The appraiser community is consistently monitoring state legislative and regulatory activities as it relates to BPOs and is prepared to respond to any effort to expand the use of broker price opinions
for anything other than for real estate listing and sales purposes.
Clear Capital, Truckee, California, has launched a series of commercial broker price opinion
(BPO) and commercial valuation products.
REVAA does, however, point out in its model legislation, Recommendations on Broker Price Opinions
Legislation--which was developed based on recent precedents such as the Dodd-Frank Wall Street Reform and Consumer Protection Act and progressive BPO statutes in Nevada and Nebraska, and is distributed where BPO-related legislative activity is pending: "Broker price opinions
may not be used as the primary basis to determine the value of a piece of property for the purpose of a loan origination of a residential mortgage loan secured by such piece of property.
The bill contains many favorable provisions for the appraisal profession, not the least of which is that it requires a complete interior inspection appraisal for all subprime loans, and it calls for limitations on the use of broker price opinions
in loan origination.
By adding an evaluation of the property's exterior condition, Bradford Technologies is furthering the industry's move toward valuation alternatives that are far more reliable than broker price opinions
(BPOs), according to the company.
The guide also contains a special section showing agents exactly how to deliver Broker Price Opinions
, a service they can use as the easiest way to break into the REO market.
On March 31, Freddie Mac revised its Seller/Servicer Guide to strictly prohibit its lenders from using broker price opinions
to value properties for mortgage purchases.
As a more reliable alternative to broker price opinions
(BPOs) and automated valuation models (AVMs), AppraisalWorld is offering its Collateral Valuation Report (CVR), a transparent, mathematically supportable valuation that is more comprehensive than a broker price opinion
, yet is less intricate and less costly than a traditional appraisal, according to the company.
These newly foreclosed properties are being featured with independent appraisals and broker price opinions
posted within our online marketplace thereby enabling home buyers to buy with more confidence.