John Pratt - Certified Real Estate Appraiser

Changes from Fannie Mae

John Pratt — Thu, 03 Feb 2022 13:30:44 +0000

Fannie Mae has decided to make at least 2 significant changes… The New Year is here and along with that comes change. The appraisal industry and the appraisal profession is no exception to this. Change is something we should embrace provided that the change is for the betterment of those effected by the change. Before we make a change we need to identify what we are trying to accomplish and will the purposed changes achieve the desired results and is this the best way to accomplish our objective. I am not sure that we have identified the problem that we...

Condo Appraisal Protocol Changed Fannie Mae’s sweeping new national condominium regulations... Appraisers, Fannie Mae has changed inspection and reporting requirements for Condominiums, effective January…
ANSI Measuring Standard Required in 2022 On December 15, 2021, Fannie Mae announced that it will be adopting ANSI Measuring Standard in 2022. Appraisers will be…
VA Unofficially Says NOPE to ANSI The other agencies, Freddie Mac, HUD/FHA, USDA, ONAP, VA have NOT (yet) adopted this ANSI measuring protocol. Appraisers, an appraiser…

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AMC Reviews of Appraisals

John Pratt — Wed, 27 Nov 2019 13:30:37 +0000

Only the lender’s Underwriter should be able to request changes to the report and the lender should be the one that pays the appraiser… An appraiser associate was having a discussion with one of the head review appraisers at HUD and the reviewer noticed that the Plat Map in the report did not correspond with the site size reported in the URAR form 1004. The appraiser stated that the public record and the Plat map did not agree with each other and that he chose the figure shown in public records. The reviewer questioned why he would choose the public...

Systemic Failures in FHA Appraisal and Loan Review This case exposed the cracks in an FHA system where failures by the lender, the AMC, and the review process…
New UAD Overhaul: What Appraisers Can Expect in 2025… Folks, I recently attended a Train the Trainer 1.5 day class about the new UAD/URAR, jointly facilitated by Fannie Mae,…
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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New CA Law Negative Effect for Appraisers

John Pratt — Fri, 08 Nov 2019 13:30:50 +0000

Some of you appraiser in California may not realize there is a new law, AB-5, which goes into effect on 1/1/2020, less than 60 days from now that will have a significant effect on the working relationship between appraisers and AMCs. Most appraisers work as Independent Contractors when working with AMCs. However, this will most likely change under this new law, AB-5, as of the first of the year. Most engagement letters or other instructions from AMCs to appraisers are in conflict with this new law as it pertains to the use of Independent Contractors. Under most of these agreements...

Take Control of the Appraisal Process If the appraisers want to take back their industry they need to come together... This new law in NY has…
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.…
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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ACI Software Users

John Pratt — Tue, 20 Aug 2019 12:30:53 +0000

I just received a message from another appraiser that I believe uses ACI software. He received a request from ACI to sign a “Digital Signature Application” along with a few other forms. This appears to me to be in connection with a new form of an appraisal product which they have developed. The first paragraph of this “Digital Signature Application” read as follows 1.1 Signature Using BLACK INK, sign within the box below. Signature must remain within the confines of the box (see sample). All signature cards are destroyed after they are scanned, tested, and delivered. Passwords are not kept...

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.…
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…
Who Controls Access in UAD 3.6 Access has become the most expensive word in the appraisal industry, a reminder that every new “solution” seems to cost…

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Take Control of the Appraisal Process

John Pratt — Tue, 30 Apr 2019 12:30:10 +0000

If the appraisers want to take back their industry they need to come together… This new law in NY has aroused a lot of comments from appraisers but let’s be honest. Appraiser have been complaining about AMCs for the last 10 years and waiting for the government, regulators and other to solve the problem with the whole AMC disaster. I have written about this before, the appraisers have no one to blame except themselves. If you wait for someone else to solve the AMC problem you are looking in the wrong place. We all know of the problems with AMCs...

Animosity Between Appraisers and AMCs AMCs control the money. We hear a lot about animosity between appraisers and AMCs and this doesn’t make for a…
How to Destroy the Appraisal Profession Anytime the government gets involved in an issue, it tends to have more adverse effects than positive ones. It makes…
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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Indemnity Agreements

John Pratt — Fri, 21 Sep 2018 12:30:19 +0000

Solidifi User Agreement… all Indemnity Clauses are not created equal… This is a response to the article that Dave Towne wrote regarding Indemnity Clauses and that they are common in today’s world and appraisers better get used to it. It is also true that all Indemnity Clauses are not created equal and the devil is in the details. This topic came up because of the agreement that Solidifi requires that all appraisers that receive assignments from them must agree to. Let’s delve into the Indemnity Clause which is in that agreement. First the agreement is between Solidifi and the appraiser...

Desktop Appraisals: Has The Devil Infiltrated The… Are desktop appraisals with third-party inspectors protecting the public, or are these products about to destroy the very profession I…
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.…
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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Solidifi Agreement

John Pratt — Fri, 14 Sep 2018 12:30:22 +0000

Solidifi Agreement provides little or no protection for the appraiser… Many appraisers have seen the Solidifi agreement that appraisers must agree to if they want to receive appraisal assignment from them. This 18-19 page agreement written by a lawyer which was paid by Solidifi provides lots of protection and power for Solidifi and little or no protection for the appraiser. Many of you might be on the fence, should I agree to this or should I not and know that I will lose some business. If Solidifi is your major provider of appraisal assignment they have just put you between...

Appraisals in ENV format From my perspective there seems to be an increase in the number of appraisal requests that require the ENV format.…
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 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.…

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Appraisals in ENV format

John Pratt — Wed, 04 Jul 2018 12:30:33 +0000

From my perspective there seems to be an increase in the number of appraisal requests that require the ENV format. The conversion to ENV of your completed appraisal report is usually not an exact copy of the report which the appraiser completed and signed. Some forms may not convert, other may separate your photos from the text which go along with the photo and the order of the forms in your report may not be the same and there may be other changes to your report. This should be a concern to every appraiser since the client/lender, is not getting...

The Evil Octopus Appraisers, it’s not paranoia when ‘the bastards’ really are out to get you (end us as a profession). ...Find each…
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…
Class Valuation Maximizing ROV Conversion Rates It's truly mind-boggling that a company would brag about their higher ROV conversion rates for the ROV process as if…

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Alternative Evaluations… Good or Bad

John Pratt — Mon, 11 Dec 2017 13:30:28 +0000

All of these "alternative evaluations" are an attempt to reduce the fee of the appraiser… All this talk about alternatives to a full appraisal needs some common business sense added to the conversation. At the end of these comments I will include some of my background and you can make your decision if you think I am qualified to put my 2 cents in this discussion. I have said this before and I will say it again, the lenders (AMC included) just want an Appraisers signature and their E&O insurance with a value and they want it as cheap as...

First the Borrower Fee. Now the Appraiser… Two lawsuits place Class Valuation’s fee transparency and staff-appraiser compensation practices under federal scrutiny. Most appraisal disputes examine only one…
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…
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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LRES Wants Your Digital Signature

John Pratt — Thu, 18 May 2017 12:30:47 +0000

Do NOT send your digital signature! I just received the following message from LRES (AMC) requesting I send my digital signature to them. I think this message should get out to all appraisers immediately. I don’t know if any other appraisers received this message however I would strongly suggest that you do NOT send your digital signature to this AMC or anyone else. I hope you all understand the possible problems this could open you up to, including forgery, fraud and many other illegal activities. If you have any doubts just call your E&O insurance and ask them what they...

Appraiser's Response to LRES Order Blast LRES Standard Interior Appraisal Request? Your special requirements and micromanagement of the appraisal process dictate that I charge a fee…
Unintended Use & Misleading Appraisal Reports Unintended and Potentially Misleading At what point do we ALL say enough? When they insist on unlocked PDF, XML or…
Influencing the Appraiser The AMC control over the appraiser and the content of the appraisal report... The biggest issue that threatens the appraisers…

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Influencing the Appraiser

John Pratt — Thu, 08 Dec 2016 13:30:23 +0000

The AMC control over the appraiser and the content of the appraisal report… The biggest issue that threatens the appraisers and the appraisal industry is the AMCs intrusion into the appraisal process. Many competent and experienced appraisers have left the industry due to the AMCs involvement in the appraisal process. The AMC is the most influential party in the appraisal process and they control the money which comes from the borrower and goes to the appraiser which gives them the power to dictate to the appraiser. The intent of the AMC process was to put a firewall between the production...

Animosity Between Appraisers and AMCs AMCs control the money. We hear a lot about animosity between appraisers and AMCs and this doesn’t make for a…
AIR Statement & Revision Requests AIR Statement & Changes to a Completed Report I would like some of the experts to comment on the following:…
Purpose of the Appraisal Report We have lost track of the purpose of the appraisal process This is an open letter to anyone who may…

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Purpose of the Appraisal Report

John Pratt — Mon, 01 Aug 2016 12:30:03 +0000

We have lost track of the purpose of the appraisal process This is an open letter to anyone who may have an interest in the residential real estate market. This includes buyers & sellers, homeowners, mortgage companies & brokers, real estate brokers & agent, loan officers, FHA/HUD, Fannie, Freddie and others. We have lost track of the purpose of the appraisal process. The purpose of the appraisal process is to provide an opinion of the estimated value of the property. The appraiser is hired to provide his/her opinion of the estimated value of the property usually by the intended mortgagee....

Real Estate Appraisers...Who Are We? Appraisers...Who are we? With the current requirements to enter the profession of real estate appraisal, it is likely that who…
Animosity Between Appraisers and AMCs AMCs control the money. We hear a lot about animosity between appraisers and AMCs and this doesn’t make for a…
AIR Statement & Revision Requests AIR Statement & Changes to a Completed Report I would like some of the experts to comment on the following:…

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AIR Statement & Revision Requests

John Pratt — Mon, 25 Jan 2016 13:30:41 +0000

AIR Statement & Changes to a Completed Report I would like some of the experts to comment on the following: Scenario Here is a scenario: The lender request that the appraiser include an AIR statement in the completed report. Sometimes they even have a preprinted statement that you must include in the report. The appraiser completes the report and includes the required AIR statement. The AMC reviews the appraisal and send back a revision request. They want comp # 4 removed from the appraisal. Maybe they provide you with another sale that they want you to include in the report....

Appraiser Independence Violated A Journal Piece of Appraiser Independence (Part 2): Appraisal Independence Violated History is an important reminder to us all of…
Letting the AIR Out! After all it's AIR; not a vacuum. First, HVCC is dead. Dead and buried. It died back in 2010. Second,…
A Journal Piece of Appraiser Independence A Journal Piece of Appraiser Independence (Part 1): Where Do We Go From Here? Buyer Beware! Where is the Value? (PART…

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Animosity Between Appraisers and AMCs

John Pratt — Tue, 22 Dec 2015 13:30:51 +0000

AMCs control the money. We hear a lot about animosity between appraisers and AMCs and this doesn’t make for a good working relationship. Business relationships work best when it is in the best interest of both parties to be on a level playing field. Keep in mind that the AMC does nothing for the appraiser. They may provide a service for the Lender. Since this is a service that the lender has contracted with the AMC to provide, then the Lender should pay the AMC a fee based on the value of the service that lender receives (the appraiser is...

LSI Fees - Absolutely Criminal! We used to do a lot of work for LSI back when they paid semi decent fees that were only…
AMC's "My Way or the Highway" Attitude Apparent appraiser abuse by AMC's... As Chairman of the American Guild of Appraisers (AGA) National Appraiser Peer Review Committee, I…
Day Laborers Needed...Inquire at any AMC Help Wanted - Day Laborers Needed .... Inquire at any AMC The Dodd Frank act requires the lender to be…

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John Pratt - Certified Real Estate Appraiser

Changes from Fannie Mae

Related Posts:

AMC Reviews of Appraisals

Related Posts:

New CA Law Negative Effect for Appraisers

Related Posts:

ACI Software Users

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Take Control of the Appraisal Process

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Indemnity Agreements

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Solidifi Agreement

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Appraisals in ENV format

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Alternative Evaluations… Good or Bad

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LRES Wants Your Digital Signature

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Influencing the Appraiser

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Purpose of the Appraisal Report

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AIR Statement & Revision Requests

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Animosity Between Appraisers and AMCs

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