Missing the IVPI proposal yet?
https://www.workingre.com/wp-content/uploads/2013/08/IVPI-Proposalfinal.pdf

You know that one of the authors of that document reportedly had solid evidence of racketeering among lenders and amc’s. They claimed to have had their personal safety specifically targeted. That’s when the individual turned to other industry heads to create a better solution for unbiased appraisal request distribution. The IVPI proposal (appraisal clearinghouse) was a workable solution. Contrast this approach to what’s happening in the industry today with REVAA consulting against appraisers interests on every turn, and a never ending stream of predatory third fourth fifth party interests seeking to eliminate sound valuation practice and outsource everything possible for their own personal benefit and liability protection. It won’t be long now before appraisers insurance companies need bailed out and subsidized, as the appraisal valuation services industry is dwarfed by all other ancillary lending industries. And if that happens, the government will be essentially fining itself.

Addendum:” I did not use sales from the nearby white neighborhood because it is a higher priced neighborhood.”

I don’t think I can make that comment. Basically the buyers are racist, not the appraiser.

Not sure without doing a deeper dive Pat. I should note, that my posted comments are what I consider a phase one response.

As I consider the lender to be armed with the truth after phase one, if a second request comes, I start asking for names, appraiser qualifications of onsite personnel, license numbers etc.

Phase three, no ones ever tried me.

Seek the truth.

I have seen that type of email… I typically ask for what parameters and data set filter they used to develop the rebuttal conclusions and if it is similar to what is stated in the appraisal report on page XX. The request will usually go away. Most people using CU don’t know what they are looking for… I spent some time at FNMA as an analyst when CU first kicked off… I asked FNMA do they have plans on making this a subscription? Blank stares back at me were the answers..

Relating to lenders asking for such things Naughty, unfortunately you have to spell it out for them. See my example below.

As appraisers don’t have access to Fannie Mae’s Collateral Underwriter (CU) “A proprietary appraisal risk assessment application developed by Fannie Mae to support proactive management of appraisal quality”, I had questions regarding its intended use, and its proper application related to the independent appraiser. With these questions, I found a document (see attachment) from Fannie Mae that seems to provide some guidelines or at least address some common questions. Of particular importance (related to your request today) are question 6 and question 25 (separated out below).

Q6. Because lenders are prohibited from providing copies or displays of reports that contain CU findings to appraisers and AMCs, can they still use Lender Agents to submit to UCDP on their behalf?

Yes, Lender Agents who submit appraisals to UCDP on behalf of their lender clients have access to the CU findings through the Fannie Mae tab in UCDP, on the submission Summary Report (SSR), or through a direct integration with UCDP if applicable. Both lenders and Lender agents acting on lender’s behalf are prohibited from distributing the CU Print Report or the SSR, making demands of, or providing instruction to AMCs/appraisers based solely on the CU automated output, or using CU to interfere with the independent judgment of the appraiser. (See Q25 for information about how to use CU findings to interact with appraisers.)

Q25. How should lenders use CU findings to inform conversations with appraisers?

Fannie Mae expects lenders to use human due diligence in combination with the CU findings, and will actively follow up with lenders who ask appraisers to change their reports based on CU findings without any further due diligence by the lender. Fannie Mae encourages lenders to carefully review the appraisal report, including all commentary, before seeking clarification from the appraiser. Taking messages or alternative sales at face value and simply asking your appraiser to address them is neither effective nor efficient. After completing a thorough review, lenders should be able to have constructive dialogue with appraisers if needed to resolve specific appraisal questions or concerns. Specific information from CU may be shared with an appraisal management company (AMC) or appraiser, with appropriate context, but the legal terms and conditions for CU prohibit:

— Using the licensed application in a manner that interferes with the independent judgment of an appraiser;
— Providing access to CU’s web-based user interface to third parties (including AMCs and appraisers); and
— Providing copies or displays of Fannie Mae reports that contain CU findings to AMCs and appraisers. (Note that AMCs who are registered to use UCDP as Lender Agents will see the CU risk score, flags, and messages available through UCDP.)

In short, it looks like I’m prohibited from seeing a copy or displays of the CU findings, lenders are prohibited from making demands of, or providing instruction to appraisers based solely on the CU automated output, or using CU to interfere with the independent judgement of the appraiser, etc.

Again, as appraisers don’t have direct access to the CU platform, perhaps I’m missing something, but it seems the intention of CU is for lender internal review purposes only, versus a platform to be shared with the appraiser, or be used as a tool to evaluate / compare adjustment differences.

Based on the above, it would seem I can’t address your areas of concern, as to do so would be an admission of receiving / reviewing a document I’m prohibited from seeing, etc..

Seek the truth.

“Act ethically and report the truth, and you will get sued, fired, and reprimanded from your state board.”

It’s an unfortunate reality as of late

Really?

You’ve never been blessed with this email:
“Collateral Underwriter has found these 17 comparable sales which may be more recent or comparable than the sales you’ve provided. Please itemize why you did not use each sale individually and send that to us in the next 30 minutes.”

Not just with regards to value, but other reporting factors.

Act ethically and report the truth, and you will get sued, fired, and reprimanded from your state board.

Someone will always be made in the real estate transaction. Usually it’s us, the appraiser.

One can seek the truth, find the truth, tell the truth, and judge others by way of their actions with such truth.

Seek the truth.

Bill,

Thanks for the comments. I never broke down the savings to the borrower to a per dollar of appraisal cost savings rate. This is a good way to help put things into perspective to the over-exuberant buyer; and demonstrate the value of a good, well done appraisal.

And the truth will set you free (at least in the long run)

Here’s a question for you Realist.

Over a years time, what is the real cost ($) to the typical borrower as it relates to a purchase appraisal?

Considering I’ve cut value 80% of the time over the past 12 months, and some 50% of those get negotiated down in price, the greater answer is nothing! In fact, by my calculations, for every dollar that is spent on an appraisal, collectively I save the average borrower $10.

Here’s a real work example. Last week I did a VA appraisal that cost the borrower $700, however with a cut value and an adjusted sales price, I saved the borrower $30,000. For every dollar he spent on the appraisal, I saved him $42. Had one last month that saved a guy over $100,000 (that was a good thank you phone call).

Seek the truth.

Being a single number, the appraised value is not high or low, but rather gets interpreted as such when other parties apply their interests.

Seek the truth.

When we used to do Relocation work, the homeowner would often pull out a recent refinance appraisal. Besides being poor reports, the appraiser’s value conclusions were usually way over the top and comp. selections were unbelievable. The owner of the largest appraisal office in our region stated that they just rubber stamped what was wanted by the lender for the refinance value because it didn’t matter and was based on the borrowers ability to pay. Really? If that is the case, why bother with the appraisal. And then the honest appraiser comes along to do a relocation appraisal and has to address the fiction created by the rubber-stamper. Just a side note; the honest appraiser usually makes a fraction of the rubber-stamper. Given the current climate, the honest appraiser probably would be accused of being racist; while the fiction writing dishonest rubber-stamper is praised as being just.