Supplemental Standards Rule Elimination

[Carnivore]

Don,

Your one liner is perfect with some adding of Manual numbers and references and citation of sources.

I also intend to identify who I communicated with and the date. If they said there were no special requirements then I wll say so and vice versa.

Should just about cover most lender work.

 

[Otis Key]

No wonder your addendum is so weighty! You lace it with railroad spikes!

All this time I thought it was due diligence!

I neither admit, confirm, NOR do I deny any such knowledge of what you're saying. :blush:

....that is why I believe an appraiser will need to spell out exactly (at least by referrence) what guidelines, requirements, laws, or handbook/requirements they are complying with when they write a scope of work. Since USPAP does not require a seperate and distinctive place for the SOW, it should at least be evident within the report itself.

Amen to that Don - I don't even want to let it appear that I might have "implied" a reference. I clearly indicate that "I have prepared the report and analysis in compliance with my understanding of the currently available Fannie Mae and Freddie Mac guidelines (differences between the these two guidelines are specifically addressed in the report or on these expanded comment pages) and no other supplemental guidelines or requirements have been provided prior to the completion of this report. Any additional requirements will require additional fees to be disclosed and paid in advance."

 

[Couch Potato]

Engagement Letter.

...... that is why I believe an appraiser will need to spell out exactly (at least by referrence) what guidelines, requirements, laws, or handbook/requirements they are complying with when they write a scope of work. Since USPAP does not require a seperate and distinctive place for the SOW, it should at least be evident within the report itself.

Yes, it should be in the report, but I really believe that is too late to inform the client. An engagement letter is the place to spell out the SOW. If the engagement letter states the report will meet FNMA guidelines and there are no other requirements for the report, the client could not reasonably come back after report delivery and ask for cost approach, site value, seventh comparable sale or anything else outside of what is in those guidelines. Say in the engagement letter that estimating the cost to cure deferred maintenance is not included in the SOW. When those things are requested, one can than reasonably request more money to do the work. :new_smile-l:

 

[PropertyEconomics]

Yes, it should be in the report, but I really believe that is too late to inform the client. An engagement letter is the place to spell out the SOW. If the engagement letter states the report will meet FNMA guidelines and there are no other requirements for the report, the client could not reasonably come back after report delivery and ask for cost approach, site value, seventh comparable sale or anything else outside of what is in those guidelines. Say in the engagement letter that estimating the cost to cure deferred maintenance is not included in the SOW. When those things are requested, one can than reasonably request more money to do the work. :new_smile-l:

Tater .. do you do an engagement letter on every house you appraise?

 

[Couch Potato]

Yes.

Tater .. do you do an engagement letter on every house you appraise?

Of course. It would be foolish to do otherwise.

 

[Ben Vukicevich SRA]

INTENDED USE: MORTGAGE UNDERWRITING TO FANNIE MAE APPRAISAL GUIDELINES

Stated On Cover Sheet in Caps.

Inside the report in caps.

All done.

Feel free to rotate FHA or VA whatever into the line. It works.

 

[Elliott]

Supplemental Standards Rule is eliminated from the standards.

How about not requiring 7 hours of USPAP Update classes, if
you've read the 76 threads?

 

[Carnivore]

Supplemental Standards Rule is eliminated from the standards.

How about not requiring 7 hours of USPAP Update classes, if
you've read the 76 threads?

The SSR placement in USPAP has been moved to the SOW section.

The requirements still exist, but now includes the world. Remember the TAF/ASB said the SSR was redundant.

 

[alex gilbert]

The SSR placement in USPAP has been moved to the SOW section.

The requirements still exist, but now includes the world. Remember the TAF/ASB said the SSR was redundant.

As an FYI - The Scope Of Work rule is not the only place that SS requirements now appear. The Competency Rule also requires the appraiser to recognize and comply with laws and regulations that apply to an assignment.

I don't agree with this idea that somehow the '08 revisions have changed anything fundemental about the appraisal process or increased the level of supplemantal standards. If there is a law or regulation governing your scope of work you are supposed to be aware of it and comply with it. If your client tells you they need something additional that adds to the development or reporting requirments of USPAP at the time of the engagment, and you agree, it becomes part of your SOW. If you disagree, you can decline the assignment. If a client requires something that's not a law or regulation governing your assignment and was not communicated at the time of engagement you're free to tell them there's an add'l fee or to pound sand. Seems pretty straightforward to me.

 

[Fred]

As an FYI - The Scope Of Work rule is not the only place that SS requirements now appear. The Competency Rule also requires the appraiser to recognize and comply with laws and regulations that apply to an assignment.

Laws and regulations. I know who makes law. I am less sure who makes regulations, although I don't think you will ever see me putting a GSE in that category. They can only make their own policy. I still think line moved and it will be easier to dump a stupid supplemental standard without the rule looming.