Tidewater Initiative Question?

[Carol Ames]

Unless I have missed something FHA still has the option in place for a reconsideration of value. I really do not mind tidewater, in my opinion it is more efficient to give them 2 days rather than receiving a reconsideration of value days or weeks after you complete the report. I have had several that I involked the TI. I adjusted out their "comparables" and stated why they were not used. No, none changed my value. I did have one lender call because the listing agent was upset because they felt I was too high. The way I understand tidewater it does not apply if you are over the contract price.

 

[The Matrix]

deleted by poster

 

[Jim Onderisin]

Actually, what the NAR should do is lobby for the same treatment... POC - listing realtor... appraiser has to contact realtor if value is under the contracted SP ...

One difference is NAR is no appraiser's client. VA is. NAR advocates for the real estate agents...those who are only compensated IF the transaction and loan close. Very different situation, in my opinion.

 

[nicholz12]

One difference is NAR is no appraiser's client. VA is. NAR advocates for the real estate agents...those who are only compensated IF the transaction and loan close. Very different situation, in my opinion.

As I stated prior, I am not an advocate for either, it's a matter of principle, what's good for the goose is good for the gander.
And, if not, as I stated before, why not just admit that there is peferential treatment.

 

[Mike Garrett RAA]

Let me ask you all this question...Who has the clout? NAR has several million members who earn huge commissions in most cases. Appraisers, on the other hand, number less than 1/2 million, no national organization, and in the residential end earn a fee averaging less than $400 per transaction. NAR can and does lobby heavily. They are supported by lenders, banks, GSEs, and home builders. We tilting at windmills if we think we can win this battle.

I also have hearburn with saying the Department of Veteran Affairs has Jurisdictional Exception. Perhaps the VA can invoke a Jurisdictional Exception. USPAP Jurisdictional Exception Rule (2010/2011) on page U-15 at line 448 says...

"Comment: The JURISDICTION EXCEPTION RULE provides a saving or severability clause intended to preserve the balance of USPAP if compliance with one or more of its parts is precluded by the law or regulation of a jurisdiction". Is the VA a jurisdiction?

The comment goes on to say...

Line 448 "law includes constitutions, legislative and court made law, and administrative rules and ordinances. Regulations include rules or orders having legal force, issued by an administrative agency". Does the VA fit this description?

My personal and non-legal opinion is the Jurisdictional Exception rule should apply to those who can make law (Legislative bodies) or interpret law (Courts of Law). All to often too much authority as been given to government agencies, appointees, czars, and the executive branch thus circumventing our law makers...but that is another story.

Back to the issue at hand...Tidewater. It is what it is and if we want to appraise for the VA then we must comply. It only applies when there is a purchase agreement which then precludes refinance transactions. Does it simplify the reconsideration process? Yes. Regardless of how a reconsideration occurs we, as the appraiser, are still in the middle.

 

[Fritz in NY]

We are in the middle ALL of the time VA or Non VA. But as a VA appraiser I see where they were coming from, lost marketshare and Vets that could not or would not use their benefits because REALTORS told them to stay away from VA loans. REALTORS really do have the power to influence a new buyer, many ways; a home inspector, a pest inspector, an attorney and a LENDER. (Could be the last lender that provided lunch at the last Brokers Open)

 

[Jim Onderisin]

As I stated prior, I am not an advocate for either, it's a matter of principle, what's good for the goose is good for the gander.
And, if not, as I stated before, why not just admit that there is peferential treatment.

I'm understanding your point of view, but there is NO preferential treatment. VA guarantees veterans' loans. They have a right to establish procedures under which appraisals which support those loans are developed. As client, the VA proactively grants permission for the appraiser to notify the POC when the determination of reasonable value is LESS THAN the subject's agreed contract price. No other such permissions are authorized.

If any lending client or the FHA authorized me to notify a specific POC when my appraised values were less than the subject's contract price, I would honor those requests; they cause no USPAP issues. But those client types have not established any such universal controlling guidelines.

 

[Jim Onderisin]

Mike: I agree with you...VA's policies do not fall under USPAP's classification of jurisdictional exception. That principle only applies to judicial and legistative governmental branches.

 

[Mike Kennedy]

Mike: I agree with you...VA's policies do not fall under USPAP's classification of jurisdictional exception. That principle only applies to judicial and legistative governmental branches.

Additional Supporting opinion - note the date and the first 2 sentences:
http://50.28.5.125/showpost.php?p=1142266&postcount=4

 

[Don Clark]

Mike: I agree with you...VA's policies do not fall under USPAP's classification of jurisdictional exception. That principle only applies to judicial and legistative governmental branches.

Better read it again. They fall under the rules and regulations provision. They are a government agency.