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Providing MLS data?

By
Real Estate Appraiser with North Country Appraisal Services

Monday I completed a report for a purchase ordered by an AMC as a drive-by at lender request.  This signals me immediately that the loan is going to be made based upon the borrowers' good credit and the appraisal is merely a required formality.  I completed the report which was located in quite a rural area.  No comps were available within the defined market area so comps were taken from an adjoining and competing market area.  The AMC approved the value and the report based upon my extensive commentary. Then, on Wednesday, they called requesting additional data - copies of the MLS sheets for the comps.  It seems they have an internal computerized program which verifies the information against public records, which are not readily available in this area.  They also needed it immediately to close so that the tax credit would not be lost.  They are a good client so I quickly furnished a brief print-out of the comps.

As I think back in retrospect, several questions cross my mind.  If HVCC has successfully distanced the appraisers from the lenders, why is there such a suspicion on the appraiser so as to cause a verification of data?  If an AMC hires good appraisers, why is it necessary to verify the data provided.  If the value was of such nominal importance in this loan that they ordered a drive-by, why are they scutinizing this report? 

Comments (8)

Jesse Skolkin
Independent New York State Certified Real Estate Appraiser - Fresh Meadows, NY

Rich:

I hope you used the public version of the MLS printouts, as opposed to the Broker version, as there may be copyright issues involved.

Jul 02, 2010 07:26 AM
Richard Glesser
North Country Appraisal Services - Gaylord, MI

Better than that, Jesse; I used the one-line public print-out.  I have strongly opposed providing MLS info and continue to do so.  First, the reason we are hired is, hopefully, local competence which includes access to necessary information such as the MLS.  Secondly, I don't believe those without local expertise can properly understand the local MLS systems which vary substantially.  I have actively tried to persuade as many of my colleagues from providing this information as I can.  By doing so, we protect our local market from large outside companies.

Jul 02, 2010 12:05 PM
Sara Goodwin
Estimation Nation Corporation - Portland, OR
Portland, Oregon Appraiser

I have a client (same?) that requires that as well.  They get a screenshot of the minimal data only (mls#, address, closing date and price).  That's what my MLS allows. They don't push for more information (anymore).

Jul 02, 2010 08:30 PM
Jenna Dixon
Momentum Real Estate Group LLC - Marietta, GA
55 & Over | New Constructions | Horse Farms

WOW! A drive by appraisal on a purchase...I don't think we have those here. 

Jul 03, 2010 04:11 AM
Richard Glesser
North Country Appraisal Services - Gaylord, MI

I have consulted the MLS systems to which I belong and have received a blanket answer that the information is for the members.  There are client printouts that may be distributed which remove most pertinent information.  I stand by the principle that, as the local appraiser completing a summary report, such information should properly remain in my file.  Too many appraisers, like the skippys, feel they must do whatever the lender requests for whatever fee.  A well-informed and educated appraiser in USPAP and appraisal principles can always win against an underwriter who has no appraisal experience nor education.

Jul 03, 2010 04:46 AM
Richard D. Ferris
AmcAppraisalsinc.com - Clermont, FL
Florida State Certified (FHA) Appraiser

Richard - I agree with you too.  I know of AMCs out there, who pay people to retype our reports into their own databases to compile more and more "private" data from the MLS for their AVMs.  For field review work, we are always asked to provide the MLS sheets of the original comps used and the repalcement comps.  In this case, they want more than the one line print outs.  But still, I typically give them the client versions to eliminate concerns.

Good post!

Jul 15, 2010 06:36 AM
Anonymous
Maureen Jungers

The request for MLS printouts and field cards is becoming more and more common; especially on the "enhanced" reviews. To do a retrospective review from over 3 years ago while the market was hot and in a low density rural area....complete with all of the subject and comp photo's, original mind you, and all the tax data, and any new info or comps I may have, and throw in a CMA....well,you get the point, i was exhausted just looking at the request' The fee was insulting....if it was a normal review, the fee would be more appropriate.

If you ever get a request from Interthinx, run, don't walk.

Make no mistake, a data base is compiled from all of the MLS data you send them, and suddenly, everybody at the AMC is a certified, FHA appraiser...

bottom line,,the more we give them, the less they are going to keep giving  us....

Aug 05, 2010 08:04 AM
#7
Richard Glesser
North Country Appraisal Services - Gaylord, MI

I have long had a policy of NO enhanced reviews.  If someone wants to build a case against another appraiser, I'm willing to work as anconsultant or expert witness - at a greatly enhanced fee.  Appraisers need to understand that this sort of review is only undermining the profession by pitting appraiser against appraiser.  If successful, there will be no appraisers left and lenders can go back to doing whatever they want with no independent checks and balances.  So far, the only reason they've kept us around is to have someone to pin the blame on when they're caught in illegal or unethical loan practices as happened with the S & L dilema and recent HVCC.

Aug 05, 2010 11:12 AM