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The neverending assignment

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David S. Roberson

Thread Starter
Senior Member
Gold Supporting Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
I did an appraisal for an estate settlement in June, daughter of the deceased was the executrix & ordered the appraisal. Specified intended use was "estate settlement purposes", specified user was "XYZ Estate". Get a call from a local banker today saying "We need another comp by tommorrow so we can close this loan at 10:00 a.m." What? Who are you and what are you talking about? "We are using the appraisal you did for the estate for this mortgage because the estate is selling the property, and that is part of the estate settlement. We plan on doing a lot of work in this area & will send you lots of orders (very original)." He doesn't mention that this local bank uses their own pet appraiser & has sent me a total of 3 orders over the past 10 years. So now they are going to start sending me orders! I told them I could do another appraisal for the mortgage company (comps are now out of date) later this week. "You can't do it today? Okay, we'll call someone else". Big surprise. But.....the real question here is this: Where does my assignment end? I don't believe I have any obligation to satisfy the requirements of a mortgage broker for an estate settlement appraisal. The intended use was not for mortgage lending purposes, although the estate is now the seller. Where does it end? How would you have replied?
 
Joined
Jan 16, 2002
Just as you did. This same thing happens to me inspite of bold print stating what appraisal was done for and it's not transferable to third parties for mortgage lending purposes. The last one was a tax appeal
to the county, next thing I know is mortgage broker wants new comps.
Most times reports are not even in Fannie/Freddie format and they still
act dumb as rocks about it. My newest trick is to leave page 1 of URAR
out of report when doing job for private individual, this usually triggers
response that "page 1 is missing" when some mortgage broker or lender lender ends up with it. When reports leave here the job is ended, new requests on same property are new jobs.
 

George Hatch

Elite Member
Gold Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
California
Anytime I do a non-mortgage appraisal, I include the following clause in my intended use/intended user paragraphs:

It is intended that this appraisal and appraisal report meet or exceed the minimum appraisal standards as defined in the Uniform Standards of Professional Appraisal Practice (USPAP), the minimum appraisal regulatory laws administered by the California State Office of Real Estate Appraisers (OREA), as well as the Client's requested guidelines. Since this appraisal was engaged by a private party for estate purposes, it is not eligible for use in any federally related mortgage transactions as defined in U.S. Code Title XI, the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA).

It's a variation of my standard disclosure addendum. If a bank is dumb enough to ignore that then they deserve the brush off, similar to the way you handled your situation. Of course, I would have thought the other disclosures you included about it being a retrospective value opinion as of an earlier date would have been the biggest clue.....

Proof positive that some of our clients don't read the report.

George Hatch
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Like I have said over and over in this forum. The URAR is a form report that was designed for mortgage lending purposes. When you do a report that does not involve lending, I suggest that the URAR or 2055 is not the appropriate vehicle to communicate your findings.

A narrative report would have prevented the problem. No banker is calling you to change a narrative to a URAR.

The reason few appraisers avail themselves of narratives in their lack of word processing skills. Appraisers seem perfectly capable of filling forms, learning sketch programs, etc. etc. but are hopelessly paralyzed when faced with creating a few simple template and/or merge files to create the narrative report. I am writing 2 narratives today. All the info is in front of me, I am almost finished with 1 (i need a comp pix) and have 1/2 the other done. Then I will print. It does not take that much more time to complete than a form after you have honed your typing skills just a little.

ter
 

Ross (CO)

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
David, ..... You did the right thing. The other side just does not understand our obligations, our standards and the way it is done. Another example of one passing around an appraisal as if it has unending life and requires continued attention and whims of whoever holds it in their hands. The new application of Intended User / Intended Use / Scope of Work should help us get over these hurdles and hassles after Jan. 1st. (plus 5-year learning curve of the client pool ).....provided the others actually do read the full report. The bank official should know better.....but many of them simply do not know better. I like the b.s. line about promising lots of future work ! Always preceeds an unreasonable request. So, rather than ask you to do another appraisal with current comps and a current value and having much familiarity with the home already.....the banker dude kicks you in the shins and then "threatens" to go use someone else. Oh, well.
 
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