Lender forced to buy back loan from fannie mae

[VolcanoLvr]

If the OP has revealed that the E&O Binder page was part of the appraisal report, this is a prime example of why that should NEVER BE INCLUDED.

Quit putting that document in reports. And also quit putting a FULL SIZE copy of your license in reports.

Neither of these have anything to do with loan underwriting.

 

[William K]

Another reason many are leaving the profession. The risk has become too high for the compensation.

Many of those leaving the profession have discovered it just doesn't pay in the long run, and many times in the short run.

Many who have stayed are in it because they have known no other line of work and can't stand to think of themselves as being RE Agents without getting upset stomachs. Some are in it because they are the few who have been able to carve out a niche in their respective market which precludes them from being forced to do FNMA, FHLMC or FHA work. Some are staff with local lenders. But the vast majority who perform appraisals think 5 to 10 years experience is more than enough experience to "know everything". They know it will never happen to me because "I write all my reports the same way and have loads of stock addendums that cover ALL situations in every report".

Think about the appraiser with 10 years experience, they have known a rapid increasing market and a crash market. They have really never seen the "normal" market, only highs and lows. They think that todays market is the normal market. I feel now more than ever that lenders Fannie, Freddie and FHA included really just want rid of the appraiser. They want to cater to the "I want it now" society and will keep working toward that end which means going to an AVM whereby they will only have a person who measures a subject and takes interior and exterior photos while letting a machine do all the analysis. Much in the same way they have doing away with manual underwriting.

For years I have said appraisers are paid based upon 3 factors...... Time, Experience and Exposure...... but in reality it has gone to "Perceived Time" and nothing more. The more experienced appraiser for the most part is paid the same as the 4 year appraiser for the common lending report. Appraisers are routinely charging the same for a Million $ + property the same as they would a more conventionally priced home middle or lower class property.

How many have received the phone call asking "when will the report be ready?"Only to answer it will be in today or maybe tomorrow only to then be asked "What time?". Never in my years until recently have clients been so insistent on an actual "Time" the report will be ready. It's as if they don't understand that along the appraisal process there are stops and hurdles which come up unexpectedly. Inconsistent Comparable Information which needs to be reconciled, the need to switch comparables, waiting for verification from a reliable third party source (which most do not perform properly), as well as any countless number of reasons which can pop up along the "writing" of the report.
Every day I see experienced appraisers bend to the pressure of the "I want it now" crowd for the "I want it at this price, take it or leave it".

 

[Delta85]

But PG&E sent him a bill for thousands of dollars. No problem. His employer told PG&E to f-off and they did.

It helps to have a powerful employer with legal muscle to push back on that stuff. For an individual appraiser it can be a scary and expensive scenario.

 

[Delta85]

I agree with you...that's why you have to demand a higher fee or don't do the work. Who want's to get blacklisted, revocked or sued for 300 something dollars?

So another $50 or $100 per report makes the difference?

 

[Evincere]

If the OP has revealed that the E&O Binder page was part of the appraisal report, this is a prime example of why that should NEVER BE INCLUDED.

Quit putting that document in reports. And also quit putting a FULL SIZE copy of your license in reports.

Neither of these have anything to do with loan underwriting.

Wise words and great advice.

I know of no other service providers who when they hand me the bill, invoice or finished product include for my review, a copy of their business license and insurance.

I dare say that if I asked my dentist, hair dresser, doctor or attorney for the same, they would show me the door and suggest I find another service provider.

 

[Noreen]

The underwriter funded the loan, ignoring my disclosures on the property. Fannie mae audited the loan and is forcing the lender to buy it back. Now they are contemplating making a claim against my E&O, and want a full copy of my policy. They have my dec page already. Am I obligated to give them my full copy? Thanks in advance

If your "observations" are written clearly in the original report, good!! Let them see the reality that no matter what the condition, they just want to close that loan, this is now your fault why?

 

[Delta85]

Wise words and great advice.

I know of no other service providers who when they hand me the bill, invoice or finished product include for my review, a copy of their business license and insurance.

I dare say that if I asked my dentist, hair dresser, doctor or attorney for the same, they would show me the door and suggest I find another service provider.

I totally agree but an individual appraiser is powerless when it comes to pushing back on this. It's either comply or not do the work. Most of my local direct clients don't require this but AMC are notorious for it and since they dominate the bulk of work available it's a tough line in the sand to defend.

In any case, if someone wants to find this info or file a suit it won't make much of a difference anyways.

 

[Terrel L. Shields]

the top of his trailer snagged a utility wire and pulled the pole down onto the cab

My cousin's son in law was demonstrating an ultra light to a farmer who wanted it to check cattle. They went up a steep canyon and in the canyon was an electric company wire, over 200' above the ground (thus required those red balls on it) and there were no balls. By the time he realized the wire was there he was unable to dive or fly over. It flipped the ultra light, killed his passenger and broke both of his legs and an arm. The electric company sent them a bill, too.

The family of the rancher sued and got a substantial payment from the electric company. There are red balls on that line now.

 

[23Degrees]

If your "observations" are written clearly in the original report, good!! Let them see the reality that no matter what the condition, they just want to close that loan, this is now your fault why?

Outside of GSE land this would be an iron clad defense probably. But in GSE land pointing out all of the text regarding condition might help in court and even vindicate the appraiser in the end but it is not going to stop Fannie from doing the buy back if the report was faulty with regard to "checkbox" world.

If an HC was bypassed via use of a "cost to cure" in the grid, if the YES box under adverse conditions should have been checked when it wasn't, among other things done to make clients happy, then Fannie has cause and Fannie can keep pushing to get her money. Hopefully this is not a hopeless case from an E and O perspective and the OP will come thru unscathed.

 

[JamesRockford]

Call your E&O provider immediately and do what they tell you. Don't discuss the case on a public forum.

Bingo.

We have a weiner!!!