What does it Mean to Protect the Public Trust

[glenn walker]

USPAP was not designed for residential loan purposes, and agency guidelines made much of it a moot point. Appraisers use a handbook that the players dont use or to even abide by. LMAO

 

[Mike Ault]

No because in loan generation appraisals the appraiser is not developing the scope of work and is just following whatever agency and that lenders guidelines are requested. If you dont like it then you must decline the order.

Appraisers must not allow clients to constrain the scope of work to such an extent that it affects the credibility of the report.

 

[George Hatch]

Can we just agree that "in general", valuations prepared by appraisers who don't even inspect the subject property per "client guidelines" should be perceived as less credible than valuations where the scope of work was determined by the appraiser, and not the client?

Appraisers must not allow clients to constrain the scope of work to such an extent that it affects the credibility of the report.

The client gets to decide exactly what their expectations are. The appraiser gets to decide how to meet those expectations in addition to the USPAP minimums. The only reason for an appraiser to assume what the expectations are is if they ask and get a "we don't have any" response. There are a whole lot of appraisers out there who do the same thing for everyone without asking anyone under the assumption that the one size fits all.

I don't consider to the use of unnecessary and unwarranted assumptions about these expectations - because the appraiser never even attempted to ask about them - to be professional conduct. If you ask and they don't have any - which happens a lot - then that's one thing. But if they have a policy and the appraiser doesn't know because they never even bothered to ask then that is squarely on the appraiser, not the pencil neck the AMC hires to run a checklist on the report.

User expectations are an add-on, not a substitute for the hardwired minimums in USPAP. Inclusive of the 2-part test for SOW decisions in the SOWR.

 

[glenn walker]

Appraisers must not allow clients to constrain the scope of work to such an extent that it affects the credibility of the report.

Then you can only do Non-Lender assignments because Agency guidelines and lender engagement and even what type of report is to be done over rides your wants and needs.

You do not create the scope of work on any F & F-FHA-VA Assignment. You accept theirs or punt. If they only require a desktop, hybrid or waiver then you obey and comply or die

 

[Mike Ault]

The client gets to decide exactly what their expectations are. The appraiser gets to decide how to meet those expectations. The only reason for an appraiser to assume what the expectations are is if they ask and get a "we don't have any" response. There are a whole lot of appraisers out there who do the same thing for everyone without asking anyone under the assumption that the one size fits all.

I don't consider to the use of unnecessary and unwarranted assumptions about these expectations - because the appraiser never even attempted to ask about them - to be professional conduct. If you ask and they don't have any - which happens a lot - then that's one thing. But if they have a policy and the appraiser doesn't know because they never even bothered to ask then that is squarely on the appraiser, not the pencil neck the AMC hires to run a checklist on the report.

It's not okay to let your profession be run into the ground by clients seeking the fastest and cheapest ways around you. It may be "reality", but it's far from "okay". Independent valuations are a vital component of our nation's financial system. Every time you let a fox guard the hen house, you'll be missing some chickens soon enough.

 

[Surf Cat]

They call themselves Public Servants LMAO

In addition to what you stated earlier in the thread about our own government torpedoing our profession (we're biased and can't be trusted) approximately 76% of Americans oppose cancelling student loan debt. In addition to high energy prices, high grocery prices, high inflation across the board, stagnant wages (look at all the strikes), a terrible housing market, and some of the most divisive rhetoric to come out of Washington, we're supposed to "trust" our public servants.

I'm out on continuing to comment on this thread. Sorry for the hijack of the main topic.

 

[Mejappz]

USPAP was not designed for residential loan purposes, and agency guidelines made much of it a moot point. Appraisers use a handbook that the players dont use or to even abide by. LMAO

It’s one reason USPAP should be eliminated from any secondary market or FHA work. Follow the GSEs and FHA guidelines like the Interagency Appraisal and Evaluation Guidelines.

 

[chad hampton]

I've never heard this new thing about letting a user determine the appropriate scope required to produce a credible report. For the past 20 years, all I ever heard from USPAP classes was the professional appraiser determines the scope.

 

[George Hatch]

It's not okay to let your profession be run into the ground by clients seeking the fastest and cheapest ways around you. It may be "reality", but it's far from "okay". Independent valuations are a vital component of our nation's financial system. Every time you let a fox guard the hen house, you'll be missing some chickens soon enough.

You should not conflate the economic interests of one segment of the appraisal profession (fee appraisers) with what is/isn't professional appraisal practice. As for the threat to the entire financial system of not paying extra to have the appraiser physically inspect, you might be right about that. But in any case those decisions aren't being made by appraisers, the appraisal profession or any of the orgs.

 

[Terrel L. Shields]

The answer to that question is obvious, and everyone here knows it. Even if they want to complain about AMCs or say that AMCs are working against the interests of the lending institutions who are their clients.

imnsho, there is no inherent advantage nor disadvantage from a "unbiased" perspective who orders the appraisal.

We have laws on the books....
In order to have the right to punish those that break them....

Before licensing there were laws on the books. An appraiser in Arkansas who was never licensed was sent to jail for his role in the Casa Grande scandal that was part of the McDougal - Whitewater "adventure". And the appraiser who testified against him was CG001 in Arkansas. For his testimony he lost every single bank client in Little Rock and had to move to Bentonville and work in the tax department of Walmart. True story. The convicted was named Robert Palmer. He valued property with the promise of a low interest loan. Never licensed as I recall.

Little Rock Appraiser Pleads Guilty in Whitewater Probe : Scandal: He admits falsifying loan evaluations for real estate projects by friends of McDougal, Clinton's partner in the Ozarks resort development.

A Little Rock land appraiser pleaded guilty Monday to creating phony evaluations of real estate projects involved in the Whitewater investigation and agreed to provide evidence to independent counsel Kenneth W.

www.latimes.com