Category: Appraisers News

ENV Format Appraisals May be a Violation of USPAP 10

Appraisals in ENV format

From my perspective there seems to be an increase in the number of appraisal requests that require the ENV format. The conversion to ENV of your completed appraisal report is usually not an exact copy of the report which the appraiser completed and signed. Some forms may not convert, other may separate your photos from the text which go along with the photo and the order of the forms in your report may not be the same and there may be other changes to your report. This should be a concern to every appraiser since the client/lender, is not getting...

Reconciliation, Painting a Picture of the Problem & the Solution with Words 9

Paint a Picture with Words

The reconciliation is precisely the place we want to avoid any boilerplate… A common complaint among couples is a lack of communication. “He should have known I wanted that bracelet for my birthday” “She should have known I wanted to have sushi for dinner” “She should be more considerate of my feelings”, etc. How are we supposed to know these things? Are we mind-readers? It would be much easier if we would somehow communicate our wishes with our partners, without having to come right out and say something, but at the same time, it takes away from the spontaneity of...

A Rebuttal to Real Estate Agent's Article Slamming the Appraisal Industry 41

Slamming the Appraisal Industry

A Rebuttal to Real Estate Agent Slamming the Appraisal Industry… Forbes recently published an opinion article that attacked the appraisal industry and placed all the blame on appraisers for real estate transactions falling through due to a “low” opinion of value. The article was written by a real estate agent out of Arizona. While he raises some good points, he is conflating a lot of issues together. 1) He does point out that there are bad appraisals. We all know that. There are bad appraisers just like there are bad agents who have clients list a property far above any...

USPAP Revisions Every Two Years... This Ain’t No Way to Run a Railroad 10

Ain’t No Way to Run a Railroad

Appraisers get frustrated with the constant changes and revisions every two years… Folks, attached is the 1st Exposure Draft of changes to the NEXT “bible” of our industry. Read this over and then send in your comments per the instructions. With this draft, the ASB is desiring to simplify much of the document to make it easier to read and understand. There are numerous proposed edits you’ll see when you read it. They explain their rationale for the changes. This is appreciated. I’m also glad to see they have added to the Definitions the words “State” and “Summarize” which have...

SEC Ruling Impacts the FTC vs Louisiana Real Estate Appraisal Board 0

SEC Ruling’s Impact on FTC vs LREAB

Today’s ruling is a victory for the rule of law and due process… Does this directly impacts the FTC vs Louisiana Real Estate Appraisal Board? Hensarling Applauds Supreme Court Ruling on SEC Administrative Law Judges WASHINGTON – House Financial Services Committee Chairman Jeb Hensarling (R-TX) issued the following statement today applauding a Supreme Court ruling which found that the Securities and Exchange Commission’s (SEC) use of in-house administrative law judges (ALJs) unconstitutional. “Today’s ruling is a victory for the rule of law and due process. Chairman Clayton had already started to move the SEC away from the previous Administration’s overreliance...

MISMO Blueprint... The Evil Octopus - AppraisersBlogs 4

The Evil Octopus

Appraisers, it’s not paranoia when ‘the bastards’ really are out to get you (end us as a profession). …Find each octopus and how they relate to our jobs. Look at MISMO Directors list… An Open Letter to Appraisers: Residential & Commercial This started as a response to a blog post by a respected appraiser concerning the influence of AMCs. During drafting it was clear that trying to explain AMCs was only part of the bigger struggles we face today. Picture a violent “all in” three-way gang fight among Octopi. Say a dozen on each side. That’s 36 Octopi x 8 tentacles...

The problem is, when speed is demanded, proper analysis, verifications and reporting procedures are often compromised or not done by the appraiser just so an artificial timeline can be accommodated 17

Zoom, zoom, zoom is Good for Whom?

…we continue to ask for very quick turn times to outperform the competition… Appraisers, I received a message today from an appraiser who provided the email from an AMC (below). I have redacted the lender’s name (primarily to avoid getting my skin scorched), but it’s a big one in the US that you see in TV commercials, on radio, in print, and social media outlets. The email demonstrates the prevailing and long-running attitude among just about everyone connected to mortgage lending, whether they be AMC’s or direct placement lenders. It originates at the very top of these organizations. It’s a very...

BREA is the Energizer Bunny of Appraiser Abuse - AppraisersBlogs 7

BREA the Energizer Bunny of Appraiser Abuse

The gift that just keeps on giving and giving. BREA is the Energizer Bunny of Appraiser abuse. Anyone following AppraisersBlogs knows I’m no fan of BREA. I helped Zach Schorr humiliate them in court on a daily basis, for five days in a row in mid-2017. That result was that the Administrative Law Judge found myself and codefendant (respondent) to have “credibly testified.”  The states witness to have “embarrassed” herself in testimony and original actions giving rise to the case; and very politely simply concluded that “BREA had not met the burden of proof” for one single charge or allegation....

Fannie Mae Invites VaCAP for a Sit-Down Discussion of Relevant Topics 9

VaCAP Sits Down with Fannie Mae

As many of you know Fannie Mae (along with Freddie Mac) has launched an initiative which they label “modernizing appraisals”. This initiative consists of two distinct facets: 1) “modernizing”, or redesigning the forms which are utilized and 2) “modernizing” the processes involved in producing a valuation including the inspection process, data collection, etc., up to the delivery of the completed report. In the pursuit of this goal Fannie Mae has pledged to leverage stakeholder input, and of course appraiser input is both valuable and critical in this regard. In gathering stakeholder input Fannie Mae reached out to VaCAP, and invited...

Difference Between Price, Cost and Value... What It's Worth 4

Price vs Value

The buyer never actually pays what something is worth… Nobody can deny that there are a lot of issues plaguing the appraisal industry at the moment. I want to talk about one issue that I sometimes see: the incorrect usage of extremely important terms. Many real estate professionals use certain terms interchangeably, even when they have significantly different definitions. Appraisers, unfortunately, are not immune in this crime against clarity. Today, I want to get back to basics and look at the actual definitions of three absolutely crucial terms in our industry: price, cost and value. I think you’ll agree these...

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