On April 9th, Allterra Group is hosting a special webinar on comparable data. This will be a great opportunity for appraisers to learn more about some specific aspects of the GSE Uniform Appraisal Dataset in regard to comparable data and some of the perceived challenges with the condition and quality ratings. The webinar will be presented by Elizabeth Green, Principal Consultant with rel-e-vant Solutions and Charles Gress, Senior Vice President & Chief Residential Appraiser for Martin & Wood Appraisal Group and moderated by John McIntyre. We were lucky enough to be able to ask the presenters a few questions about the upcoming webinar here's what they had to say.
Buzz: Can you both tell us a little bit about your history in the appraisal industry?
Liz: My career started in technology for mortgage servicing in the early 90’s and then moved into loan origination. My first exposure to valuation came in working for an AVM provider in 2000. Since then I have worked for a number of appraisal technology and service providers. I chair the MISMO Property & Valuation Services workgroup.
Charlie: I am a state certified appraiser in MI, OH and FL. and currently serve as S.V.P. Chief Residential Appraiser for Toledo based Martin + Wood Appraisal Group LTD. We are a full service appraisal company with over 40 staff appraisers doing residential, commercial and right of way appraisals. After 19 years as a Certified Appraiser I have mentored over 40 appraisers and my focus remains on providing the industry with high quality appraisal products and superior service. I currently serve as the president of the Ohio Coalition of Appraisal Professionals (OCAP).
Buzz: What have you observed as some of the challenges appraisers have faced with UAD as it relates to comparable data?
Liz: Several practitioners struggle with assessing and rating the properties as purely a fact reporting exercise and want to re-rate the property when using it in a subsequent assignment. The fact reported by the appraiser of condition or quality should be considered locked in as of the corresponding sale date, regardless of its use as a comparable or a subject. It is the adjustment process that allows for the appraiser to bring in the concept of relativity to the market and subject.
Charlie: I think the biggest challenge I have seen on a national level and with my own staff is “the in-betweeners”. Yes that is a word I just made up, but it does illustrate a common occurrence in the market when you have a subject property that, for many different reasons, could have, what would be clearly considered a C3 in the front ½ of the house, but the back ½ of the house was as low as a C4. Liz and I plan to tackle this topic and some others in our webinar. Appraisers have to understand the old “Its average for the area” mentality is not relevant anymore with UAD.
Buzz: Liz, you have an extensive knowledge of UAD and how it affects appraisers. Will you tell us a little bit more about that?
Liz: The UAD is a step forward in bringing the benefit of consistency in language that allows for technology to assist both the appraiser and users of appraisal services. More progress can be made as standards are expanded for appraisal beyond the limited scope of conventional mortgages sold to Fannie Mae and Freddie Mac. The challenges we have endured with UAD are primarily due to the fact the GSE forms themselves are antiquated and the UAD added a data requirement beyond what was originally supported those forms. Some clients and appraisers use GSE forms for non-GSE purposes, which puts both in a difficult legal situation as the GSE forms contain specific language which prohibits that.
Buzz: Charlie, as president of the Ohio Coalition of Appraisers what issue surrounding comparable data affects appraisers the most?
Charlie:Charlie I have been traveling all over OH meeting appraisers throughout the state and more and more they seem very concerned by AQM monitoring. Obviously, if you find yourself on the Fannie DNU list you are most likely going to be Out Of Business. Appraisers report they feel tired, beat down and over regulated. Between scope creep, unqualified reviewers asking for unnecessary “unicorn chasing” revision requests and still having to fight for C & R fees (And it is sad because ALL appraisers everywhere deserve to be paid a reasonable and customary fee for the great work they provide), appraisers are looking for hope. The coalition is a wonderful place to inspire appraisers to meet and network with their peers; a perfect opportunity to get out of the office or out of the house. This puts them into a position to learn and become aware of the ever changing landscape of our fragmented industry.
Buzz: Why is this webinar a must watch for appraisers?
Liz: Webinars are a great way for independent professionals to connect with information and topics that might otherwise be discussed in an office setting.
Charlie: For a real down and dirty look at the concept of absolute rating for all subject and comparables per UAD guidelines. This is designed to be a very basic and our intentions are to make this very easy to understand. This event would be helpful to not only appraisers, but users of appraisal services also A.E. Underwriters, AMC quality control analyst’s and any other intended users, even a home owner could learn something.
Buzz: What types of things will appraisers learn during this live webinar to assist them in their appraisal work right now?
Liz: The emphasis from Fannie Mae and Freddie Mac on UAD and appraisal quality monitoring increases the need for appraisers to be vigilant in following assignment requirements. Eliminating unnecessary confusion or call backs by getting it right the first time helps everyone.
Charlie: Appraisers will be exposed to various real life scenarios illustrating various quality/condition types and how to properly rate, support and reconcile your conclusions. Users of appraisal services will have a unique opportunity to get inside the head of an active participating provider of appraisal services and the methodology that goes into rating a subject and comparable in compliance with UAD.
Buzz: What is one thing appraisers should know before registering for your upcoming live webinar?
Liz: Appraisals are being scrutinized like never before, appraisers who can adapt to the tools, techniques and changing assignment details will be successful. Knowledge is power.
Charlie: Appraisers should know that this is an opportunity to gain knowledge and understanding of UAD absolute rating as it applies to real life appraising in today’s environment. This will be a very easy to understand, offer a look at the expectations of the GSEs and how to apply this knowledge to your everyday appraisal business today.
Buzz: We really appreciate you taking the time to preview the upcoming webinar. We can't wait to watch the whole thing live on Wednesday, April 9th at 2PM EST.
If you haven't registered yet and would like to sign up CLICK HERE to attend.
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