Subject: Don't just vent about UAD 3.6

[chad hampton]

Who do I call to get an AO removed? I have some I'd like removed.

Is that how it works?

Or do I need to first show how the TAF "partners" can make more money before something gets removed?

Can you see how this profession isn't looked at in the best light right now? How the appearance of impropriety is as bad as it is?

 

[George Hatch]

Lemme ask you a serious question:

If the quantity and quality of the publicly available data increases and the technology evolves to the point that what is viable in 2026 is further along than what was viable in 1996,​

then​

to what extent do you think that should have on the minimum standards of conduct (and the expectations among the users) applicable to the actions of the appraiser.​

​

Back in 1996 I basically couldn't do this on a consistent basis but now my data environment and the technology have advanced enough that I can. Should my users expectations have stayed rooted in the past, far behind what's feasible in the present? When USPAP refers to keeping abreast of the current level of play should we be trivializing that requirement as just talk or should we be giving it serious consideration?

SR1-1 has been in the books from the outset. Who are you or anyone else to suggest that reasoning was corrupt or unreasonable?

​

​

 

[Surf Cat]

USPAP (TAF) has never required an inspection OF ANY KIND, much less an inspection by a licensed professional.

You're right....it has left the need and extent of inspection to the appraiser’s scope of work and to what is necessary to produce credible assignment results.

But if you don't go, you don't know. The onus is on the appraiser's shoulders to bamboozle the reader that the inspection wasn't necessary to produce credible results.

Things change, and that is no longer a GSE requirement (inspections) in many assignments.

Since you are on the inside and attend those Fannie board meetings and all, you should give us a heads up of what's really coming down the pike for the appraisal profession being that "things change".

Instead of going back and forth on the archaic meaning of USPAP from yesteryear..... tell us what the powers that be are shaping up what appraising is to become.... because it's certainly not a profession.....

Tell us that working for True footage as a W-2 employee at an hourly rate is the goal and that the independent, fee appraiser is out. Tell us that the goal is to be able to appraise from a desk from anywhere in the country.....because you know.

 

[George Hatch]

When I first broke into the appraisal business most of the appraisers with even just a few years experience had come up as in-house employees. Company cars, company gas cards, company equipment, all of it.

That prevailing business model at the lenders was rendered economically obsolete by the rise of loan originators expanding their operations past their immediate community. Changes in the market directly affected the composition in the workforce. Then evolved more quickly as the technology evolved in function and price to enable those workers to operate more remotely to the property.

Nobody set out to destroy the careers of those employees. They just got displaced by these other appraisal operations.

Heck, operating as a sole practitioner in my region didn't even become economically feasible until the advent of the CD-Rom and laser printed report-on-form equipment and software apps in 1989-1992. Prior to that we had to work in groups to support the equipment, data and data entry.

 

[djd09]

So your interpretation of "credible" is that all the info must be perfectly accurate before it can be used?

That doesn't even make any sense. If a zero defect info environment exists then why do we assert ANY limitations (to the best of my knowledge and belief)? How can you possibly perform any appraisal without personally developing every scrap of info about the subject and all comparables and all other info in the report?

Nobody in the marketplace expects that unless/until we're talking about appraisers not getting the volume and fees they want.

so if i did an appraisal...and said the subject was 2,500 sq ft when it is really 2,000 sq ft...no big deal

 

[Sadie]

Oh he reads it...but just certain parts. He apparently never read this part of the book...

View attachment 110489

As a very well respected USPAP instructor stated, that while AOs are not part of USPAP, it would behoove you to follow them as they are advice from the people who oversee our profession.

 

[Sadie]

Thank you for admitting the appraisal foundation once thought it was important that a licensed professional perform the inspection.

I wonder who talked them out of it?

USPAP has never required a physical inspection. Fannie has and the level of inspection is in the SOW. F/F requirements used to be supplemental standards that are now encompassed by SOW. So if you are doing a current 1004, your SOW includes an inspection which is only required by the SOW rule. 3.6 has options for the level of inspection and who performed it. Your guidance comes from the engagement letter.

 

[chad hampton]

Yes, USPAP doesn’t require an inspection. We’ve gone over that before. But it does, or used to, provide clarification on who was allowed to perform them for appraisal purposes when they are required.

Which would seem reasonable for them to do provided public trust is a concern.

 

[George Hatch]

so if i did an appraisal...and said the subject was 2,500 sq ft when it is really 2,000 sq ft...no big deal

Depends. Did you measure it or did you extract that figure from someone else's work? Our standards apply to your conduct, and as the content of those standards plainly states

 

[chad hampton]

Depends where the 2500 sf came from. If It came from a felon that an AMC sent to the property to impersonate an appraiser and perform an appraisal inspection, then yes you own it. As a licensed appraiser; you own the appraisal services.

Probably why laws are written that the inspection must be performed by someone under the direct supervision of the licensed appraiser.