Where Do You Think "geographic Competency" Begins And Ends?

[Joe Flacco]

That is pretty funny given that the current system, that so many want to defend so vigorously, was largely based on the needs/wants of the current users (e.g.. Fannie Mae forms).

That's all good and fine but we can't throw consumers under the bus to give the users what they want which is speed.

 

[Renee Healion]

That is pretty funny given that the current system, that so many want to defend so vigorously, was largely based on the needs/wants of the current users (e.g.. Fannie Mae forms).

It is so ingrained. I see reports done for courts where appraisers comment on guidelines which are GSEs.

 

[George Hatch]

Your argument is that by complying with standard 1 that geocompentecy is acquired, as a result, it does not matter where the appraiser is located. It's backwards thinking.

The big threat to your URAR business isn't the out-of-state appraiser; its the appraiser who lives a couple blocks away from you who decides to exercise his/her prerogatives. It's the appraiser who spent 20 years in your region then retired to Bali and who now works remotely. And who can afford to live on $1500/month.

 

[Eli]

I think that with some people there is a falling in line type of activity when it comes to ideas. Not just with this topic but many others. Politics.

I can understand having different ideas. As far as this one goes I can't be convinced that a appraiser being local does not have value when it comes to reliable valuations for residential real estate.

They are pushing for commercial elimination first.

Multiple choice poll. Check all that apply, and I'm leaving the "allow voters to change their votes" box checked so if you change your mind you might be able to change your vote.

This is a question about competency, not about licensing; so for the purposes of discussion please disregard all licensing and liability issues. Those are legitimate concerns, but they're also a separate concept and merit their own threads.

Other assumptions that are necessary to ensure we're working off the same playing field include:

- assume the assignment in question involves an SFR that's typical for its community
- assume you have access to the same data sources any local appraiser would have access to
- assume you have the technical competency to appraise that property type if it was located in your own back yard.
- assume your SOW does not involve having to move to that location


We're not referring to ALL property types and amenities an appraiser might run into, just the ones that most all of us already know how to do. Think typical SFR, not some uber custom on a lakefront or the morphodite trouse that Bobby Bucks lives in.

George, do you work for AMC’s?

If so, which ones?

 

[Peter LeQuire]

Have the statistics changed about the causes of mortgage default? Or, beyond that, lender experience with default losses attributable to deficient appraisals? Seems to me that lenders, users of appraisals and securities traders find the need to deliver income-producing securities quickly provides an incentive sufficient to offset any risk associated with the existence of a full-blown, 3-approach appraisal done by a "geo-competent" appraiser, that risk of default is more dependent upon the circumstances (income loss, in particular) of the borrower (not of the appraiser).

 

[Joe Flacco]

The big threat to your URAR business isn't the out-of-state appraiser; its the appraiser who lives a couple blocks away from you who decides to exercise his/her prerogatives.

I wound down my business before Thanksgiving so there is no threat to me. A lot of you guys are not seeing straight to me.

 

[Eli]

Have the statistics changed about the causes of mortgage default? Or, beyond that, lender experience with default losses attributable to deficient appraisals? Seems to me that lenders, users of appraisals and securities traders find the need to deliver income-producing securities quickly provides an incentive sufficient to offset any risk associated with the existence of a full-blown, 3-approach appraisal done by a "geo-competent" appraiser.

I agree. But from a public trust standpoint and overall risk standpoint from many different risk sources,

Different ballgame.

People who should have went to jail are still rolling.

 

[djd09]

Appraisal Institute Criticizes Appraisers Who Fail to Meet Geographic Competency Requirements

CHICAGO (Aug. 18, 2009) – In the wake of reports that some real estate appraisers are performing appraisals despite lacking sufficient knowledge of the local market, the Appraisal Institute today chided those who violate the profession’s ethical or professional standards. The Appraisal Institute is the nation’s largest association of real estate appraisers.

“The Appraisal Institute is very proud of the well-deserved reputation for excellence its members have achieved,” said Appraisal Institute President Jim Amorin, MAI, SRA. “We won’t allow that reputation to be tarnished by appraisers – whether they’re our members or not – who breach ethical or professional standards.”

Since the May 1 implementation of the Home Valuation Code of Conduct, some appraisal management companies have hired appraisers for assignments outside of their geographic regions, where they sometimes lack (and fail to obtain) the knowledge required to perform an accurate appraisal. Some of the resulting appraisal reports have led to complaints by realtors, builders, lenders, brokers, home sellers and buyers.

“The Appraisal Institute expects and demands its members to strictly adhere to its Code of Professional Ethics,” Amorin said. “We will take disciplinary action against any member who violates our organization’s geographic competency ethics requirement. Non-member appraisers should strive to achieve the same level of ethical behavior.”

https://www.appraisalinstitute.org/...l-to-meet-geographic-competency-requirements/

I like how they try to tell the non-members what to do.

.

 

[George Hatch]

They are pushing for commercial elimination first.



George, do you work for AMC’s?

If so, which ones?

I've never done a single assignment for an AMC. I haven't done an appraisal report that got submitted to a GSE for at least the last 25 years. I don't own an appraisalware suite, and if I do a URAR or a 2055 the version I use is on Excel and won't upload into an xml or other digitized format. i think it's been a couple years since the last 2055 I've completed and longer than that since the last URAR. I use a completely different format - of my own design and layout - for all of my forms work.

 

[Eli]

I've never done a single assignment for an AMC. I haven't done an appraisal report that got submitted to a GSE for at least the last 25 years. I don't own an appraisalware suite, and if I do a URAR or a 2055 the version I use is on Excel and won't upload into an xml or other digitized format. i think it's been a couple years since the last 2055 I've completed and longer than that since the last URAR. I use a completely different format - of my own design and layout - for all of my forms work.

The read I get is intended use and user is an excuse. Bad excuse when the client is a criminal that got bailout.
Your being played in my mind GH. Your naive to me.