Low-Cost E&O Insurance from OREP Working RE Home Library/Previous Editions
Making $300,000 a Year Appraising
To complete 1,000 residential appraisals a year, that is 2.74 reports per
day, 365 days a year. It is not humanly possible for one person to inspect that
number of homes per day, every day without fail and prepare a complete
error-free report. There are just too many variables- homeowner not home, bad
weather, computer and printer problems, proof reading, answering questions from
lenders etc. He will not collect for some of his reports and don't tell me that
he always gets paid in advance. I too have been appraising for over 30 years
and I know how long it takes to prepare a good residential report. - Frank
Eckard, General Appraiser.
>
After I read that about the 300K guy, I think it is
possible. I remember when I had an assistant, it was heaven. Similar situation
with adding information and preparing the appraisal report and doing the MLS/TAX
record ready for the file. He just found an efficient manner of preparing the
report. And yes, when I took a vacation to Puerto Rico, the laptop was a savior.
- Al Torres
Editor: We received many pro and cons in response to this story, similar to these two. See Making $300,000 a Year: Clarified for more and Profile: Making $300,000 a Year Appraising .
Solving Blacklisting Mystery – MARI Interview
It is not right to trash someone's career without due process of law. In other words, talk to both sides before you print something as gospel. No matter what you sign, the one printing that information is responsible for the slander created and can be sued, and should be sued, for that matter. - Charlie Stone
>
I too found out that I was on the list. I had been sanctioned for missing rot in a wood deck. I went through the process and received my records from MARI. That is the only thing on my report other than they have my license as expired. Lenders receive a name and will not let them remain on the approval list. I have lost many clients and my appraisals have been rejected because of this. – Cathy
>
I'm a little confused on some things. If they are giving non-public information
to subscribers, then how exactly does that comply with all the privacy acts? I
was under the impression that non-public information was just that. I understand
that non-public information can be shared with affiliates and under certain
circumstances to third parties. Examples being things like assisting with a
loan, government entities and credit bureaus. How and where exactly does MARI
fit into any of these categories regarding receiving and distributing non public
information? - Angela Kimble
>
Our company is another of the tried, convicted, and blacklisted without so much as a bit of opportunity to defend ourselves, to know our accusers or to know the files where we are accused. MARI has been unable/unwilling to supply specific information from the five “accusers" who stated we provided overvalued appraisals--who knows who made those determinations. Our company will willingly contribute money to a fund to sue these people for their total disregard of the legal rights afforded us as Americans. - Larry Christensen
Editor: We received way too many first-hand accounts
of blacklisting to print.
MARI: Solving the Blacklisting
Mystery
Moving out of
Residential Work -
Moving out of Residential Lending Work
I fired all the residential lenders in 1994. I can testify to the financial hit you can take when you drop all of them at one time. However, I sleep better, my time is my own and I get to pick the jobs I want. I now specialize in large appraising multi-property estates, which gives you plenty of time to do a competent job on the appraisal and appraisal report. I am also working by referral mainly with attorneys and CPAs and quite often with large companies who understand what it takes to make a good appraisal and will give you the time to do it. I still do some residential work when an estate owns a residence or there is a residence on a large tract of land. However, I get to use the comps that I believe are the best and not have to follow anyone’s guidelines. - Jerry D. Williamson, Jr.
Reporting and Stopping Mortgage Fraud - Reporting and Stopping Mortgage Fraud
Where can we submit files
on assignments that we turn down because they look like fraud? Would this be a
violation of USPAP, especially since we declined the order? I feel there are
other appraisers out there who have similar files, which if turned in could help
stop this undue pressure. - Betty Lou Siematkowski
Editor: Submit at
www.mortgagefraudwatchlist.org.
Are AMVs Appraisals? -
Are AVMs Appraisals? Appraisal Standards Board on AVMs
A lot of focus and blame are being placed on appraisers these days but
virtually no consideration is being given to the role AVMs have played in the
current mortgage crisis. The major shortcoming of the AVM is that is does not,
it can not, qualify or quantify depreciation. As any appraiser knows,
depreciation can affect the contributory value of improvements to real property
anywhere between zero and 100 percent. Nothing less than a physical inspection
of the property can possibly serve to identify depreciation. The number of
substandard properties that slipped under the radar using an AVM is likely
unknowable. When the AVM became an acceptable mortgage underwriting
vehicle, some appraisers like me read the writing on the wall and simply got out
of the residential mortgage end of the business. Others hung in and
diversified. But others apparently bent to the pressure of lenders, who when the
AVM did not produce the required value estimate to float the deal, called on the
“approved appraiser” to get the job done. The appraisal profession is certainly
not exempt from blame but a factor and possible catalyst in this debacle is
being completely overlooked, and that is the role the AVMs have played. -
Michael L. Sullivan, SRA
Pressure
I too have problems with mortgage brokers
not knowing the laws pertaining to going back into a report for changes nor do
they know the laws on lookups. – Susan Kruse
Editor – see
Industry News, Teach your Clients Well.
How Lenders Think
I would like to correct something stated in the
article: there are no Fannie Mae requirements that state that: 1.The date of
sale of the comparables should be less than six months old and 2. The comparable
should be less than one mile from subject. - Don
Clark, AQB Certified USPAP Instructor
Mr. Moye writes: Mr. Clark is correct. Because Fannie Mae is flexible depending on the circumstance, they only issue guidelines on the seller side of their business. This is the reason the word "should" is used in the Fannie Mae guideline listed in the article, instead of "required." Please note, the guidelines use the word "should" in almost every section. The guidelines were constructed in manner to not "require" anything unless something in the report is inconsistent with the guidelines but if an inconsistency exists, a comment or other action is required as signaled by the word "must" or "require.”
Editor: Read the latest installment of
How Lenders Think
by Calvin Moye,
SRA, GRI: How
Lenders Think: Do I Need an Appraiser?.
Appraisers: I Told you So - WAMU, eAppraiseIT Blow Up
First published in WRE Online ("I
Told you So" eAppraiseIT, WAMU, Blow up, Fannie, Freddie)
I was pleasantly surprised to hear of the suit
against First American/eAppraiseIT. Lender pressure is definitely the rule and
not the exception. If we don’t bring in the value they don’t get their
commission. So, the next appraisal order goes to a different appraiser in hopes
that they will bring it in. Appraisers cannot be paid based on the appraised
value/loan amount, perhaps loan originators shouldn’t either. Then, there would
be no need for them to pressure anyone. The appraised value didn’t come in, they
still get paid –no pressure!
>
In the southwest, WaMU shifted to management
companies (eAppraiseit and LSI) with very little notice (two weeks) and released
all their fee panel. The panel was told that to continue receiving WaMU
assignments, they had to apply to the management companies just like anyone
else. There was no preference. If the appraiser was approved and if the
appraiser's resume showed previous work in good standing for WaMU, the appraiser
was designated WaMU Proven, i.e. familiar with WaMU policy and report writing
rules. There was never any pressure to make value. - Scott Lisagor
>
They should publish which appraisers WaMU used and submit them all to the state boards. - Glen Williams
>
WRE Online: Keep Current, Save Money - WRE Online Keep Current, Save Money
“My email account is changing from (***) to (***). I don’t want to miss any editions, so please update this info in your system. Thank you.” - Niki Tippets Appraisal Services Riverton, WY
Editor- we get many similar emails every week. Find out why. Opt in (free) for WRE Online at www.workingre.com today.