OREP/WRE Bifurcated Appraisal Survey 2019

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OREP/WRE Bifurcated Appraisal Survey 2019

 

This survey is sponsored by OREP – Supporting Appraisers for over 17 years.

Appraisers…Save on your E&O insurance AND your CE in 2019!
OREP members now enjoy 14 hours of Approved Online Continuing Education, FREE! These courses are designed to improve your professional skills, lower your liability and help you protect your business. Appraisers must be currently insured with OREP at the time the class is begun and be enrolled in the OREP RPG/Risk Management Program.  Click here for a list of Approved states.

Current OREP Members: Email info@orep.org for enrollment instructions.

Click Here to Begin the Survey!

 

Comments (8)

  1. If lenders want to waive Appraisals, do away with Inspections by the appraiser or a Trainee…then let them do it, but without the Federal Money(aka Public) backing the loan! Watch how fast this Burb It Up Report disappears literally over-night. If I as the Appraiser is the one causing the delay in loan closings?…then tell me why does the typical loan close so many days(4-10 or longer) after i have delivered the report? If Appraisers are slowing up the process so much, Why do AMC’s spend a week or more searching for the Cheapest Appraiser out there…Why..Hmmm Inquiring minds want to know.

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  2. My 2 cents (and then some)
    NO, it is NOT a done deal and as a provider of E&O to appraisers, I am offended that you would publish an article saying that it is. Appraisers need to understand completely their requirements when performing these things….and many DON’T.

    1. The professional Appraiser is the only party to a mortgage transaction that is unbiased and advocates for no one except the public.

    2. The Appraiser’s primary function is one of protecting the public trust. Remove them from the lending equation, and you are putting the fox in charge of the hen house.

    3. The issue with fees and turn times for appraisals is NOT about an “appraiser shortage”…it’s being caused by AMCs. They spend days, sometimes weeks shopping around for the cheapest appraiser, thereby causing delays in turn times.

    4. AMCs engage the Appraiser for $200-$300 while charging $600-$700 to their client which is passed on to the borrower.

    5. When TILA-RESPA was in the process and open for public comments, Appraisers tried to make everyone involved aware of the urgent need to separate and identify the actual Appraiser’s Fee from the AMC’s fees on the new closing documents, with NO LUCK. AMCs fought it tooth and nail. So the borrowing public remains CLUELESS.

    6. You think that we had issues with the housing / lending / mortgage industry back before FIREAA…and as recently as 2007-2008, just hold on. Who honestly thinks allowing untrained, unregulated people into someone’s home is a good idea?

    7. Even engaging brokers as “data collectors” is crazy. Brokers are famous for inaccurate MLS data and artificially inflating square footage and features of homes.I hate to say it, and I am actually a Realtor since 1988 (as well as an Appraiser) but I seriously question the reasoning of thinking that brokers are a good data source. Some do a good job…many do not.

    8. Brokers regularly hire APPRAISERS to measure their listings. Who thinks brokers want to actually even do property data collection? Fees I’ve seen offered to brokers are $20-$25 per property.(yeah…you’ll get rich that way)

    9. The truth is that the data collectors AMCs will be able to hire for the fees being offered, will not produce reliable, credible data. You can try to convince everyone that these collectors will be “virtually trained” and be given a data collection sheet to “check off” to be sure they gather what is needed at the property. How does any of that protect the public? How does that result in unbiased data or analysis? It doesn’t. Bifurcated appraisals are not ABOUT accurate, reliable data. They are about putting more money in the pocket’s of AMCs. (many owned by the Lenders!)

    10. How does it make any sense that for years Lender’s have refused to allow Licensed, Supervised Appraiser Trainees to perform the inspection of the subject property, but now all of a sudden, will allow unregulated, unsupervised people to do “data collection”? The truth is that everyone understands how important the information gathered while at a subject property is…it is vital. It needs to be as accurate and unbiased as possible. THATS what an Appraiser is trained to do.

    11. When we start hearing of data collectors “accidentlly” leaving a rear door unlocked at properties, only to have their friends return later to clean the place out, what then? Professional Appraisers go through an extensive education, training and licensing process far above anything a standard “background check” will provide.

    12. If the data collector takes 50 photos of a property and only 25 are provided to the appraiser, who is in charge of filtering out which photos are used? The AMC? The Lender?

    13. When market data and analysis is provided to the Appraiser via AVMs, does anyone honestly believe it’s completely unbiased? Computer generated data is easily manipulated. Garbage in = garbage out.

    14. When an Appraiser, with 17 reciprocal state appraiser licenses, sits out in Texas doing nothing but bifurcated appraisals in coastal states he’s never worked in before, how can anyone say that’s a reliable, credible appraisal? Or say that that appraiser is geographically competent?

    15. The Appraisal Foundation’s public statement about bifurcated appraisals being USPAP compliant is misleading. While bifurcated appraisals are not specifically prohibited under USPAP, it’s becoming apparent that many appraisers are not understanding their USPAP requirements as it relates to these things. Get ready state appraisal boards…you’re going to be SUPER BUSY with complaints about bifurcated reports. These things can not be compared to a regular “desktop appraisal” or a “drive-by appraisal”. We all know that.

    16. The purpose of pushing these “products” is nothing more that an attempt at removing the ONE PERSON that keeps everybody honest…the Professional Independent Appraiser.

    17. Everything about bifurcated appraisals leaves room for abuse at every turn. The housing industry plays an important, integral role in our nations overall economy. So this isn’t just about Appraisers being afraid of “change” or afraid they’ll be put out of business. Geeezz.

    18. If this becomes “the norm”, get ready folks…we’re all in for a bumpy ride indeed.

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    • I am a review appraiser for the largest lender in the US. I have reviewed a number of bifurcated reports and most of the time I recommend a product upgrade due to poorly selected comps or poorly collected data – think partly below grade being included in GLA. Most Realtors are not versed in FNMA lending guidelines as they relate to appraisal. I’m not sure if appraiser’s are being conservative in fear of liability. More often then not, the values are low and the borrower suffers. If me and most of fellow reviewers are recommending product upgrades, where’s the time saving? They are actually taking more time with an additional cost. Why isn’t anyone talking to the end users?

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