blacklist

I did not compare these FAQs with the 2013 FAQs but they seem very similar.

The Q&As below may be new or revised:

– Will appraisers have the opportunity to appeal or offer a rebuttal?

– What should an appraiser do if he or she believes that the rebuttal would violate the Confidentiality section of the Ethics Rule as set forth in the Uniform Standards of Professional Appraisal Practice (USPAP)?

– What actions will Fannie Mae take with respect to specific appraisers?
Part of the reply: Fannie Mae will provide information directly to appraisers whose appraisal reports exhibit a pattern of minor inconsistencies, inaccuracies, or data anomalies. The intent and expectation of communicating these issues to appraisers is for training and educational purposes, and to provide them with an opportunity to improve their work. Future appraisal reports from those appraisers will be monitored to assess improvement.
https://www.fanniemae.com/content/faq/appraiser-quality-monitoring-faqs.pdf

Fannie posts a list of appraisers subject to 100% review of their appraisals or are not approved to do appraisals for Fannie Mae loans. The Appraisal Quality Management list is only accessible to lenders who sell loans to Fannie. The last list was posted in May.

My comment: Maybe a few of those appraisers hiring armies of people to do their inspections and drive comps will get caught. For example, completing 40 appraisals a week in urban areas or 10 appraisals a week in very rural areas. Of course, they can make lots of money working for very low AMC fees!!

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Info on Fannie’s “do not use” appraiser list available

Many thanks to appraiser Dave Towne for sending the email below!!

FannieMae distributed this info below on 1/07/14 ….. shown here just as an FYI, because appraisers cannot access the AQM page.

But you can access the LL-2013-10 which describes some of the negative reporting issues the GSE’s have seen since the UAD was implemented.

Your UAD reports are subject to a higher level procto exam if:
–>you often use the same comp in different reports, but the data you report for that property is different between reports
–>you change the Quality and Condition rating for the same property used as a comp in different reports  (The first time it’s used the Q & C ratings should ‘stick’ thereafter)
–>you are contacted by a GSE reviewer who discusses the above item(s), and you don’t have a credible explanation as to why you have done the above
–>you continue to make the same reporting errors frequently

If you wind up on the GSE’s ‘do not use list’ you are effectively out of business – at least for federally regulated mortgage lending reports.  So “let’s be careful out there!”

Appraiser Quality Monitoring Information
Fannie Mae has published a new web page with information about the recently implemented Appraiser Quality Monitoring (AQM) process. The new AQM web page includes FAQs and a link to the AQM list identifying appraisers whose appraisals will be subject to 100% review by Fannie Mae or whose appraisals are no longer accepted by Fannie Mae. The AQM list is protected content, and approved Fannie Mae sellers/servicers may set up access through Technology Manager.

For more information, refer to Lender Letter LL-2013-10: Appraisal Quality, which reminded lenders of Fannie Mae’s appraiser selection requirements, highlighted several data quality issues, and described the AQM process that Fannie Mae has implemented to identify and monitor issues with individual appraisers.

Direct link to Fannie Appraiser Quality Management (AQM) web page at  www.fanniemae.com/singlefamily/appraiser-quality-monitoring

Dave Towne, AGA, MAA                                             towneappraisals@clearwire.net                           www.towneappraisals.comMount Vernon, WA

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What do I think? This can be good for the appraisal profession!

Appraisers have been complaining for years about the “other” appraisers who are unethical, incompetent, lazy, or stupid. For many clients, since licensing, all appraisers are seen as the same. Why not use someone who gives you what you need – turn time, fee, no problems with underwriting, etc.?

Unfortunately, AMC hassles have driven many very experienced appraisers out of the business, or refusing to do AMC work. This makes the problem more difficult.

Maybe more AMCs will start using appraiser quality rather than fee, turn time, etc. to select their appraisers.

Also, the preference by many AMCs for low fees makes it very tempting to skimp on the time and effort for doing appraisals.

A low fee does not mean that you can do a poor job on an appraisal. I know what it is like to work for a low fee. I tried doing low fee jobs a few times over the years, but found I had a really “bad attitude” about the appraisal and had to force myself to do the same appraisal no matter what the fee. Doing a good appraisal is more important to me than using a low fee as an excuse for doing less work on an appraisal.

It is great to see that Fannie is using objective criteria, rather than a reviewer that gives an appraiser a bad rating, removing them from the list of a major lender. Just like appraising, reviewing is subjective. Particularly with the use of reviewers not familiar with your local market.

Fannie's Appraiser Quality Monitoring(AQM) FAQs July 2014(Opens in a new browser tab)