Virgina REAB and Portal Petition

[Carnivore]

Before one can regulate something one must have the statutory authority to do so.

AMC's and Portal Companies are not FRT's. State regulate companies and corporations all the time.

 

[woodyva]

It ain't rocket science.

George:

I have no issue with anything you stated in your post. I agree with most of it. The software companies should work with the portals, but it should be vice versa.

Rant is now on.

Wintotal is used by more appraisers than any 2 other software companies combined for forms. FNC has a tremendous amount of hubris to refuse to work with a la mode and other companies as well. It is extremely short sighted for any company to not try and better their products/services. The custom forms that are developed by each company are done so to fill a noticed need by each company from the feedback each receives.

These portal companies are not appraisers, and should not try and limit what you, Danny Wiley, myself, or any other appraiser decides as the best way to write a report. None of these "non-standard" forms change the report, they do offer more user friendly understanding for the reader. It is our responsibility to communicate effectively, some of you say we can do that using what AI Ready does now, I say that you are narrow minded to not move forward. Appraising is changing with technology, but we are supposed to use 10 year old technology just because.

We have been led down the path that has somehow ended with the lenders telling the appraisers how to appraise. I have had underwriters tell me to take comps out, or have even been asked to place specific comps in. (This is really not off topic) My point is that appraisers are capable of preparing reports in a manner that they see fit. Clients do not determine how a report should be developed. We all have basic guidelines that have been developed for mortgage lending. That is why supplemental standards went away and the scope of work concept has been elevated to where it is. FNMA/FHA and the rest allow us as professionals to annex our reports or enrich them in order to formulate the best valuation we can.

Bottom line: there is a problem with any non-licensed appraiser telling an appraiser how to perform their work. These backward thinking companies and people are part of the problem folks. Recently there have been accounts that appraisers do minimal work, that we are not doing our jobs. I agree to a point, with all the reviews that I do I see some appraisers are nothing more than form fillers. These companies contribute to minimalist work.

AIRD died on the vine because most of us said no. FNC took over what was left of it and has since been a portal company and other similar types services at least from the public eye. There is a very real probability that these reports are being kept slim for more than what is being said. FNC goes to lenders and advertises that they do QC work that helps the lender. Many lenders look at this as a way to ad a review process, which FNC does indicate to their clients and would be clients. They apply rule sets, basically using an underwriting or processing checklist. They sell it as something more than that.

They do provide black box AVM's, i am concerned as to where they get their data. Sort of makes you wonder, they have all this data required to be a very set standard and they need similar data to do these black box AVM's. If Pat Turner can be questioned about sitting on a committee that involves protecting the citizens of a state, how can the same people not question the problems FNC has with all the data they have "pass" through their system?

Same thing can be said of any company that requires Lighthouse, that format is used for the very same type of thing by some of the companies. I have in my hands several examples of lighthouse not just changing data, but it incorrectly converts data and will occasionally place data in adjustment columns. I have had 200% gross adjustments placed in an adjustment column because it somehow placed numbers randomly in the form.

My dog in this fight is not just for one company or another. I want these companies to stay in business if they can, but do so after there is transparent business practices in place. We all have a responsibility to the public, that is why each of us have a job. When you put corporations like this in charge to the point the banks have been allowed, and companies like FNC you end up with profit margins exceeding what is prudent and best for the country. Right now we need qualified appraisers doing the lending work. Not new appraisers, or otherwise non-qualified appraisers filling out a form.

With all these "extra" requirements that have rolled out lately, and the forthcoming FNMA market analysis addenda that will be required at the beginning of 2009, I am shaking my head wondering why many appraisers were not doing this already? Portal companies have helped make it OK to turn in minimal reports. When you are valuing a property that is the primary investment for a poor family minimal does not cut it.

Most of us here do not do minimal work. I am not concerned for you and I, I am concerned for all the bad work I do see and things like these companies helping the problem. You would be absolutely floored if you knew how many appraisers stay to themselves and do not read forums like this, that do not associate with any sort of quality CE, they have no clue. FNC does not bank on poor appraisers, they do want quality people doing the work, but they are part of the system where other companies do depend on poor appraisers. they prey on poorly educated and appraisers that are just in left field, you get these problems.

Wow, I just said a lot of things, my underlining theme is that there should be no limit to any format that is submitted. If an appraiser decides additional information needs to be placed into a report, then no one else should be able to say no to it, period. It is the exact same thing as the UW calling you to ask that you take out comp 4, when everything in the world tell you that it is the best comp you used.

Rant Off

Thanks for reading this, if you made it all the way through. I just know that if someone with the apparent low mental ability I have per KB and the others that seem to know more than I do can think of these things, certainly all the geniuses at FNC, FNMA, INDY MAC, American Home, Country Wide, and all the MB's have already made money doing what some of us are afraid they have done.

Please let some of the Dodd/Crowley ideas make it through even if the HVCC goes away.

 

[DWiley]

State regulate companies and corporations all the time.

Yes. But the depth and breadth of the regulatory authority is defined in statutes.

An Appraiser Board cannot regulate something it is not authorized to regulate (which will almost certainly vary from state to state). For example, a state appraisal board cannot typically pass regulations about cosmetology.

If a state appraiser board tries to get into the business of regulating lender activity, or any activity they are not authorized by statute to regulate, they will almost certainly run into legal problems.

 

[woodyva]

Before one can regulate something one must have the statutory authority to do so.

Danny:

Not to ask a stupid question here: Does your state regulate and oversee your license/certification? As far as I can recall from my limited understanding there is not a federal or national license, they are all still state issued.

If your state is like mine, it most certainly can say what a licensee can and can not do. Virginia already understands that the REAB can not regulate the portals, but they are capable of placing a moratorium on appraisers using them.

 

[Ken B]

Danny,

It has been my impression that the Boards realize they cannot regulate lenders or portals. It is my understanding, per the Board members who have posted on this thread, that they plan on preventing appraisers from utilizing portals under the precept that doing so violates the record keeping requirements of USPAP and/or other such nonsense.

 

[DWiley]

Wintotal is used by more appraisers than any 2 other software companies combined for forms. FNC has a tremendous amount of hubris to refuse to work with a la mode and other companies as well.

And what if the refusal is from the other end? What if you learned that Fannie Mae temporarily stopped requiring AIReady for certain assignments because of the poor AIReady support provided by Alamode?

When you soon see announcements that

(1) Fannie is going back to its prior position and
(2) Alamode has enhanced its AIReady conversion capablity

know that it is not a coincidence

 

[Ken B]

When licensing first started, VA required appraisers to use raised seals on their appraisals. That requirement went away when electronic delivery became popular. I think some would prefer to return to that requirement.

 

[DWiley]

If your state is like mine, it most certainly can say what a licensee can and can not do.

They can do that only so long as they stay within their statutory authority.

They could not, for example, require appraisers not to type in all caps. They could not require appraisers to leave their dogs at home and always take their shoes off. Their power is far from unlimited. If they stretch too far a judge is likely to explain that fact to them.

they plan on preventing appraisers from utilizing portals under the precept that doing so violates the record keeping requirements of USPAP and/or other such nonsense.

Yes, I know. And that is the irony. In the supposed interest of protecting public trust and enforcing USPAP some are willing to totally ignore USPAP's most basic prinicples. As I said before, some must be big fans of Machiavelli.

You don't have to read many of the posts here to see what lengths some are willing to go to. I think at least five times now someone has claimed that use of AIReady somehows violates policies of Fannie Mae. This depsite the fact that Fannie Mae actually requires it use in some assignments. Forgive me if choose to I trust Fannie Mae's interpretation of their own rules.

 

[Fred]

If your state is like mine, it most certainly can say what a licensee can and can not do.

Moreso in an intrastate transaction, much less so in a federal transaction.

 

[Carnivore]

Danny,

It has been my impression that the Boards realize they cannot regulate lenders or portals.

You impression is sorta of correct and sorta of incorrect. Again portals are not regulated by the feds like FDIC banks. In your usual manner Ken, you are mixing apples and oranges.

Danny

My appraisal board gets its authority from the legislature and is governed by state statutes.

Remember the ZAIOISTAS have a real problem in my state concerning the draft reports. Its a state Statutes that causes the problem not the Appraisal board.

Same goes for some AMC's. I am working on getting them regulated as much as I am . Its an uphill climb, but the current atmosphere is right.

The public, the policitians and everyone is angry at the banks.