Declining Market = Do Not Use?

[LJFJR]

Declining market

I was contacted by the lender and was asked to change to stable market, because they could not sell the loan to invester.

 

[Bryan]

Irrebuttable presumption; under relaxed agency oversight, the lender/originator will accept, and on reliable premise, signed documentation, faulty or otherwise, as factual truth. -There in lies the passive submission of Lender Pressure.

The poll would suggest that loan origination have established covert entry rules that can easily construe, for those allowed entry, as unethical. One would have to wonder, since the gate keeper (bouncer) restricts entry to only those appraisers that will ether unknowingly or knowingly submit and thereby exclude others that perform ethically. What type of pressure is being applied to underwriting, escrow, title…. AMCs?

Got E&O?

 

[Luzette Eaves]

Not fair. I am not in a declining area, (at least not yet), and can't see the poll results!

 

[Webbed Feet]

I have been marking decline in some of my counties for the last 6 weeks and I just lost 2 big clients to this even though I have 6 months worth of data proving it. I can not afford to comit comerical suicide so I am no longer marking the box. (In one of these counties there are over 1000 active homes on the market and only 34 homes have sold so far in Oct. Typical sales volume is 180 to 240 homes a month. Sales prices declined 9% in most segments since 2006.)

Mr. Metz,

So you opt for USPAP suicide instead and end up with a ton of explaining to do when somebody files a board complaint against you.

Take your pick

Webbed.

P.S.. Flawed poll. Not all markets are declining.

 

[kgroden]

I have been marking declining market because by not marking it and explaining why would be misleading to the reader. I don't know if I have lost orders over it however I probably have, but I would not want to work with those lenders anyway.

 

[Tazmaniac]

I have put Declining, but alot of times it is only a short dip. After exhaustive research, it was not indicative of a declining market. Just make sure it really is declining......P.S. I have lost work over declining, but that is not a prob, because lenders like that are not wanted anyway.

 

[jfalco1]

I've been marking declining for awhile, lost alot of clients at first. But now its starting to become a standard with other appraisers and not having as much of a problem. Was told by one mortgage company when I submitted an appraisal with the decline box X that it wasn't a problem because the owner had 90% equity and met other criteria.

 

[Shelley4146]

I was told recently by a rep at Chase that if Declining Market is checked the underwriters do an across the board 5% adjustment.

 

[LA Woman]

Just got two calls this afternoon regarding 2 different properties I have recently appraised.

The underwriters are trying to get me to change my report from declining to stable.....same old story...."but we can't make the loan if it's marked "declining"!

It is what it is. In fact I wish there was a box that said "VALUES ARE NOT ONLY DECLINING, THEY ARE SINKING LIKE A ROCK"!

The seem to ignore the entire legal page full of sales analysis that was included in the report to support my findings....guess no one reads the reports anymore.

 

[Riick]

The ability to read has become a liability for U/W positions.
Most with this skill have been laid-off as they are over qualified.