Episode 054 - Valuation Regulations
I know, I know! No one likes to talk about the law, requirements, and regulations...unless that is if you are an appraiser and have a podcast. Agents have it easy with almost no regulations. Meanwhile, appraisers have plenty. The rules can be frustrating for appraisers and agents. Instead of being mad about them, learn what they are to get better results. In this episode, I talk about some of those regulatory bodies and what appraisers and agents are up against.
SHOW NOTES
- 00:39 – Last episode, this episode, and the next episode are “tied” together to set up the bigger picture issues.
- 01:28 – Agents have it “easy” from the valuation process with almost no regulations in that realm.
- 02:20 – Appraisers have many regulations that go into how they come up with their value estimate. Agents typically only look at the number and any required repairs, but there is so much more in the report.
- 03:05 – We don’t need to get into the “weeds” on the rules, because they are not applicable to agents. It is worthy to be aware of the general principles and who the regulators are.
- 03:28 – USPAP: Uniform Standards of Professional Appraisal Practice; the appraiser’s “bible”. Does not talk about adjustments or comparable selections.
- 04:25 - URAR and other reports made by Fannie Mae and Freddie Mac. They have expectations of what they want to see in a report.
- 05:20 – FHA and VA have their own rules that get into what to inspect and note.
- 05:48 – Underwriting overlays: every loan has appraisal criteria that they expect to see in the appraisal report.
- 06:25 – Important to know because lender is taking on risk, and the appraiser must “sell” the appraisal report to the lender.
- 07:00 – If my report does not match up to the regulations and requirements, the report will get through underwriting and your client will not get the loan.
- 07:30 – Appraisal practice is complicated. Your CMA may show a number but it will not make it through the lender’s muster.
- 07:50 – Give appraisers a little bit of a break. We are not your enemy. We have to write a credible report that the lender will accept.
SHOW LINKS
BETWEEN THE LINES LINKS
Email
brian@brianclee.com
Web
brianclee.com
Facebook
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
