When a supervisor appraiser is working with a Trainee Residential Real Property Appraiser the answer is YES for Fannie Mae deals. Fannie Mae requires the appraisal to be completed by a state licensed or certified appraiser in compliance with FIREEA. Trainee appraisers do not fall into this category. Thus the supervisor is the appraiser. Fannie Mae requires the appraiser to:
1. Personally inspect the subject
2. Personally inspect the comparables
3. Perform the analysis and
4. Prepare and sign the report
This does not mean that the trainee can not help with process and even complete the majority of the work. It does mean however, that you as the supervisor have to go along for the ride.
See Section B4-1.1-03 and B4-1.1-04 of the Fannie Mae Selling Guide.
Wednesday, May 26, 2010
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Hi Brett! Nice to see you are spreading your wealth of knowlege to the world! There could be no one better knowledge or experience wise than you.
ReplyDeleteKudos!
Cindy Johnson
I enjoyed reading your blog ~ thanks for posting such useful content./Nice article and great photos. Very nicely done!
ReplyDeleteAppraiser
Hello,
ReplyDeleteI am being told that the interpretation of the guide is the Supervisory Appraiser signs on the right, and is only required to inspect if the they feel the trainee info is uncertain (such as cases with poor properties, those requiring significant repairs or if they feel the work/detail presented was not acceptable). That the trainee would sign on left and the surpervisory appraiser on right. In reading the guides you presented. Can you provide something more specific to refer to? I agree with your statements, however have a company VP who disagrees, and would to provide something solid to him to support the discussion.
If Fannie Mae is an intended user, their guidelines discuss appraiser selection. Section B4 of their Selling Guide and more precisely, B4-1.1-03 provides the definition of "Appraiser" as the individual that, among other things, inspected the property being appraised.
DeleteThe definition goes on to say the definition does not preclude appraisers from relying on individuals who are not state licensed or certified.
But the "Appraiser" is the individual that inspected the property being appraised. Also the "Appraiser" must be state licensed or certified.
Their guidelines provide a great deal of flexibility to allow trainees to be involved in the process. But the confusion lies with who the "Appraiser" is in the assignment. A Trainee Residential Real Property Appraiser does not hold the level of license required by FIRREA and Fannie Mae to be the "Appraiser." The supervisor is the "Appraiser" for these assignments and the guidelines clearly say they must perform the property inspection.
Now after having said all that, the State of Minnesota allows Trainee appraisers to go unaccompanied on inspections once their supervisor has deemed them competent to do so (MN Stats 82B.094).
I know at least one major lender in town that has decided to let Trainees inspect on their own due to the state law.
Ultimately your supervisor appraisers will have to make their own scope of work decision