I get it, appraising, especially residential-mortgage-use appraising, can be a thankless job. If you understand all that goes into properly developed reporting, it is hard to compete with the appraisers that perform poor due diligence and in turn, charge much less than the rest of us. They are great at checking boxes and making minimal commentary. They are rewarded for cutting corners, and appraisers that do the quality work are left at the margins. The new Fannie Mae Lender Letter may be a step in changing this.
It's the beginning of a new year, and with that it's time for the Annual National Appraiser Survey. We hear from appraisers throughout the year in comments to articles and interviews in Appraisal Buzz, on our blog and also in discussions on the Buzz Forum. We just want to affirm that we are indeed listening. So take a load off and let us know what are the most important issues to you.
We will share results of the survey on the Appraisal Buzz website as soon as the results are compiled. Thank you in advance for a being a loyal Appraisal Buzz subscriber.
Years ago the standard of practice was that no comparable photographs were taken. It was expected that the appraiser viewed comparable sales from the street, but photos were not submitted. The certifications in today's appraisal reports did not exist, and there was no USPAP. The advent of comparable sale photographs as an exhibit to an appraisal report results, at least in part, from the practice of not driving the comparable sales.
I normally get very few revision requests, and usually for minor items. I’m not saying this to pat myself on the back, but to explain how surprised I was a few weeks ago when I received two revision requests in the same week. And they weren’t just any type of revision request: they were the dreaded “instruction” from an underwriter.
“Appraiser to include a second sale whose unadjusted sale price supports the opinion of value, and resubmit report.”
Wow, I am just recovering from my trip to Las Vegas to present at our Third Party Oversight Summit, along with Tony Pistilli at Axios, Peter Christensen of LIA Liability Insurance Administrators and Helge Hukari of Clear Capital. In spite of some crazy weather we had a packed house and actually oversold this event. Based upon our strong registrations and positive feedback we will be organizing a whole series on compliance next year. I wanted to take some time to let everyone know what was discussed at this event.
There is no question that operational risk and third party oversight are "buzz words" being spoken about inside the walls of the regulators of financial institutions. This is in large part a result of the recent regulatory changes due to the financial crisis of a few years ago. Operational risk is the risk of loss due to human error; inadequate or failed internal systems and controls; noncompliance with, laws, rules, regulations, policies, or ethical standards; and external influences such as market conditions and fraudulent activities.
When Hurricane Sandy made landfall just over a year ago, no one could have predicted the immense damage it would cause. In the United States alone, 24 states were impacted, New York and New Jersey most severely.
That's why both those states are now offering to buy damaged homes from willing sellers at pre-storm values—in order to replace those homes with open land that can serve as buffers for future storms. To determine those pre-storm values, the state is relying on appraisers.
Dear North Carolina Board of Directors,
First off, congratulations on your appointment for the upcoming year.
I was in attendance at the Chapter meeting in Pinehurst and the subject of Evaluations came up. This has been a pet project of mine for nearly 20 years - i.e. I believe every State should allow appraisers to perform true Evaluations (non-USPAP compliant valuations).
The new era in Appraiser, lender, and AMC relations has arrived. Clearbox has launched their totally redesigned and revamped website. This totally new responsive design allows subscribers to manage their profile in the palm of their hand. The user dashboard has also been modified to make registering and filling out your profile a breeze. We sat down with Joan Trice to ask her about the new Clearbox 2.0 and find out what some of the major changes are.