Alternatives to Traditional Appraisals
…increasing usage of alternatives to traditional in-person appraisals for valuations in real estate transactions…
A California Judge has ruled Wells Fargo must pay $97 million to mortgage employees for not paying employees for the state mandated breaks. From the article, the Judge sided with the employees and ruled compensation for breaks should include commissions, not just an hourly rate.
Just think, this is one state. Don’t most states have similar laws?
$97,000,000 x 50 = $4,850,000,000
See the article here.
Reminder:
The National Association of Realtors, Real Property Valuation Forum presents:
Rethinking Real Estate Valuation: Alternatives to Traditional Appraisals
The Real Property Valuation Forum at the May NAR Legislative Meetings and Trade Expo in DC will take place on Tuesday, May 15th at 1pm – the day before our committee meeting. This year’s Forum was envisioned by your fellow committee members and Forum Chair @Beth Graham and Vice-Chair @Jamie Moore?? and is titled: Rethinking Real Estate Valuation: Alternatives to Traditional Appraisals – an extremely hot topic for all REALTORS®.
As mentioned, it will be on May 15th from 1:00pm to 3:00pm in the Marriott Wardman Park Thurgood Marshall Ballroom North East. The forum will have panelists from Fannie Mae, Moody’s Investor Services and Clarocity discussing the increasing usage of alternatives to traditional in-person appraisals for valuations in real estate transactions. Panelists will discuss the potential benefits and pitfalls of using data-based valuation methods, as well as desktop or hybrid appraisals, and the effect of these appraisal alternatives on risk in mortgage backed securities, which affects lending generally.
VaCAP has been informed questions to the panel from those attending will be allowed to be submitted to the moderator throughout the event.
To register for this event and get more information, click here.
Virginia Real Estate Appraiser Board Meeting: May 22, 2018 – 10:00 AM
Department of Professional & Occupational Regulation
9960 Mayland Drive
Suite 200
Richmond, Virginia 23233
See the agenda here.
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Next, they’ll be proposing elevated pricing for buyers with higher risk factors…
Ernie Durbin and Clarocity names you can trust when it comes to accurate, honest appraisal information.
Not at all unlike Wells Fargo. Hear the latest? On radio yesterday (AM640 Los Angeles; Ric Edelman Financial); Wells Fargo reported to have settled ANOTHER suit for $346 million without admitting wrong doing. Allegation was failure to report accurate data to shareholders about pending complaints and fines! Wells Fargo Major Shareholder via his holding co.-Warren Buffett Lost ALL credibility as financial guru when he claimed WF was no worse ethically than any other bank.
Hey warren! If that’s the case then the entire banking industry needs to be shut down TODAY! Can reopen when new regs and enforcement procedures to prevent FRAUD are in place.
I’ve asked before why ANY appraiser would work for WF; and why ANY investor would trust them with their money. Now radio personalities are asking the same thing. Despite Buffet’s comments the handwriting sure looks like it’s on the wall for all to see. IF you are one of these appraisers so desperate for work as to still be doing work for WF, then double check your accounts receivables. Make sure the amount owed is an amount you can lose without harm.
Good Afternoon!
MCSV is currently offering a distinct hybrid product to our clients that involve a restricted report.
We would like to extend our hand – beyond the product types that you already cover, to determine if this is something that you would be interested in.
I have provided useful information and attachments below regarding the RESIDENTIAL EVALUATION REPORT (RER).
An RER is a restricted appraisal report that involves a Broker Price-Opinion completed by one of our BPO vendor/Brokers for the purpose of providing an inspection – as interagency guidelines require evidence of an inspection. If the BPO completing agent happens to provide some credible data that an appraiser finds useful in their appraisal development that is fine. Appraiser is expected to develop an opinion of value in accordance to USPAP standard 1. We provide AVM’s and sales data when available and this data could potentially be adequate to provide a credible report. That is up to the appraiser to make the determination. Again, this is a desktop appraisal product with an inspection. When the client places an RER order, we engage a real estate agent or broker that works in the immediate area of the subject property. They will visit the subject property, take photos, and describe their observations about the subject property’s condition and features. They then complete a Broker Price Opinion or Competitive Market Analysis. The BPO or CMA report, including the inspection information is provided to the appraiser along with AVM’s and alternative sales in the area. The appraiser reviews this information and any other information that the appraiser needs and has available to develop the appraisal.
The BPO report and other data that has been provided to the appraiser would not be considered as appraiser assistance. The scope of the appraisal assignment is for the appraiser to complete the appraisal report as a desktop. Inspecting the subject property is not within the scope of work for these assignments. The scope of work determines what is and what is not appraiser assistance. Any information used in the report is data, not appraiser assistance. To illustrate, let’s take a more familiar example, the scope of a 2055 exterior appraisal report is to inspect the subject property and the comparable sales from the street. Other information such as size, year built, room count, etc. will be used from other resources deemed credible by the appraiser to use in the analysis with an extraordinary assumption that the information is correct. If someone who is not the appraiser does the exterior inspection for the 2055 exterior assignment, they are providing appraiser assistance, because an exterior inspection is in the scope of work for the appraisal assignment. The county assessor providing the property sketch, square footage, room count and the listing agent that described the subjects interior condition on a recent MLS listing are providing information that the appraiser may be using, but they are not providing appraisal assistance because measuring the property and inspecting the interior of the property are activities that are outside of the scope of work. Again, if it is a task the appraiser must perform because it is in the scope of work and it is performed by someone other than the appraiser, the appraiser must disclose it as appraiser assistance. Any task that is outside of the scope of work would not be performed by the appraiser therefore would not be appraiser assistance. I hope this answers any additional questions you may have.
There is some room to negotiate the fee based on the market rate other appraisers charge for the product, the scope of work, complexities, and time involved.
We have access to 94% of the MLS systems nationwide and our access to public records is even higher. We provide any relevant data in the subjects’ area that we have available including AVM’s and sales. We also organize and present the data using 5 different perspectives. When there is a lot of credible data, appraisers are able to quickly develop their appraisal opinion using these tools. When the data is more limited and more efforts need to be made to research, it could take much longer. The fee that will be quoted to you is the base fee. If you are assigned an order that will take a lot more research than typical, you are welcome to come back to us with a fee quote.
Another advantage to including a BPO report is that it gives you access to someone that buys and sells properties in the subjects’ specific market area. If you are assigned an order in an area that you are less familiar with you can contact the broker/agent directly and associate with him or her to help gain competency.
The Data entry for the RER is only a free form text box and a place for you to put your value opinion. As far as filling out the form it is not labor intensive at all.
We are experiencing an increase in volume in your state and would greatly appreciate your participation. We also strive to keep our RER panel smaller to help increase individually assigned volume. If this at all makes sense in your business model, we could certainly use a good appraiser in your area. I would encourage you to sign up. If at some point you decided it is not working for you, you can withdraw without any effect on your regular work for MCS Valuations.
Below you will find a SAMPLE report and presentation:
RER Appraiser Facing Presentation
RER Sample Report
RER Appraiser Signature Form
If you have any questions or would like to get started please give me a call to the below phone number or reply to this Email.
Thank you,
Panel Management
Mortgage Contracting Services Valuations
AMCpanel@MCS360.com
BPOpanel@MCS360.com
I think it would be easier to simply mail your license back to your own state regulators and ask ASC to have your name removed from the registry. Anyone thinking of doing these would likely save tens of thousands of dollars in legal defense costs just by surrendering their licenses now.
I had trouble finding anything in the evaluation that is compliant with SR1 OR SR2. I thank Jeff for posting the sample report and email links.
Can’t beat the fee either! $28.50 won’t even cover the cost of sending your workfile and supporting data to the state regulatory board by certified return receipt requested mail.
Risk your license while destroying your profession at the same time. Such a deal!
Inspecting the subject property is not within the scope of work for these assignments. The scope of work determines what is and what is not appraiser assistance.
They throw around a lot of buzzwords they know nothing about and that solicitation reads like a snake oil ad. If they knew anything about scope of work, they’d understand it is always the responsibility of the appraiser to define the scope of work, with the lender, and is never the lenders or clients sole responsibility. See my post today in Christensen’s article; amc’s and lenders fighting. Refi volume is down to 1/6th of what it was a mere 5 years ago. These companies are making desperate bids to substitute their peak volume by driving even more appraisers out of business and pushing hybrid and avm products. They’d sell their own mother down the river and have absolutely no interest in the longevity of the appraisal industry. They will feed off the host until the host either cuts them off or dies from malnutrition.