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FW: New OREA renewal requirement & UAD Update from GSE's

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  • John C. Carlson
    CA appraisers, Don t know how I got on this list, but this e-mail appears to have some good information. Since my license renews in 3/2013, it looks like I
    Message 1 of 2 , Apr 12 6:13 PM
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    CA appraisers,

     

    Don’t know how I got on this list, but this e-mail appears to have some good information. Since my license renews in 3/2013, it looks like I will have to take the 4-hr. Laws & Regulations class. No longer able to just check the box per this e-mail.

     

    Looks like in the distant future there will be “scorecards” for appraisers also – see the last paragraph. Oh goody!

     

    John C. Carlson

    John C. Carlson Real Estate Appraisals

    556 N. Diamond Bar Blvd. Suite 308

    Diamond Bar, CA   91765

    Office:  909-861-6186  Cell:  951-255-6466

    Historic, Architectural & Luxury Home Valuations***

    Industrial Buildings** Apartments***

    Forensic Reviews*** Litigation and Expert Witness***

    www.jccrea.com

     

    From: Affiliated Appraisers Workshop [mailto:instructors@...]
    Sent: Thursday, April 12, 2012 5:46 PM
    To: Appraisers@...
    Subject: New OREA renewal requirement & UAD Update from GSE's

     

    Topics in this Appraiser Update include:

     

    New OREA "Laws & Regulations" class requirement

    More information regarding Exposure Time

    New UAD Update from FannieMae & FreddieMac including:

    - Guidance on determining Ratings

    - Information about the Data Portal

    - Appraiser "scorecards"

     

    Laws & Regulations Class to be required (again) by OREA for renewals on or after 1/01/2013:

     

    We wanted to give you a quick “heads up” that the option to use the “check box” on the OREA renewal application, stating that you have read & understand applicable laws & regulations, will go away in 2013.  The 4-hr Laws & Regulations class will be required after for renewals after that date.  This will apply to all appraisers whose renewal date falls after December 31, 2012 (even if the renewal application is submitted prior to 12/31/12).  We are working on an updated “Laws & Regs” class to help out with this new requirement.

     

    Exposure Time & USPAP Statement 6:

    We are still getting a lot of questions regarding the new Exposure Time requirements.  The revised USPAP Statement 6 may be helpful for appraisers who continue to have questions.  For those that have not obtained the 2012-13 USPAP Document yet, Statement 6 can be reviewed at http://www.uspap.org/#/111/

     

    Also, a quick [shameless] pitch for our live 7-hr National USPAP Update Course.

    We deal extensively in class with recent USPAP updates, including the new Exposure Time requirements.  Upcoming classes include:

     

    Thousand Oaks – April 20, 2012

    Murrieta – May 4, 2012

    Anaheim – May 8, 2012

    Fresno – June 8, 2012

    San Luis Obispo – June 15, 2012

    To Register or for More Information

                  Click Here

                       -or-

    Go to www.AffiliatedAppraisersWorkshop.com

     

    UAD Update: Attached please find new guidance from FannieMae & FreddieMac regarding the requirements of the Uniform Appraisal Dataset (UAD).  This update deals primarily with Quality & Condition ratings/adjustments including new commentary that clarifies how the ratings are to be determined.  Also, there is new guidance that deals with successful submission of reports through the UCDP (data portal).

     

    In addition to the new guidance from the GSE's, we have added additional information on our UAD help site (UADhelp.com) that may help to explain the new guidance and other recent information from the GSE's.  The revised “Appendix D” can also be found on our website, in addition to helpful links regarding architectural styles, software help, etc.

     

    A summary of the new information is included below.

     

    Quality & Condition Ratings:

     

    Based on the newsletter dated 4/10/2012, as well as recent comments by officials at Fannie & Freddie, one of the primary concerns in the application of quality & condition ratings is that they be based on an "absolute" basis and not a "relative" scale - meaning that the ratings should NOT be determined by comparing the property to others in the area.  A "C4" should be a "C4" in any neighborhood in the United States – the rating doesn't improve because the properties around it are not in good shape.  By the same token, it should not be rated lower, because the "norm" in the neighborhood is very high.  The GSE's have indicated that this guidance should be relied upon anytime an appraiser is completing an assignment under the UAD - no matter "how they were trained" or what their personal beliefs may be.

     

    Also, based on an analysis of the new XML data stream, a major concern of the GSE's is that some appraisers are changing the rating on a comparable from one assignment to the next.  Unless new (better) information is obtained, the ratings (quality, condition, view & location) for a particular property MUST remain the same for that specific transaction.  Clearly, if a property re-sells, the rating(s) may change because the property may have changed.  The GSE's are now watching and "keeping score" – so protect yourself and don't change ratings - be consistent from report to report.

     

    Also, they have absolutely confirmed that appraisers may make adjustments within the SAME rating and suggested that they are "working hard to bring underwriters up to speed" on this issue.  As always, the adjustments should be explained and supported.

     

    Data Portal:

     

    With regard to the UCDP, the GSE's have shared some additional information about the workings of the "data portal."  The maximum size for a file submitted to the UCDP is 10MB which should allow for nearly all reports to be submitted.  There are safeguards in place so that the data can't be tampered with - once it is submitted.  The Lender that submits a report, has access to the report, however, other Lenders (for instance, a subsequent lender) do not have access to the report.

     

    Appraiser “Scorecards?”

     

    Recent comments by GSE officials indicated that they are planning to create appraisal and appraiser “scorecards” in the future.  This concept is way off in the future and they did not indicate what criteria will be used to make those evaluations.

     

    Thank you for your consideration,

     

    Brian Mathews

    State Cert. #AR004130

    AQB Certified USPAP Instructor #10988
    Affiliated Appraisers Workshop
    2239 Townsgate Road, Suite 100
    Westlake Village, CA  91361

    Ph: (866) 944-8583 – Ext. 702

     

    Web: http://www.affiliatedappraisersworkshop.com
    OREA Course Provider #CP191803
    OREA USPAP Course Approval #07191C100

     (Click the Course Provider or Approval numbers to view OREA Information)


    No Refunds within 72 hours of the Course Offering, however, Course Provider may allow transfer to another course.

     

    This message is not SPAM.  We have sent you this message because you indicated an interest in our upcoming classes or were referred by another appraiser.  If you do NOT want to receive future messages, please click here webmaster@affiliatedappraisersworkshop

     

  • Jim Shoe
    I would rather be scored on how I input UAD data than my price and turnaround time. Will reserve judgment until it all plays out. James Shoe Laguna Niguel,
    Message 2 of 2 , Apr 15 1:03 PM
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      I would rather be 'scored' on how I input UAD data than my price and turnaround time.
      Will reserve judgment until it all plays out.

      James Shoe
      Laguna Niguel, CA


      --- On Thu, 4/12/12, John C. Carlson <jcarlson@...> wrote:

      From: John C. Carlson <jcarlson@...>
      Subject: [WinTOTAL Group] FW: New OREA renewal requirement & UAD Update from GSE's [1 Attachment]
      To: InlandCAAppraisersForum@yahoogroups.com, Total2000UsersGroup@yahoogroups.com, REAAForum@yahoogroups.com
      Date: Thursday, April 12, 2012, 7:13 PM

       

      CA appraisers,

       

      Don’t know how I got on this list, but this e-mail appears to have some good information. Since my license renews in 3/2013, it looks like I will have to take the 4-hr. Laws & Regulations class. No longer able to just check the box per this e-mail.

       

      Looks like in the distant future there will be “scorecards” for appraisers also – see the last paragraph. Oh goody!

       

      John C. Carlson

      John C. Carlson Real Estate Appraisals

      556 N. Diamond Bar Blvd. Suite 308

      Diamond Bar, CA   91765

      Office:  909-861-6186  Cell:  951-255-6466

      Historic, Architectural & Luxury Home Valuations***

      Industrial Buildings** Apartments***

      Forensic Reviews*** Litigation and Expert Witness***

      www.jccrea.com

       

      From: Affiliated Appraisers Workshop [mailto:instructors@...]
      Sent: Thursday, April 12, 2012 5:46 PM
      To: Appraisers@...
      Subject: New OREA renewal requirement & UAD Update from GSE's

       

      Topics in this Appraiser Update include:

       

      New OREA "Laws & Regulations" class requirement

      More information regarding Exposure Time

      New UAD Update from FannieMae & FreddieMac including:

      - Guidance on determining Ratings

      - Information about the Data Portal

      - Appraiser "scorecards"

       

      Laws & Regulations Class to be required (again) by OREA for renewals on or after 1/01/2013:

       

      We wanted to give you a quick “heads up” that the option to use the “check box” on the OREA renewal application, stating that you have read & understand applicable laws & regulations, will go away in 2013.  The 4-hr Laws & Regulations class will be required after for renewals after that date.  This will apply to all appraisers whose renewal date falls after December 31, 2012 (even if the renewal application is submitted prior to 12/31/12).  We are working on an updated “Laws & Regs” class to help out with this new requirement.

       

      Exposure Time & USPAP Statement 6:

      We are still getting a lot of questions regarding the new Exposure Time requirements.  The revised USPAP Statement 6 may be helpful for appraisers who continue to have questions.  For those that have not obtained the 2012-13 USPAP Document yet, Statement 6 can be reviewed at http://www.uspap.org/#/111/

       

      Also, a quick [shameless] pitch for our live 7-hr National USPAP Update Course.

      We deal extensively in class with recent USPAP updates, including the new Exposure Time requirements.  Upcoming classes include:

       

      Thousand Oaks – April 20, 2012

      Murrieta – May 4, 2012

      Anaheim – May 8, 2012

      Fresno – June 8, 2012

      San Luis Obispo – June 15, 2012

      To Register or for More Information

                    Click Here

                         -or-

      Go to www.AffiliatedAppraisersWorkshop.com

       

      UAD Update: Attached please find new guidance from FannieMae & FreddieMac regarding the requirements of the Uniform Appraisal Dataset (UAD).  This update deals primarily with Quality & Condition ratings/adjustments including new commentary that clarifies how the ratings are to be determined.  Also, there is new guidance that deals with successful submission of reports through the UCDP (data portal).

       

      In addition to the new guidance from the GSE's, we have added additional information on our UAD help site (UADhelp.com) that may help to explain the new guidance and other recent information from the GSE's.  The revised “Appendix D” can also be found on our website, in addition to helpful links regarding architectural styles, software help, etc.

       

      A summary of the new information is included below.

       

      Quality & Condition Ratings:

       

      Based on the newsletter dated 4/10/2012, as well as recent comments by officials at Fannie & Freddie, one of the primary concerns in the application of quality & condition ratings is that they be based on an "absolute" basis and not a "relative" scale - meaning that the ratings should NOT be determined by comparing the property to others in the area.  A "C4" should be a "C4" in any neighborhood in the United States – the rating doesn't improve because the properties around it are not in good shape.  By the same token, it should not be rated lower, because the "norm" in the neighborhood is very high.  The GSE's have indicated that this guidance should be relied upon anytime an appraiser is completing an assignment under the UAD - no matter "how they were trained" or what their personal beliefs may be.

       

      Also, based on an analysis of the new XML data stream, a major concern of the GSE's is that some appraisers are changing the rating on a comparable from one assignment to the next.  Unless new (better) information is obtained, the ratings (quality, condition, view & location) for a particular property MUST remain the same for that specific transaction.  Clearly, if a property re-sells, the rating(s) may change because the property may have changed.  The GSE's are now watching and "keeping score" – so protect yourself and don't change ratings - be consistent from report to report.

       

      Also, they have absolutely confirmed that appraisers may make adjustments within the SAME rating and suggested that they are "working hard to bring underwriters up to speed" on this issue.  As always, the adjustments should be explained and supported.

       

      Data Portal:

       

      With regard to the UCDP, the GSE's have shared some additional information about the workings of the "data portal."  The maximum size for a file submitted to the UCDP is 10MB which should allow for nearly all reports to be submitted.  There are safeguards in place so that the data can't be tampered with - once it is submitted.  The Lender that submits a report, has access to the report, however, other Lenders (for instance, a subsequent lender) do not have access to the report.

       

      Appraiser “Scorecards?”

       

      Recent comments by GSE officials indicated that they are planning to create appraisal and appraiser “scorecards” in the future.  This concept is way off in the future and they did not indicate what criteria will be used to make those evaluations.

       

      Thank you for your consideration,

       

      Brian Mathews

      State Cert. #AR004130

      AQB Certified USPAP Instructor #10988
      Affiliated Appraisers Workshop
      2239 Townsgate Road, Suite 100
      Westlake Village, CA  91361

      Ph: (866) 944-8583 – Ext. 702

       

      Web: http://www.affiliatedappraisersworkshop.com
      OREA Course Provider #CP191803
      OREA USPAP Course Approval #07191C100

       (Click the Course Provider or Approval numbers to view OREA Information)


      No Refunds within 72 hours of the Course Offering, however, Course Provider may allow transfer to another course.

       

      This message is not SPAM.  We have sent you this message because you indicated an interest in our upcoming classes or were referred by another appraiser.  If you do NOT want to receive future messages, please click here webmaster@affiliatedappraisersworkshop

       

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