Unintended consequence of reviews

[John Hassler]

I think that I have stated this before, but when I was in AMCland, it was usually easier to train non-appraisers to examine appraisal reports; appraisers were prone to wanting to re-appraise the property rather than review the report we already had, and it was very difficult to change that mentality.

I agree with you in principal. You took the short view.

On average, at the Bureau, it would take about a year to convert the mindset of an Appraiser into an Investigator.

 

[J Grant]

LOL. I think I can assure you that the investors are not confused on this issue. Most are probably more clear on the issue than many appraisers I know.

How do you know that? When they see that the appraisers coming from an AMC or lender were revised, what does that mean to them? What do you think they think the review consisted of? Ditto for the public or others.

 

[DWiley]

I agree with you in principal. You took the short view.

On average, at the Bureau, it would take about a year to convert the mindset of an Appraiser into an Investigator.

I said it which was easier, but I did not say what we did.

The purposes for examining the content of an appraisal report are varied. There are some big categories of that type of work (e.g., underwriting a report, conducting an appraisal review, conducting an investigation), and to be good at each of those requires its own kind of training and expertise, though some of the required knowledge and skills do overlap.

 

[DWiley]

When they see that the appraisers coming from an AMC or lender were revised, what does that mean to them?

I have certainly encountered some appraisers I would like to "revise," but I have never figured out a good way to accomplish that.

As for how I know about investors, well, just think about that one for a sec.

 

[timd354]

How do you know that? When they see that the appraisers coming from an AMC or lender were revised, what does that mean to them? What do you think they think the review consisted of? Ditto for the public or others.

This has to be one of the most absurd arguments that I have seen in a long time, even on the AF. Do you really think that lenders or investors don't know how appraisals are underwritten or reviewed or that Danny, who works at Freddie Mac, which buys a massive volume of mortgages from said lenders/investors does not know what lenders and investors think? I work at a mortgage insurer and I can assure you that when we see a revised appraisal, we know that the revisions usually is due to feedback to the appraiser that resulted from an AMC or lender review that in most cases was done by someone who is not an appraiser. In any case, it does not matter to us who did the lender or AMC reivew as the only thing that matters is whether the final appraisal report is credible and the value opinion is adequately supported.

 

[J Grant]

This has to be one of the most absurd arguments that I have seen in a long time, even on the AF. Do you really think that lenders or investors don't know how appraisals are underwritten or reviewed or that Danny, who works at Freddie Mac, which buys a massive volume of mortgages from said lenders/investors does not know what lenders and investors think? I work at a mortgage insurer and I can assure you that when we see a revised appraisal, we know that the revisions usually is due to feedback to the appraiser that resulted from an AMC or lender review that in most cases was done by someone who is not an appraiser. In any case, it does not matter to us who did the lender or AMC reivew as the only thing that matters is whether the final appraisal report is credible and the value opinion is adequately supported.

? Have you pesonally inerviewed and asked each investor and member of the public what they think it means when they read a statement that the appaisal was reviewed?

 

[BRCJR]

IMO, it is a massive failure of USPAP, just as their massive failure to state that any inspection, even an inspection without an opinion, done for the purpose of an appraisal ( which will need an opinion) is part of appraisal practice. If USPAP said that our profession would not be in the place where the GSEs greenlighted accepting appraisals, where a PDC collector goes and inspects. Right now, inspection is a grey area, with it needing the opinion of analysts to be part of appraisal practice.

USPAP should state that only standard 2 reviews can be called a review, and a QC check not stnd 2 needs a different name. Or at least call it a clerical review (which includes a cursory check ). There can be requirements that appraisals be reviewed, and most ( clients, the public, investors )assume that it was a review for content, and likely they assume the review was done by an appraiser, taht it was not a minimum wage clerk or machine checking for rote errors.

How can a lender be expected to know the USPAP when Appraisers do not cite things correctly, themselves. What is a STD 2 review?

 

[djd09]

reviews are not appraisals and USPAP should not address them...

 

[timd354]

? Have you pesonally inerviewed and asked each investor and member of the public what they think it means when they read a statement that the appaisal was reviewed?

We insure loans from more than 1000 lenders/investors and talk to our lenders and investors on a regaulr basis, so, yes, we have a very good idea as to what they know and what they don't know. To think that they don't know how the the appraisal underwrite/review process works is absurd.

 

[J Grant]

We insure loans from more than 1000 lenders/investors and talk to our lenders and investors on a regaulr basis, so, yes, we have a very good idea as to what they know and what they don't know. To think that they don't know how the the appraisal underwrite/review process works is absurd.

Perhaps, though I would like to see evidence of it since some lenders do not even know which appraisal form to order a report on.

I bet it does confuse the general public, though, as well as RE agents and others. When they see an appraisal was reviewed, I doubt they conceive it as a low-paid non-appraiser hired ot check a list of rote error items
Is any of this kind of work outsourced to foreign nations ? .