Tagged: scope of work

4

Backseat Driving

A large lender has recently amended their appraisal policy regarding comparables. The table below was taken from their general information Correspondent Bulletin. The change greatly expands what and how an appraiser filters data. It appears as though this lender wants to stand over the shoulder of the appraiser to make certain that the filtering is to their liking. It brings backseat driving to a new level. Imagine driving someone to a destination and having to provide a detailed list of every possible route to this destination as you arrive. Imagine having to provide detailed routes that you never seriously considered...

Question your appraisal fees 5

How Much Do You Charge for a 1004?

Question: “Care to reveal the minimum fee for a ‘typical’ 1004 + MC in your area?” Had an interesting email come in yesterday. It came from a friend of mine in the appraisal industry and began with this question, “Care to reveal the minimum fee for a ‘typical’ 1004 + MC in your area?” The message went on to express some concern over some of the shenanigans that was going on in his own area concerning AMCs, low fees, and appraiser’s willingness to sell themselves short. Unfortunately, the same is likely going on in every community (yours included). Though the...

2

Memorandum to Kentucky Registered AMCs Regarding Appraiser Independence, Objectivity, and Impartiality

From: Larry Disney, To: Kentucky Registered Appraisal Management Companies and Credentialed Appraisers, Date: March 29, 2012 Subject: Appraiser Independence, Objectivity, and Impartiality The Kentucky Real Estate Appraisers Board staff has received calls from Kentucky credentialed appraisers in the past two weeks concerning the following issue that is being propagated by Appraisal Management Companies: When appraising one unit residential properties and reporting the results of the appraisal development using a 1004 Fannie Mae form, the appraisers are told that if the cost approach is developed and reported, regardless of reasoning, the appraiser shall not consider the opinion of value developed via...

0

New Appraisal Assignment?

An appraiser receives an assignment involving a purchase contract on a short sale. The short sale price is $150,000. The appraiser concludes an opinion of value at $180,000. A week later the lender wants the appraiser to amend the appraisal to reflect the renegotiated contract that pegs the property at $180,000. As an aside, the lender would not provide the new contract. First, is the lender’s request automatically a new appraisal assignment? AO-3 offers useful guidance: Regardless of the nomenclature used, when a client seeks a more current value or analysis of a property that was the subject of a...

0

CHASEing USPAP

Chase has turned a lot of appraisers into state appraisal boards. They’ve been responsible for nearly 20% of the Illinois caseload since 2008. The volume ebbs and flows from one quarter to the next. Not all of their complaints are good. Then again, not all of them are bad, either. All of their complaints insist that the original appraisal was too high. In their complaint submissions to us, they generally include a letter to the original appraiser that predates the complaint by months. In Chase’s complaints to us they typically include an appraisal review of some type. The standard review is a form 2000 as completed by an Illinois appraiser. Sometimes those reviews...

NAR Letter to Regulators Regarding AMC Indemnification Clauses 0

NAR Letter to Regulators Regarding AMC Indemnification Clauses

Calling for a ban on the use of indemnification clauses used by AMCs On August 11, 2011, National Association of REALTORS® (NAR) President Ron Phipps sent a letter to federal regulators calling for a ban on the use of indemnification clauses used by appraisal management companies (AMCs). The letter was sent to Federal Financial Institutions Examination Council (FFIEC), the US Department of Housing and Urban Development, the Federal Housing Finance Agency, and the US Department of Veterans Affairs. Dear Secretary Donovan, Secretary Shinseki, Chairman Matz, and Acting Director DeMarco: I am writing on behalf of the 1.1 million members of...

Tutorial webinar video 6

How to Create a UAD Format Report & UAD Sample URAR

Where is the new UAD format report? Lately, we have been receiving a lot of emails from appraisers confused about WinTOTAL and TOTAL 2011’s Uniform Appraisal Dataset (UAD). Many think that they need to download a specific file, even though their software is up to date. “Where is the new UAD?”, we’ve been asked! So we prepared a short video tutorial explaining how to create URAR report in UAD format in WinTOTAL. You just need to make sure your software is up to date. Watch the video below:   T.J. McCarthy has made his “Sample URAR in UAD Format” available...

Appraisers Assignment Conditions 3

Client Assignment Conditions & Appraisers

Client Kickbacks No, it’s not what you think. We’re talking about when a client kicks your report back to you because you did something wrong. Or did you? I was looking over a recent ServiceLink order that came in on a complaint. There were 32 requirements spelled out for the appraiser to follow. A four page order sheet with an 8 hour turn time for $200. Eerything was laid out from who could inspect to “your report must include photos of all 4 sides of the subject dwelling” (which is a cute trick for an inside rowhouse or townhome). Let’s...

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