supplemental information needed to adequately reconcile the collateral valuation piece of the loan file. Per USPAP Standard 3-1(b), “The subject of an appraisal review assignment may be all or a part of a report, a workfile, or a combination of these”. The scope of SCORe is limited to the evaluation of the original appraiser’s comparable selection. SCORe-Plus includes the evaluation of up to five additional properties. The assignment will be based on the extraordinary assumption that the subject property’s amenities and condition are accurately described in the original appraisal. The assignment will NOT require the reviewer to analyze adjustments made to the comparables or develop an opinion of value.
SCORe will soon be available in WinTotal, ClickForms, and ACI report writing software packages, and a PDF form will be available for users of other platforms. A sample of the SCORe/SCORe-Plus form is attached for you to review the Scope of Work, Assumptions, and Limiting Conditions. Appraisers with questions may call 1-888-761-2209 to speak with Mike Floyd, StreetLinks’ Chief Corporate Appraiser.
StreetLinks’ initial testing indicates that this assignment will take between 20-30 minutes depending on the availability of comparable information in different markets. After examining the report, scope, assumptions, and limiting conditions, appraisers who wish to do so may inform StreetLinks of the fee that they will charge to provide this product.
Tony Ebeyer, COO
StreetLinks National Appraisal Services
