In July, I attended The Collateral Risk Network/Valuation Expo in Baltimore, MD and the Appraisal Foundation Industry Advisory Council Meeting in Raleigh, NC.
The Collateral Risk Network/Valuation Expo
Discussions at The Collateral Risk Network/Valuation Expo focused on what constitutes a good appraisal. Zak Dawson, Director – Collateral Policy & Strategy, Single Family Mortgage at Fannie Mae spoke about what they’ve learned from the data they’ve collected through Collateral Underwriter (CU) and the Uniform Collateral Data Portal (UCDP). He stressed that Fannie Mae is looking for well supported appraisal reports, not reports that just fit what an appraiser might feel CU or an underwriter is looking for.
Rick Langdon, Chief Residential Appraiser for Wells Fargo, echoed the same message of providing well supported appraisal reports and gave some very good examples of what Wells Fargo sees from the lenders perspective. He stressed that the perfect appraisal is the supported appraisal, where all that is needed to feel comfortable can be found in the report. His “5 steps” to delivering a supported appraisal that minimizes multiple touches included:
- Always ask – “What is the problem I’m trying to solve?” Whatever the “problem” (different condition, style, neighborhood, etc.) make sure that the report logically explains your rationale.
- Find comps that support your narrative.
- Support significant adjustments with sound reasoning and accepted practices.
- Verify everything!
- Make sure that whatever the reader needs to be convinced of your conclusions can be easily found in the report.
Appraisal Foundation Industry Advisory Council
The Industry Advisory Council (IAC) meeting discussed updates from the following three boards of the Appraisal Foundation:
- ASB (Appraisal Standards Board) discussed the latest exposure draft of proposed changes for the 2018-19 edition of the Uniform Standards of Professional Appraisal Practice and stated the second exposure draft will be released in the coming weeks for comment.
- AQB (Appraisal Qualifications Board) extended the comment period for the current exposure draft for proposed changes to the Real Property Appraiser Qualification Criteria.
- APB (Appraisal Practices Board) discussed current releases from the board and held a public meeting on July 15th looking for additional topics and comments. Also, on June 30th a first exposure draft was presented for the Collection and Verification of Residential Sales Data in the Sales Comparison Approach. Comments are welcome on the draft until August 12th.
To see all exposure drafts at The Appraisal Foundation’s site, please click here.
Jeff Dickstein, Pro Teck’s Chief Compliance Officer, is responsible for Pro Teck’s adherence with all state, federal and industry regulations. He’s active with a number of industry boards, and is currently Chairman of The Appraisal Foundation’s Industry Advisory Council.
Jeff has been in the mortgage industry for thirty-five years, with more than twenty five years experience as an appraiser (he is a Certified Residential Appraiser in 15 states). With Notes from the Regulatory Road, Jeff will provide timely commentary on what is happening in the industry.