Another ‘Bad’ Word to Avoid!
To lighten the load somewhat from discussions about current highly restrictive language use in appraisal reports that tends to circumvent actual reality and truth – which can positively or adversely impact property market value, replaced with only generic, non-offensive words, I present this cartoon.
It’s another word to avoid using:
Obfuscation of real and accurate market data using correct written descriptions, replaced with wokeism to foster an unworkable ideological agenda, is one reason why skilled appraisers are shifting their work to non-mortgage lending clients who actually want to understand the true reality of regional and neighborhood areas, and how market values are affected.
Appraisers who work for such clients are respected, and are valued positively. This is the exact opposite of what the mortgage lending arena has become for appraisers who only work in that space.
Plus, fees for non-mortgage lending work are much better than the beat down mortgage lending appraisers endure. This assumes that the appraiser does not incorporate the low pay mentality when engaging with private clients. If you are experienced and have higher level skills, don’t sell yourself short.
Dave Towne on e-AppraisersDirectory.com
- New UAD Overhaul: What Appraisers Can Expect in 2025 & Beyond - September 19, 2024
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The appraisal profession today is unrecognizable compared to when I bailed out in 2009. 95% of your time today is spent on keeping with new regs and forms, keeping up with the latest court battles, etc; leaving 5% for valuation.
Why would there be a reason to use the word “crazy” in an appraisal? I’m confused…
At this time, there is insufficient market support to adequately support the contract price of the subject property. The seller and sales agent are crazy. – There you go. ?
I had one kicked back to me last week for the descriptor ‘mature landscaping’.
Please remove the word ‘mature’.
Clownworld…..Anything and everything now is an offensive buzzword.
I was just told today to drop the term places of worship (which was what we said cuz we couldn’t say church) but now they want – non residential uses or special purpose buildings. I’m tempted to have a set of word meanings to accompany a report just like the UAD descriptions – otherwise the reader would be confused what I mean by special purpose building.
Some people hate religious principals. ‘Non residential, non municipal, non retail, not for profit, non commercial, non agricultural, non governmental, real property with specific (X) zoning for (enter in the local counties official designation for the religious institution property type.)
Appraisers should fall back on county recognition for already established permissible language, as clearly established in various municipal zoning codes which you can transparently include in your reports via copy paste and web hotlinking. Then the word police don’t have anything to justify their censorship of speech. You can say; I encourage (the client) to bring up their objections with this established accepted use of property description terminology with the local municipalities. Because I have merely followed and reported on the accepted descriptive terminology the county uses for this type of property. The selling guides specifically requires appraisers to recognize, and conform to what is customary and reasonable for the local jurisdictions at hand.
That was my primary argument with the one size fits all ANSI mandates as well. Find a work around. Do not let woke politics pervading the lending realm to put a target on your back and subject appraisers to standards nobody else is required to abide. You’ve struck gold when the realty mls listing of any subject property uses ‘prohibited language’. Because it should always be standard report development practice to include MLS listings of the subject property within your appraisal reports for sales requests. That’s when blessed tiny hearts and tinier brains often short circuit. The review gets passed up the ladder, nearly instantaneous report review approval often happens.
Good luck, you’re going to need it. The truth be told is you should probably also elevate the conflict resolution process over and above the reviewer, requesting a reconsideration of company policy on the matter of such overly specific word policing. Appraisers are after all, required to be as transparent and honestly factual in their descriptive terms as possible. What the reviewer may perceive as requesting for supposedly justified reasons could be considered fraud and reporting misrepresentation by others with a more literal pragmatic interpretation of fair housing rules. Hope that helps. Drop the client and sub them out if that’s what they really believe is sound company policy on appraisal review. Then you can tell them; good luck finding other appraisers to abide your policies, you’re going to need it. Two can play this game.
There is a saying; Honesty is the best policy. People whom seek to move this easy to abide standard are dishonest people themselves whom are often devoid of ethic and understanding of ethical principals. We appraisers should be leaders, not followers. Do your best not to acquiesce to their skewed interpretations that a white lie is better than straight forward truth. ‘You want the truth? You can’t handle the truth!’
I did a condominium appraisal for an AMC that the lender was Citibank and the property was a condominium conversion from a Church. So, naturally under original use I put a Church because that is what it was and sure enough they kicked it back to me and wanted me to remove the word Church and “consider using Place of Worship”…does anyone really know the darn difference at that point? And, why can’t I call something what it really was? Is Church a “Bad Word” now? I mean WTF!!
Charlie. They are violating your first amendment rights by policing your language this way. Hard coded into the system by a GSE (government sponsored enterprise), which is supposed to be overseen by congress… See where this is going? They’re getting exited about it too. Just like the Chinese people did during the great purge and final hard step to full communism, aka; the cultural revolution. And it all started with demanding people stop using certain words… In a true socialist society all contradictions to the states supreme authority must be removed, by force if necessary. There is no god, other than the state.
First Amendment
Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.
https://en.wikipedia.org/wiki/Cultural_Revolution
be sure to say it’s tax exempt properties – lol
Old white men complaining about “woke” – that’s a great look for our profession!
A quite adept take at parroting the woke narrative. If you were still in the mortgage lending realm looking out for regular everyday consumers, you’d know this article is in response to a slue of update emails from several gse related clients talking about Freddies latest expansion of even more everyday words everyone routinely uses, now specifically prohibited for appraisers. If realty agents had to abide these rules their listings would be nothing more than some numbers, a few photos, and blank text areas. I’ll post the link below in a second. These policies will reach out to the commercial world soon.
Oh the Irony
Apparently the word “school” gets flagged
Well said.
Twenty years ago as a commercial appraiser I had the opportunity to value two churches. All sorts of worship facilities are bought, sold and financed. So I added “churches” in my resume along with all the other property types I’ve valued over the years. About five years ago I was instructed to remove “church” from my resume and replace it with “religious facilities”. That was acceptable until today when I was informed that “religious facilities” might be offensive. These words are only offensive to COMMUNISTS which I personally find to be offensive.
Have you noticed these tech systems now adopting a different date format, where the year now comes first, just like in China? New rule of thumb; The first day of this month is no longer 11/01/23. You must clearly state; 11/01/2023. Because under the other countries date standards, the date would be interpreted as 01/23/2011.
Communism and socialism is not just on the way. It’s here. Just one problem; We will never go with these new programs or mindsets. Your new constant counter; We did not vote for that! Irregardless of what the mandate, edict, or new thing you are supposed to follow is; If there was no vote, there is no authority to back. Even then, if a law which was voted for is unconstitutional, that law is also null and void. Hows globalism working out for you today?
Pleeeease! The UK uses the “communist” date structure that you find so awful. Let’s not go back to the 1950s with McCarthyism. The sky is not falling and appraisers can adjust if they are not looking for a fight.
The UK is not guiding much policy in America. But China is. Try again.
I like Ike, and am sticking with metric and traditional American date formats. But this is a more modern world and civil rights have advanced. We do not need to revisit these racially based issues every day of the week anymore. We do not need anymore socialism or welfare, or any other special protections for anyone. We need to dial the majority of all that back. But race bating sells, and so does the idea of a free lunch. Which pays very well for those whom are still willing and eager to engage with that rhetoric. Every time a new government program is implemented, every time welfare is distributed, every time some new rule comes forth to benefit one person at the expense of another; someone gets paid much more than most people dare to realize.
https://millercenter.org/president/eisenhower/domestic-affairs
At the end of 1954, the Senate voted to censure McCarthy. Never again was the senator a major force in national politics. During the four years that he had the spotlight, however, McCarthy ruined many reputations by making reckless and unsubstantiated charges. Eisenhower played a significant, albeit limited, role in finally curbing McCarthy’s power.
I forgot to add the new wording recommended: “Non-residential place of gathering”. Such nonsense.
https://sf.freddiemac.com/articles/insights/more-objective-appraisals-a-practical-guide-for-appraisers
Let’s play a word game; How many words mentioned here can one fit into a reasonable and non biased appraisal statement.
I love he uses the word “potentially”. That is subjective. As far as the word desireable. It depends on the context it is used; noun, verb, adjective. I contacted FNMA and they have no problem with its use in the context intended. To use it when necessary such as “the parties may desire a more in depth inspection” is totally permissible. Just put a disclaimer in your addendum rather than having to explain everytime used. Not nitpicking or defiant as some are suggesting in this blog, but if allowed and necessary just use it.
Bottom Line: A.I. is now in charge on giving English 2.0 lessons. Ask the Appraisal Foundation if you will receive college credits.
AI. Merely a program, programmed to act on behalf of the developers intended usability metrics.
Check out this illuminating article. Catch some important insights how ‘artificial intelligence’ (keyword; artificial) applies logical reasoning.
https://childrenshealthdefense.org/defender/chatgpt-ai-covid-vaccine-dna/
The problem is not the reviewers because i think AMCs and possibly lenders, are using canned computer programs that look for buzzwords in a report. I doubt if anyone reads these reports for reviews. One client asked me to remove the word “poor” from my report when i was talking about the “poor condition of the roof”. I refused
Lenders and amc’s may have additional programs to use keyword recognition, but primarily you are talking about the day one certainty reviewer programed and other collateral underwriter programming codes for reviewers. We talked years ago circa 2015 when these programs were implemented how underwriters daily review quotas went from ten to twenty, to forty, fifty, or a hundred or more ‘reviews’ a day. They don’t read reports, that’s what CU and XML requirements are all about.
They submit the appraisal, the review programs scrape all data via xml, and a long list of checklist type review data is put forth. Some lenders have more quality reviewers and underwriters than others. Not sure if this is the right link but somewhere in the GSE review data is the various underwriter material which can help appraisers understand how the review processes work. Try researching the issue as if you were an underwriter looking for guidance.
https://singlefamily.fanniemae.com/learning-center/originating-and-underwriting/collateral-underwriter-learning-center
Examples of ‘additional’ review protocols.
https://www.clearcapital.com/products/clearcollateral-review/
Summary
https://singlefamily.fanniemae.com/job-aid/collateral-underwriter/topic/collateral_underwriter_introduction.htm
This is interesting and a new find I ran across right now looking for links for CU reviewer checklists. I’ll try to make time to review. Some sort of document regarding the 2023 call to letter writing action regarding regulation of avm utilities. Geesh, I was practically begging more people to write letters but only a dozen or less appraisers did so. This appears to be an analysis of that which deserves some additional scrutiny and review from appraisers. Not sure if this is pre letter writing call or after but found it interesting with like a three minute skim review, so posting anyways.
https://files.consumerfinance.gov/f/documents/cfpb_automated-valuation-models_proposed-rule-request-for-comment_2023-06.pdf
Yea, gotten to the rediculous. I used to use “places of worship” non denominational if noted in the defined neighborhood. I was asked to remove any reference to religion. So, in reality, I was told to falsify my report through ommision. Such bs.
Interesting factoid; The HR hiring policies drive much of that sort of gray area stipulation for language use. Looks like you’ve got a woke staff on your hands. Find another lender and you’ll most likely see those stipulations just disappear without any actual reporting language changes. Then again, the reports trade hands between so many different entities, may be best to just assume that all the time. I like to refer to this as color language. Like how in baseball the color announcer will get away from stats and say all those zany things. That’s the color or entertainment value. Just be pragmatic and logical. What was that old tv series; Facts, and only the facts. They don’t want the color commentary. The rub is the review staff may be so poorly educated in grammar and English that they can’t distinguish the difference between accurate description and biased terminology, so they tend to place everything in the latter category which they are not sophisticated enough to understand. That is what ‘woke’ is, a trash bin for the ignorant where everything they don’t jive with from their personal lives is deemed as biased. On this side of the fence referred to as a snowflake. You should see the utterly embarassing language my wife deals with in her job, like people actually type in wat instead of what, axe you a question instead of ask, and other such nonsense. They don’t even know it’s not accurate language use because they spend their entire lives on social networking via mobile devices. The internet; where dreams go to die.
Also, fyi, get a dang browser based spell checker integrated already, it will highlight mis spelled words as you type literally anywhere on the net, so you can then just right click and pick the right spelling. Ridiculous, or redonculous? You’re the quarter back, you make the call! That’s why I like firefox, all those add ons are readily available and easy to use. The about config menu is seriously a cut above anything chrome or ms tools have to offer. Talk to me about anti fingerprinting technology, super cookies, limiting prefetch, predictive, so many others. And then try out privacy badger, it’s super fun, and easy to use. Advanced selections takes you to adblock plus, ublock, umatrix, ghost scripting, other various automation assistant items. Then get malwarebytes alongside S&D. Thanks.
The use of the phrase, “places of worship” is permitted by FNMA. I reached out to FNMA explaing lender push-back and was informed it is permitted by FNMA. Like everything else these days, I include a disclaimer of that correspondence with FNMA in the addendum. I’ve not had a problem since.
I got called out for the same phrase. Which I thought was what they wanted us to use. See link to word chart.
https://wnanews.com/resources/advertising/fair-housing/
Now I’ve been told to say “places of gathering.”
Oh, the ‘Oklahoma press association.’ lol. Let’s give them a quick look with some keyword searches to see if they have a balanced take on current events…
https://okpress.com/search/all.asp?bst=lgbt
https://okpress.com/search/all.asp?c=&bst=trump
https://okpress.com/search/all.asp?c=&bst=vaccine
Oh yes, totally fair and balanced reporting. Certainly a source of information you can trust. Just because someone put together a list and published that list, does not make that list or the content, in any way definitive or enforceable. Challenge the source. Yet more extreme examples of unprofessional behavior, we see a lot of this in the public school section too.
OMG Baggins, This chart is on many different websites. Sorry I chose the one that is from a newspaper that gets your nuts all tied up in a knot.
Come on now. I’m here to help but should not be mistaken for a punching bag. Just because nonsensical data appears at more than one publication, does not make it any more legitimate. Subjective interpretations of fair housing compliant language. What are you doing on that website anyways, find somewhere less obviously biased to get your fake news. Cause as long as people keep buying it, they’ll keep selling it.
Lets look at the four tests of ‘commercial speech’.
https://www.law.cornell.edu/wex/commercial_speech
Central Hudson established a four-part test for whether governmental regulation of commercial speech is constitutional.
First, in order for the commercial speech to be considered protected speech under the First Amendment, the speech must concern lawful activity and the speech must not be misleading.
If this step is met and the commercial speech is considered speech, then the court will use steps 2-4 below to determine whether the government regulation is constitutional
Second, the alleged governmental interest in regulating the speech must be substantial
Third, the regulation must directly advance the governmental interest asserted
Fourth, the regulation must not be more extensive than is necessary to serve the interested expressed in step 3
So right off the bat. A lender is not the government. FNMA is not the government. GSE’s are private organizations with a charter. Saying ‘church’ or ‘place of worship’ is not misleading. What government interests are being advanced here?
‘Places of gathering’? Like a mall, or a shopping plaza or grocery store? So that’s a value in use to everyone whom lives there? If not, sounds pretty darn misleading to me. Failure on three qualification tests right off the bat, and requesting the appraiser to provide misleading statements.
Look at all of this through a lense of constitutional rights. Because despite the activist crowds slanted view of the world, how they would seek to bend the universe to their will, we still have constitutional rights.
I present to you; Ice Cube on Tucker.
https://nitter.net/TuckerCarlson/status/1684385583580209152#m
https://www.bea.gov/help/faq/508
GSE’s are not ‘the government’ per se. Since when do private corporations get to control our speech? Go read the actual law in your state, there will be a list and such of regulated topic matter, but it will not have these long lists of specific words. Those lists are just some individuals subjective interpretation. If they’re not lawyers, they are not licensed authorities on legal interpretation. You may also be able to argue they have gone past the point of ‘administrative review’ of your independent work product. Ask for the lenders specific checklist review forms they use, and to highlight where this sort of language policing is a present prerequisite of administrative review. Perhaps consider sending them the FNMA guidance back on appropriate review as a counter. The appraisal is a legal document. Plain and simple. There is nothing illegal about saying ‘place of worship’. Just include a photo of this building clearly showing what it is, where it is at in relation to the subject, and within the report, state; non residential building (see photo). Include a series of overhead views at a certain magnification where there is often a little description which the map provider places for all the little businesses, churches, plazas, parks, government buildings, etc.
The premise behind this language policing is what is so illogical, just like how an appraiser does not control the state or quality condition of the home itself, neither do we control what is built up around a home or the environmental condition aspects. Omitting data regarding surrounding amenity, or lack there of, is the same thing as ignoring some obsolescence like being next to a cell tower or junkyard.
‘It’s a church, deal with the facts of the real world locational considerations and my honest reporting on the matter, I’m not the one whom built it.’ If you say ‘nice church with a lot of people there’, or ‘another damned church as if we did not have enough of them already’, then you’re in trouble. But not before. Simply describing real property in the area is not biased.
Would the same standards apply if it was a jail, or a wastewater treatment facility? What about a stinky dog park? Would you ignore a playground and beautiful grassy area? You can’t call it beautiful, but an appraiser certainly should accurately depict the environmental factors and area amenities or lack there of. Take the pictures of what’s around the property and include that every time without exception. Accurate reporting has absolutely nothing to do with what is actually there, and everything to do with the appraisers ability to be honest and transparent, to accurately detail area influences every single time without exception.
https://directives.sc.egov.usda.gov/OpenNonWebContent.aspx?content=28946.wba
https://singlefamily.fanniemae.com/media/25891/display
I hope that you did not comply as omission can be interpreted as misleading.
A fellow appraiser sent me the following which was in an order she did not accept. Of note, the fee was $225 and the turn time was 3 days. Scary that for $225 these AMC’s/lenders want a drive-by appraisal with the promise to be an expert witness in the future.
Please copy this URL into your browser to see Stewart Valuation Intelligence’s Best Practices and First Impression expectations:
FHA Order Number: –
Bankruptcy or foreclosure assignment may require the appraiser as an expert witness.
Stop and Notify:
Stop and contact your vendor manager (VM) immediately if any of the following apply:
If not able to provide testimony as an expert witness for bankruptcy or foreclosure assignment, withdraw from assignment immediately.
Seek the truth.
Stop working for AMC and lenders – NOW
If you are naïve enough to accept the assignment make sure you add at least a 1 or 2 in front of the $225 – in all seriousness.
Make sure they also understand there is an additional $200+ per hour fee for court prep time, court appearance, commute time, related expenses and etc.
Also, demand 2-3+ weeks to prepare the appraisal, minimum.
The lenders offered terms for the appraisal demonstrate the lenders pathetic ignorance on steroids’.
Anyone in, or anyone just entering the appraisal field, flee immediately – find another occupation – Now.
This career, especially from this point on will destroy you.
You have been warned.
Oh it’s not that bad. I mean, a constant struggle but once a person can basically memorize about 10,000 pages of government regulation, learn to navigate two or three new and highly complex software platforms, get a handle on being your own dedicated IT tech and assure data security, be good at managing money for a variable $3k to $10k or more yearly expense role, have better than average marketing skills, have better than average research skills, become somehow comfortable with always being the protagonist and having everyone hate you if you stall out anyone’s commission, or alternatively get comfy with the single serving friend routine, learn the ups and downs of liability protection equivalent of that of an actual qualified legal person, and can effectively manage independent tax development to somehow carve out a 5% or less effective yearly tax burden, appraisal is not all that bad. I can’t shake the independence and how great it’s been not having an actual boss all these years. But I don’t have a business, I just have my own job. I’m the ceo, appraiser, and janitor. Which reminds me I need to clean up, my desk and everything around it of late has resembled a dark corner of a long forgotten storage locker. I’m still playing the lottery and never actually checking my tickets. That’s how I hold out on the hope side of things. Wake me when it’s over.
It won’t be long until the word “Master” bedroom and bath is prohibited, if it isn’t already and I just am unaware.
Crazy is a correct word to describe the political correctness society we live in.
Done deal in CT. Lenders won’t accept.
YOU’RE NOT GOING TO BELIVE FOLKS, BUT I WAS JUST ASKED TO REMOVE THE WORD MASTER BEDROOM FROM MY REPORT. WE HAVE NOW REACHED CRAZY LAND.
https://www.newsmax.com/politics/critical-competency-consciousness/2023/12/07/id/1145144/
Related. Blame the woke educators for instilling these beliefs in an entire generation of vulnerable American youth. Critical race theory just hit your desk.
I miss Norm.
https://www.youtube.com/@normshorts/videos
Got a letter today from FNMA. They will be monitoring me now for using the term “good school” in 2 reports.
They kinda gave away their agenda. “… the words used in the report can still influence the reader.”
Translation. Our computer progs can’t distinguish your meaning that would be clear to most humans.
Ironically in the market of these reports, the schools are a major influence. This is how the Appraisal Institute used to teach. You define the location of the property, you then describe the good and bad as to general surroundings, then you demonstrate how these manifest themselves in the market analysis through sales comparisons, etc…
A computer review can’t discern if my statement is true or false. A typical human can and it’s fairly easy to verify.
Oh well…. such is life. “good” is bad.
@Dave — I can’t believe no one has told you not to use “Master”. I got a flood of emails and the MLS even outlawed it.
There are ways around this. We’ve a rich language and can use words that don’t suggest subjectivity. In the case schools, these are usually rated. If you must, state the rating.
Oh, it’s no problem for me. It’s just so obvious how FNMA is diminishing the appraisal process in the name of Wokeism.
My words did not suggest subjectivity. Except to someone that was a hammer and everything they saw was a nail.
So you walk into a 3 Star Michelin restaurant with 5 friends. All of you order a different dish. As you dine, at some point and perhaps many points of the evening, everyone is heard to say something about their dinner was “good”. Is that subjective? No it is not because the restaurant and it’s food has been vetted so to speak. Same thing goes on with every school I have ever heard of.
Their methodology / mindset would suggest that everyone carry an umbrella at all times as it “might rain”.
It’s just foolish.
Tom, I’m not denying the wokism and dumbness that you point out but “good” is subjective. What’s good for me may not be for you. The same 5 persons went to a highly acclaimed movie after dinner. Three of them thought the movie was good and two of them thought it was bad. What was the movie in reality? Well, it depends on individual point of views, doesn’t it?
Movies are a poor example. They are acclaimed by opinion that can not be quantified. Totally about feelings and personalities.
Good in context means successful, of high quality or acceptable standards, etc.. Success / standards can be quantified by facts. Schools have their success and standards or lack thereof constantly measured, verified, and reported as public information.
“Objective” is based on facts and not influenced by personal beliefs or feelings. Note that being objective is based on facts AND lack of bias.
In the context of an appraisal report which is known as a value opinion based on facts and lack of bias. The entire report should be accepted as such and anyone or anything that sets out to read it and form opinions on it should be competent to do so BEFORE they assume it to be otherwise.
In fact my report stated good schools,… available.
Their reprimand only stated “good school” as a forbidden term.
Good school or good schools can be presented objectively and as someone above mentioned reports of the schools success or failures could be placed in the appraisal as proof but I nor you can use the term “good school” regardless. Even though schools are a quantifiable entity. Totally unlike a desirable subdivision, poor whatever, etc..
My only point is that FNMA is not using sound, practical, accurate, nor thorough reasoning in their decisions. I’ve got zero problem dropping the word “good” even in context if that’s the game they have decided to play. I think it’s wrong but pretty sure they don’t care.
I just thought I’d pass along the info in the event others receive a letter. BTW, this was not one of those certified letters they supposedly send out. Just regular mail. Basically a cease and desist letter.
I think the point made was not from an appraisers point of view but from the general public which of course is based on perception. I’m not for over analyzing when it comes to the general public.
Yes you are right. Movies cannot be quantified. I wonder how they keep score at the box office and know how much money and movie has made. Oh well. it is as good or bad at example as the restaurant. It’s all a matter of opinion and feelings. Anyhow, I get your point about the GSEs
They only actually task a human to read appraisal reports at the GSE level if borrowers go under and default on their loans. Be careful what clients you select based on your reporting detail and routines. I’ve had many a panel invite to reverse fha’s and sub prime borrower focused lenders… That is asking for trouble. Remember that advice to escape amc’s, just deal with hard money lenders? ‘Working opportunities’, take them with a grain of salt. It’s cool to give just about anyone a try out. And it’s then glaringly obvious to experienced appraisers, what kind of clients you’re really working with, how they run the consumers, and how much hassle you’ll deal with on the back end after submission. It’s no coincidence that lenders whom do not use amc’s, also treat their customers better. Some days avoiding liability is as easy as avoiding appraisal management companies. After so long, the appraisal tasks themselves become just normal routine. It’s important to work with knowledgeable and qualified people.
The world is doomed. No wonder my children do not want to have kids.
Is that bad as in good or bad as in bad….oh the inhumanity.
The lunatics are running the asylum.
Another word that pops up from time to time is “desire” or any part thereof. The reviewer has blinders (or their review software does”.) and can take it totally out of context. I understand a statement such as “a desirable amenity” is subjective, and I have eliminated that from my reports. However, I have made comments such as “If a more thorough inspection is “desired” by the lender etc.” and have been asked to remove it when it plays no role what-so-ever to the appraisal proper and the request is taken totally out of context by the reviewer. It is not a problem, and I just substituted a more reviewer friendly word. This is a slippery slope when tunnel vision is employed to enforce an arbitrary set of rules without any thought process.
That’s the whole problem with FNMA. They act before they reason.
The ERC process is far superior to anything FNMA has ever done and it eliminates all these so called concerns of equality and bias while providing a better appraisal format that is very easy to complete and read.
Yeah but why would an appraiser use the word ‘desirable’ in the first place? There is amenity, and lack of amenity. There is reduced effective age, and depreciated condition. There is positive market acceptance, or something less than that. There is competition among interested market participators, vs lack of competition factors. The easy way to steer clear of subjective language is to always remember that the appraiser is the market analyst. To understand that human behavior is unpredictable but market trends are indeed readily observable. Don’t talk about the people, just talk about the market. Easy.
Because as far as those value in use factors go, the market participators either getting in, getting by, or getting out, of any particular location know darn well where they are at already. Rendering appraisal specific reporting of that specific nature irrelevant. That’s the great thing about individual home appraisal, we’re looking at the micro not macro scales. Sure from city to city or county to county, then it’s important to describe the factors which bring value benchmarks up or down comparatively. But when just looking at the one smaller segment of the market, some of those specifics are not our concern.
In fact, to presume that ‘desirable schools’ would be a primary priority in real property purchasing decisions, that basically dismisses half of the other sides possible market acceptance based motivations. For the next guy without kids, they may be falling head over heels and doing backflips because finally they found a reasonable home which fits their needs, at a lower price point. One of these days someone will find a way to answer the simple question; What exactly is wrong with low prices? Investors love low prices, that’s for sure and they’re just one of many.
Trends in ‘desirable’ location features change over time anyways, because those are value in use related concerns. When the kids grow up, the parents suddenly start caring about taxes and retirement a slice more than before, back when the schools were the priority. So they sell out and move. Besides, it’s all subjective, what was yesterday known as premier schools for decades and renowned on a national basis as a model educational environment, can all fall apart with the inclusion of politically and ideologically contentious subject matter. We have that here in Colorado and literally 15% of all public school children fled to charters in only a few years time, and over half of all surveyed respondents for children and parents alike adamantly believe the public school system is on the wrong track. Or how about another example like Boulder. People appreciate their security at night but now there is this clean skies at night initiative or whatever, and you can get hundreds of dollars of fines if you leave your porch light on to keep the hippies and vagrants off your lawn at night. What may be elevated value in use to one, is not necessarily how the other person will feel. Therefore; The word ‘desirable’ is irrelevant to the appraisal task. There is only market trends, if the people as an aggregate group, are willing to pay more to be there, or less comparative to other locations. There is elevated market appeal, standard market appeal, and reduced market appeal. And we only make that statement, when there is correlative data to prove such is true. Easy. Don’t think to much into these things.
Cool, just picked up a sale order.
Subject MLS intro listing language;
Welcome home to the desirable neighborhood of…
What happens when I post a copy of the subject homes MLS listing with this language, within an appraisal report?
you have to blur out the language of others – so we’re the police now too apparently.
I don’t have to do anything. And I don’t. At least someone is reading your reports, the automated language scrapers don’t recognize pdf inclusions of MLS listing pages.
Catch 22 the process:
On this date xx/xx/xxxx the client (x) made this specific request to the appraiser:
Blur out the word church from the realty listing document.
Appraisers notes: The word ‘Church’ has now been removed from the realty listing document.
No other report changes have been made.
If they want to get stuck in a redundant loop, inform them they’ll have to specifically include their list of banned words in the scope of work appraisal order documents. Which they will not do because censorship of this nature is illegal.
The root cause of the problem is the lenders not standing up to counter productive arguably unconstitutional gse policies. That’s their problem, not the appraisers. And if they want to cancel the order and argue about fees and compensation, they can pay twice with a new appraisal or field a complaint the appraiser files on them with the state board or even the federal level. Normally they relent because everything the appraiser puts into the final report makes it’s way to the CU database, portfolio investors, and is subject to additional scrutiny by unrelated parties at any date in the future, repeatedly. Appraisers should be copying in exactly word for word the revision requests. If the lender wants any specific language omitted, tell the lender they can’t use that language in their revision requests, because it is your responsibility to be 100% transparent and copy in their exactly language used. What are they going to do then?
Easy solution. Don’t accept assignments for borrowers from protected groups until this attack on appraisers stops.
Actually that’s not a workable long term solution, being simply a different but still equally direct form of discrimination. In fact, such is the sought after reaction why marxists would implement these kinds of systems in the first place, because the lack of equal and fair servicing will be used as justification to replace human appraisers for state controlled automation and bureaucratic minders whom are neither independent nor fair minded.
This protected group approach, as well as the essential worker lie needs to end. We can’t have equal rights, if some people have more rights than others. As a result, many people in our societies are collectively unable to distinguish a right from a privilege or entitlement. This condition is commonly referred to as ‘the welfare state’. By products of this approach include a never ending series of new privileges doled out to some groups but not others, disproportionately distributed entitlements, as well as justifying every party supporter out there to believe they have a duty to the state which requires further and further restrictions other peoples rights. For the greater good of course.
This mindset is the difference between socialistic governance vs a constitutional republic formed around the principals of equal individual rights, liberty and justice for all. Communism is not just on the way, that form of governmental management is already here. Which is why we have a duty and responsibility to constantly educate others on the principals of liberty, a life long commitment. If we don’t personally live by these principals, our society collectively will lose these benefits. Liberty is easy to give away, yet takes a monumental struggle to regain, often requiring great and grave sacrifice which is not even possible absent of a fundamental shift in peoples attitudes where a collective revival of the desire for liberty returns.
What do you call it when literally everyone except you is a ‘protected class’? And then you pay for all their benefits? And then these groups and their allies use their newfound power and privilege to restrict your constitutional rights? And the people play along for fear of reprisal, having deprioritized liberty and our constitution in their everyday lives and decision making processes? ‘Without evidence’, of course. Propaganda does terrible things to the mind.
NDVDF refer to information from the “City.Data.Com” website !!!!
Just took USPAP class part 1 (3.5 hours). I was told for 3.5 hours that I am racist. Do not take McKissock USPAP class!
Calypso has a decent online USPAP if anyone is looking. I took one of their (McK.) classes maybe 20 years ago and swore I would never take another. I didn’t like their education style at all.
Finally got tired of the rhetorrick with the use of “place of worship”. FNMA confirmed it is an acceptable description for use in a report instead of church. Just putting it out there for those who receive endless calls telling you it can’t be used. Ridiculous.
I’ve been inserting my resume’ in all my residential reports for about 20-years now just as commercial appraisers do. Lately I’ve been getting flagged for the word “Bachelor” as in Bachelor of Arts Degree. We just can’t fix stupid now can we!
Will that is quite remarkable. Someone in the world, a perpetually angry person is mad and feelings hurt at the word bachelor. And they’re going to make sure you and everyone else knows all about it. Pure narcissism on display for the world to see. Sounds like you may be out of compliance with the diversity quota checklist.
You may want to subscribe to this mailing list. The fight against DEI & ESG. Consumers Research.
https://consumersresearch.org/
You can no longer say “black” or “white” appliances, which in our market is not as updated as stainless steel and just describing the interior, maybe they will eventually remove all our speech, lest it may offend someone somewhere-
You’re not really buying into that are you? Just type in the descriptive language as you normally would.
If a lenders staff gets ridiculous with language censorship requests, drop them in favor of someone else.
If those people can’t tell the difference between color descriptions of appliances and racism, they’re not the type of people you should be working with in the first place. They don’t deserve the benefit of your services.
The miracles of modern propaganda, courtesy of the GSE’s as their response to radical DEI activists. Because they were too weak and afraid to stand up for American values and constitutional principals. A mind is a terrible thing to waste. The long term opportunity costs of these short term not well thought out decisions will have disastrous consequences.
“The miracles of modern propaganda, courtesy of the GSE’s as their response to radical DEI activists.”
If only Tractor Supply ordered appraisals.
Do you subscribe to consumers research?
https://mailchi.mp/bcc2b491eebb/the-consumers-esg-watch-16222864?
https://consumersresearch.org/wp-content/uploads/2023/03/Consumers-Research-Letter-to-Leadership-ESG-Oversight.pdf
Read the longer linked report in the second link. Would those ‘responsible management duties’ also apply to how the GSE’s are conducting business and attempting to remove human appraisers and replace us with automation?
But wait, it gets better. There is more. The new CFPB final rule for AVM regulations was released last week. They approved every wish list item, there will be only the illusion of accountability. The situation is bleak.
https://www.consumerfinance.gov/about-us/blog/cfpb-approves-rule-to-ensure-accuracy-and-accountability-in-the-use-of-ai-and-algorithms-in-home-appraisals/
https://files.consumerfinance.gov/f/documents/cfpb_automated-valuation-models_final-rule_2024-06.pdf
I wrote to FNMA with a list of words including places of worship, desire etc. I received a very nice reply stating the use is not prohibited by them in the correct context. I cut and past it in my addendum and have never been questioned again. This are arbetreara rules being put in place by the management companies and lenders for their own self serving purposes. Don’t let them get away with that elitist crap.
oh thank you – great idea!
Can you, please, post Fannie Mae’s reply here? I would like to include it in my reports too. Or, could you, please, send it to: grappraisal@gmail.com.
I would greatly appreciate it!!
Newest one – I directed the reader to see the attached MLS listing of the subject property – kicked back for the following – the agent remarked the property was “close” to the town and under seller information it said “not a foreign person” – they want all agent remarks blurred out – even though as I pointed out the purchase and sales uses the term “foreign persons” – they missed the Cath Ceiling though – 😉 (This is just us being the police and putting people on the train cars IMO.) My revision comments “some areas of the attached MLS report have been blurred out per specific request, it should be noted that these requests should not be construed as omissions by the appraiser.” Time to retire.
I would like to see that myself
Just wait another six months for the new President to be sworn in and all this word police nonsense will end.
Correct, 3 weeks until Harris is officially elected 🙂
Stockholm syndrome much?
? ? I’m agreeing with their comment.
Sounds like someone is out of touch with reality. It’ll be okay, fella. 😉
Please forgive if I’m not up to speed with the subtle meanings of emoticons.
Please clarify if you think the ongoing accusations towards appraisers will be amplified by the current administration whom facilitated the PAVE task force, or the other side.
I think the difference is that what you may see as accusations, I see as keeping appraisals unbiased. I think the majority have good intentions and mean no harm. I don’t see anything wrong with keeping certain words and phrases out of the reports.
Appraisals were never biased in the first place. Put down the kool aid.
Silly. We all have biases, so does the work we do. What’s wrong with correcting those that may have an effect on the property value? You’re fear mongering, did you learn that by the 1 term convicted felon? It’s not a good look.
Do you actually believe in the fairy tale that corruption is only on one side and not the other?
Parroting mainstream media does terrible things to the mind.
You’re confusing or conflating the difference between bias and effective judgments which human beings apply in every day activities because we are human. Again; appraisers as a group have never been biased in the ways we are accused of being. I do not ‘effect market value’. Such a position is a false narrative based on a flawed premise. The appraiser reads and reports on the market. We do not set markets. Value is an output, a product of carefully analyzed price data, relayed as accurately and defensibly as possible, backed by real world data, aka; the appraisal work file and market research. The prices which the appraiser analyzes are set by market participators, which the appraiser is not a market participator. Appraisers read and report on market data. No more, no less. The descriptive language we use is for the most part, only there to bridge the gap between the laymen whom does not understand appraisal analysis process, irrelevant really. How would changing language effect mathematical data outputs? The premise is irrational. Always has been. Stop drinking the kool aid. It’s not healthy.
” It’s not a good look.” LOL. That’s a subjective opinion. ….. but hey, a soft coup is not such a great look either.
Touché. They had an unsuccessful attempt in 2020, and I’m sure they’ll try again this time around. I don’t see the Biden regime allowing it to happen, especially given his absolute power by our Supreme Court. More or less walks on water at this point. 🙂