Where are the review appraisers?

[Kevin Mc]

Okay.



The practical part of appraisal compliance is that the appraiser is the state-licensed individual performing the appraisal, and that the appraiser should not be forcing arbitrary information into an analysis where it does not belong because some third party wants it.

Excellent point. Truth is professional appraisers appraise. Professional appraisers don't bow to anyone's demands if they are not within reason. Most professional appraisers rarely deal with this because they refuse to work with clients who insist on putting square pegs in round holes. It is what it is.

 

[Wingit]

Who chooses your clients? You do! Everyone is absolutely right - it SHOULD be one way, and always seems to be another.

Trainees have little choice about who they work for, but they still have a choice. In my experience, the supervisory appraiser is frequently guilty of bad training and the trainee won't even realize it until he or she submits his experience for a state license or certification.

Financial institutions do indeed use a "checklist." They also use incompetent reviewers because appraisal review is not a priority and they think they are savings themselves money.

Today I called Fannie Mae about a major AMC that has thousands of clients. The AMC violates every rule in the book by ordering desk reviews of residential reports and asking for a value "recommendation", ordered from their approved appraisers. The form they use was developed in 1988 and says so right on the form. A New Jersey appraiser cut the value conclusion reached by one of my roster appraisers from $570,000 to $300,000 without ever supporting the "recommendation." My poor client - its investor recommended requesting the review and suggested which AMC, implying that the review would make the file acceptable despite some larger than typical (read: exceeding guidelines) in the original appraisal (which, by the way was completed by a competent appraiser with 25 years of geographic competence).

So, the client must use the value conclusion reached by the AMC's New Jersey appraiser on a lake property in Wisconsin. The review that was completed didn't even attempt to comply with USPAP Standard Rule 3 and because the appraiser was from New Jersey, even violated state regulations (no reciprocity applied for).

I wish I had a better answer for you about how to deal with incompetent reviewers. Metamorphic, it's not you - they really are incompetent and it is demeaning to have to answer to someone who doesn't really understand appraisal.

You really can't fight it other than to find better clients. They are certainly out there. Turning down assignments is a drag but it's worth it in the long run.

 

[LACKLAND27]

Apparently not everyone knows the answers, otherwise the questions would not have been posed.

The questioner is abused because,

1. It is almost always something they should know or at least know where to look it up.

2. The questioner is to lazy to look it up, read it first, then ask because they dont understand.

3. The questioner often does not get an interpreation of the regulation they were looking for.

4. They fail to understand that we all play in the same sandbox and collectively this group knows more then any individual.

For the record, give me an example of abuse by posting a link from the form

For the record I would say your items 1-3 make my point and fulfill your request for an example perfectly. Item 4 is the point that’s why they come here for that knowledge. :icon_idea:

If you don't want to help them that's your call. m2:

Can't say that I blame you sometimes. I was just making and observation, not a judgment. :new_smile-l:

And remember (see below)

 

[LACKLAND27]

Linda,

What happens when you get an appraisal on a complex property? That's mostly all I do and based on many of the comments we get from many reviewers you'd think it was the first non-tract appraisal they'd ever seen. It seems pretty clear from this side of the telephone that they skim along a check list that says "comps should be less than...adjustments should not be more than..., etc etc" As soon as you violate that standard they call you and let you explain the report to them in detail over the phone rather than reading the same explanation that you have already written into the report. It seems like the system punishes the appraiser that puts in the extra effort to do the job right (rather than just punting and putting down what will pass through without making waves) by making them go through the review ringer with an ill qualified reviewer that cant be bothered to read before they pick up the phone and waste more of your time. Just a pet peeve of mine.

I have found that when dealing with the same underwriters it helps to try and educate them on certain details that may typically exceed guidelines in your market area. In the long run it really pays off. And I always state the explanations of the items most likely to get that phone call in 2 or 3 places. This way if they still miss it and you “kindly” show them it’s in there 2 or 3X and make a joke of it, they feel little embarrassed and generally remember to look next time. But it’s always the new client and/or the new staff at an old client that drives you crazy with the nonsense.

An AMV risk assessment is like Russian roulette, sometimes they take one in the head sometimes the borrower or the appraiser does and sometimes no one gets hurt.:new_2gunsfiring_v1:

 

[Carnivore]

Lackland, (is this somehow related to Lackland AB?)


Here is an example of why posters of questions get abused. You can see that Lee is trying his best to be civil and not mean spirited to a person who refuses to read USPAP let alone pay a little bit of attention in their USPAP update classes.
The level of frustration of the regulars is so high and understandable when so many come here looking for a fast and easy way out of there problem. They do this oblivious to the fact they are poorly trained and dont even know it.

So how would you have Lee answer the question other then point the blind person in the right direction!

http://appraisersforum.com/showthread.php?t=150269

OK...let's try this:

The copy of the USPAP that you either have in your office or can access online includes a section titled "USPAP Advisory Opinions". If you will turn to AO-26 (fyi: it has been with us for some time now), the subject of "Readdressing (Transferring) a Report to Another Party" is handled quite nicely.

For anyone who might have interest, AO-26 has been with us, I believe, since 2003.

 

[Carnivore]

I have found that when dealing with the same underwriters it helps to try and educate them on certain details that may typically exceed guidelines in your market area. In the long run it really pays off.

Its not my job to continously have to deal with UW's who are poorly trained and unable to understand 4th grade level writing. Lenders are power users of Appraisal products. When I write reports for civilians I use much more detail on things I know they understand and leave out tough processes that only confuse the civilian reader.

I did not dumb down the UW's. Its not my job to educate them. Unless you want to pay me for my time!

 

[RustyLingerfelt]

It would appear that we continue to talk about the same things minimum training by both appraisers and appraisal users. The appraiser uses a rule book that the client does not have to deal with, understand or follow. They make up their own rules and if they require some sort of 42 page add on so be it and you should treat all properties like they are 1500sqft homes within a 300 home development with 32 comps within six months that vary less than 3% in all aspect of the market form so that they can still stick it to ya when the loan goes into foreclosure cause the person(s) who bought the home can't pay for the crazy loan they got. Then it is reviewed by some guy who may be an appraiser or may not who is doing a "review" from 20 states over for $50 and will never see the subject, never have any competency in Standard 3, AO 20 or any of the other things we follow or know if it is even allowed by their license level cut the value as we all know that's how you can tell they are doing a good job.

Yet, we wonder what is going on with our industry as calling this a profession would be a long walk.

Read, learn and do. It is my opinion that only CR's or CG's should be allowed to do review work, that would mean that they have at least 3 yrs experience in GA have taken at least two test beyond registered level and had at least two USPAP classes in their life. They might even had a live class with other appraiser where they could ask question during break. This might help as some of the review work I have seen is two steps down than most of the appraisal work I see and that is not saying much.

Rusty

 

[Wingit]

Carnivore, I disagree. It's part of my "job" to sell my services, manage my business, pay the bills, follow the rules when I employ others, and a multitude of other things. I go out of my way to provide excellent customer service because that's how I develop and maintain my reputation. I've received new business from formerly belligerent reviewers who appreciated my patience and willingness to work with them.

When I develop an appraiser roster for my clients, I can't afford to recommend appraisers who refuse to work with me. It doesn't matter if I think the lender or client's demands are unreasonable - I know the regs are set in stone. I'll use appraisers with undeveloped/inferior work products knowing their appraisals will eventually conform to the requirements of my clients, JUST because those appraisers are willing to talk to me, listen to my suggestions and help ME do my job.

Working with the reviewer IS part of the job.

USPAP requires that the appraiser state the intended user of the appraisal report. As you said Carnivore, the report should be written so that the intended user can understand it. Rarely is the intended user an appraiser. Example: I read reports referring to "white box" finish - how the heck does a credit manager with an accounting degree (yeah, that might be the person reviewing your report) understand what that means? At the very least, provide a glossary of the terms you use.

Cloning appraisal reports causes all kinds of problems when the information pertinent to the subject doesn't get changed from one report to the next. Inconsistent data throughout the report is maddening - which piece is correct? I often feel like I am required to read an appraiser's mind - I try to make sense of the report before I pick up the phone but when there are three different site size references, am I supposed to call the municipality and find out which is correct? Isn't it the appraiser's job to provide that information? Do you know how often I see "irregular" in the dimensions section of the URAR - within a minute I can go online and see a picture of the lot on a plat map - only occasionally is "irregular" an accurate description. Or, I see "unknown" under dimensions, but the appraiser included a metes and bounds legal description that gives every dimension of the site!

Every appraiser conference I have ever been to includes a cacophony of complaints about two things - the clients who don't understand us, and the other appraisers who are being allowed to disseminate bad work products. As an industry, we need to grow up, be more professional, and understand that appraising is not just form filling.

When you read as many appraisal reports as I do, the good ones really stand out. I estimate they amount to 5% of the reports I read. The rest of them are interchangeable except for the addresses and borrower information.

Just doing the minimum amount of work isn't going to cut it in this lending climate. If you are not making a serious effort to attend the best appraisal courses, networking with the most respected appraisers and looking at your own work product with a critical eye, I don't think you'll be working in this business for long. The appraisal world is changing.

 

[The Warrior Monk]

It doesn't matter if I think the lender or client's demands are unreasonable - I know the regs are set in stone.

Part of the problem with getting appraisals ordered through third parties (MBs, AMCs, etc.) is that the lender requirements are not supplied to the appraiser. Of course, they become identified after the fact.

Just doing the minimum amount of work isn't going to cut it in this lending climate. If you are not making a serious effort to attend the best appraisal courses, networking with the most respected appraisers and looking at your own work product with a critical eye, I don't think you'll be working in this business for long. The appraisal world is changing.

I agree. Appraisers should have been doing this all along.

 

[TC]

Just doing the minimum amount of work isn't going to cut it in this lending climate. If you are not making a serious effort to attend the best appraisal courses, networking with the most respected appraisers and looking at your own work product with a critical eye, I don't think you'll be working in this business for long. The appraisal world is changing.

Does that include being designated? Educated? Experienced?


TC