USPAP and Fannie Mae/Freddie Mac about data usage

[Joe Flacco]

MLS access is essential. I can't imagine doing appraisals without it.

 

[Raven59]

$124 x 5 per month is a lot.

Doesn't bright cover all of WV? I use bright and it's nice how bright covers multiple states and associations.

Yes, the eastern panhandle near DC. It's one of the services I subscribe to. There are about 15 MLS boards in the state.

 

[Raven59]

I posted due to numerous complaints at my local MLS about login sharing and unauthorized data access. Recently, a notice was sent to all appraisers warning of fines and possible revocation of membership for such actions. This issue is particularly concerning as it gives those who avoid membership fees an unfair advantage, reducing their business costs and engaging in what I consider theft. It undermines the integrity of the appraisal process and client-specific requirements for Fannie Mae and Freddie Mac.

I'm truly saddened to hear my daughter, who works as a residential appraiser and heavily relies on MLS services, frequently complaining about unfair practices in the industry. The market downturn has been especially tough on less established appraisers, making it even more important to address these unethical behaviors. We are already facing challenges with AMCs and lenders driving fees down to unreasonably low levels, so the unfair practices among our peers are deeply troubling. My daughter is already battling against the challenges posed by AMCs; she doesn't need fellow appraisers who are willing to engage in dishonest practices.

The points made about USPAP violations and Fannie Mae and Freddie Mac's policy stem from arguments with a peer USPAP instructor over whether this crosses the ethics line. Locally, residential appraisers are stressed over the business environment and are elevating concerns about others' practices as part of why they are not getting business. I sought feedback on how common this practice is in other areas and how it is typically handled. Maybe it's just local.

 

[Raven59]

I ask other appraisers for help sometimes and they send me the link to the public version of the MLS, not the member's copy. 90% of the info you need is available by simply typing in the address in Google. Since AR BoRs are told by their legal counsel that financing info is "confidential" they don't provide it anyway. But since these recordings are generally public, it is a matter of pulling up the mortgage and looking at the bottom - FHA says FHA. FNMA or Freddy says the same at the bottom. There is a VA rider check box. You get the amount lent, the term and usually the interest rate. And the correct name of the buyers and sellers as well as the book and page can be found on the deed, and in OK and AR you also get deed stamps. Additionally, Arkansas requires an affidavit which says the exact amount of the sale on the deed. No rounding necessary. Actually using the log in does violate BoR rules.

I used a crappy description of what is being shared. The shared MLS sheets are the broker/agent version and contain confidential remarks. So, they are the member-side-only versions. Some of the data contained is definitely publicly out there but some is not.

There is one board with about 150 members. About ten appraisers work in the area; three are members. That's the area with seven people in one office. By the way, that office of seven covers most of the state and generally only has one member with the board servicing that area. If they are abusing the system and dodging cheap MLS fees, what other unfair practice is going on? The small shops need a fair playing field.

 

[Terrel L. Shields]

The shared MLS sheets are the broker/agent version and contain confidential remarks

I understand that violates the rules. But our MLS (in one state-AR) offers almost nothing more than what the public sheets do and you are full Realtor Members. Never mind 20 years ago we were charged $5 a month and now you are in for $1,000 or more annually. The OK MLS I am a full-time member treats us as "associates" has disclosure sheets, etc. Both charge full bird membership fees plus $50 a month or nigh. We are little more than a cash cow. Further, despite membership, agents and brokers often claim they cannot share data with us even though we are members. The lawyers have brow beat them into believing everything is "confidential", but nevertheless they share info with other brokers, of course. Missouri brokers are even worse as a non-disclosure state and won't tell you squat if you are not a Missouri broker whether you belong to the board or not- which is why I dropped my MO license (I live 15 miles or less to the MO border, about 6 to Oklahoma.)

Secondly, while an NAR member in one state, the adjacent state MLS's make you join the NAR twice and when I argued that I was already a member, it short-circuited their brains. The MLS systems are AFU, and perhaps the recent lawsuit will open them up, although I suspect it won't and they will simply drive everyone out by raising prices. Further, I find that if you actually go to the Board of Realtors office in an out-of-area MLS, they will generally give you access to their "books" (MLS on line) and let you print out the public copy and copy any of the info in the internal copy.

Often I simply bypass the MLS (since I do estate work over a large area) I search the compiled records from a vendor of the assessor's records. I use the address to do a google search and match it to the agent and/or MLS number. I call them for info I might need. I also access the deeds and mortgages which tells me an accurate picture of the actual financing, including 2nd mortgages, etc. I see a lot of sales that are labeled "Cash" or " conventional" that actually turn out to be partially financed by the seller, or are not cash rather a typical FHA or FNMA sale- or commonly in farm and rural property, financed by a local community bank (that non-conforming conventional loan.) Again, I work in 2 states where the assessor records are up to date (and required so by the states) and reasonably accurate. I guarantee we have some brokers here who lump garages, sunrooms, porches, whatever in the "heated SF" section or finished basements are called GLA. One broker I see often almost never matches with the assessor and having personally measured enough of them, I guarantee the assessor has a truer measuring stick 100% of the time.

I have been deliberately misled by agents and brokers too many times to have any great faith in the MLS data that does not match the public record.

 

[Joe Flacco]

MLS is essential. The main benefit of MLS is not the info on the listing. It's the way you can search, sort, reconcile differences in data, identify patterns, learn about things going on in the market. It's well worth the dues and very necessary.

 

[DWiley]

I don't think MLS is so expensive that appraisers are sharing accounts.

You might be surprised. When I was in AMCland, we required proof of legitimate MLS access (screen shot with user logged in under their name). We caught lots of folks using other people's credentials.

 

[Surf Cat]

You might be surprised. When I was in AMCland, we required proof of legitimate MLS access (screen shot with user logged in under their name). We caught lots of folks using other people's credentials.

That's calling the kettle black from AMC land! Lol Jiminy Crickets....

 

[DWiley]

That's calling the kettle black from AMC land! Lol Jiminy Crickets....

In what way? We certainly did not use any unauthorized MLS access.

 

[Surf Cat]

In what way? We certainly did not use any unauthorized MLS access.

You appraisers better have your own MLS! By the way, we have this condo in your area. Your fee is $150..... do you want it?