Dustin Harris - The Appraiser Coach

Be Nice or Be Quiet

Dustin Harris — Fri, 02 Jul 2021 12:30:59 +0000

It’s never helpful for anyone to be mean. Even when we’re “anonymous” and hiding behind a keyboard, we need to be nice… Back in the 1980’s an American minister by the name of Robert Fulghum published a series of essays in a book titled All I Really Need To Know I Learned in Kindergarten. One lesson that we should have all learned back in kindergarten, or before, is to “be nice”. Many of us did learn to be nice, but some of us need to re-learn that same lesson. The online world of social media (Facebook, forums, etc.) has made...

ASC Data Breach Involving Social Security Numbers On October 13, 2022, the Appraisal Subcommittee discovered a data breach that occurred on the new ASC.gov website. The incident…
The Censorship of Appraisers Thirty-seven hours after President Biden took the oath of office, White House officials met with executives at social media companies.…
Freddie's Study, NPR Story Recall Notable Academic Hoax NPR topped the online edition of its article with the headline, “Black and Latino Homeowners are About Twice as Likely…

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Being Liberal with Values Hurts Homeowners

Dustin Harris — Mon, 28 Jun 2021 12:30:25 +0000

Why can’t it just be accurate instead of “conservative” or “liberal?” Just be precise in the way you do your job… Some people might say a public forum isn’t the place to air this dirty laundry, but this is not really a public forum. Of my thousands of readers, very few of them are not in real estate appraisal. Right now, I’m talking to the bad apples. Maybe you’re in a situation where you want a lot of volume and want to be the go-to person for the local mortgage company or local bank, and you want to keep them...

Automatic Review of Photos in Appraisal Reports It means the statements in your appraisal reports about the actual component material, and its quality and current condition, can…
The One-Mile Rule: Prudent Policy or Modern Day Redlining? ...whether through redlined maps or implicit "one-mile rule," the result can be undervalued properties in historically marginalized neighborhoods. Throughout the…
Appraisal Reviews for $3 - The Devaluation of Appraisers Appraisal reviews for $3 each and 1-2 hour turn times. It’s hard to imagine any appraiser accepting these terms, and…

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Why Are Appraisers Banned?

Dustin Harris — Thu, 15 Apr 2021 12:30:33 +0000

I just got out of an interesting conversation I had with my CPA. Eventually, our conversation veered onto the topic of work. I was curious about what it takes to get into his field (not that I’m interested in getting into it at all). We talked about our respective professions and about changes occurring in the real estate appraisal field. We got into talking about what it means to be a CPA, which is different than being an accountant. A CPA is an accountant, but an accountant isn’t always a CPA. He said anyone can hang up a shingle and...

Bringing Evaluations Under USPAP's Umbrella Evaluations: Concept Paper, Webinar, Public Meeting In early August, The Appraisal Foundation announced that the The Appraisal Standards Board would…
Appraisers Should Never Do Evaluations ...users of evaluations knew & accepted that if they obtained evaluations in lieu of real appraisals that they were getting…
Alternative Evaluations... Good or Bad All of these "alternative evaluations" are an attempt to reduce the fee of the appraiser... All this talk about alternatives…

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I Reserve the Right Not to Serve You Anymore

Dustin Harris — Mon, 01 Feb 2021 13:30:03 +0000

Dude, I Reserve the Right Not to Serve You Anymore! OK, let’s face it: real estate appraisers are in the service business. We provide a service – real estate appraisals. We provide those services to anybody willing to pay for them. That’s what service providers do. To which you say, “Dustin, you have a deep grasp of the obvious.” Well, let’s go a little deeper. Part of what I do is stay in touch with local real estate brokers and appraisers. Some of us have a local restaurant we frequent. At the front door is a sign letting all patrons...

The Power of No! Appraisers always had the power to end the appraisal management pyramid scheme. All we had to do is say no.…
You Should Be Insulted... A good friend and appraiser colleague of mine in the midwest sent me this appraisal order request from Better Mortgage…
You Are a FEE Appraiser Not a FREE Appraiser you are a FEE appraiser, not a FREE appraiser. Do not continue doing business with AMCs who don’t pay you…

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Can an AMC Tell Appraisers How to Dress?

Dustin Harris — Wed, 09 Dec 2020 13:30:04 +0000

I recently saw a Facebook post where an appraiser was quite upset and offended that an AMC asked him to dress professionally for an appraisal walkthrough. Now, this was a request that was made up front as one of the conditions for accepting the order. Reading the post, it sounded like this appraiser was upset for two reasons. One, he was offended that the AMC was implying that he does not take his job seriously enough or dress professionally enough. Two, he felt like the AMC did not have a right to tell him how to do his job (i.e....

Fannie Mae Filed a Complaint Against Me An appraiser shared the following with us which was posted on one of the appraisers’ groups. Fannie Mae filed a…
The New & Improved Fannie Mae “FRAUDULATOR 2.0” Originally known as Fannie Mae’s Collateral Underwriter (CU), and subsequently Collateral Underwriter 2.0 (CU-2)i this always dubious product of Fannie…
The Great Debate on Appraisal Fees She included several different fee split examples indicating AMCs retained as much as 70 percent of the total appraisal fee…

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Sex Offenders & Appraised Value

Dustin Harris — Fri, 13 Nov 2020 13:30:26 +0000

“You know there is a half-way house for sex offenders in the neighborhood, don’t you? It’s about two blocks away from the subject”.. OK. You’re well and truly involved with your research on a job that’s already late. You think you’ve got all your due diligence-bases covered. But you call the broker to confirm on last detail and she asks you, “You know there is a half-way house for sex offenders in the neighborhood, don’t you? It’s about two blocks away from the subject”. Needless to say, you are taken aback! No, you had no clue there was such a facility two blocks away from...

Security Bars Removal Law Debunks Alleged Racial… Complainant stated appraiser told them they should remove security bars from windows. Complainant stated this is evidence of "racist discrimination"...…
Uncovering Flaws in FHA Appraisal & Loan Review Process The story of this single mother's harrowing experience with a defective home purchase and HUD's negligent oversight exposes deep flaws…
The Real Cause of the Home Value Gap Is the Income Gap Blaming appraisers for the income gap will never solve the real underlying problem... Blaming appraisers for the income gap is…

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Photos in Gated Communities Can be Tricky

Dustin Harris — Fri, 09 Oct 2020 12:30:36 +0000

Let’s talk about assignments in private neighborhoods, gated communities, or secure communities. Rich folks buy, sell, and refinance their homes, too, so they need appraisals. You have an assignment in a security community. There is security at the entrances, you must be on security’s authorized visitor list to get in, and your permission to enter this private community extends solely to visit your subject. So, here is the question: while inside this gated, secure community, do you also drive around and take photos of the comps? Now, even though you are reading this, I can see you looking at me...

The New & Improved Fannie Mae “FRAUDULATOR 2.0” Originally known as Fannie Mae’s Collateral Underwriter (CU), and subsequently Collateral Underwriter 2.0 (CU-2)i this always dubious product of Fannie…
USPAP’s Typical Buyer Standard in the Fair Housing Era The Irreconcilable Conflict Between USPAP's Typical Buyer Standard and the Current Fair Housing Compliance Regime. Retain this document as a…
The Real Cause of the Home Value Gap Is the Income Gap Blaming appraisers for the income gap will never solve the real underlying problem... Blaming appraisers for the income gap is…

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Is a Model Home Considered Occupied?

Dustin Harris — Thu, 17 Sep 2020 12:30:26 +0000

Two days later the underwriter emails you ordering you to change “vacant” to “occupied” since there is clearly furniture in the house… Here’s a situation you’ll run into once or twice in your career. There is a new subdivision. Now, new subdivisions sometimes have model homes. Model homes typically have furniture, fixtures, and equipment – usually upgraded. The subdivision has completed its sales program and the developer is now selling the model(s). Your job is to appraise one of the models, since the developer has it under contract to a retail buyer. You do your inspection thing, take pictures of...

The Illogical Reality of Mortgage Appraisal Reviews Reforming the appraisal review process is essential to maintaining the integrity of the real estate market and protecting consumers and…
Appraisal Reviews for $3 - The Devaluation of Appraisers Appraisal reviews for $3 each and 1-2 hour turn times. It’s hard to imagine any appraiser accepting these terms, and…
Eminent Domain Attorney Review How Does an Eminent Domain Attorney Critique and Review An Appraisal Upon Which His Client’s Just Compensation Is Based? Attorneys…

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To Pay or Not To Pay, That is the Question

Dustin Harris — Fri, 21 Aug 2020 12:30:11 +0000

Should appraisers pay to be on an AMC’s approved appraiser list? Is this one way to get new clients? If an AMC solicited you, would you check it out? Now, I work for some AMCs that, frankly, you might not choose to work for. That’s fine. It’s a choice we all make. Understand that most of the areas I work are rural, so AMCs are generally willing to pay more because of this. Some AMC are very demanding. Yet, when I meet those demands, I get a lot of well-paying jobs from them. Recently, a new AMC asked me to...

The New & Improved Fannie Mae “FRAUDULATOR 2.0” Originally known as Fannie Mae’s Collateral Underwriter (CU), and subsequently Collateral Underwriter 2.0 (CU-2)i this always dubious product of Fannie…
The Great Debate on Appraisal Fees She included several different fee split examples indicating AMCs retained as much as 70 percent of the total appraisal fee…
It’s Time to Take Out the Junk: AMC Practices Exposed Appraisers have spent years carrying the weight of broken AMC practices, and this article pulls every one of those practices…

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Will Big Data Put Appraisers Out of Business?

Dustin Harris — Mon, 13 Jul 2020 12:30:46 +0000

Part of the boom in the availability of data has led to companies such as Trulia and Zillow who claim they can “Zestimate” a home’s value instantaneously. But can your potential customers trust such value? In the old days, if a homeowner really wanted to find out how much their property was worth in the current market, they called an appraiser. Our customers understood that a licenced and qualified appraiser is trained, experienced, knowledgeable, and unbiased in his or her own marketplace. In the past few years, the Information Age has flooded us with data; lots of data. Big data...

The Town With No Bank: How Rural America Lost Its… For decades, we’ve been told that the problem is demand. That people don’t want to live in rural America anymore.…
Fannie Mae Filed a Complaint Against Me An appraiser shared the following with us which was posted on one of the appraisers’ groups. Fannie Mae filed a…
The Great Debate on Appraisal Fees She included several different fee split examples indicating AMCs retained as much as 70 percent of the total appraisal fee…

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Not a Get Out of Jail Free Card

Dustin Harris — Fri, 22 May 2020 12:30:16 +0000

It is not misleading to use a 1004 form for a desktop or a drive-by because, during these convoluted times… In talking with Tim Andersen, a USPAP instructor and long-experienced appraiser, I was reminded that, even in the time of C-19, USPAP applies, and appraisals must still be credible. Reports must still not mislead. USPAP has never required the appraiser to inspect the property. That is a lender construct. So long as your scope of work is clear relative the level of inspection you provided, and why that was your scope of work, you should not have a problem. Note...

Are Floor Plans in Your Future? A floor plan is supposed to be included in Desktop & Hybrid reports. How will that be done? Appraisers, I’ve…
Diatribes Against Appraisers What’s even more frustrating to me is none of the well-known appraiser organizations have offered any public rebuttal to any…
VA Alternative Valuation Methods On August 1, 2022, the Veterans Affairs released Circular 26-22-13 announcing new procedures for alternative valuation methods, effective immediately. The…

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Final When You’re Not the Original Appraiser

Dustin Harris — Fri, 28 Feb 2020 13:30:49 +0000

When You Complete a Final and Were Not the Original Appraiser First of all, let’s clear the air of any initial confusion that could be potentially floating around out there. It is absolutely okay for an appraiser to complete a final for a property when they were not the original appraiser on the original report. It is perhaps slightly more unusual, but completely ethical. However, there are a few issues that an appraiser could potentially run into if they are completing a final for a report where they were not the original appraiser. I am going to talk about one...

USPAP Appraisal Reviews in 15 Minutes? $15 USPAP Appraisal Reviews in 15 minutes? A VaCAP member shared with us something they read in an appraiser group…
AMC 1004D Update Shenanigans Why wasn't the original appraiser asked to do the 1004D Update? Here it is the new year, and the potential…
Fannie Mae Filed a Complaint Against Me An appraiser shared the following with us which was posted on one of the appraisers’ groups. Fannie Mae filed a…

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Is That an Arm’s-Length Transaction?

Dustin Harris — Mon, 23 Dec 2019 13:30:16 +0000

USPAP does not define the term arm’s-length transaction. Fannie Mae also lacks such a definition. Yet, both of them call for the appraiser to use only arm’s-length transactions as comparable sales… How often do we appraisers get into the mode where we think we know it all? Occasionally, do we need to step back and look at the way we do things, just to make sure we are not missing something? Is what we know to be true and correct really true and correct? I raise this issue relative to the concept of what an arm’s-length transaction is. Are we...

Data and Verification Sources Are Critical The genesis for this essay began when I heard from another appraiser that a VA report reviewer rejected the comparables…
The Illogical Reality of Mortgage Appraisal Reviews Reforming the appraisal review process is essential to maintaining the integrity of the real estate market and protecting consumers and…
The New & Improved Fannie Mae “FRAUDULATOR 2.0” Originally known as Fannie Mae’s Collateral Underwriter (CU), and subsequently Collateral Underwriter 2.0 (CU-2)i this always dubious product of Fannie…

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Are Reports Intellectual Property?

Dustin Harris — Fri, 18 Oct 2019 12:30:01 +0000

Recently one of my Mastermind students asked about Intellectual Property. He told me that he’d had an associate leave his firm to go solo. Later, he was reading one of his former-associate’s reports and found the now-independent associate’s reports looked a lot like his in format, and even language. My student asked me if this was wrong. Well, I’m not a lawyer, but there are some sound issues to consider here. If you write something, if you are its author, it is your intellectual property. You can either trademark it (like a logo), or copyright it (like a novel). We...

It’s Time to Take Out the Junk: AMC Practices Exposed Appraisers have spent years carrying the weight of broken AMC practices, and this article pulls every one of those practices…
At Federal Agency, The Mayhem Is the Message Mullinix has become a student of the “Title VIII Complaint Intake, Investigation, and Conciliation Handbook (8024.1).” The handbook is designed…
FNMA Ensnares Appraisers in Farcical Probes You feel like Fannie Mae is simply trying to get rid of appraisers. A lot of appraisers feel that way...…

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Can We Stop Taking Comp Photos?

Dustin Harris — Fri, 27 Sep 2019 12:30:40 +0000

I personally do not think that appraisers should be required to take comp photos… First, before the hate mail starts rolling in, let me assure you that I understand the requirements surrounding comparable photos, and I do take them as an appraiser. I am not here to debate what the policies are, but I am here to question if those policies should be in place. I personally do not think that appraisers should be required to take comp photos. Modern technology has provided appraisers with a way to know as much about a property from the comfort of their own...

Is the GSE's "Appraisal Modernization" Really Just… Mass Appraisal tend to exhibit a regressive nature... In the intricate landscape of real estate mortgage financing, the notion of…
The New & Improved Fannie Mae “FRAUDULATOR 2.0” Originally known as Fannie Mae’s Collateral Underwriter (CU), and subsequently Collateral Underwriter 2.0 (CU-2)i this always dubious product of Fannie…
Fannie Mae Filed a Complaint Against Me An appraiser shared the following with us which was posted on one of the appraisers’ groups. Fannie Mae filed a…

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Who Can Complain About Appraisals?

Dustin Harris — Thu, 20 Jun 2019 12:30:03 +0000

Time to get on my soapbox and complain about a complaint filed against me (not a charge, but merely a complaint). I did an appraisal of a multi-family property near my office. The property owner/borrower called me to complain about the appraisal since it came in far less than she thought it should (not unusual). Clearly, I could not answer her questions since she was not the client. This upset her greatly, so she filed a complaint with the State. The complaint had no basis in substance. In fact, the complaint was that my appraisal was too low. Since neither...

Phony Low-Value Complaints ALL unintended users are specifically excluded from any right of reliance on this appraisal report... Recently, Mr. Steve Kahane, Board…
Frivolous & Retaliatory 3rd Party Lawsuits Appraisers are routinely coerced & intimidated by third parties to violate their independence and integrity... Honorable Committee Members: We are…
Frivolous Complaints Against Appraisers TALCB noted that roughly 70% of all complaints against appraisers are unfounded... The American Guild of Appraiser recently wrote to…

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Different Properties on the Same Form?

Dustin Harris — Wed, 22 May 2019 12:30:59 +0000

Are you appraising the retail values of 10 sites to 10 different owners? Are you appraising the bulk or discounted market value of the 10 sites to a single purchaser? Can the Same Form Have More Than One Property on it? Lots of folks have asked me, “Dustin, can I appraise two different properties on the same appraisal report at the same time?”. Now understand I am not a USPAP instructor, I am an appraiser, so I’m going to answer this question as best I can. The question before us is legitimate, and one which I had to answer recently....

Should Adjustments Actually Be Done? How much credit should we give ourselves when it comes to making adjustments? Making adjustments is controversial. USPAP says nothing…
Promoting False "Racist Appraiser" Narrative Some Lenders promoting false "racist appraiser" narrative to optimize profits via AVMs Like most businesses lenders want to optimize their…
Is the GSE's "Appraisal Modernization" Really Just… Mass Appraisal tend to exhibit a regressive nature... In the intricate landscape of real estate mortgage financing, the notion of…

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Appraising Where It is Warmer

Dustin Harris — Wed, 10 Apr 2019 12:30:31 +0000

I found that there are not really any appraisal laws… There was a point when I was seriously considering the possibility of moving to Belize. I live in a cold climate so the prospect of living in a warmer area for at least part of the year appeals strongly to me. However, after visiting Belize, I quickly realized that – while I love the country – I personally do not want to live there – mainly because their cost of living is higher than I had been told. That being said, while there, I did quite a bit of research...

Security Bars Removal Law Debunks Alleged Racial… Complainant stated appraiser told them they should remove security bars from windows. Complainant stated this is evidence of "racist discrimination"...…
USPAP’s Typical Buyer Standard in the Fair Housing Era The Irreconcilable Conflict Between USPAP's Typical Buyer Standard and the Current Fair Housing Compliance Regime. Retain this document as a…
Promoting False "Racist Appraiser" Narrative Some Lenders promoting false "racist appraiser" narrative to optimize profits via AVMs Like most businesses lenders want to optimize their…

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Should Adjustments Actually Be Done?

Dustin Harris — Tue, 02 Apr 2019 12:30:20 +0000

How much credit should we give ourselves when it comes to making adjustments? Making adjustments is controversial. USPAP says nothing about adjustments – it does not require us to make them. They are a GSE construct. So, should we real estate appraisers stop making adjustments? Clients pay us for opinions of value, so our adjustments are really opinions based on what the market tells us (or that’s what we should base them on), but they are still opinions we form; they are not facts we find. So, maybe, should we stop making adjustments? We derive our adjustments from sources such...

Is the GSE's "Appraisal Modernization" Really Just… Mass Appraisal tend to exhibit a regressive nature... In the intricate landscape of real estate mortgage financing, the notion of…
Fannie Mae Filed a Complaint Against Me An appraiser shared the following with us which was posted on one of the appraisers’ groups. Fannie Mae filed a…
It’s Time to Take Out the Junk: AMC Practices Exposed Appraisers have spent years carrying the weight of broken AMC practices, and this article pulls every one of those practices…

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What to Tell Borrowers in an Inspection

Dustin Harris — Thu, 14 Mar 2019 12:30:35 +0000

It can be hard to know exactly what to tell a borrower sometimes in an inspection when it comes to repairs. For example, if you see chipping and peeling paint in an older home, and it is an FHA inspection, do you let the homeowner know that there is a good chance that their lender will ask them to repair it? While it is probably not a big deal either way, I see both pros and cons to both sides of this issue. If the borrowers seem kind and agreeable, I typically will tell them about the repairs. It gives...

Promoting False "Racist Appraiser" Narrative Some Lenders promoting false "racist appraiser" narrative to optimize profits via AVMs Like most businesses lenders want to optimize their…
Fannie Mae Filed a Complaint Against Me An appraiser shared the following with us which was posted on one of the appraisers’ groups. Fannie Mae filed a…
Uncovering Flaws in FHA Appraisal & Loan Review Process The story of this single mother's harrowing experience with a defective home purchase and HUD's negligent oversight exposes deep flaws…

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Dustin Harris - The Appraiser Coach

Be Nice or Be Quiet

Related Posts:

Being Liberal with Values Hurts Homeowners

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Why Are Appraisers Banned?

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I Reserve the Right Not to Serve You Anymore

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Can an AMC Tell Appraisers How to Dress?

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Sex Offenders & Appraised Value

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Photos in Gated Communities Can be Tricky

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Is a Model Home Considered Occupied?

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To Pay or Not To Pay, That is the Question

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Will Big Data Put Appraisers Out of Business?

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Not a Get Out of Jail Free Card

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Final When You’re Not the Original Appraiser

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Is That an Arm’s-Length Transaction?

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Are Reports Intellectual Property?

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Can We Stop Taking Comp Photos?

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Who Can Complain About Appraisals?

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Different Properties on the Same Form?

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Appraising Where It is Warmer

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Should Adjustments Actually Be Done?

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What to Tell Borrowers in an Inspection

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