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#574073 - 06/26/06 03:44 PM New Appraisal Rules
notuntermywatch Offline
Gold Star
Joined: Jun 2006
Posts: 392
MN
I'm trying to wrap my arms around the nuts and bolts of what this change means to banks, am I on the right track?

1)Remove the terms "departure, Complete, and limited" from engagement letters and loan policy.
2)Update engagement letters to specify that all appraisals should be subject to the 2006 USPAP Rules and follow the definition of the "Scope of Work Rule"
3)Insure that our review process considers if an appraisers scope of work is adequate given the intented use of the appraisal
4) Verify that all appraisals contain sufficient disclosures to allow the reviewer to understand the scope of work

Anything else?

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Lending Compliance
#574074 - 07/19/06 02:15 PM Re: New Appraisal Rules
kitkat Offline
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Joined: Nov 2004
Posts: 11
Anybody else surprised that THEIR appraisers aren't compliant yet? We sent in a request for a new appraisal with the new guidelines and their response was "do you want limited or complete?" When were they informed since the compliance date was July 1, 2006??

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#574075 - 07/19/06 04:22 PM Re: New Appraisal Rules
Bankster Offline
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Joined: Apr 2004
Posts: 1,181
Yinzerville, PA
The appraisals we've received since July 1st haven't changed....surprise, surprise.

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#574076 - 07/19/06 08:04 PM Re: New Appraisal Rules
Sinatra Fan Offline
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Joined: Jul 2002
Posts: 5,568
New Jersey
The following are quotes from the Appraisal Standards Board's Q&A regarding the changes:

"The SCOPE OF WORK RULE has no requirements that were not in USPAP before."

"The fundamentals of the appraisal process have not been changed."

"Does the SCOPE OF WORK RULE introduce any new reporting requirements? No."

So, by the ASB's own admission, the changes add no requirements that were not already in USPAP, do not change the fundamentals of the appraisal process, and do not introduce new reporting requirements. Where are the "extensive revisions" that the 2006 USPAP supposedly incorporates?
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#574077 - 07/22/06 02:14 AM Re: New Appraisal Rules
Appraiser Lady Offline
100 Club
Joined: Jun 2005
Posts: 198
PA
The "extensive" revisions entail removing the tags 'complete' and 'limited' and because departure would have to be invoked if the appraisal wasn't 'complete,' from a regulatory standpoint departure was a big issue, and Statements and Advisory Opinions were either added or retired as a result. I'm guessing that may be why the "extensive" term was used.

I'm sad to hear that so many appraisers aren't on board with the changes. Those who are members of the Appraisal Institute have been getting information for well over a year, plus many USPAP instructors have alerted attendees for at least that long.

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#574078 - 07/22/06 07:01 PM Re: New Appraisal Rules
Andy_Z Offline
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Andy_Z
Joined: Oct 2000
Posts: 27,748
On the Net
We don't even have the details plugged in yet, but Appraisal Reviews is an upcoming webinar and we have a great speaker to lead this. Hopefully we'll get some details up here soon, but you can check that link periodically for more info.
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#574079 - 07/24/06 03:41 PM Re: New Appraisal Rules
Cornfed Turtle Offline
Diamond Poster
Joined: Mar 2006
Posts: 1,323
"...Somewhere in Middle Americ...
We've changed our policy and forms for reviewing appraisals as well. Perhaps the biggest change was our formal engagement letter. It was difficult to be able to describe the assignment w/o just saying "I want a complete appraisal."

What are your thoughts on the letters? We have designed one but I was hoping to get some feedback from the MAIs in our area. Our new one has "dropdown boxes" that describe the project, the use of the appraisal etc.

Side Note to Appraiser Lady: you will be glad to know that our local MAIs contacted us to let us know things would be changing.

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#574080 - 07/26/06 02:39 PM Re: New Appraisal Rules
ComplianceFool Offline
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ComplianceFool
Joined: Apr 2004
Posts: 421
SXM ;) Wishful thinking!
Anyone have an engagement letter they'd be willing to share? We don't have a standard letter, each loan officer uses their own (I know, BAD!). If you have something you'd be willing to share, please PM me. Thanks!
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