Fannie Mae Update An Appraiser’s Perspective - PowerPoint Presentation

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Fannie Mae UpdateAn Appraiser’s Perspective

“What’s Here & What’s Coming”

Dated (August 4 2014)Slide3

Get use to being “watched” or

a more professional way of putting it “reviewed” both at an automated level and human level this isn’t going to change

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An Appraiser’s Perspective Slide4

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Being “watched” brings out a variety of reactions including:

OutrageFearConfusion

Indifference

Satisfaction

Where do you stand?Slide5

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Many

reactions have been overblownSlide6

Honest, forthright appraisers that protect themselves by working “UAD Smart” do

NOT have anything to worry about

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An Appraiser’s PerspectiveSlide7

However… there are some of us who certainly should be nervous IF…

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An Appraiser’s

PerspectiveSlide8

You have been functioning by the seat-of-your-pants

with inadequate foundational knowledge

to build from

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An Appraiser’s Perspective Slide9

You are misrepresenting “your” work because you are using others to do it, not acknowledging this in the report,

and signing the report as if it is only “your” work

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An Appraiser’s Perspective Slide10

You only or consistently use “

cloned” appraisal reports

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An Appraiser’s Perspective Slide11

You do NOT

use or turn on your UAD built-in software tool in your form’s software program or you consistently override or turn it off

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An Appraiser’s Perspective Slide12

You do

NOT have a database program that captures your subject property data and comparable data by address or similar identification for verification of prior use and prior information about that transaction

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An Appraiser’s Perspective Slide13

You are using the prior subjective method of determining quality and condition, i.e., poor – average – good

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An Appraiser’s Perspective Slide14

You rely on your clients to tell you what is and is not UAD compliant and do NOT

take your own proactive steps to stay informed yourself about changes in the UAD and UCDP by signing up for Fannie email alerts from their website

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An Appraiser’s Perspective Slide15

You think it is too much effort or

it is asking too much to explain legitimate differences if data changes concerning a comparable from one report to another report

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An Appraiser’s Perspective Slide16

You commonly follow what your client asked you to do blindly and without recognition of your own ethical and competency obligations required under the assignment

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An Appraiser’s Perspective Slide17

You do NOT

stay apprised of issues or changes in your data sources that may affect your prior data reporting and do NOT

provide explanation of these issues or changes in subsequent reports

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An Appraiser’s Perspective Slide18

You take all your data sources at face value and do

NOT confirm or verify the information yourself

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An Appraiser’s Perspective Slide19

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An Appraiser’s Perspective

You are inconsistent on the use and reporting of your data sources for the same comparable used in different reports –

In one report you cite your data source as public record

In another report you cite MLS

In

another report you cite your appraisal file

Still in

another report you cite an appraiser cooperative

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All for the same property used in a different reportSlide20

You live most, if not all of your appraisal career “hiding” in your home office, work office, etc. and seldom interact with other appraisers to stay apprised of issues or changes in the local real estate market or appraisal practices

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An Appraiser’s Perspective Slide21

You judge the subject and comparable property data as “relative” and not “absolute”

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An Appraiser’s Perspective Slide22

You are NOT

rating the subject and comparables for condition and quality on a “holistic” basis

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An Appraiser’s Perspective Slide23

You are

NOT aware that Fannie/Freddie provided additional guidance to the definitions of Condition and Quality that is a supplement

to the UAD Field Specifications

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An Appraiser’s Perspective Slide24

You do NOT

know what I’m talking about when I say the “UAD Field Specifications” or

“Appendix D”

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An Appraiser’s Perspective Slide25

You do NOT

change the Condition or Quality ratings when you know they should be changed because explaining the change in the report is too much work and takes too much time

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An Appraiser’s Perspective Slide26

You do

NOT educate yourself on how to appropriately determine an accurate Condition and Quality rating

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An Appraiser’s Perspective Slide27

You do

NOT understand the difference between Not Updated,

Updated and Remodeled as defined in the UAD

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An Appraiser’s Perspective Slide28

You got an educational letter and did

NOT take it seriously and did NOT respond or

NOT respond professionally

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An Appraiser’s Perspective Slide29

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An Appraiser’s Perspective

You do

NOT

specifically watch for and avoid inaccurate and inconsistent data for the following property characteristics:

Gross Living Area

Sales Price

Room Count

Lot Size

Condition, Quality, View & Location RatingsSlide30

Honest, forthright appraisers that protect themselves by working “UAD Smart” do

NOT have anything to worry about

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An Appraiser’s PerspectiveSlide31

Fannie Mae Update

An Appraiser’s Perspective

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