scope of work - Appraisers Blogs

Uncovering Flaws in FHA Appraisal & Loan Review Process

AppraisersBlogs — Mon, 15 Jul 2024 12:30:32 +0000

The story of this single mother’s harrowing experience with a defective home purchase and HUD’s negligent oversight exposes deep flaws in the FHA appraisal and loan review process. After sacrificing for years to rebuild her credit and earn the right to become a homeowner, this borrower found her dream home in the country – or so she thought. During the home inspection, several issues were flagged. The seller, an investor who had purchased the home in an estate sale, was unaware of the septic system’s location. The seller agreed to have the tanks pumped so the location could be determined....

The Appraisal Problem Gone are the days of hiring a professional appraiser to solve the appraisal problem. For decades lenders have taken on…
Scope Creep & the Imploding of Rules ...the imploding rules then implemented, and the scope creep that evolved because the cart was leading the horse, has severely…
AMC Reviews of Appraisals Only the lender's Underwriter should be able to request changes to the report and the lender should be the one…

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UAD Redesign Timeline

Dave Towne — Wed, 31 Jan 2024 13:30:09 +0000

Appraisers, to see more about the upcoming new UAD currently in design, read the Updated Timeline link in the message below. My concern at this point is ‘training’ materials will be available in Q4 2024, but actual implementation of the ‘new reporting process’ won’t begin until Q3 2025 with limited production, into 2026. Note that in the future “form numbers” won’t be used. Instead, the assignment instructions will be based on a scope of work for the loan process on the particular Subject property. As someone who’s potentially interested in ‘training’ appraisers on the new process, it seems to me...

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…
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…
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,…

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Fighting for Consumer Protection & the Appraisal Industry

Guest Author — Mon, 24 Jul 2023 12:30:42 +0000

I’m just an Average Joe, surrounded by some really smart people, and we are fighting back. I often wonder if Certified General, MAI or SRA appraisers sitting in their ivory towers often chuckle to themselves and say HA, data collectors will never impact commercial. Who cares about the residential appraiser. Well, it looks like it’s time for you all to care. Copied from a Real Estate Forum Post: “Good morning, My name is Kevin Graham, and I am with Beacon Property Data Collection Services. You had recently signed up to become a panel member and we have an assignment for...

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…
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 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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Slow VA Appraisal Turnaround Times Is Overblown

AppraisersBlogs — Mon, 26 Sep 2022 12:30:19 +0000

Concerns about slow VA appraisal turnaround times is overblown… On September 14, 2022, US House passed HR 7735, “the Improving Access to the VA Home Loan Benefit Act of 2022“, legislation that proposes to overhaul the Department of Veterans Affairs’ appraisal requirements, including when an appraisal is required, how an appraisal is to be conducted, and who is eligible to conduct an appraisal. The Mortgage Bankers Association (MBA) has long been vocal about its support for the bill. “The bill will encourage important reforms to the agency’s requirements regarding when an appraisal is necessary, how appraisals are conducted, and who...

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…
Dear Representative, FNMA Has Gone Rogue! Dear representative, waiving/eliminating property appraisal for lending purposes is wanton recklessness. Fannie Mae’s decision to waive/eliminate property appraisal for lending…
The VA Required to Encourage Hybrids - Senate Passes HR 7735 The VA will now be required to encourage hybrid appraisals. If you are a VA Appraiser, here’s a bit of…

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VA Alternative Valuation Methods

AppraisersBlogs — Tue, 02 Aug 2022 12:30:24 +0000

On August 1, 2022, the Veterans Affairs released Circular 26-22-13 announcing new procedures for alternative valuation methods, effective immediately. The takeaway: “Desktop Appraisal means a valuation where neither the VA fee panel appraiser nor the appraiser’s designee under the AAPP has physically viewed the exterior or interior of the property and the VA fee panel appraiser has determined an opinion of value based on information obtained from public records, the Veteran, homeowner, realtor, and other appropriate data sources (as determined by the appraiser).” “The use of a Desktop Appraisal may allow an appraiser from outside the market area, but with...

Proposal to Eliminate the VA Fee Panel VA Fee Panel - The Appraisal Institute does not believe that a move to a lender select program, such as…
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…
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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Desktops Are Being Done WRONG!

Dave Towne — Tue, 12 Jul 2022 12:30:41 +0000

Appraisers, back in April, I was notified by someone “close to the action” of appraisal report submittals to the GSE’s, that many Desktops are being submitted back to lenders TOTALLY WRONG by the assigned appraisers! These reports are being captured and evaluated in the current Desktop observation and testing phase of the UCDP evaluations. Lenders use the UCDP as an initial report Quality Control check so that any problems can be identified, and sent back to the appraiser for correction, before the last submittal is used for the loan. The UCDP ‘sees’ every report for a particular property address, and keeps track...

Property Data Reports for Appraisal Waivers These Property Data Reports have a higher level or different reporting requirements than ordinary traditional appraisals. Appraisers, on Tuesday 5/24/22,…
Appraisers Liable for Third Parties Data Ultimately the appraiser is responsible and liable for data collected by third parties. There has been a lot of discussion…
Floor Plans Could Be an Issue in Appraising ...concerns that appraisers could be sued for making floor plans of a home... I’m an AI “member” (because I pay…

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Biased Appraisers? I Don’t Think So

Dave Towne — Wed, 18 May 2022 12:30:48 +0000

To judge an entire profession by anecdotal evidence is equally both stupid and harmful… The entire emphasis was on “anecdotal evidence” which is not documented or supported. Story after story was told about how appraisers had produced a “biased” report. No documentation and no evidence to support their claims was presented. Folks, after discussing this topic with and learning more about the appraiser who wrote this following essay, I have decided to distribute the essay below as a way to further support what we appraisers do in our work, and to expose the fallacies that have been presented to date...

HUD Dismisses Claims Alleging Racism ...white America (government) keeps trying to 'fix' Black People who are not broken in the first place! We’ve all heard…
Sales Comparison Approach is Racist "...the modern appraisal industry perpetuates racial inequality through its continued use of the “sales comparison approach”... the sales comparison approach…
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…

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Scope Creep & the Imploding of Rules

Douglas G. Kues — Wed, 13 Apr 2022 12:30:16 +0000

…the imploding rules then implemented, and the scope creep that evolved because the cart was leading the horse, has severely lessened the reliability of ALL appraisals in my opinion. ANSI, while certainly worthy of discussion and taking a position on, will not solve the real “appraisal problem” that we all have. It really isn’t an effective tool anyway, but what the heck do I know. Being one of those AG certified from the very beginning, too early to get trained by anyone above me, since 1992, and licensed in real estate since 1971, and a broker since 1991, in a...

ANSI & Floor Plans Goofiness "...if you the appraiser are not required to inspect the property yourself, don’t you want to have a more detailed…
Changes from Fannie Mae Fannie Mae has decided to make at least 2 significant changes... The New Year is here and along with that…
Solving the ANSI Measuring Dilemma ...a brilliant ‘work around’ to solve the subject & comps adjustment issues, which Fannie Mae thinks is no big deal...…

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Fraud Facilitating Misleading GSE Products

Michael Ford — Fri, 18 Feb 2022 13:30:03 +0000

I can and will decline to do any of these Catch-22 Fraud facilitating misleading products promoted by a GSE… There are many legitimate times and reasons a desktop appraisal may be performed. In every single one of them, it is assignment specific based on the assignment specific needs of the client with a mutually agreed upon scope of work between the client and the appraiser. They also include a scope of work decided upon and explained in the appraiser’s own words. Any relevant extraordinary assumptions and limiting conditions dictated by the nature and use of the assignment are able to...

No to Desktops with Third Party Inspectors Hybrid Appraisals were tested and failed. So what does Fannie Mae do? Let’s call them Desktops with third party inspectors.…
Dear Representative, FNMA Has Gone Rogue! Dear representative, waiving/eliminating property appraisal for lending purposes is wanton recklessness. Fannie Mae’s decision to waive/eliminate property appraisal for lending…
Fannie Mae Fraud and Abuse Exposed History of waste, fraud & abuse at this rogue organization... Fannie Mae reported this week it had fired more than…

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Removing the Definition of Personal Inspection

AppraisersBlogs — Thu, 17 Feb 2022 13:30:52 +0000

Why is the ASB proposing to remove the definition of Personal Inspection? Several days ago, an appraiser posted the following comment which we have decided to publish as a free-standing post because we believe it deserves attention: Amazingly, while these are horrible – everyone seems to miss the real issue that will hit us all in 2023. As of 2023, if the ASB gets its way in a few weeks, the word “inspection” or “personal inspection” will no longer be defined in USPAP. That means they don’t even have to play this game. “Desktop” appraisal is just a stopgap until...

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.…
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…
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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Are Floor Plans in Your Future?

Dave Towne — Wed, 24 Nov 2021 13:30:10 +0000

A floor plan is supposed to be included in Desktop & Hybrid reports. How will that be done? Appraisers, I’ve recently been studying a ‘word change’ in various GSE documents. This change happened initially in March 2020 in the COVID era revised ‘flexibility’ Assumption and Limiting Conditions and Scope of Work attached to residential reports, and was further incorporated into TWO new appraisal forms issued in July 2020, which you might not even realize they exist! The word change was subtle, but has major implications for appraisers. The change is ‘sketch’ to “Floor Plan.” But when I inquired about this...

Appraisers Should Voluntarily Follow ANSI for Desktops? Can someone explain how we should voluntarily follow ANSI standard on desktop appraisals? Appraisers, Fannie Mae has released a new…
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…
Desktops Are Being Done WRONG! Appraisers, back in April, I was notified by someone “close to the action” of appraisal report submittals to the GSE’s,…

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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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Modernization Should Only Be Determined by the Appraisal Profession

Guest Author — Mon, 18 Jan 2021 13:30:07 +0000

The appraisal professions should be the only ones to determine any modernization; whatever that is… When Things Don’t Go as Expected Like so many others, I have learned the hard way not to accept any assignment without a little due diligent research first. Make no mistake I do not shy away from difficult assignments. I am under the firm belief the more difficult, the better. I actually enjoy the challenge. I recently accepted a private assignment over the phone for a lot in the City. I was driving and did not have access to MLS or locality records. I knew...

FHFA to Screw Up Appraisals The FHFA is looking for comments on how they can better screw up the appraisal process. So if you’ve got…
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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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...

Honoring Jan Bellas, Our Greatest Advocate Jan Bellas passed away on July 7, 2026, and those of us in the appraisal profession who knew her are…
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…
Sales Comparison Approach is Racist "...the modern appraisal industry perpetuates racial inequality through its continued use of the “sales comparison approach”... the sales comparison approach…

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Appraisers Being Sued for COVID-19 Errors?

Peter Christensen — Mon, 02 Nov 2020 13:30:44 +0000

The alleged errors in appraisals that parties are suing appraisers over during the pandemic are the same types of errors that appraisers usually get sued over… Wow. I did not go into the basement on my last visit. I’ll explain why an appraiser wrote that in a moment. Are appraisers being sued for errors relating to the COVID-19 pandemic? My short answer is “no” – there’s no pattern of that happening. One of the services that I provide to my legal clients is tracking lawsuits and legislation that relate to valuation services. I locate and follow cases of all types...

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…
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…
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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The Power of No!

Guest Author — Mon, 29 Jun 2020 12:30:37 +0000

Appraisers always had the power to end the appraisal management pyramid scheme. All we had to do is say no. Low fees, headaches, and idiotic reviewers have reached maximum capacity. The imploding of appraisal management companies is forthcoming. Over the past few months, appraisers have been simply saying no to low paying, time wasting, headache giving appraisal management companies; problematic portals too. I even read recently an appraisal was unable to be uploaded to a portal because the opinion of value was below the contract price. This type of influence rises to a whole new level, not to mention the...

Insights from CFPB's Public Comment Period The comment period on the Consumer Financial Protection Bureau's (CFPB) "Request for Information Regarding Fees Imposed in Residential Mortgage Transactions"…
Lack of Fee Transparency: Exposing the AMC Exploitation By keeping the borrower in the dark about the true cost of the appraisal, the AMCs are able to charge…
Exposing Predatory AMCs Exposing the inner workings of these predatory AMCs and their corrosive influence on the housing market. Cindy Chance's recent comments…

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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...

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 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…
Sketch or Floor Plan? The FLOOR PLAN has all the elements of a SKETCH... Appraisers, I was given some ‘inside info’ about DESKTOP assignment reports…

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COVID-19 Temporary Appraisal Guidelines

VaCAP Board — Sun, 29 Mar 2020 12:30:03 +0000

Fannie and Freddie are giving preference to desktop appraisals over exterior appraisals, which quite frankly, is completely backwards from what most appraisers believe to be a more reliable appraisal. HUD and the Veterans Administration, on the other hand prefer exterior appraisals…

Stephen Forrester Memorial Fund Appraisers, I just received notice about the untimely death due to COVID-19 of a Tennessee appraiser, Stephen Forrester, while he…
Fannie Mae Fraud and Abuse Exposed History of waste, fraud & abuse at this rogue organization... Fannie Mae reported this week it had fired more than…
Why Are Fannie, Freddie Peddling Exotic Junk-Rated… Meanwhile, cratering home prices are eroding demand for the junk-rated credit transfers. As mortgage giants Fannie and Freddie bend the…

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Temporary Appraisal Requirement Flexibilities

Dave Towne — Tue, 24 Mar 2020 12:57:15 +0000

Temporary Guidance From Fannie Mae… FNMA has issued temporary guidance on appraisal requirements, including allowing desktop & exterior-only appraisals… Folks, due to the ongoing COVID-19 national emergency, the GSE regulator FHFA and both GSE’s have issued new (temporary) guidance on Monday, March 23, 2020. These remain in effect through May 17, 2020, but could be extended due to the on-going situation. NOTE: I have seen nothing yet from FHA or VA. Appraisers (and AMCs) CANNOT modify assignments or reports without specific authorization from the lender client. Appraisers CAN choose to do, or not do, assignments under the inspection guidelines, and per directives...

Occupational Licensing Used to Intimidate It provides no better illustration of how occupational licensing promotes groupthink and intolerance to differing viewpoints... CALIFORNIA: WHERE RIGOROUS INQUIRY…
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.…
Desktop Appraisals Soon to Be the New Purchase Wrinkle The desktop appraisals are not necessarily more reliable, which could become an adverse issue for appraisers in the future... Appraisers,…

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Disciplinary Cases Against Hybrid Appraisers

VaCAP Board — Fri, 07 Feb 2020 13:30:27 +0000

Rumor has it there are several Virginia Real Estate State Appraisal Board disciplinary cases against appraisers revolving around hybrid appraisals… Some are for and some are opposed. It is a business decision on which types of assignments you choose to accept. If you choose to complete a hybrid or bifurcated appraisal, you need to pay attention and ask yourself a few questions. Is the fee I am receiving for completing this assignment reasonable for the scope of work I must perform? Notice the term customary was not used as these products are new and there is no customary fee YET....

Proposed Rule to Eliminate C&R Fee Tabled Yesterday morning, I attended the Georgia state appraisal board hearing on the proposed rule to eliminate the C&R fee law…
Sketch or Floor Plan? The FLOOR PLAN has all the elements of a SKETCH... Appraisers, I was given some ‘inside info’ about DESKTOP assignment reports…
Pickleball, Promises, and the Quiet Takeover of Appraisal While they’re busy flexing their pickleball paddles, the real play is a bill quietly strip‑mining appraisers’ work. “Fair warning, we…

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scope of work - Appraisers Blogs

Uncovering Flaws in FHA Appraisal & Loan Review Process

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UAD Redesign Timeline

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Fighting for Consumer Protection & the Appraisal Industry

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Slow VA Appraisal Turnaround Times Is Overblown

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VA Alternative Valuation Methods

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Desktops Are Being Done WRONG!

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Biased Appraisers? I Don’t Think So

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Scope Creep & the Imploding of Rules

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Fraud Facilitating Misleading GSE Products

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Removing the Definition of Personal Inspection

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Are Floor Plans in Your Future?

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Why Are Appraisers Banned?

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Modernization Should Only Be Determined by the Appraisal Profession

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Sex Offenders & Appraised Value

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Appraisers Being Sued for COVID-19 Errors?

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The Power of No!

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Not a Get Out of Jail Free Card

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COVID-19 Temporary Appraisal Guidelines

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Temporary Appraisal Requirement Flexibilities

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Disciplinary Cases Against Hybrid Appraisers

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