Analyzing the Appraisal Process

(1)

Course Syllabus

Analyzing the Appraisal Process

This online course is designed to help you build your skills and knowledge as it relates to

appraisal review. Over the next five weeks you will have the opportunity to participate in a variety of activities to enhance your understanding of the appraisal review process. From appraisal requirements set by USPAP, that effect the responsibility of the appraiser, to underwriting guidelines set by Fannie Mae, Freddie Mac, FHA and VA, that will affect your underwriting decisions. This course will educate you on where to find information resources that can be used during your review processes and make you more self-sufficient in your role as an appraisal reviewer. You will have the opportunity to analyze a variety of appraisals and determine property eligibility.

This course is designed for participants who are involved in the overseeing and reviewing of appraisal reports and have a fundamental understanding of the review process. This would include mortgage brokers, loan officers, processors, underwriters, quality control staff, in-house appraisers and anyone who wants to better understand the appraisal process when making loan decisions.

Learning Goals and Objectives

Upon completion of the course, students will be able to: • Analyze the Uniform Residential Appraisal Report • Evaluate appraisals in a declining market

• Analyze the Fannie Mae Market Conditions Addendum 1004MC

• Differentiate appraisal requirements for Conventional, FHA and VA loan types • Analyze manufactured home, condos and 2 – 4 unit appraisal reports

(2)

Week One

• Introduce facilitator and instructor(s) Ice Breaker - Panel discussion

• Panel discussion on Today’s challenges and recent or upcoming changes.

Review course syllabus

• Set expectations for the course • Review objectives

• Discuss time frames for each module

• Point out contact information and office hours for instructor(s) • Review course site and give instructions on how to use

Objectives:

• Analyze information contained in the Uniform Residential Appraisal Report

• Understand the need for consistent reporting throughout the appraisal report • Identify Red Flags and Inconsistencies

• Evaluate appraisals in a declining market

• Identify exhibits that an appraisal report should contain • Recognize importance of the review of these exhibits

• Understand appraiser’s responsibility based on Uniform Standards of Professional Appraisal Practice (USPAP)

Assignments

Self-Study Course - Reviewing the URAR

View the Reviewing the 1004MC using the link provided Use link to review USPAP http://uspap.org and allregs.com View USPAP cliff notes

Respond to questions from instructors in Discussion Forum

(3)

Week Two Objectives

• List conventional appraisal requirement

• Analyze information contained in the Uniform Residential Appraisal Report

Assignments

Scavenger Hunt

Search the websites provided for information pertaining to conventional – Fannie Mae and/or Freddie Mac - guidelines on appraisals and recent bulletins. Be prepared to answer questions posed by the instructors during the scheduled Chat discussion on Thursday at 4:00 pm CT. Click the link provided to join the Chat discussion.

Appraisal Review

Review the appraisal provided on the course site.

• Make note of any red flags or inconsistencies on the appraisal and what would need to be done to correct.

• Identify any areas of the appraisal report that appear incomplete or inadequate resulting in a lack of credibility for the value conclusion.

Chat discussion – Instructors/facilitator drive discussion for 30 minutes then open for general discussion and/or questions from students and check how they are doing so far.

Instructor(s) will respond to findings and answer any questions the students may have. Complete the quiz

(4)

Week Three Objectives

• Describe appraisal requirements specific to HUD • Accurately review an FHA appraisal

• Create FHA Appraisal checklist job aid

Assignment

Using the links provided in the course site to allregs.com and hud.gov websites to: • Review FHA appraisal requirements

• Locate and review appraisal related mortgagee letters • Create a FHA appraisal review checklist

• Review the FHA Appraisal

• Attend WebEx meeting to debrief findings on appraisal. Share checklist with group. Discuss findings during WebEx meeting, share created checklists and determine a final checklist. Complete the quiz

Week Four Objectives

• Order a VA appraisal using WebLGY

• Describe appraisal requirements specific to VA • Analyze a VA appraisal

Assignment

Visit the VA website using the link provided. Print out and review the WebLGY instructions and screen shots for ordering a VA appraisal.

Visit the VA website using the link provided. Review Chapters 10 - 16 of the Lenders Handbook - VA Pamphlet 26-7 on appraisal requirements and property eligibility. Review the VA appraisal provided. Write up your findings and how this analysis differed from the conventional and/or FHA appraisal review and analysis. Submit to your instructor.

(5)

Week Five Objectives

• Recognize the unique features of a manufactured home

• Accurately review manufactured home and condominium appraisals o Identify and use the systems used to determine project approval • Accurately review 2-4 unit properties

• Recognize and explain requirements for Construction to Perm appraisals

Assignments

• View the Condo self-study course

• Complete Project Eligibility search – Search websites using the links provided to: • Determine project approval and what if any limiting conditions exist

• Review information on:

o Construction to Permanent properties o Manufactured homes

o 2 – 4 Unit properties Complete the quiz

Course Wrap-up Debrief

• WebEx debrief and course closing o Debrief Week Five Module o Review highlights of course

o Review lender and appraiser responsibilities o Answer any final questions

o Requirements for completion of course  Course Evaluation