What is an "Appraisal Change Order?"

[Mike Kennedy]

http://appraisersforum.com/showthread.php?p=1543746#post1543746

 

[Fritz in NY]

Whine, whine whine. It is obvious to me that most of you do not have a volume of work, or else you would not spend countless hours on this blog, and endless more hours trying to find your way up someones (don't go there). It is Mid Feb and my company has completed 155 reports in a slow market, in the middle of winter. I have 2 Cert. Res appraisers, and 2 Lic. assistant appraisers (one will be sitting for his Cet. Gen exam in July) and a typest pre typing my personal reports. She is a licensed Realtor and has been 19 years, she has been with me longer that my current assistance. THERE IS NOTHING WRONG WITH HAVING A TYPEST. 704 REPORTS: My largest 2 clients are Credit Unions (portfolio), they REQUEST 704 reports and have been for 4-5 years. This is 50% of our income. It's not hard to have 4 appraisers and a typest complete 1,200-1,500 reports a year when 50% are 704 reports. I noted that those of you who viewed my web page developed back in 1999 and unchanged notes in plan ENGLISH "We do not guarantee values", but all picked on COMP CHECKS. In the ever evolving USPAP that seems to change EVERY year, their are more "grey" areas than "black & white". I offer my clients a service, after 19+ years in the market and 10,000+/- reports written or reviewed I think know values in areas. When a MB or lender asks if 123 Smith St could be worth $ 1 Million, I do not research, open a file, or give a range. I say NO, it can't be done. That is a common courtesy to clients, too not waist time of money. The COMP CHECK I believe USPAP is concerned with is the opening of a file, doing preliminary work, research MLS and giving a small range of value for free, in order to "obtain the assignment". That is what I do NOT do. In 1999 I was contacted by some investigators regarding "appraisal fraud", It was suggested that my website contain an "Appraisal Change Order". This was filled out by unsuspecting MB and lenders hundreds of times asking for some very unreasonable and illegal changes. WE GOT IT IN WRITING. Who do you think has provided thousands of documents to the AG offoce to put these guy's on alert? Before you castrate ask.

 

[Joker]

When a MB or lender asks if 123 Smith St could be worth $ 1 Million, I do not research, open a file, or give a range. I say NO, it can't be done.

According to USPAP, that is an appraisal and you had better open and keep a file on that appraisal. Working for free is a business decision that you are free to make but being compliant with USPAP is not. (well, you are but it may have unwanted consequences.)

If I were you, I would edit your previous posting so as not to incriminate yourself. You have admitted to not being USPAP compliant. Have you ever read AO 19?

 

[Mike Garrett RAA]

And, IN MY STATE, a 704 is a non-compliant report option.

 

[Ken B]

Wonder what Fritz thinks about reassigning the report to a different lender.

 

[Hamlet]

Wonder what Fritz thinks about reassigning the report to a different lender.

How many of us charge a "fee" to change a lender/broker name and address on a report? I HOPE WE ALL DO! Reopen, download, save as new report, change names, adresses, re-email...if it costs me time it costs me money, pay me you *&%^ telemarketer. Amasing the ignorance of LO/MB....I love the "could you just change the report to FHA" ?.... get a grip on the banking department and stop this ****.......

Quoted from another thread…

 

[Ken B]

Donna,

I just paid attention to your avatar...funny!

 

[Webbed Feet]

Mr. Vogel,

Moving past your emotional whiplash and striking out at all of us for the problems associated with your own web site, I think I'll break this down.

<snip> ....... 704 REPORTS: My largest 2 clients are Credit Unions (portfolio), they REQUEST 704 reports and have been for 4-5 years. This is 50% of our income. It's not hard to have 4 appraisers and a typest complete 1,200-1,500 reports a year when 50% are 704 reports.

I will certainly give you that any reporting format can be made to comply with USPAP even when they do not originally. Personally, I would have tried to get those Credit Unions to be happy with the 1996 version of the 2055 form myself. The old 704 is so dated that sending it out with USPAP violations is highly possible. I do not recall you originally saying you had a staff that did 1,200 to 1,500 reports a year..... you said you did that many. So perhaps you should acknowledge that leaving a false impression was your fault, not the fault of forum members.

I noted that those of you who viewed my web page developed back in 1999 and unchanged notes in plan ENGLISH "We do not guarantee values", but all picked on COMP CHECKS. In the ever evolving USPAP that seems to change EVERY year, their are more "grey" areas than "black & white". I offer my clients a service, after 19+ years in the market and 10,000+/- reports written or reviewed I think know values in areas. When a MB or lender asks if 123 Smith St could be worth $ 1 Million, I do not research, open a file, or give a range. I say NO, it can't be done. That is a common courtesy to clients, too not waist time of money.

Here is what I really note. The fact is you are in control of your own web pages at your web site. And the Ethics Rule has a section about advertising in it. Using the excuse of not having updated your own web site advertising since 1999 does not sound workable. If your advertising is found to be negligent by an appraisal board, good luck with the excuse. It will still violate USPAP regardless of your claiming procastination in getting your web site updated.

Next, your years in service do not excuse you for making, nor make you immune from, USPAP violations. Providing a "Less Than" value opinion based upon a client supplied benchmark ($1 Million), without creating a supporting work file, a log, developing a SOW, etc., just might be a USPAP violation. Last I checked anyway. I am not incorrect am I? That MBer question has an obvious intended use behind it. You can personally attempt to label this as "common courtesy," if you want, but the rest of us on the forum know it for exactly what it is. It is obviously beyond time you stop kidding yourself. An oral report, with no Ethics Rule "Record Keeping", and no Standards One and Two compliance, just might be a USPAP violation or two. In fact, it is several of them I think, maybe I am incorrect, anyone wish to debate it? I might learn something! I am here to learn!..

The COMP CHECK I believe USPAP is concerned with is the opening of a file, doing preliminary work, research MLS and giving a small range of value for free, in order to "obtain the assignment". That is what I do NOT do.

Well, I guess you sure have that part correct. Because what you describe above would at least be mostly in compliance with USPAP, except doing it while attaching it to become a predetermined value for a following assignment. You, on the otherhand, are completely violating USPAP if you are tossing out casual oral reporting with "Less Than" value conclusions with none of the above at all.

In 1999 I was contacted by some investigators regarding "appraisal fraud", It was suggested that my website contain an "Appraisal Change Order". This was filled out by unsuspecting MB and lenders hundreds of times asking for some very unreasonable and illegal changes. WE GOT IT IN WRITING. Who do you think has provided thousands of documents to the AG offoce to put these guy's on alert? Before you castrate ask.

Fantastic! And you went ahead and did this clandestined act, for the benefit of all the rest of us I suppose, using your own company name on it and leaving it there since 1999 for why? Today you publically declare yourself to be a nine year snitch against MBers that have used your web site huh? Well ehhhhh gosh! Thanks! I do appreciate your hard work! Hope the public declaration does not hurt your business. .. Say, I think you can take that down now off your web site. You've martyred yourself for our cause enough for one day and I bet it's no longer needed... huh? .. Mission accomplished!

I am very humbled to know the real reason a person would make their operations look so bad to others in their trade. It was they have really been helping me. Or people like me in their location. Out of my deepest gratitude I really wish I could have suggested to you sooner that you not use your own business web site for that, and forgo the public admission of your activities. I now only wonder how many of those requests were made by your two best clients that represent 50% of your business? Ouch! Maybe it was the other 50%... I hope so.

Webbed.