Blew a deal - LO is ticked

[Flygirl 152]

Dear Mortgage Broker,

Thank you so much for your inquiry involving the property located at ......... I need to advise you of a few things however, 1) The report is very well supported and I have carefully reviewed my documentation and am very confident in my value estimate. 2) As you will recall upon our first communication, I informed you that an owners estimate of value could be considered lender pressure in California and that we did not guarantee values under any circumstances and you informed me to complete the assignment. 3) The address and telephone number of the State Board is as follows ......... Finally, Please be advised that upon contact by the State Board I will be obligated to turn over the appraisal report and all of my work files regarding this property. I have duly documented and included the emails you have sent to me and they will be included in my response to the state.
I certainly understand that market conditions have been negatively affected not only in our state but all across the country. I appreciate your concern for your borrower and I trust in time they will understand that an honest valuation is what is mandated not only by California law but also by federal requirements. Given these factors I will be unable to return the fee paid to me for this assignment, as it could not only be considered a violation of the Standards of Professional Appraisal Practice, but also reflects both your and my fulfillment of the contractual obligations regarding the appraisal of the property.
I thank you for your emails and will await contact from my State Board.

Respectfully,

XXXXXX

cc: California Attorney General

This is an outstanding succinct response! One of those that I will print and retain for my files in the event I am ever in this situation.

Nice letter PE

 

[J Grant]

GREAT response, very classy, now cross them off your list and move on. I would not take any more calls, emails from them or have any contact, you did your job, they are sleaze, end of story.

 

[Ruben Ramon]

Greg:
I'm a Michigan guy, so I don't know California law. But I'm curious, it appears that an appraisal done for, perhaps an estate or a divorce isn't an appraisal under California law. Nor is a vaulation for a non -federally related transaction. That seems weird to me. What are your thoughts?

 

[Rice Brewer]

I suppose TAF could throw a tattered copy of USPAP at me if I they disagreed with my statements on this thread. But the only authority I'm answerable to is OREA.

Federal Regulations have precedence - or at least they should. Seems to me that your state regulations have some very serious holes in them. I wonder if the ASB knows of the CA loophole in regards to Oral Reports?

*Private Party Appraisals
*Estate Work
*Divorce Work
*Court Testimony under Jurisdictional Exception
*etc...

ALL, under the regulations you quoted, are not considered to be appraisals.

Interesting to say the least....

 

[Webbed Feet]

FRT. you left a few out.

Federal Regulations have precedence - or at least they should. Seems to me that your state regulations have some very serious holes in them. I wonder if the ASB knows of the CA loophole in regards to Oral Reports?

*Private Party Appraisals
*Estate Work
*Divorce Work
*Court Testimony under Jurisdictional Exception
*etc...

ALL, under the regulations you quoted, are not considered to be appraisals.

Interesting to say the least....

Not to mention:

*Fannie Mae
*Freddie Mac
*Ginnie Mae
* Farmer Mac
* Sallie Mae
* FHA
* VA

Since if it is not for a FRT then even in writing it's not an "Appraisal" by that definition. Whoever wrote it was sadly misinformed. Please tell them I sad so.

Webbed.

 

[Valuation75]

You are doing the right thing. You are right, it is not your problem that the owner of the home is in a deadbeat ARM loan. THe LO is probably upset b/c he/she hasn't closed a loan since 2006 and needs to feed his family, but you are right, it is not your problem. You do not need to go to jail over some LO's emotions. Good appraisers that make good money have "good" clients, and this client doesn't sound like someone who makes you happy to get up and go to work for. There are great clients out there.

 

[aussie ken]

Sure can Ken, If you use it now it is tomorrow there right? and I said it today - yesterday, so you came up with it first.

Hal

Yah .......I think that is kinda sort of right......I think?

 

[hal380]

No I think I got it backward. But you can still use it

Hal

 

[CANative]

Federal Regulations have precedence -

Where is the federal regulation that deals with this issue?

Web...

(f) "Federal financial institutions regulatory agency" means the Federal Reserve
Board, Federal Deposit Insurance Corporation, Office of the Comptroller of the
Currency, Office of Thrift Supervision, Federal Home Loan Bank System, National
Credit Union Administration, the Resolution Trust Corporation, and any other agency
determined by the director to have jurisdiction over transactions subject to this part.
(g) "Federally related real estate appraisal activity" means the act or process of
making or performing an appraisal on real estate or real property in a federally related
transaction and preparing an appraisal as a result of that activity.
-2-
October 5, 2007
(h) "Federally related transaction" means any real estate-related financial
transaction which a federal financial institutions regulatory agency engages in, contracts
for or regulates and which requires the services of a state licensed real estate appraiser
regulated by this part. This term also includes any transaction identified as such by a
federal financial institutions regulatory agency.

 

[Ruben Ramon]

Loan transactions under $250,000 are not federally related. So, it would seem, that according to the law, any appraisal done for a non federally related transaction is not an appraisal. So what is it? Its also not precedence, its federal preemption.