This seminar is designed to be presented to practicing residential real estate appraisers. It is quite possible that this material will also appeal to loan underwriters, lender quality control persons and even some investors. This material is designed to invoke discussion about the correct use, pitfalls and optional procedures utilized in the review of appraisal reports.
Knowledge of the Uniform Standards of Professional Appraisal Practice (USPAP) is a large part of any appraisers practice and it will be part of this material as well. It is not the intent of this material to present a USPAP course but any discussion of the review appraisal function will include a discussion of the rules required to be followed. There will be links to the Appraisal Foundation where the current document can be found. In USPAP, the focus of review work is in Standard 3.
This material will focus on a line by line discussion of the Fannie Mae Form 2000 which is used to present a single unit residential appraisal review report and the Uniform Residential Appraisal Report (URAR) which is used to report most residential appraisals. This discussion includes tips on where to research or confirm the data and some possible areas where review appraisers may need to focus.
The practicing appraiser may think they know how to do a review assignment but in many cases, the review appraiser perceives the correct procedures from the limited view of their past experience or training. This material will attempt to present a wide view of appraisal review assignment in accordance with Standard 3 and hopefully aid the practitioners in keeping an open mind as to the correct procedure and possible outcomes. Clients generally do not like to get bogged down in the minutia of the appraisal process. Most clients want more or less an executive summary of the appraisal review unless there are factors what will change their intended use of the appraisal or the risk associated with the investment. Investors like Fannie Mae, Freddie Mac and insurers like FHA/HUD have Quality Control programs for appraisers that include review appraisals.
Since many residential review appraisal assignments are done for lenders who are complying with quality control requirements, included in this material are refer-ences to the quality control criteria in place for the major lenders and investors. What is required, what is suggested and what is not wanted from the review ap-praiser is important to know. If the investors want certain details and not others, it is important for the appraiser to focus on the needs of the client not the needs as perceived by the appraiser.
AI CE Credit for Designated members, Candidates for Designation and Practicing Affiliates