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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Ramsey Su who wrote (71106)	10/5/2006 1:25:15 PM
From: CalculatedRisk	Respond to of 110194

good stuff! Thanks.

To: Ramsey Su who wrote (71106)	10/5/2006 4:13:25 PM
From: ridingycurve	Respond to of 110194

Funny you should bring up appraisals. I was thinking about them this morning and pulled up a copy of the Uniform Standards of Professional Appraisal Practice. I haven't looked at them in years and was trying to locate the section addressing financing terms in sales transactions. My angle was that if exotic loans had previously come to be accepted as a typical financing, then appraisers were under no obligation to make adjustments to comps financed with them. But do the new guidelines now regard such financing as non typical and require appraisers and review appraisers to make adjustments for appraisals in “Federal” transactions? I'm a long way from completely reviewing the Standards, but I can't seem to find what I'm looking for. I did find this: When reporting an opinion of market value, state whether the opinion of value is: in terms of cash or of financing terms equivalent to cash, or based on non-market financing or financing with unusual conditions or incentives. When an opinion of market value is not in terms of cash or based on financing terms equivalent to cash, summarize the terms of such financing and explain their contributions to or negative influence on value. This section seems to address the subject of the appraisal, not the comps, so I apparently need to keep looking. BTW, I was really struck by this statement contained in one of the posts you linked: If you want your deals to go smoothly, you really do need to call around looking for the appraisers that do NOT do comp checks. Typically, those are the appraisers who's work will make it through underwriting with few to no problems. 1980's all over again?