The Appraisal Foundation Brings Standards And Guidance To Appraisal Software Programs

[Eli]

What I really think is they are scared of the ASC, CFPB, FTC and are trying to pose something to protect them. And I don't want to leave out attorney generals that are probably already involved. The state attorney generals may really be what has them anxious at this point from an antitrust law standpoint. Plus, these new AMC regs are serious. Some people don't like being regulated. Tuff is my advice to them.

 

[George Hatch]

So its another component to their on-board review module?

Appraisers wouldn't need the remedial nanny app if the appraisal forms were designed to hit all the high points. Instead, appraisers have to work-around the forms' shortcomings.

That problem not being the fault of any of the formsware vendors.


What appraisers have to do now with the GSE appraisal forms is akin to the difference between doing the Pimp-My-Ride program to your '89 Yugo so that you can use it like a pickup truck vs simply buying the pickup truck to begin with.

 

[Evincere]

Too true. The GSE Forms are too entrenched and vested in UAD and CU at this juncture to redesign the Hugo Fannie and Fred are still driving. Got to love these press release "rollout" announcements. Bradford rebranding Comp Cruncher (again ?) which was a loser from the get go and ACI pushing online Sky Web based reports. Buntons statement is nonsense with regard to "insuring" compliance.... unless its for for the new products the Foundation is endorsing the ushering in of. Since when is TAF involved in endorsement and promotion of new Appraisal products, software and start up companies like Centric?
Is this their new mission?

 

[George Hatch]

Don't get me wrong, I completely support whatever remedial hand holding it's going to take to roust some of these appraisers from their blissful slumber and prompt them to catch up on their housekeeping. Fewer appraisers getting popped for (mostly) omissions is a good thing. I just wish it wasn't necessary.

 

[timd354]

So its another component to their on-board review module?

Appraisers wouldn't need the remedial nanny app if the appraisal forms were designed to hit all the high points. Instead, appraisers have to work-around the forms' shortcomings.

That problem not being the fault of any of the formsware vendors.


What appraisers have to do now with the GSE appraisal forms is akin to the difference between doing the Pimp-My-Ride program to your '89 Yugo so that you can use it like a pickup truck vs simply buying the pickup truck to begin with.

When I was at Freddie during the time that the UAD was being created I argued very strongly that the forms should be updated as did the appraiser at Fannie assigned to work on the UAD project....however we lost that argument.

That being said, even if the forms were greatly improved it would not fix the shortcomings of some appraisers....the forms cannot select the most appropriate comps, the forms cannot properly determine the appropriate amount for an adjustment nor provide adequate support for an adjustment within the appraisal report, the forms cannot provide an adequately written reconciliation, the forms cannot make some appraisers actually read and understand the requirements of USPAP, etc.

 

[Evincere]

FOR IMMEDIATE RELEASE
November 12, 2015

Contact:
Paula Douglas Seidel
The Appraisal Foundation
paula@appraisalfoundation.org
direct phone 202.624.3048

"Washington DC – The Appraisal Foundation, the nation’s foremost authority on the valuation profession, announced today that USPAP guidance will be accessible in appraisal software programs in the near future.

ACI, Bradford Technologies and Centric Technology Solutions will release new programs that offer USPAP and accompanying guidance as an added resource for real property appraisers.
David S. Bunton, Foundation President said of the new initiative, “This announcement ushers in a new day for the Foundation and appraisal technology. Appraisal professionals will now have USPAP and the Foundation’s related guidance at their fingertips for reference during every step of the process. Digitizing USPAP and including it in the appraiser’s toolset is the best way to ensure compliance and ultimately build public trust in the work of appraisers.”

The Appraisal Foundation selected three companies for the initial launch, each committed to providing appraisers with the tools to perform quality appraisals through their respective software programs. These new software programs will assist in saving appraisers time and will equip them with the resources to help ensure compliance with USPAP, ultimately benefiting both lenders and consumers.

ACI will incorporate USPAP and related guidance into ACI Sky™, a new web-based appraisal platform. ACI Sky empowers the valuation professional to create full reports on the web with tools for sketching, data collection, review, MISMO® XML delivery, location and flood mapping. For Bradford Technologies, the partnership with the Foundation offers an opportunity to further the company’s focus on helping move the appraisal profession, and in particular residential appraisers, away from tedious form-filling and towards computer-aided appraising Redstone technology. Centric plans to fully integrate USPAP and related guidance into its dialogue-based solution for report creation and quality review by the end of 2015. Centric’s end-to-end, web-based platform integrates the functionality and communication needs of appraisers, AMCs, and lenders."

Forms aside. Search this forum for Redstone. TAF issued a press release statiing its "partnership" and involvement with new appraisal software. Perhaps its just semantics but I would think the premier entity on USPAP which takes great pains to disect the definitions and meaning of "words" such as "client" would know better than to imply a "partnership" exits by definition. https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Partnerships

 

[Eli]

When I was at Freddie during the time that the UAD was being created I argued very strongly that the forms should be updated as did the appraiser at Fannie assigned to work on the UAD project....however we lost that argument.

That being said, even if the forms were greatly improved it would not fix the shortcomings of some appraisers....the forms cannot select the most appropriate comps, the forms cannot properly determine the appropriate amount for an adjustment nor provide adequate support for an adjustment within the appraisal report, the forms cannot provide an adequately written reconciliation, the forms cannot make some appraisers actually read and understand the requirements of USPAP, etc.

Any thoughts on what would?

 

[timd354]

Any thoughts on what would?

There is no magic bullet. Some of the deficient appraisers could be made right if they were re-trained (correctly this time) or received additional intensive training & education, but there is no practical way to make that happen since most of the people who could use the most help are the ones least likely to seek that help.

Additionally, there is a small percentage of appraisers who simply need to be removed from the profession since you simply can't fix stupid and all of the education in the world won't fix someone who is unethical.

 

[DJBanas]

I don't think I have a "gloom & doom" attitude, but, I see this as the next step in trivializing the role of the appraiser in the process. All the data that is needed, with the exception of the on-site inspection, is available on-line in most areas. Lender sends a $15/hr person to take pictures of interior and exterior and maybe measure and it can be entered and a file and report created by the software.

Say good-bye to lending work. Private, non-lender work should still be available,

 

[gregb]

It does not seem likely, if the AQB ends the work experience requirement, that this will be a magic bullet to fix deficient appraisers from entering the profession.