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Underwriter chews out my appraisal

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mdtulips

Thread Starter
Junior Member
Joined
Jan 3, 2007
Professional Status
Licensed Appraiser
State
California
Got a call today from a lo saying that the CW/Landsafe underwriter chewed out my appraisal because I gave value to a non-permitted converted garage and addition. Problem is...I didn't.....I included it in the sketch as "non-calculated" area and clearly stated in the addendum that it was done in a workman like manner, etc, etc. UW stips that I must back it out of GLA. I basically told the LO that UW needs to look at sketch and read my addendum and that I did NOT include it in my GLA . Basically, UW seems to be making accusations (for lack of a better word) that something was done when it wasn't. So, I updated my appraisal to clearly meet her conditions......meaning I put my previous statements in bold and added to them.
Now, I found out they want to do a reveiw called a LARA? What is that exactly? I'm annoyed and not sure what to do at this point--if anything. My value was modest especially considering the borrower had put in $70,000 worth of upgrades.
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
LARA ... Landsafe Anal Review Assignment?
 

Scott Lanz

Member
Joined
Dec 13, 2002
Professional Status
Certified General Appraiser
State
Minnesota
Dear Mdtulips:

A couple of suggestions:

1. Try and lose the annoyance/emotion you are feeling from the review. It will only cloud your professionalism (easier said then done, but very important).

2. If they still don't get the math, ask for the math the underwriter is using. I try and put the ball back in their court and make them demonstrate the errors instead of just stating the error.

Example:


Dear LO, I would be happy to take a look at the underwriters review on the GLA calculations. If the underwriter could provide the GLA calculations that are in question, and how I attributed value to these area's, forward that information and I will review it.

(Intended user issues left to you)

Maybe you already did this when you replied.

As a side note, I would recommend losing the term "modest" when describing value conclusions, unless your scope of work is providing a range.


I don't know what a LARA is, but Greg's explanation is pretty funny.

Scott J. Lanz
 

Carnivore

Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
Got a call today from a lo saying that the CW/Landsafe underwriter chewed out my appraisal because I gave value to a non-permitted converted garage and addition. Problem is...I didn't.....I included it in the sketch as "non-calculated" area and clearly stated in the addendum that it was done in a workman like manner, etc, etc.


Why did did you not give any value?

Was it because you did not complete the report AS-IS? :)
 

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
mdtulips: "Got a call today from a lo saying that the CW/Landsafe underwriter chewed out my appraisal"

Questions and Observations:

1. fannie mae report form?

a. Legal or Illegal Use cited?

b. Highest and Best Use (including legally permissible) identified and well-supported?

c. report included, and value based on, an accurate description of the actual, finished, heated, living area which existed as of the Effective Date of Appraisal?

d. was the "uncalculated area" given ANY value in the report? If so based on what? If not ......based on what?

d. was the value opinion rendered "as-is" or "subject to C.O." ?

2. Most likely a Local Area Review Appraisal (field review). What can you do? - not much. Until contacted, if it happens, prepare to rebut the review.... suggest reviewing your report in advance confirming the items above were done in accordance with USPAP and Fannie Guidelines.

"My value was modest especially considering the borrower had put in $70,000 worth of upgrades."

3. Suggest rethinking statements which may be considered Advocacy - revising them focussing SOLELY on the Markets' indication of Contributory Value - if any. Cost has nothing to do with Market Value Value.

4. Did the market data (including comparables utilized) demonstrate and support the methodology utilized addressing the "uncalculated area" and the "upgrades"? :shrug:
 
Last edited:

Webbed Feet

Elite Member
Joined
Feb 11, 2005
Professional Status
Certified Residential Appraiser
State
Canada
Got a call today from a lo saying that the CW/Landsafe underwriter chewed out my appraisal because I gave value to a non-permitted converted garage and addition. Problem is...I didn't.....I included it in the sketch as "non-calculated" area and clearly stated in the addendum that it was done in a workman like manner, etc, etc. UW stips that I must back it out of GLA. I basically told the LO that UW needs to look at sketch and read my addendum and that I did NOT include it in my GLA . Basically, UW seems to be making accusations (for lack of a better word) that something was done when it wasn't. So, I updated my appraisal to clearly meet her conditions......meaning I put my previous statements in bold and added to them.
Now, I found out they want to do a reveiw called a LARA? What is that exactly? I'm annoyed and not sure what to do at this point--if anything. My value was modest especially considering the borrower had put in $70,000 worth of upgrades.

Mdtulips,

I understand that you have no idea how terrible your post reads by those of us that understand, and properly employ, appraisal methodologies.

You post as if it is some sort of given that ALL appraising, and appraisers, should not include non-permitted additions in GLA as the solution for the problem. Almost consistently, whenever a poster states that they either gave or did not give value, versus posting they were able to show the market gave or did not give value, I know things are amiss right off the bat. My thoughts, because of the way you worded your post, is that both you and the underwriter are not properly trained in this regard, and the degree of likelyhood you both are handling the situation incorrectly is very high.

I find that almost always, appraisers that do not understand USPAP and appraisal methodology end up "taking out" suspect additions from the GLA and hence end up appraising to a hypothetical condition (HC). The only thing is they don't even understand what they just did, fail to report the use of a HC in their analysis, and failed to get their client's nod of approval on the use of the HC. Any adjustment they make, or do not make, for that footage "taken out" of the GLA never has any market support for either act, whatsoever, in their reports.

Webbed.

P.S. It is supposed to be your opinion of the market value, not "my value," and it is not supposed to be "modest." It should be what it is.
 
Last edited:

Lobo Fan

Elite Member
Joined
Nov 28, 2004
Professional Status
Certified Residential Appraiser
State
New Mexico
I think it means that your report will be reviewed by an experienced appraiser insted of a clerk. It can actually be a good thing, especially if your report is sound. IMNSHO, Landsafe is making a real effort to weed out bad appraisers. Yours hit a red flag. Just be prepared to spend some time explaining what you did and why. If it is reasonable and supportable, you will be fine. If it is not, you could be sanctioned anywhere from a suspension to having to take some CE classes, to nothing at all.

Just stay cool and professional. It will work itself out. Now may be the time to decide how important Landsafe is to your bottom line.
 

mdtulips

Thread Starter
Junior Member
Joined
Jan 3, 2007
Professional Status
Licensed Appraiser
State
California
Thanks for everyone's feedback. Your comments are all taken seriously as I respect your opinions.
 

mdtulips

Thread Starter
Junior Member
Joined
Jan 3, 2007
Professional Status
Licensed Appraiser
State
California
Oh, to answer some of your questions, yes one of the comparables had a non-permitted addition as well.
 
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