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  #1  
Old 01-07-2009, 07:49 PM
Dan Umstead Dan Umstead is offline
 
Join Date: May 2006
State: Georgia
Professional Status: Certified Residential Appraiser
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Default Interesting answer in the FNMA Q&A

In a recent thread, I read that Wells Fargo is requiring the LO's to order appraisals through one of four AMCS.

http://appraisalnewsonline.typepad.c...al_Process.pdf

I spoke with a LO a few weeks ago and he said he had received the email from WF about signing-up with one of the four AMC's. (btw, he said he will not use WF anymore!)



The Q&A from FNMA today seems to say that LO's ordering from an an AMC is NOT HVCC compliant!

"Q33.
May a mortgage broker order an appraisal directly from an appraisal management company that was specifically authorized by the lender?
No. The Code prohibits brokers from ordering appraisal services"



Wow, WF may have to actually order appraisals for the MB's???????? I wonder what AMC they would use most??????????

Collusion,.........??????? I don't know.


Someone should let WF know that their new appraisal requirement is NOT HVCC compliant!
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  #2  
Old 01-07-2009, 09:06 PM
Lobo Fan's Avatar
Lobo Fan Lobo Fan is offline
 
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Location: Rio Rancho, NM
State: New Mexico
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Mortgage brokers will be completely removed from the appraisal process. Once they turn over the file to whomever they are dealing with on the secondary market, only then will the appraisal be ordered. Fine with me.
  #3  
Old 01-07-2009, 11:58 PM
joe lee joe lee is offline
 
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State: Indiana
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Default we must make change

Lobo what you are forgetting is that the lender picks an AMC to order the apprasisal and charges $400 for a URAR. That AMC calls you and will only pay you $200 for an FHA report. so basically if you were getting work difectly from brokers at $400 you have now had your income cut in half..
I like you dont mind a bunch of people managing the apprasial process but I do mind when they start cutting our fees to nothing.. Unless we stand up to this, this will really put a hurting on your wallets. I have called my Congressman and set a meeting up with him to discuss this mess. How is it possible with the new regs of needing a college degree or associates degree for certification to do appraisals for homes over $400,000 (I think thats the number)... but how will a kid want to study to become an appraiser and have to go work for my firm making what $20,000 to $30,000 for a year or two. It wont happen and we need to step up, stop all the b-tchin about it and make some noise.. call your state reps, write letters.. we all have voices but it seems most dont want to mess with whats working for them... now hate to rain on most parades but if you at a minimum are not taking home $100,000 to $150,000 a year doing this job than something is wrong and something has to change.. Lots of us make this and a hell of lot more make a hell of lot more. So take a stand people... things will only change if people know who we are!
  #4  
Old 01-08-2009, 04:51 AM
J Stachow J Stachow is offline
 
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State: New York
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Let's see...APPRAISERS; heavily regulated....LENDERS; regulated.....AMC's; UNREGULATED!! I've already asked Mr Cuomo, my state senator, congressman and senator WHY? As of yet no response and I don't expect one. Maybe Bill O'Reilly or Glenn Beck can get to the bottom of it all as the politicians don't want to get involved.
  #5  
Old 01-08-2009, 07:19 AM
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David Wimpelberg David Wimpelberg is offline
 
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Location: Hamptons, NY
State: New York
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Default

Quote:
Originally Posted by joe lee View Post
How is it possible with the new regs of needing a college degree or associates degree for certification to do appraisals for homes over $400,000 (I think thats the number)... but how will a kid want to study to become an appraiser and have to go work for my firm making what $20,000 to $30,000 for a year or two. It wont happen and we need to step up, stop all the b-tchin about it and make some noise..
IMHO, the fact that it won't happen is the absolute best thing that can happen to the business. If people stop working for AMCs, problem solved.

Quote:
now hate to rain on most parades but if you at a minimum are not taking home $100,000 to $150,000 a year doing this job than something is wrong and something has to change.. Lots of us make this and a hell of lot more make a hell of lot more. So take a stand people... things will only change if people know who we are!
Part of the problem is that trainees, fresh out of high school, with a few appraisal courses (often substandard) and no experience, were able to make six figures. It took a severe supply/demand imbalance in the number of appraisers for that to happen. The supply/demand imbalance has since tipped the other way, and it has corrected itself.

There are still plenty of appraisers making $100K+ plus a year. In general, they are very experienced, highly educated, belong to appraisal organizations, general certified, and have some type of niche. None that I know are working for management companies.

While I don't think taking a stand is a bad idea (I do it by simply refusing to work for AMCs, now and forever), taking a stand isn't going to correct the problem. The workload simply isn't there.
  #6  
Old 01-08-2009, 08:31 AM
Lobo Fan's Avatar
Lobo Fan Lobo Fan is offline
 
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Mortgage brokers have zero incentive to look for honest appraisers. All they want are closings and commission checks. They do not care if a loan defaults because they have passed it along to the secondary market. Mortgage brokers are the cause of much of the fraud that occurred and is still occurring out there.

Staff loan officers have to answer to someone if a loan goes south. I hope that the process squeezes all mortgage brokers out of business.

I am no big fan of AMCs but there can be good ones. Doing $200 FHA appraisals is a business decision. I do not know of anyone doing work for that amount. AMCs should be regulated by the local state boards. The AMC should have a staff person approved as an appraiser in each state they do business that has at least a modicum of local knowledge that would answer to the state board for any shenanigans by an AMC.

Other than Pam, there is no place to go if I am value pressured by an AMC. Other than the complaint hotline of the AMC. I complained once to RELS. All they did was stop all orders from the busiest local office. I lost 3-4 orders per week. Nice lesson for me.
  #7  
Old 01-08-2009, 09:27 AM
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Bigrock Bigrock is offline
 
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State: Georgia
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look for Brokers to become direct lenders,,,

The move is starting...
  #8  
Old 01-08-2009, 10:07 AM
ghrousseau ghrousseau is offline
 
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Location: Virginia Beach, VA
State: Virginia
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Quote:
Originally Posted by Bigrock View Post
look for Brokers to become direct lenders,,,

The move is starting...
A few very interesting things I noted after reading the FAQ. If the responses from Fannie Mae stand it will be interesting:

Q13 This seems to mean that appraisers can no longer do COD for Fannie/Freddie loans.............I'm wondering if they can still pick up a check made payable to the lender for the appraisal? Also, I'm guessing this will also apply to AMCs who want the appraiser to pick up a check from the borrower at the door.

Q27 This again appears to prohibit the broker from using an AMC to order appraisals.

Q31 This hopefully forcefully addresses the issue with correspondent lenders, and if an investor can require the correspondent to obtain an AMC appraisal, when they currently comply with the HVCC.

Q33 Completely prohibits Mortgage Brokers from ordering appraisal services directly from an appraisal management company. (This will completely kill all of the little AMCs popping up unless they are getting direct lender clients and not MBs.)

Q32 This will affect FHA loans where the broker is trying to flip the loan an appraisal over to a GSE product.

Q36 This creates a giant nightmare for the state appraisal boards. There could be a silver lining though in eliminating some skippy appraisers.

Interesting. I am wondering what Freddie Macs answer to FAQs will be?
  #9  
Old 01-08-2009, 10:29 AM
TJSum TJSum is offline
 
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Location: Absurdastan
State: Maryland
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Default

Quote:
Originally Posted by Lobo Fan View Post
Mortgage brokers have zero incentive to look for honest appraisers. All they want are closings and commission checks. They do not care if a loan defaults because they have passed it along to the secondary market. Mortgage brokers are the cause of much of the fraud that occurred and is still occurring out there.

Staff loan officers have to answer to someone if a loan goes south. I hope that the process squeezes all mortgage brokers out of business.

I am no big fan of AMCs but there can be good ones. Doing $200 FHA appraisals is a business decision. I do not know of anyone doing work for that amount. AMCs should be regulated by the local state boards. The AMC should have a staff person approved as an appraiser in each state they do business that has at least a modicum of local knowledge that would answer to the state board for any shenanigans by an AMC.

For those who are favoring working for an AMC over a broker... there are thousands of brokers out there, any of which you can fire at your leisure because they are a dime a dozen. With a dozen or so AMC's controlling the vast majority of appraisal assignments for the entire country, they have much more leverage over each and every appraiser which allows them to pressure even more. Put that HVCC koolaid down...

Other than Pam, there is no place to go if I am value pressured by an AMC. Other than the complaint hotline of the AMC. I complained once to RELS. All they did was stop all orders from the busiest local office. I lost 3-4 orders per week. Nice lesson for me.
Stating all brokers are dishonest is exactly the same as saying all appraisers are dishonest. There are plenty of honest brokers out there who depend completely on referrals to grow their business. Treating the borrower properly and professionally is the only way to obtain referrals. These honest brokers don't play the dial for a number game with appraisers because their loans are local and they have long term relationships with honest local appraisers. The losers who hunt down comp checks from the other side of the country are a different story.

They usually blame everything on appraisers, but this time the brokers are getting a large chunk of the blame, don't drink the koolaid, I haven't seen one loan yet that was approved by a broker, the investor/lender is the one who approved all these bogus loans, they deserve equal blame to the brokers.

Regarding the OP, if things are set up as stated, I predict this will be one of the first changes to the HVCC in the real world, because the lenders will want a complete package when the loan file is delivered. Sending the loan file back and forth between lender and broker over appraisal issues will just be to messy and time consuming for them. They will soon amend to allow brokers order appraisals through the lenders favored AMC so that the loan file will be complete when arriving to the lender.

Who can pressure an appraiser more effectively? One of thousands of brokers, who cares, we can fire them at our leisure, they are a dime a dozen. Or an AMC, one of maybe a dozen or so that will end up controlling the vast majority of appraisals for the entire country? Think about it...
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Last edited by TJSum : 01-08-2009 at 10:39 AM.
  #10  
Old 01-08-2009, 11:26 AM
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Mister Ed Mister Ed is offline
 
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State: Georgia
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Quote:
Originally Posted by Lobo Fan View Post

Staff loan officers have to answer to someone if a loan goes south. I hope that the process squeezes all mortgage brokers out of business.
This is so true! I sat in the office of a vice president of a local bank last Friday talking to him about appraisals on a dozen houses that are rental properties. The owners want to move them from one bank that was a local bank that was bought out by a larger regional bank. They want to max out the equity and wanted to do it with a Realtor's CMA. His response was, "No!" So, then they wanted to pick an appraiser to handle the stuff. His response was, "No!" He called me and asked me to come into his office to talk with him about this assignment.

He told me that he looked at their credit score (almost perfect from all three). However, with the way the economy has been over the last few months, he wants the full deal... interior/exterior inspections, rental income analysis, etc. He said, "I don't expect this deal to go bad, but they are wanting about 800k between the payoffs and cash out. I want all of my ducks in a row. If even one of these individual loans goes bad, I have to answer some hard questions that I have only had to face once in 15 years."

Now, guess how much of a discount he asked for because of the volume of the work (the total fee was over $5000)... $0! Guess how fast he wanted these back... As soon as possible, "BUT DO NOT RUSH... TAKE THE TIME YOU NEED TO MAKE SURE THEY ARE RIGHT..."

I have already inspected each property. I have not viewed any comps yet (all properties were within 2 miles of my office). I have put about half of them into my software (subject data only). After I complete all of that, then I will start trying to figure out what will be comps. I will feed these to him as I finish each report so he can digest them, make what notes he needs to make for his files, and ask any questions he needs to ask. I was paid 50% up front and will collect the balance of each fee for each report on Friday of the week that it is turned in. The total process will take me two - three weeks to complete with my other work demanding time, too.

I know I have strayed... however, the point is... when the person ordering has to answer the hard questions if a loan goes bad, they want a well-developed and thought out appraisal. They don't want just a form filled out with what looks good.
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