For Clarity Sake
Once again I find myself harping on the original intent of USPAP.
The purpose of the Uniform Standards of Professional Appraisal Practice (USPAP) is to promote and maintain a high level of public trust in appraisal practice by establishing requirements for appraisers. It is essential that appraisers develop and communicate their analyses, opinions and conclusions to intended users of their services in a manner that is meaningful and not misleading. (quoted from the Preamble of USPAP).
Why is it then that GSE’s can then dictate forms, like the MC Addendum (or affectionately known as the Market “Confusion” Addendum)? Of course the “market conditions addendum” I have railed on before, the inherent difficulty of trying to suggest a trend from a very small sampling of data is that erroneous assumptions and statements are made in an attempt to try and gain an understanding from information that has now been mandated by the guardians of the industry.
It is like being asked to evaluate the ocean by analyzing a teaspoon of water under a microscope. While this may be a fascinating exercise in microbiology it could easily produce erroneous results for an oceanographer.
The ever popular UAD (Universally Audacious Development of irrelevant facts) which was published by well meaning, well educated individuals who were clearly not appraisers.
The idea of creating a system of rating condition, for example, is a good idea. The problem is that since the majority of appraisers can not handle the concept of a property that typical for its market area is rated as “average” condition, is not really going to handle the idea that a home that was built in 1950, with no updates in the last 15 years, but in market accepted condition is now rated a c4 rather than a c5.
Think of it is this way, when you want to communicate to a child you do not devise charts and graphs and hand them an appendix so that they can figure out what you are trying to say. No, instead you use commonly understood words, phrases, and concepts. You “paint the picture” and “walk them through the logic” so that at the end of your attempt at communication the point has been made and the information received and understood.
An appraiser rarely has the opportunity to be reviewed by another appraiser, but must constantly train, explain, and provide further clarification to an industry that is now filled with new players, with new rules, and new ways of communicating the information. This was all done for the sake or creating a clear and simple process?
The function and role of the appraiser has now become even more important, because now even more they need individuals who understand the process and communication of results, but also can translate the definitions and through processes that have been imposed upon the residential mortgage appraisal industry as a whole.
See you around the water cooler!
