Flagstar

[ChampRJ]

First, I have been a Minnesota state certified Appraiser and a member of our local chapter of the appraisal institute for 8 years now. I have never been black listed from any lender but recently I received a letter from Flagstar rescinding my eligibility as an approved appraiser. I was shocked by it to say the least. I then reviewed the nameless review done on my appraisal and was even more shocked. He cut my value in half saying he found “better” comps. In my appraisal I state that the subject was in average-fair condition needing some repairs. My value opinion reflected that. He found 3 comps, one of which was inhabitable because of severe water damage, extensive mold and roof falling in. The second was in the process of renovation until it went into foreclosure. The 2nd comp he used had been gutted to the walls, had no windows or kitchen and was boarded up by the city. The 3rd comp he used was located 300 yards from an interstate on ramp and located on a heavily trafficked road. All 3 of his comps were bank owned REOs (the subject was not).
I easily shredded this ridiculous review, requested his name but was still denied by Flagstar. How can a company like Flagstar remove me from their approved list based on one terrible review? What are my options? Any information would be welcomed.

 

[hglenbetts]

I received a letter from Flagstar rescinding my eligibility as an approved appraiser. I was shocked by it to say the least. ... How can a company like Flagstar remove me from their approved list based on one terrible review? What are my options? Any information would be welcomed.

Welcome aboard.

First, may I say congratulations (unless Flagstar was your major source of income).

If Flagstar wants to cut an experienced, thoughtful appraiser, that researches their data and knows their market, that's their right. Just keep your work file handy for your rebuttal before the State.

 

[ChampRJ]

Welcome aboard.

First, may I say congratulations (unless Flagstar was your major source of income).

If Flagstar wants to cut an experienced, thoughtful appraiser, that researches their data and knows their market, that's their right. Just keep your work file handy for your rebuttal before the State.

Thanks, Flagstar is not my main source of income because I have many clients. So you're thinking this will go before the DOC for investigation?

 

[redfish]

Flagstar has been teetering on the edge of failure, while Huntington Bank takes over all the small competition...Warren Bank, Citizens State Bank, and a few others that the FDIC has shuttered, Flagstar is reducing branches and cutting costs. We may all be off their list soon.

I would try and get a hold of Mark Liley. He is an AI member and Fagstar's chief appraiser. He may be able to help.

 

[Webbed Feet]

A trade full of weenies

First, I have been a Minnesota state certified Appraiser and a member of our local chapter of the appraisal institute for 8 years now.

Congratulations!

I have never been black listed from any lender but recently I received a letter from Flagstar rescinding my eligibility as an approved appraiser. I was shocked by it to say the least.

It's surprising you've not heard about all of this sooner.

I then reviewed the nameless review done on my appraisal and was even more shocked. He cut my value in half saying he found “better” comps.

That is impossible. A reviewer can opine their own opinion of value, but they can't alter yours. Your opinion of value is still your opinion.

In my appraisal I state that the subject was in average-fair condition needing some repairs. My value opinion reflected that. He found 3 comps, one of which was (un)inhabitable because of severe water damage, extensive mold and roof falling in. The second was in the process of renovation until it went into foreclosure. The 2nd comp he used had been gutted to the walls, had no windows or kitchen and was boarded up by the city. The 3rd comp he used was located 300 yards from an interstate on ramp and located on a heavily trafficked road. All 3 of his comps were bank owned REOs (the subject was not).

I easily shredded this ridiculous review, requested his name but was still denied by Flagstar. How can a company like Flagstar remove me from their approved list based on one terrible review? What are my options? Any information would be welcomed.

Easy, it's called self-serving politics. Appraiser's, and their lives, don't matter. We are all expendable. You just got the message is all. Perhaps when this trade stops blindly signing the contracts of all these types of lenders, and begins to insist it is instead our contracts that be signed, things may change.

 

[CANative]

Inexperienced, incompetent or unethical hundred dollar appraisers doing reviews for AMCs. They're probably biased and are intentionally discrediting other appraiser's work in order to eliminate competition or because they think it makes them look good.

A bad review is just as bad as a bad appraisal. You should prepare a complaint with your state appraisal board.

 

[ChampRJ]

Inexperienced, incompetent or unethical hundred dollar appraisers doing reviews for AMCs. They're probably biased and are intentionally discrediting other appraiser's work in order to eliminate competition or because they think it makes them look good.

A bad review is just as bad as a bad appraisal. You should prepare a complaint with your state appraisal board.

I would in a second but Flagstar won't give me his name. They blacked out that part of the Review.

 

[CANative]

You don't need the name to file a complaint. If your state enforcement agency wants the information they'll get it.

 

[Webbed Feet]

You don't need the name to file a complaint. If your state enforcement agency wants the information they'll get it.

Ditto !!!!

 

[Aprazr]

Had the EXACT same thing 2 1/2 years ago. Reviewer used 3 Foreclosures & cut my value $260,000 (LOL) (I posted this thread earlier this year- $1Million property).

It's not Flagstar I am concerned with, but the people that I do/did work with SELL TO FLAGSTAR, therefore, they (Flagstar- after much writing back & forth with me explaining everything to them) told me I could re-apply to be on their panel after 3 years....LOL!!!!!

I don't have that much Mortgage Broker business anymore, so it really doesn't matter, but to think they said I was wrong when it was the reviewer that was wrong with NO RECOURSE. Their way or NO WAY!

Happy New Year!