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What verbiage do you use when invoking Tidewater?

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Mike Kennedy said:
"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"[/FONT]


[FONT=&quot]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]


[FONT=&quot][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][/FONT][/FONT][/FONT][/FONT][FONT=&quot][FONT=&quot][FONT=&quot][FONT=&quot]

[FONT=&quot][FONT=&quot]http://insurancenewsnet.com/oarticl...gulfs-VA-hospitals-a-509751.html#.VICg4Gej-ho[/FONT][/FONT][/FONT][/FONT][/FONT]



[/FONT]
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Mike,

I respect you very much, and your position on this. However, the Appraisal Foundation as well as every appraisal regulatory board in the country accepts the Tidewater Iniative as being compliant with USPAP and i have to assume, with Federal Law.

If you think TI is bad, wait until 2016-2017 USPAP comes out with "Draft Appraisals" which is somewhat the same as TI except you send the unsigned report to the client for comment prior to completion of the appraisal. You can find it in Exposure Draft 3.
 
Don Clark said:
Mike,

I respect you very much, and your position on this. However, the Appraisal Foundation as well as every appraisal regulatory board in the country accepts the Tidewater Iniative as being compliant with USPAP and i have to assume, with Federal Law.
Click to expand...

The VA is very lender centric and since its' the gubment, they get whatever they want...does not make it right.
I wonder why Fannie does not get the same consideration as the VA with regard to TW...
 
Just another joke played on the silly appraiser. As a VA appraiser you notify the POC listed on the 1805 form that you "are requesting additional information" in other words the appraised value is coming in lower than the contract price. The POC knows nothing about values except that he/she wants a commission check.

The lender sends you sales of 5,000 sq. ft. homes on ten acres while your subject is 1,200 feet on 80" X 100'. Such a stupid appraiser that you did not consider this. The VA sucks just as much as the others! There is no difference, they all want to bend you over,.............. find another career! I could be wrong, but I sincerely doubt it!:new_all_coholic:
 
Roy Courtney said:
Just another joke played on the silly appraiser. As a VA appraiser you notify the POC listed on the 1805 form that you "are requesting additional information" in other words the appraised value is coming in lower than the contract price. The POC knows nothing about values except that he/she wants a commission check.

The lender sends you sales of 5,000 sq. ft. homes on ten acres while your subject is 1,200 feet on 80" X 100'. Such a stupid appraiser that you did not consider this. The VA sucks just as much as the others! There is no difference, they all want to bend you over,.............. find another career! I could be wrong, but I sincerely doubt it!:new_all_coholic:
Click to expand...


Yep. The "Circulars" are a guide to correct VA appraising. The POC listed on the 1805 may very well be the house salesman involved with the transaction, or the loan broker, or the lender's rep.
Regardless, these folks know about the Tidewater Circular and what it means. If the TW path does not get them a loan facilitation doc, they always have the ROV to drop on your head. And if that does not work, they will use the VA complaint process; typically utilizing the Veteran, Lender and house salesman all in one fell swoop. That will be followed by a call or email from the VA explaining to the appraiser in no uncertain terms, the fine points of the problem at hand and the subsequent solution.
After that beating, the appraiser will not need a doctor....just call the coroner.
Better have an Exit Strategy, this sheet is not going to get better.
 
The negative postings regarding TI suggest incomplete understanding of the process, which prevents lengthy reconsideration request hassles and delays to the veteran's loan application process. It ensures parties to the transaction believe all relevant sales data is considered. Why wouldn't an appraiser share that interest? The long-and-short is appraisers generally consider the best available market evidence. The invitation is to provide sales which support a contract price in a format demonstrating the reason they support the price. The invitation generally results either in no sales provided, sales provided as listings only and not in the prescribed format, or sales which are not comparable. In my experience, I've not yet once received better or additional sales than already considered. The VA's additional sales data requirements make it fast and easy to sort through data and briefly summarize the "point of contact's" response to the TI invitation.
 
I concur, the process actually is a benefit to the appraiser in that it does away with a lengthy reconsideration. I don't have very many notifications but then our market has been pretty strong the last couple of years. The POC should be the SAR and not the real estate agent or loan officer, but...often that isn't the case.

Most of the time, little information is provided that would cause me to change my opinion. It does happen once in awhile and mostly because an agent incorrectly entered sales data on MLS. I recall one where there was an absolutely perfect comp I didn't find. Why? Because the agent incorrectly identified the property as to style and it didn't come up in my search. It did support a value change.
 
USPAP 2014 Definitions
"APPRAISAL: (noun) the act or process of developing an opinion of value; an opinion of value. (adjective) of or pertaining to appraising and related functions such as appraisal practice or appraisal services.

Comment: An appraisal must be numerically expressed as a specific amount, as a range of numbers, or as a relationship (e.g., not more than, not less than) to a previous value opinion or numerical benchmark (e.g., assessed value, collateral value)."

Advising ANY Client of the relationship to a reported (changeable) purchase price - whether above, at, or below a CP$ IS communicating an Opinion of Appraised Value:

in the case of this Thread: "numerical benchmark" is the Contract Price.

i.e. "less than the CP$ Bullseye - send me any information which may help me hit the bullseye -BEFORE I complete and deliver the written report"

mandatorily requires communication of a "LESS THAN CONTRACT PRICE" appraisal opinion. i.e. a DIRECTION in Value

adding the word "Likely" does not change the result. The VA POC is advised that a "less than CP$" OMV has been concluded and communicated on the date the advisory email, portal advisory, phone call or postcard is delivered to the POC.

The add-on Coercive Requirement: "You have two days to provide any info that might change my opinion" - is Collusion. Pure and Simple.

SR 2-3
I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.

— my engagement in this assignment was not contingent upon developing or reporting predetermined results.

— my compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that
. favors the cause of the client,
. the amount of the value opinion,
. the attainment of a stipulated result,
. or the occurrence of a subsequent event directly related to the intended use of this appraisal." E.G. a loan closes.
 
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