1. Lender Processing Services Proprietary and Confidential Information Copyright 2011 This material This material may not be reproduced in any form without permission. LSI Video Learning Series Mandatory Training Module USPAP “Avoidables” Violations that can be easily avoided

2. Lender Processing Services Proprietary and Confidential Information Copyright 2011 This material may not be reproduced in any form without permission. Formal complaints to state boards have risen significantly in recent years.

3. Lender Processing Services Proprietary and Confidential Information Copyright 2011 This material may not be reproduced in any form without permission. This is primarily due to: Declining home values Scrutiny of non-performing loans

4. Lender Processing Services Proprietary and Confidential Information Copyright 2011 This material may not be reproduced in any form without permission. Regardless of the nature of the complaint, a state board is required to review for full USPAP compliance

5. Lender Processing Services Proprietary and Confidential Information Copyright 2011 This material may not be reproduced in any form without permission. Appraisers are often sanctioned for USPAP offenses that are unrelated to the actual allegations in a complaint. This is often avoidable with little effort.

6. Lender Processing Services Proprietary and Confidential Information Copyright 2011 This material may not be reproduced in any form without permission. USPAP requires an appraiser to analyze any prior sale of the subject that occurred in the past three years and to report the results.

7. Lender Processing Services Proprietary and Confidential Information Copyright 2011 This material may not be reproduced in any form without permission. Analyze: to examine carefully and in detail so as to identify causes, key factors, possible results, etc. From Dictionary.com

8. Lender Processing Services Proprietary and Confidential Information Copyright 2011 This material may not be reproduced in any form without permission. Many reports do not contain an explanation of how the final value was derived from the value range indicated by the analysis

9. Lender Processing Services Proprietary and Confidential Information Copyright 2011 This material may not be reproduced in any form without permission. Two types of reconciliation are required: 1. Reconciliation of the approaches. 2. Reconciliation within each approach

10. Lender Processing Services Proprietary and Confidential Information Copyright 2011 This material may not be reproduced in any form without permission. Example: Sale 1 is given most weight because of its proximity and similar size. Sale 3 is given less weight because of the sale date.

11. Lender Processing Services Proprietary and Confidential Information Copyright 2011 This material may not be reproduced in any form without permission. The workfile must contain true copies of all reports In USPAP, the report is defined as the thing transmitted to the client.

12. Lender Processing Services Proprietary and Confidential Information Copyright 2011 This material may not be reproduced in any form without permission. In the case of revisions, there are often multiple reports transmitted to the client. Must have access to trues copies of all versions.

13. Lender Processing Services Proprietary and Confidential Information Copyright 2011 This material may not be reproduced in any form without permission. For a UAD report, the true copy is the MISMO file Always retain copies of the MISMO files for the required time period.

14. Lender Processing Services Proprietary and Confidential Information Copyright 2011 This material may not be reproduced in any form without permission. Must employ recognized methods and techniques. SR 1-1(a) Should NOT be adjusting on a pure dollar-for-for dollar basis.

15. Lender Processing Services Proprietary and Confidential Information Copyright 2011 This material may not be reproduced in any form without permission. Comparables are adjusted based on the effect on their price What is typical in the market is irrelevant

16. Lender Processing Services Proprietary and Confidential Information Copyright 2011 This material may not be reproduced in any form without permission. Effective 01/01/2012, reports for market value appraisals must specifically identify the exposure time associated with the value opinion.

17. From the entire team at LSI Thank You!! 17