In West Virginia, Mississippi — Yes! Compounding that issue is the nebulous definitions many states use for a broker price opinion or even an “opinion of value.” In many instances, when a broker offers any opinion of value or data leading to a value outside actual brokerage activities, they are breaking the rules.
The result is whole mortgage business units, primarily within the servicing arena, are at risk of legal action when they do what they have been doing for a long time — order a BPO. Loans in short sales, delinquency, loss mitigation and REO (and there are a few loans in that category today) have all historically been subjected to a BPO valuation.BPOs have been a great solution when a fast, affordable and reasonably reliable residential valuation is needed. The broker provides a basic condition evaluation with photos, market status, sold and listed comparables and a judgment on repairs that all lead to an opinion of value. Some have resorted to naming the report differently — not using the terms “broker price opinion.” Unfortunately, the states are aware and it doesn’t matter what label or title is used on the report, the whole process is deemed illegal in those states.