The Editor of Working RE Magazine, David Brauner, notes in the attached article: "In this opinion piece, appraiser Andy Anderson expresses what many of his colleagues are thinking about the upcoming UMDP requirements."
"Local appraisers should be able to continue to complete a report in English with terminology that the local borrower and lender can understand. Especially since the Dodd/Frank Reform Bill requires each borrower to receive a copy prior to the close of escrow.
No appraisal client other than the GSEs and lenders want to see “codes” in the reports.
Without a substantial addenda with an explanation, the new codes will be misleading to any reader of the report not familiar with the UAD requirements. It is a disappointment that the VA and FHA government agencies have agreed to the GSE mandates. The new requirements appear to have the potential of creating a misleading report to anyone not trained in the new codes and requirements.
It is much more important to have qualified and experienced underwriters and reviewers reading the report for clarity than to streamline the reports and loan files with “fast and easy.” That is what got us into the financial mess we are in. Some uniform standards may be an asset but the appraiser who puts misleading or inaccurate quality, condition, etc. statements in a report will also put misleading and inaccurate codes in the report. A lie is a lie and changing to the mandated format will not change the character of the person who completes the report."
About the Author Mr. Anderson is a taxpaying American citizen, a Vietnam-era Marine Corps veteran and independent fee appraiser. He is an appraisal education author and instructor and the founder of Integrity~ An Association for Real Estate Professionals, which is a grassroots effort created to promote the public trust through the use of honest, ethical and reliable real estate professionals and sound business practices.
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