What verbiage do you use when invoking Tidewater?

[Oh No Not Him]

Well, my comps #1 & #2 were included in the brokers data that I received today......and very good value indicators (same lake, very close proximity...which is rare in my area), and they sold for tens of thousands less than the subject contract price.

 

[TN Pro]

Well, my comps #1 & #2 were included in the brokers data that I received today......and very good value indicators (same lake, very close proximity...which is rare in my area), and they sold for tens of thousands less than the subject contract price.

Its always a little strange when the agents send data to support the contract price that doesnt actually support the contract price at all.

 

[Jim Onderisin]

I email the POC and follow-up with a phone call if I receive no acknowledgement. "My determination of the subject's reasonable value does not support its contract price. Pursuant to the Tidewater Initiative, you have two business days to fax or email three sales, along with an explanation of the reason(s) those sales support the price."

 

[CindyR]

I email the POC and follow-up with a phone call if I receive no acknowledgement. "My determination of the subject's reasonable value does not support its contract price. Pursuant to the Tidewater Initiative, you have two business days to fax or email three sales, along with an explanation of the reason(s) those sales support the price."

It was my understanding you were supposed to invoke tidewater before you arrived at a value conclusion. No?

 

[Jim Onderisin]

How could I initiate the Tidewater procedures if I didn't know my value opinion was lower than contract price?

 

[Don Clark]

It was my understanding you were supposed to invoke tidewater before you arrived at a value conclusion. No?

What was stated does not constitute a value "Conclusions".

This is what is in my letter:

"Please be advised that the subject property will likely not meet the contract price."

Not likely to meet a contract price is not a value conclusion. It is a possibility of not meeting some aspect of the request.

 

[Terraform]

Is this for real? Are we obligated to contact the POC when the value is not supported?

 

[Tim Hicks (Texas)]

We are obligated to contact the POC and have them supply any data they would like for us to consider. We are still the appraiser and make the decisions regarding what sales data is most relevant.

It is possible they may have data you have not considered. It is highly unlikely, it has never happened for me, but it could happen, maybe...

I just state that the my current sales data does not appear to the support the contract sales price and VA guidelines require me to request any sales data for me to consider and they have 48 hours to submit the data to me.

 

[McPheeters]

Is this for real? Are we obligated to contact the POC when the value is not supported?

Yes. Gives them a chance to use their Louisville Slugger...

 

[Mike Kennedy]

"2014-08: APPRAISAL DEVELOPMENT – SUBJECT PROPERTY SALES HISTORY
Value Conclusion Below Contract Price
Question: I recently submitted an appraisal report to an Appraisal Management Company (AMC). The value conclusion in the report was below the contract sale price. The AMC, acting on behalf of the client, sent me the following request:
“Discuss the lack of support for the contract price, considering the subject’s features, any changes in market conditions between the contract and effective dates, the details of the contract, etc., which you believe may have contributed to the issue. If there is no apparent reason for the lack of support of the contract price, state that within you report.” Do I have to respond to this request to comply with USPAP?
Response: USPAP compliance does not specifically require the appraiser respond to this particular request, but it does require that the appraiser to analyze the pending sale and summarize the results of that analysis in the appraisal report.
An appraiser is not engaged for the purpose of supporting a contract price, but rather to form an opinion of, in this instance, the market value of the subject property.
The appraiser must comply with the Conduct section of the ETHICS RULE, which states, in part:
An appraiser must perform assignments with impartiality, objectivity, and independence, and without accommodation of personal interests.
Standards Rule 1-5(a) requires the appraiser to analyze all agreements of sale (if available in the normal course of business). The Comments to Standards Rules 2-2(a)(viii) and 2-2(b)(viii) state, in part:
When reporting an opinion of market value, a summary of the results of analyzing the subject sales, agreements of sale, options, and listings in accordance with Standard Rule 1-5 is required.
If the above requirements have been met, the client’s request may already have been addressed. If the appraiser has not met the requirements, then the client’s request is valid in terms of lack of disclosure of the analysis of the agreement of sale. As previously stated, the appraiser’s opinion of value should be supported, not the difference between the contract and the opinion of value.
[FONT=&quot]2014-15 USPAP Q&A October 28, 2014"


If any other lender, AMC, or party with vested interest in "doing the deal" demands an Appraiser "stop work, dont send the appraisal report and notify us immediately if the contract price bullseye cannot be hit" - That requirement is illegal and unmistakable coercion.

[/FONT][FONT=&quot]
Attempts by parties with vested interests in a mort[FONT=&quot]gage finance transaction [/FONT]to INCREASE "independent" appraisers' opinion of value occasionally enabling Veterans and their families to purchase over-valued properties are Illegal. ......

Except when done by parties with vested inte[FONT=&quot]rests in a [FONT=&quot]V[/FONT][/FONT]A loan.
[/FONT][FONT=&quot]
Tidewater is what it is - Coercion. It must END.


[FONT=&quot]The same VA[FONT=&quot] Administration that requ[FONT=&quot]ires Appraisers to v[FONT=&quot]iolate U.S. Federal Laws governing the appraisal process [/FONT][/FONT]is finally [FONT=&quot]under the media micros[FONT=&quot]cope.........

[FONT=&quot]http://insurancenewsnet.com/oarticle/2014/05/27/scandal-engulfs-VA-hospitals-a-509751.html#.VICg4Gej-ho[/FONT]
[/FONT][/FONT][/FONT][/FONT]



[/FONT]