Let me tell you about the difference between an appraisal which goes through FNMA and underwriting, gets dropped in the CU system, is likely to get desk and field reviewed, may also end up at the HOC if FHA, and carries a much higher possibility of being subject to claims and complaints, vs a freelance independent order which simply goes to one person and never goes further than that… Different ball game when you have to abide the FNMA selling guide, all the state regs, TitleX, RegZ, FIRREA, answer to the panel manager and underwriting department, all of that.

People whom wish to qualify to write articles about the appraiser profession should need to like take a test on the basics or something. Want to learn what appraisal is all about? FNMA Selling Guide, 1,275 pages. Use Control+F for keyword searches. Front to back, memorize the concepts, then you have taken your first step to actual appraiser qualification.
https://singlefamily.fanniemae.com/media/21821/display

After that we’ll review the HUD handbook, specific state regs for all 3 regulated specialties, dive into Dodd Frank, and FIRREA, some news and real world examples of the most substantial AG penalties which tallied hundreds of millions, how the origination and repurchase engines work, capital funding, liability protection, associated insurance industries and real property compliance standards, zoning coding enforcement, habitability and utility, effective age life principals, construction principals, real property value relationships, the force of the market and the invisible hand. Sometime after appropriate qualification is earned, we can loosen up and talk about the people whom live there. The broken record skips on.

Several good points Bill. BIG difference in assignments today versus years ago is many appraisers do NOT conduct pre-inspection interviews of any kind. Some even think they are discouraged from discussion with owners.

Appraisal “management” companies don’t know the meaning of managing an appraisal. Seriously. They start with a false premise that license level determines competency. They rarely report any factual property data regarding renovations, permits or other important issues.

Their concept of ‘management’ is solely shopping for the lowest fee.

They got rid of using effective ages….the computers couldn’t figure them out…..The C ratings were the dumbest things, all they were really designed for was to find the fraud when an appraiser uses renovated (superior) comps compared to a fixer upper that the lender didn’t want to do construction loans on. This was told to me by an individual who was in the “think tank” to prevent appraiser fraud when appraising fixer uppers and describing it as average to get conventional financing.

Did the property really have NO deferred maintenance, little or NO physical depreciation, was it similar in condition to NEW construction (per UAD definition addendum)? Are appraisers conducting complete pre-inspection interviews days in advance of the inspection date? Are appraisers demanding detailed breakdown of what was done, when it was done, who did it, how much did it cost questions? Are they getting this information before the inspection, so that photographic evidence can taken at the time of inspection? Are appraisers contacting outside agents and conducting similar interviews to gauge the true condition of the comparables they are using? I would rather review an appraisal report with a detailed breakdown of the varying conditions anytime (C3 versus C3 adjustment), versus the easy (lie) method of calling something a C2 when its not.

When people are coached to churn out 4 to 9 appraisals a day, and seek profits over principles, the results speak for themselves.

Seek the truth.

It was a garbage article. Many exceptions to the allegations in the author’s own words.

One thing appraisers MUST STOP doing! Stop ASSUMING racial bias in appraisals exists. Even in this article though not stated as such, a reader is led to believe it exists in appraisal.

Unless you can cite a specific instance of a first-hand observed case of it OR a court finding it existed, STOP saying it does!

Racism of any kind. Even systemic racism that the President confessed to is a scurrilous crime AND a scurrilous accusation.

Just because the federal government has confessed to engaging in it for decades does NOT MEAN that I have or my profession has! I do NOT share ANY guilt in the alleged racism, nor will I quietly acquiesce to such guilt based on my own race.

I am neither proud nor ashamed of my race. I had nothing to do with its determination. I AM proud of my own views on race. Those are things that my mother and father instilled in me at a very young age.

If I like or dislike a person, it is because of their personality…not because of their race. Whether I like or dislike a person’s personality, it has nothing to do with how I appraise their house! It simply is not a consideration.

So….this isn’t a thing: C2:”..Virtually all building components are new or have been recently repaired, refinished, or rehabilitated.”

Guess there is no difference between a full remodel and updated. Yeah, that’s pretty much how buyers view it too. smh

Same issue with quality: Simple square 1950s ranch? Oh well now, that’s a Q3. Doesn’t match up with the Q3 definition, but to hell with it. Its easier with no explanations/discussion needed. They apparently can’t read the UAD definitions and is a major complaint FNMA has for the ratings monster they created. It’s beyond frustrating.

Side bar: 6 point scale that’s effectively become a near meaningless 2 point scale? I would have loved sitting in on that meeting. “So people, no to the 10 point scale that’s been suggested or the 20 point scale for 1/2 degree nuances, no? Ok got it. Let’s go with the 6 point scale that no one has ever rated anything with that John blurted out in his drunken haze at the last office party…perfect.” But I digress.