Sanctioned use of computerized appraisals using algorithms and computerized databases of property data to determine a property’s value. The federal government, with the reluctant support of the two leading professional appraisal organizations, has sanctioned the use of computerized, appraisals using algorithms and computerized databases of property data to determine a property’s value. Can more widespread use of computer-driven valuations by programs called Automatic Valuation Models or AVMs, in mortgage origination be far behind? Millions of homeowners use AVMs to check the value of their homes on a half dozen web sites. Even though more sophisticated versions have been developed for...
Everybody complains that the states aren’t doing enough to police the profession. Appraisers are running amok. Fraud is rampant and the states are twiddling their thumbs while caseloads grow exponentially. The handful of published state disciplines nationwide are a mere droplet compared to the vast ocean of chicanery that’s rising out there. Right? My question is, where are all the settled cases from the various professional standards and ethics committees of the big appraisal organizations? There should be a generous compendium of meaty disciplines somewhere. But there isn’t. If you go to their websites you’ll find plenty of references to...
Maybe you should ask the homeowner if it would be alright to take the picture at all. When a consumer calls the department in a rage and wants to know “what law says that an appraiser can take pictures inside of my house?”, Houston, we have a problem. Actually, not Houston…and not the department. You, the appraiser and the client who ordered it have the problem because we will make it your problem. Law? There is no law for interior photos. There are guidelines and stipulations cloaked as requirements. That’s it. But, we do have privacy laws, don’t we? Clients,...
ASA and NAIFA Send Joint Letter to FHFA, Fannie Mae & Freddie Mac Expressing Concerns on HARP Program Reliance of AVMs and Requesting a Meeting On October 25, the American Society of Appraisers (ASA) and the National Association of Independent Fee Appraisers (NAIFA) submitted a joint letter in response to yesterday’s announcement by the FHFA and the Government Sponsored Enterprises (GSEs) of changes to the Home Affordable Refinance Program (HARP) involving greater reliance on automated valuation models (AVMs) to value collateral property. In the letter, ASA and NAIFA expressed concerns regarding the GSEs quality control standards being used to ensure...
Concerns regarding the decision of the VA to adopt UAD William Stewart Department of Veterans Affairs (VA) October 21, 2011 Dear Sandy, As president of the Virginia Coalition of Appraiser Professionals I wish to express to you our members’ deep concern regarding the decision of the VA to adopt the Uniform Appraisal Dataset (UAD). Our association has been active in our state regarding this issue and we feel this idea will only harm the quality of appraisals that our Veterans will receive in the future. It is for certain that the homeowner or new purchaser will not understand the appraisal...
New AMC Law in Illinois August 31, 2011 – Illinois became the 29th state to enact a law that provides for comprehensive oversight of appraisal management companies. Gov. Pat Quinn signed Senate Bill 1539 into law Aug. 26, and it took effect immediately. Under the new law, AMCs are required to register with the Illinois Department of Financial and Professional Regulation, which would have significant authority to “ascertain the qualifications and fitness of applicants for registration and pass upon the qualifications of applicants for registration” and allow AMCs to be disciplined for “professional incompetence” and “gross malpractice.” In addition, the...
On September 29th, the Appraisal Institute released a form intended to help analyze values of energy-efficient home features. It is the first of its kind intended for appraisers’ use. The industry leader in green valuation, the Appraisal Institute issued the form as an optional addendum to Fannie Mae Form 1004, the appraisal industry’s most widely used form for mortgage lending purposes. Used by Fannie Mae, Freddie Mac and the Federal Housing Administration, Form 1004 is completed by appraisers to uphold safe and sound lending. Currently, the contributory value of a home’s green features is rarely part of the equation. “This...
The Appraisal Foundation (TAF) announced that the 2012 – 13 edition of the Uniform Standards of Professional Appraisal Practice (USPAP) is now available. The 2012-2013 edition of USPAP will be valid for two years, effective January 1, 2012 through December 31, 2013. According to a TAF press release “the new edition includes the standards of professional practice for all appraisal disciplines as well as guidance from the Appraisal Standards Board (ASB) in the form of USPAP Advisory Opinions and USPAP Frequently Asked Questions (FAQs).” As with the prior edition, the new edition includes the standards of professional practice for all...
The best way for valuation professionals and the public to make a difference in their profession is to offer comments to the Boards of The Appraisal Foundation when exposure drafts are released for comment. The Appraisal Practices Board (APB) has recently released its first Exposure Draft entitled Adjusting Comparable Sales for Seller Concessions. All interested parties are encouraged to comment in writing to the APB before the comment deadline of December 2, 2011. Written comments on this Exposure Draft can be submitted by mail, email and facsimile: Mail: Appraisal Practices Board The Appraisal Foundation 1155 15th Street NW, Suite 1111...
Chase has turned a lot of appraisers into state appraisal boards. They’ve been responsible for nearly 20% of the Illinois caseload since 2008. The volume ebbs and flows from one quarter to the next. Not all of their complaints are good. Then again, not all of them are bad, either. All of their complaints insist that the original appraisal was too high. In their complaint submissions to us, they generally include a letter to the original appraiser that predates the complaint by months. In Chase’s complaints to us they typically include an appraisal review of some type. The standard review is a form 2000 as completed by an Illinois appraiser. Sometimes those reviews...
