Not to mention that FHA has now REQUIRED the appraiser to be a glorified home inspector. Why does FHA require appraisers to inspect appliances, mechanical equipment, inspect the attic and crawl space. In TX the Inspection standards of practice has about 20 items to inspect on a Dishwasher, not to mention required safety hazards. (so does the appraiser know about these safety hazard requirements?) When attending an FHA seminar, I brought up that Appraisers could be held liable if we inspected a mechanical system and didn’t follow TX Inspection standards. (Like not required to inspect A/C below certain temperature, could damage equipment) Her response (from CO) was that FHA protected the appraiser and wouldn’t hold appraiser liable. Seems to me that when homeowner, finds out that the appraiser inspected the condition and the condition appears different when they move in. WHO is the attorney going to sue. As a previous home inspector (15 years) I can tell you their is a big difference in looking at roof from ground than from the roof or if the roof was leaking. FHA should leave condition to home inspectors NOT appraisers. The instructor stated that I should take my name off the FHA list, I stated that we wouldn’t do FHA appraisals anymore. I also informed her that as an instructor for FHA she should inform FHA that we appraisers are NOT home inspectors are will never inspect the home to the degree inspectors do. It boils down to FHA trying to save money let appraiser try and wear both hats. Look at FHA requirements for inspecting home, ridiculous.

Mike good point. FHA states they want us (not me anymore) to do this extra work to insure the buyer is not putting out any more money in the first couple of years of the loan. I also say if they are that “concerned” about the loan then they should make it mandatory that a Home Inspection is required and given to us before we go out to make the property observation.

Wondering if you had any thoughts as to why FHA does not do this. Could they not just roll it into the loan?

Thanks for listening.

Just my thought and thanks for listening.

Wayne, I can’t be mad at someone just because I disagreed with a single post. Besides, your emails made you a “human” Lol!

I absolutely agree re we should be in driver’s seat. It’s not as simple as one would think though.

Biggest problem is our innate independence and distrust of each other as a profession. Stems from the old days when we actually did real, meaningful field reviews or peers work I think. Anyway, there is distrust.

The one organization that all looked to do something (AI) abdicated early on in favor of AMCs. They are paying the price for that now in declining membership. They abandoned their residential members in favor of MAIs that now felt a need to compete on the SFR side of business via AMC relationships.

Almost all legislation has been self-serving of special interests.

AGA has worked closely with ASA on some issues (CA AB 624 for one-stopping it initially). We have gotten to a point where federal agencies will listen to us now. I have received direct calls from executive director of Appraisal subcommittee and yesterday from President of NAR. We are gaining a voice.

I hope you will join us.

Don’t disparage Dodd Frank.

When the violation is actually of TILA, which is managed by the cfpb, and it DOES enforce TILA against agents.

Perhaps,some appraisers should check their USPAP required COMPETENCY for knowing and understanding the laws and regulations that apply to the assignment.

You may be in a he said/she said scenario, however, these thing have patterns that regulators can follow.

What a crazy business we are in! Today I renewed our advertisement in the local phone book. It is our company and two other companies in this silly book. There are approximately 75 active appraisers in our local market. Why are we paying for this advertisement when we cannot possibly accept any more work than we have now? That is a strange question as the other two companies listed in the book are as busy as we are and attempt to refer business to us all of the time. I suppose that I am from the old school and want to be on top of the mountain! Why would 75 appraisers not put an advertisement in the phone book while three of us do?

I actually know the answer and it is that we want to be known in our market as a major player. We may not take an assignment but we want to be offered the assignment. Yes…it is a crazy business!

That works too!

I also know Texas appraisers that have broadened their services (after training) to equipment; personal property etc.. Nothing wrong with that. I too have a love hate relationship with FHA. Every decade or two they stick their heads of their rear ends and plan appraisal policy requirements. I dropped them once when they insisted ONLY Marshal and Swift be used for costs; and now again because I’m just not crawling up in attics or under houses. I could do it in my forties and even early fifties but now it’s not an option I’ll exercise. I’ll not risk my health under a house or in my case the possibility of (another) heart attack under a house where none would even be aware of it. Not likely, but still a possibility.

If HUD wants to know whats working in a house or in an attic or crawlspace then HIRE AN ASHI certified HOME INSPECTOR! As an appraiser I ASSUME everything is working unless it’s obviously visibly broken or I’m told otherwise.

You just gave others in many parts of the country ideas on how to expand their businesses Kudos.

Bill, I cant do 8 of the old style 704 drive bys (before 704D) in a day. Back in the day my record for inspection in one day including all comparables was 6. It did NOT include write ups. It’s also the same day I decided (some time in 1991 or 1992 I think…maybe 1993) I’d never even try to do more than four drive by “inspections” in a day again… and most times there after I limited myself to two-three maximum. It’s simply two much data to keep clear in your mind – so more detailed notes are required which then limits the number that can be done.

My understanding is that Dustin has a staff that pulls comps and transmits data to him. Apparently he writes template reports in mobile appraisal software and then transmits or uploads them back for rest of PR or pure form filling stuff to be filled in – then later he does adjustments. Presumably the drones also run the regression analyses. Not my style and I can find all kinds of problems with the model for ME. But it doesn’t mean HE can’t do it. I’d raise my eyes at claims of more than 3 under his system too though. MAXIMUM and even then on a twelve hour day with all properties being fairly close….unless he also has a co pilot entering info while he dictates. So, all told if you have three or four people working on the appraisals it is STILL taking 6 to 8 man hours to complete each one.

As for creating or promoting a false image on what we do and how long it takes, you make a hugely relevant point. Even in Dustin’s scenarios I have to ask is he really using comparable land sales or developing market extractions for land or merely assuming tax assessor ratios are right? Highest and best use analysis?

god blessed texas – Google Search

Wayne I get & accept the point you are making but Texas is also the kind of place where a single ranch can encompass nearly two full counties! How many of those 74 counties are like that?

Baggins, I’m sorry they treated you that way. Labeling a person unfairly as a racist is almost impossible to defend.

I remember when OCWEN was based in Bangalore, India and the incredible difficulty in dealing with people that (understandably) had no concept of the American Real Estate market.

I completed an international consulting assignment not long ago involving valuation of property in Delhi, India as well as future possible valuations in Pakistan, Bangladesh and many southeast Asian areas. Real estate and real state appraisal is NOT handled the same as it is in the USA (huge understatement). The goal was to develop a credible process.

In addition to the basic differences in underlying fundamentals such as metric measurements; Vedic based numeric counting; and a purported complete lack of GLA reporting for comparable sales there is also the underlying two tiered ‘market’ to consider. (1) One is the official public market in which Government Agencies establish a so called Circle Rate that property is not permitted to be sold below (yes-that’s right); and (2) the private, non published “real rate” or grey market rate at which property actually sells at. A rate at which one has to take various participants ‘word for it’ as “verification”. Acceptance of this ‘process’ also includes widespread innate acceptance or willingness to circumvent government regulations on a pick and choose basis.

Opposition to foreign involvement in managing the real estate processes in America doe not make one a racist. There are many challenges to overcome in delegating purely American processes to overseas firms; and miscommunication is a rule rather than exception. Miscommunication is not racism.

Usually, we simply do not have the time or financial incentive as appraisers to reeducate those in another land speaking English as a second language; and working off checklists, all the nuances associated with real estate transactions in America.

Its why the OCWEN model was such a failure despite their vendor-vendee association with agencies of the U.S Government (Treasury Dept.).

The unintended consequences of allowing the profession of real estate appraisal to be micromanaged by profiteers is much farther reaching than most of us ever imagined.

The constant acceptance of something less than full compliance with MINIMUM standards has lead to a widespread belief among all participants that “good enough” is an acceptable alternative to professionalism and adherence to standards.

Even state regulators have adopted a “good enough” philosophy for themselves in coercing settlements against appraisers. Rarely does a USPAP compliant review appraisal precede the ‘finding’ of guilt and proposed stipulation agreements. We REALLY need to reclaim our profession.

A good start would be to refuse to provide reports in any format other than pdf or hard copy (for a higher fee).

Marion had posted event after event and link after link about this companies ever and exponentially expanding correlative industry activity and holdings on the AF.  They’re quite literally the monopoly company in charge.  They’re into gse, servicing, preservation, review, origination, repurchase, credit reporting, governmental, and they literally have a monopoly presence in the industry and a hand in everything.  Seeing the little red box is code word for a company which is above the effective rule of law.  Be afraid, be very afraid.  One simple action would correct companies like this;  Fines based on income.  Fines based on income would incentivize the free market to finally be able to effectively police these monopolistic international giants.  I remember when Corelogic amc bought Quantrix.  They swapped me from a MI rep to an India rep overnight mid order (along with hefty fee chops immediately).  I asked to speak to an American stateside and was subsequently blacklisted and had all orders pulled as ‘being a racist’.  Just wait until they levy all that data taken from MLS Matrix systems to take the reigns of the FNMA CU system.  My crystal ball is glowing, and I just viewed the eye of sauron.

Hi Baggs,

CoreLogic is a company that used to be reasonably good at what they did. That was as a data aggregator of public records information derived from county tax assessor and county recorder information. They were about as reliable in reporting sale dates, amounts and document numbers as any of their competitors, since all used the same basic source data.

Then they branched into other areas where they had little or no expertise including appraisal management (by purchasing RELS). They are frequently cited as some type of ‘expert’ in reporting purported real estate trends however the very nature of their source data (unfiltered or non appraiser filtered public records derived “market data”) renders their views, studies and opinions suspect.

The underlying assumption appears to be similar to FNMA’s that Big Data washes out or diminishes market anomalies and errors in recording data.

Many appraisers report substandard appraisal fees and the same kinds of intimidation tactics used by RELS before CoreLogic bought them.

There use of and subsequent publication of a market trends report citing over a million appraisals as source data suggests the allegations of wrong doing may have some substance to them. Information on that ‘study’ was previously published in this blog. To date, to my knowledge no appraiser has every come forward stating that they authorized their appraisal to be used by CoreLogic for their own market studies.

Certainly CoreLogic never came forward and explained how they obtained or reviewed millions of appraisals before they bought Rels.

Bill…I have never met Dustin or Joan. I have had a few email chats with Joan and she seems to be a nice lady. However she is only interested in promoting her agenda which puts the dollar into her pocket. But…who could blame her? We have so many parasites in this industry that all want you and I to pay dues, fees, etc. How many different appraisal groups are there? Many of these offer a silly designation if you bark three times and howl at the moon! NO one knows what all of these designations mean and no one gives a rats ass whether or not you have the designation. You are paying for a bunch of crap!  Really, I do not care…send your money and send your money again! No client seems to understand what the designations mean. No one cares and we can only do one assignment at a time and gee how many of these do we turn down in a week?….I understand that many appraisers are not that busy. All I can say is to market your services until you are busy. There are more appraisal assignments that you can possibly do. All you have to do is market yourself until you are busy as hell! If you are thinking AMCs…you may as well send your certification back to the state. You are totally on the wrong track! Go after real clients and let your loser competition do the AMC thing! Best wishes to all!

To answer Mike’s comment above about making the 50% LTV loan for Jose…Like I said this is not a trick question. A 9% return is very appealing and worthy of consideration. Some of the issues I would be concerned with is the employment of Jose with the Democratic party! LOL! Also the fact that Dustin did the appraisal with Joan signing off. Dustin seems to be able to do a bunch of appraisals every day. Hell…I have been doing this for 35 years and cannot seem to average one assignment each day. Is he that much smarter that I? (somehow I doubt the hell out of that!)

My 8 year old grandson is in the third grade G&T class at his school. He and I play speaking to each other in German and Spanish. Neither of us are good at it but just for fun!

If someone could coach this old dog to the point that I could do 4-5 appraisals each day…I would be as rich as six foot up a bulls ass!

Mike, just today AppraisalBuzz (Joan Trice) posted a rehashed blog post from Dustin’s site (a couple months back) titled “Never had a Raise in 20 years? BS”. I had some long winded comments on his site to the matter. To me it reads like propaganda, however to those executives who take it as gospel, every appraiser can complete 3 to 8 assignments per day and we all make $500,000 a year (Dustin’s posted tax returns). To me Dustin is like the Cul-de-sac on the 4th of July (Beneficial, desired, popular) where everyone hangs out, (some positives), however if the property also backs the freeway and a gas station, then the other 364 days it may be considered adverse.