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90 ment yet, Broker Price Opinions (BPOs) are following suit. For the alternative valuation products–BPOs and Broker Opinions of Value (BOV)–to get the condition accurately assessed in absolute terms, the key is to communicating with your provider. Establish what type of condition assessment that is expected (absolute vs relative). Ask your BPO provider what instructions they provide to the valuation vendor. Ask to see the valuation provider's condition definitions and their train- ing guides. Don't be afraid to ask! Define the expectations in the relationship. Most provid- ers are already using some kind of standard definition. For example, National Association of Broker Price Opinion Professionals (NABPOP) has condition guidelines that are utilized by many organizations. e vendors and providers will likely be happy to provide these items. Clear communication helps everyone. LOVE YOUR TECHNOLOGY, BUT CHECK THE CONDITION Repairs and repair estimates are another sub- jective input in valuation products which go hand in hand with condition and are front and center problems for valuations. is is true for BPO's with repair estimates, the second opinion REO product, cost to cure estimates in appraisals, and relocation appraisals. e appraisal industry has taken a more aggressive role in defining the scope of work and definition of the problem, even though repairs are not a typical part of a standard appraisal like they are for a BPO. For alternative valuation products, repairs and repair estimates are at the sole discretion of the vendor, which opens the door to a wide variety of interpreta- tions. is practice leads to inconsistent value streams being given on an individual property. Beyond the basic cost estimates, such as exterior paint, roof repairs, or cleaning the lawn, cost estimates present a very real problem in default servicing. Many times, the problem lies with the instruction, or lack of instruction and communication between the client, vendor, and provider. As a servicer utilizing BPO products for valuation assessments, solid instruction to the BPO vendor is critical. Expectations regarding repairs should be specifically defined including whether repair estimates should be based on repairing the subject to average/ good condition, rehabbed condition, or fully financeable condition and end user's definitions of these terms. e report's credibility is not just in the value conclusion, it has to be supported by the data and meaningful commentary. CLARITY MATTERS e concept of making a comment seems simple: write a complete sentence and describe what you are thinking. e client is paying for an opinion, so they should get it. A credible and detailed explanation regarding a non-conforming property will make the client and the client's client very happy. Well-written comments that clearly convey how and why the value conclu- sion is what it is and how the data supports the value conclusion will save the client an immense amount of research time. Why is it so hard to get a well-written comment? One possible answer is that BPO providers spend an inordinate amount of time and money creating hundreds of data validations, BPO scoring logic, and Realtor rating logic, and they may have missed the boat on actually train- ing the evaluator in how to adequately address unique situations. Valuation providers should emphasize how important these comments are to vendors and how critical they are for a thorough analytical review. COMPLIANCE–VALUATIONS IN THE NEW AGE OF SERVICING In this era of regulatory compliance, how does one create a credible compliance program for their segment of the industry? ese days there seems to be a 12-step program for every- thing. Somewhere out there is an enterprising lawyer formulating his 1,000-step compliance program; it's a billing strategy. Regardless of what you may believe about the wisdom of poli- cymakers in instituting this regulatory landscape, it is a reality from which no service provider can escape. e simple rule is that service providers of any kind should know whose boots are on the street and where those boots have been. Good due diligence should include employee back- ground checks, documentation of the instruc- tions given to the employee, quality control measures to ensure that the directions have been followed, and a standard procedure to handle borrower complaints. When all is said and done, service providers should be intimately familiar with the quality assurance steps that are in place to double-check the facts. It sounds easy enough, but the devil is in the details. It seems things went from an era where no one was responsible, to an era where everyone is responsible. Gone are the days of hiring a com- pany and saying: "Take care of this for me I don't want to think about it anymore." For valuation compliance, it is critical to know who in the workflow chain is keeping track of licenses, E&O insurance, qualifications, who's doing the work, and what the instructions are. If are asked during an audit "Is this an unbiased, credible value conclusion from an industry expert and does the data support those facts?" Make sure the answer is an emphatic "yes." GETTING THE DESIRED RESULTS As a client, getting a fully compliant valuation product is a matter of communication. Clients should start asking questions and not stop until all of their concerns have been addressed. It is good to get answers to whether there are security measures in place to protect the client's nonpublic personal information, SOCII status, and what instructions are provided to vendors, especially regarding interior orders where the point of contact could be the borrower. Ronald Reagan famously said, "Trust but verify." Love your vendors. Work with them, not against them. When it comes to providing the necessary documentation piece that may be needed in a critical situation, the trusted relationship that companies build with their vendors will provide the necessary details for due diligence. e Honeymooner episode in question had Ralph finding a suitcase full of money. For two days he was a millionaire, then it turned out to be "funny money," all counterfeit. If your valu- ation provider is not adequately checking the condition of your assets, you might find yourself in a similar situation. How sweet it is! "The report's credibility is not just in the value conclusion, it has to be supported by the data and meaningful commentary."

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