Tagged: Errors & Omissions

Appraisal news for real estate appraisers and real estate professionals regarding Errors & Omissions. News relating to the Appraisal Industry.

The New & Improved Fannie Mae FRAUDULATOR 2.0 40

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 Mae is increasingly being referred to by some, if not many American Appraisers as The Fraudulator / Underwriter 2.0 (FU-2). To be clear it is not limited to the Collateral Underwriter (CU & CU-2) software. The new Fraudulator (FU-2) combines the CU products with their numerous improper uses. The end result of which includes OUTRIGHT FRAUD being perpetrated against banks via the repurchase letters Fannie Mae now issues on a quota based system rather than because of legitimate appraisal defects....

Lender Liability for a Negligent Appraisal? 12

Lender Liability for a Negligent Appraisal?

Does a mortgage lender have liability to the borrower for a negligent appraisal?  As residential property prices plateau or decline in various markets and as borrowers have financial problems with fewer financing options, there are more legal claims being filed by borrowers against appraisers and lenders in relation to appraisals for loans made in recent years. Essentially, the cases are situations of “buyer-borrower remorse.” Leaving aside the appraiser’s potential liability, does a mortgage lender have liability to the borrower for a negligent appraisal? An Ohio appellate court recently said “no.” It ruled that the lender did not owe the borrower...

Protect Yourself, Ins & Out of Bias & Discrimination Webinar & Forum 5

Protect Yourself Against Racial Bias Claims

Free webinar on how to protect yourself against discrimination claims on 6/30/22, and today there will be a forum on “Racial Bias in the Home Appraisal Process”… OREP is sponsoring a free webinar on how to protect yourself and your business against discrimination claims. Leading trial attorney Craig Capilla has handled nearly 1,000 appraiser cases in his career and has been on the frontlines defending appraisers from lawsuits, state board complaints, and now, HUD Fair Housing (Discrimination) complaints. Capilla began his legal career working for Illinois’ professional regulation agency as a real estate prosecutor and since then has become one...

States Want Appraisers to Play Ball - Grievance Filed Against Appraiser 10

States Want Appraisers to Play Ball

“[The builder] filed a grievance against me… and threatened to file a grievance every time I or others appraised below purchase price.” California and Nebraska couldn’t be more different, but both clearly want their states to be more like the fictional town of Lake Wobegon – a place where all the men are good-looking, all the children are above average and all properties appraise at or above their sale price. Parts of California Assembly Bill 948, which was signed into law in September, read like something from the satirical news site The Onion. The statute requires the state’s appraiser enforcement...

WRE Surveyed Appraisers Say NO to the Bifurcated Model 18

Listening to Appraisers

…appraisers believe that the bifurcated model and the use of unlicensed, untrained and unaccountable contractors for key elements of collateral assessment will adversely affect the health and welfare of the housing finance system, increase their own liability and damage the public trust… It is the goal of the Federal Financing Housing Agency (FHFA) to ensure the health and welfare of the housing finance system. FHFA oversees Fannie Mae and Freddie Mac and has, for the time being, paused the testing and development of bifurcated appraisals that bypass the participation of licensed appraisers (FHFA Puts Brakes on Fannie’s Bifurcated Program). I...

California AB 5 - Legal For Appraisers 1

California AB 5 – Legal For Appraisers

More than 375 California appraisers registered for the AB 5 webinar – I hope you didn’t miss it. I’ll be hosting my next free webinar for appraisers on January 31, 2020 – it’s the “California Legal Update just for Appraisers!” In this free video webinar, I’ll cover: New 2020 laws relevant to California appraisers and appraisal firms (other than AB 5), including the California Consumer Privacy Act, and The very most important thing that appraisers can do in 2020 in every appraisal report of every type (whether residential, commercial, lending or non-lending) to avoid liability. The webinar will last approximately 45...

Appraisal Fee Transparency Act of 2019: Pivotal Point for Appraisers 21

Fee Transparency, Pivotal Point for Appraisers

…appraisers may finally have a chance at making the goal of fee transparency a reality… Keep your eyes open, events are happening fast. Ever since the passage of the Home Valuation Code of Conduct (HVCC) in 2010 and the monumental rise of Appraisal Management Companies (AMCs), one of the main issues appraisers have pressed for is transparency for consumers in terms of the fee split between appraisers and AMCs. Specifically, how much of the actual “Appraisal Fee” being paid by the consumer goes to the licensed real estate professional and how much is withheld by the AMC “manager.” Now, over...

ACI Software Users - Hold Harmless Agreement & Digital Signature 22

ACI Software Users

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...

Review Appraiser Flawed Review... Phony Complaint Against Appraiser 14

Phony Complaint Against Appraiser

…a laundry list of ‘pile on’ purported USPAP “violations” were fabricated deriving for the above oversights ‘confirmed’ by the out of area review appraiser… In fighting or appealing a false complaint filed against you as an appraiser, truth, factual evidence and professional competency is no longer enough! More important than all these things, is conformity to the detailed technical rules of a state’s administrative law procedures. In short, in many if not most cases, appraisers MUST HIRE AN ATTORNEY to represent them before any administrative board. Anything less, is playing with fire and your professional career. Worse, E&O won’t cover...

Clear Capital Admitting Hybrid Inspectors Are Offering Appraisal Opinions 34

Hybrid Inspectors Offering Appraisal Opinions

Clear Capital admission: This is an admission that inspector were previously offering appraisal opinions re Q&C. There remain many other areas in hybrids that also are appraisal opinion being provided by non appraisers. I have written many blog posts here, mainly for the consumer to read and understand what is actually happening in the world of Real Estate Valuations. My blogs range from being overcharged for appraisals so the middle man (the appraisal management company or AMC) can make money, lenders still pressuring appraisers to hit a value, and now having untrained and unlicensed people perform inspections (see my last...

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