Unintended consequence of reviews

[sputnam]

Appraisal reviews are intended to increase quality in the industry. They are intended to catch questionable reports before they are used to support lending decisions. Typically, when an AMC or Lender review spots and issue, revisions are requested. That's all good.

The down side is that AMC and Lenders rarely report bad appraisers to the state appraisal board. The reasons are understandable. They just want to close the loan. It's a big pain in the, um, paperwork to file a complaint. It takes a lot of time and effort.

However, if bad appraisers were routinely reported to their appraisal board.... maybe there would be fewer bad appraisers. Allowing appraisers to fix a report until it passes... with no other consequences.. just rewards and perpetuates bad appraising.

 

[Surf Cat]

The ol' "no good deed goes unpublished" mantra for sure.

IMO...."black listing" doesn't work as the offending appraiser doesn't know what they did wrong. They just go somewhere else and continue their bad reporting ways. It doesn't remedy the problem.

 

[Joyce Potts]

Appraisal reviews are intended to increase quality in the industry. They are intended to catch questionable reports before they are used to support lending decisions. Typically, when an AMC or Lender review spots and issue, revisions are requested. That's all good.

The down side is that AMC and Lenders rarely report bad appraisers to the state appraisal board. The reasons are understandable. They just want to close the loan. It's a big pain in the, um, paperwork to file a complaint. It takes a lot of time and effort.

However, if bad appraisers were routinely reported to their appraisal board.... maybe there would be fewer bad appraisers. Allowing appraisers to fix a report until it passes... with no other consequences.. just rewards and perpetuates bad appraising.

You are years behind the curve. It's not a PIA to file a complaint and a lender or anyone can file one anonymously. The problem has always been that there is a stigma to turning in an appraiser. That said, there have been lenders over the years that have been responsible for turning in the highest number of appraisal complaints in Florida. Lenders make money at the closing table. Why would they turn in a number hitting appraiser?

 

[John Hassler]

Appraisal reviews are intended to increase quality in the industry. They are intended to catch questionable reports before they are used to support lending decisions. Typically, when an AMC or Lender review spots and issue, revisions are requested. That's all good.

The down side is that AMC and Lenders rarely report bad appraisers to the state appraisal board. The reasons are understandable. They just want to close the loan. It's a big pain in the, um, paperwork to file a complaint. It takes a lot of time and effort.

However, if bad appraisers were routinely reported to their appraisal board.... maybe there would be fewer bad appraisers. Allowing appraisers to fix a report until it passes... with no other consequences.. just rewards and perpetuates bad appraising.

I expressed this same opinion as a regulator when I spoke to appraisers. Everyone one wanted to complain about the bad appraisals they saw yet most wouldn’t spend the time it took to file a complaint.

 

[BRCJR]

It is much easier to just stop using that particular appraiser.

A lender does not want to become known as the lender that "turns you into the state". That reputation stops appraisers, even good ones, from wanting to do work with you.

 

[Joyce Potts]

You are years behind the curve. It's not a PIA to file a complaint and a lender or anyone can file one anonymously. The problem has always been that there is a stigma to turning in an appraiser. That said, there have been lenders over the years that have been responsible for turning in the highest number of appraisal complaints in Florida. Lenders make money at the closing table. Why would they turn in a number hitting appraiser?

Secondly, 99% of appraisers don’t understand that most state appraisal boards will not entertain much less prosecute an appraiser over a value issue. If you’re going to file a complaint you have to file it on the basis that it fails Stds 1 and 2. It fails proper development and or reporting.

 

[J Grant]

Some lenders put appraisers on do not use list. That can end or damage a career as many share their lists - and of ocurse if one gets on the bad list of FHA or Fannie it is worse.

State boards are tehre to find USPAP violaitons and dispciplen they usually do not get involved in the value itself such as the pushed values that can trigger a review on client or UW side.

Of course, an appraiser can be punished for making an MV opinion lower than making a deal work. That is the dark side of so-called " revisions" at some clients—they either stop sending work and say it is a quality issue or they are slow, or they torture the appraisers with endless revision requests that have nothing to do with anything other than harassing them to change value or, like a Pavolv dog, telling them not to do it again.

 

[Elliott]

I never had a complaint filed by a lender. The boards do accept 'value' complaints and complaints with personal vendettas, even if the 'claim' they don't.

 

[jay trotta]

The question in my mind is, who did the review? Are they competent?

Was always under the impression, a reviewer would take the time to reach out to the appraiser, review the findings and come to a reasonable solution. Of course some, many almost all feel their work is the best on the planet, but the approach to the review, use to be for the benefit of all. Somehow, the GSE's decided they would put that work in the hands of the Liar Loan people, which benefits no one

 

[John Hassler]

It is much easier to just stop using that particular appraiser.

A lender does not want to become known as the lender that "turns you into the state". That reputation stops appraisers, even good ones, from wanting to do work with you.

This attitude is typical. It’s also why there are so many poorly developed appraisals in the universe.