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LSI Video Learning Series

LSI Video Learning Series. USPAP “Avoidables” Violations that can be easily avoided. Mandatory Training Module. Complaints are on the rise. Formal complaints to state boards have risen significantly in recent years. Complaints are on the rise. This is primarily due to:.

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LSI Video Learning Series

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  1. LSI Video Learning Series USPAP “Avoidables” Violations that can be easily avoided Mandatory Training Module

  2. Complaints are on the rise Formal complaints to state boards have risen significantly in recent years.

  3. Complaints are on the rise This is primarily due to: • Declining home values • Scrutiny of • non-performing loans

  4. Obligations of State Boards Regardless of the nature of the complaint, a state board is required to review for full USPAP compliance

  5. “Avoidables” Appraisers are often sanctioned for USPAP offenses that are unrelated to the actual allegations in a complaint. This is often avoidable with little effort.

  6. Sales History USPAP requires an appraiser to analyze any prior sale of the subject that occurred in the past three years and to report the results.

  7. Sales History Analyze: to examine carefully and in detail so as to identify causes, key factors, possible results, etc. From Dictionary.com

  8. Reconciliation Many reports do not contain an explanation of how the final value was derived from the value range indicated by the analysis

  9. Reconciliation Two types of reconciliation are required: Reconciliation of the approaches. Reconciliation within each approach

  10. Reconciliation • Example: • Sale 1 is given most weight because of its proximity and similar size. • Sale 3 is given less weight because of the sale date.

  11. True Copies The workfile must contain true copies of all reports In USPAP, the report is defined as the thing transmitted to the client.

  12. True Copies In the case of revisions, there are often multiple reports transmitted to the client. Must have access to trues copies of all versions.

  13. True Copies For a UAD report, the true copy is the MISMO file Always retain copies of the MISMO files for the required time period.

  14. Adjusting for Concessions Must employ recognized methods and techniques. SR 1-1(a) Should NOT be adjusting on a pure dollar-for-for dollar basis.

  15. Adjusting for Concessions Comparables are adjusted based on the effect on their price What is typical in the market is irrelevant

  16. Exposure Time Effective 01/01/2012, reports for market value appraisals must specifically identify the exposure time associated with the value opinion.

  17. From the entire team at LSI Thank You!! 17

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