The New USPAP

[djd09]

The claim was that USPAP was nebulous and hard to understand. I saw some post disagreeing with certain things in USPAP, but no one has yet posted a passage they appear to not understand. Still waiting for that.

do waivers follow USPAP...must not be that good

 

[andrew81]

Not only that....borrowers don't either. Let's say for example, a cash out refi and the borrower has decided to go with another lender. Trying to explain confidentiality, intended use, intended users, why it has to be a new assignment.... they just don't want to hear it.... they don't understand why you can't just switch the client name in the already completed report. Shoot, for that matter, AMC phone monkeys would do the same. "All the other appraisers do it...why can't you?"

It's hard to be the lone defender of public trust....

Not a USPAP issue nor a borrower issue. This is a lender/client issue not being aware of or not implementing the very policies they are required to follow.

Without any communication with the appraiser and without the appraiser even being informed, lenders can accept an appraisal performed for another lender listed as the Lender/Client. The new lender just has to review the appraisal to be sure it meets their expectations and document the review in the credit file.

 

[George Hatch]

do waivers follow USPAP...must not be that good

What are you mumbling about? Waivers are an underwriting decision being made by their underwriting. A waiver is not a valuation of any kind, let alone an appraisal that would be subject to compliance with appraisal requirements - USPAP or internal.

 

[djd09]

Not a USPAP issue nor a borrower issue. This is a lender/client issue not being aware of or not implementing the very policies they are required to follow.

Without any communication with the appraiser and without the appraiser even being informed, lenders can accept an appraisal performed for another lender listed as the Lender/Client. The new lender just has to review the appraisal to be sure it meets their expectations and document the review in the credit file.

it is a public trust issue...they do not trust the appraiser and why should they

 

[djd09]

What are you mumbling about? Waivers are an underwriting decision being made by their underwriting. A waiver is not a valuation of any kind, let alone an appraisal that would be subject to compliance with appraisal requirements - USPAP or internal.

that is right they do not follow USPAP...it's junk

 

[djd09]

its like playing a crooked poker game...when they stack all the cards...and you wonder why we are losing

 

[George Hatch]

USPAP is about appraiser conduct when providing services which fall under the definition of Appraisal Practice - that being a defined term that you cannot selectively ignore . It doesn't apply to activities outside of Appraisal Practice. There is no such thing as a USPAP-compliant sales agreement or termite report or property management service. Or a USPAP compliant mortgage lending decision. None of those are a thing.

Why are you constantly trying to apply USPAP to activities outside of appraisal practice?

Your complaint is that the users don't operate under the same constraints as appraisers, which is both true and is also beyond the reach of appraisers or our regulators. These lenders have their own rules/regs and their own regulators.

 

[djd09]

i believe they call it ACE...automated collateral evaluations...right DW?

 

[Surf Cat]

Not a USPAP issue nor a borrower issue. This is a lender/client issue not being aware of or not implementing the very policies they are required to follow.

I disagree. Confidentiality, intended use and users are very much USPAP issues. I do agree with you in that they're not well adept of the very policies they are required to follow.

Without any communication with the appraiser and without the appraiser even being informed, lenders can accept an appraisal performed for another lender listed as the Lender/Client. The new lender just has to review the appraisal to be sure it meets their expectations and document the review in the credit file.

They can. But in my experience, most lenders want to be listed as the intended users.

I've had the new lenders ask me to "reassign" the appraisal to them over the phone. "They know" that it's a new assignment.... but they try to get it done on the down low anyway. No skin off their nose to try. Some appraisers will oblige, some won't. For me, I need a letter of engagement and it's a new assignment. Once again, USPAP.

I don't make the rules, I just try to follow them the best I can, even if that upsets some people along the way. As long as I do appraisals I'm going to look out for #1.....Me.

 

[andrew81]

I disagree. Confidentiality, intended use and users are very much USPAP issues.

What anyone does with a report after it is sent, is out of our control and not a confidentiality, intended use and users or USPAP issue.
That is unless an appraiser discusses confidential information with someone other than the client or authorized by the client.

I do agree with you in that they're not well adept of the very policies they are required to follow.

I've had the new lenders ask me to "reassign" the appraisal to them over the phone.

A lender asking an appraiser to reassign or alter an appraisal is against lending regulations.

"An institution must not accept an appraisal that has been readdressed or altered by the appraiser with the intent to conceal the original client. Altering an appraisal report in a manner that conceals the original client or intended users of the appraisal is misleading, does not conform to USPAP, and violates the Agencies’ appraisal regulations."