VaCAP has been informed an email has been sent to Virginia Appraisers from Xome Vender Manager, Adam Burg. The email, addressed to “undisclosed recipients,” starts with “Dear Virginia Appraisers.” The body of the email announces that SunTrust Bank has begun ordering a bifurcated valuation product with an interior inspection. The appraiser is to use information from a third party property inspection for subject property data.
VaCAP cautions appraisers on this product. Virginia Statutes and Regulations are very clear the appraiser who signs the appraisal report must have complete direction and control over the appraisal. The Virginia Real Estate Appraisal Board held a committee meeting November 28, 2018 on this very topic. See the minutes of the hybrid committee meeting here. . The committee will report to the full Board at the February 12th meeting a recommendation of any action to be taken.
If you choose to complete this product, or any product similar to it. We encourage you to be familiar with the below statutes and regulations. We also encourage you to have a discussion with your E & O company, specifically, if you violate state law are you covered under your policy. We also encourage you to think about the value of your license and the consequences of a disciplinary action against you.
Take a look at the various statutes and regulations that maybe impacted by these products.
As the Appraiser…
54.1-2009 Definition of appraisal
“Appraisal” means an analysis, opinion, or conclusion relating to the nature, quality, value, or utility of specified interests in, or aspects of, identified real estate or identified real property. An appraisal may be classified by subject matter into either a valuation or analysis. A “valuation” is an estimate of the value of real estate or real property. An “analysis” is a study of real estate or real property other than estimating value. The term “appraiser” or “appraisal” may be used only by a person licensed or certified by the Board.
54.1-2011 Necessity for license
C. Notwithstanding subsections A and B of this section, an individual who is not a licensed residential real estate appraiser, a certified residential real estate appraiser, or a certified general real estate appraiser may assist in the preparation of and sign an appraisal if:
1. The assistant is under the direct supervision of a licensed residential real estate appraiser, a certified residential real estate appraiser, or a certified general real estate appraiser; and…
18 VAC 130-20-180 Standards of professional practice.
C. Use of signature and electronic transmission of report.
1. The signing of an appraisal report or the transmittal of a report
electronically shall indicate that the licensee has exercised
complete direction and control over the appraisal. Therefore, no
licensee shall sign or electronically transmit an appraisal which has
been prepared by an unlicensed person unless such work was
performed under the direction and supervision of the licensee in
accordance with § 54.1-2011 of the Code of Virginia.
And if you are an appraisal management company soliciting these products…
18 VAC 130-30-160 Prohibited Acts
The following acts are prohibited and any violation may result in disciplinary action by the board:
1. Violating, inducing another to violate, or cooperating with others in violating any of the provisions of any of the regulations of the board or Chapter 20.2 (§ 54.1-2020 et seq.) of Title 54.1 of the Code of Virginia, or engaging in any acts enumerated in § 54.1-111 of the Code of Virginia.
10. Failing to act as an appraisal management company in a manner that safeguards the interests of the public.
What about the lenders that are using this product?
Do they have an obligation to obey state laws? Will the auditors have issue with a product in their files that violates state laws? What action could the Attorney General take?
But the bigger question in all of this, What does the consumer think of this product?
Thank you for being a part of VaCAP!