Appraisal Independence & Bias

[George Hatch]

Lenders who want the predetermined outcome already cut off the "uncooperative" appraisers in favor of the liars who will enable their deals. The manner of engagement or employment doesn't matter when the decisions are being made at that level. Employment, direct engagement, contracting to AMCs.

It's when the sales side is trying to cheat the lender into making deals they wouldn't knowingly make that "who controls the engagement" makes the difference.

It's just easier to bring the accountability factor into play when the decision making at the lender can be narrowed down to the individuals making such demands, which in turn is easier to prove the pattern of conduct when there's a bunch of volume going through a single conduit instead of 1000 separate points of engagement. Lenders get audited, organizations leave the paper trail, disgruntled former employees or appraisers blow the whistle and name the names, etc.

 

[Surf Cat]

they probably sent mej to room 101...so he could watch lowballed on loop

This is what happened to Pyramid Dude....

 

[Sadie]

I'm just wondering, way off-the-cuff;

If an appraiser routinely faces the potential for being accused of being biased, or discriminating against a borrower, shouldn't the appraiser be given demographic info about the borrower--age, gender, ethnicity, etc.--so the appraiser can determine in advance whether he or she wishes to accept an assignment? [Could be termed the "Bakke Algorithim to Assignment Acceptance."]

Like at present I am genreating and uploading a dated, preliminary version of partially-completed reports before meeting a borrower to be able to demonstrate that the Opinion of Value was partially determined prior to inspecting a property or meeting with a borrower in person--because unless an unusual factor becomes apparent during an inspection, the final Opinion should be apparent without the inspection being conducted, with a [+/-] margin of error, thanks in my scenario to Spark that allows a report to be 80% completed with minimal effort.

Posted here with tongue-in-cheek.....

Someone brought that up a few years ago and I think, but am not sure that there was an official response that declining an assignment is true bias. As in you declined the assignment since you have a bias against what ever group caused you to decline the assignment. I will see if I can dredge that up.

 

[glenn walker]

This is what happened to Pyramid Dude....

Some say he's now a greeter at Willy Mart-Screaming that everything is way over priced and management is crooked and unethical.

 

[chad hampton]

I always assumed those Walmart greeters are old former lender/bankers, after they sober up and kick their drug addiction. They go work at Walmart.

 

[chad hampton]

Some of you have really high opinions of the ethics and morals of “lenders”. Everybody who’s employed by a lender is by default on the sales side of things. Anybody in the process who scrutinizes deals too hard, will not be employed for too long. Credit analyst, underwriters, it doesn’t matter. They are all looking to do one thing and that is to push every loan through. Lipstick on a pig is the name of the game. Sometimes that job is difficult, but no one who gets a paycheck from a lender is in the business of saying no to loans.

 

[Sadie]

Some of you have really high opinions of the ethics and morals of “lenders”. Everybody who’s employed by a lender is by default on the sales side of things. Anybody in the process who scrutinizes deals too hard, will not be employed for too long. Credit analyst, underwriters, it doesn’t matter. They are all looking to do one thing and that is to push every loan through. Sometimes that job is difficult, but no one who gets a paycheck from a lender is in the business of saying no to loans.

As a former employee in the mortgage dept of a major bank, the only ones who are the sales people are the people bringing in the borrowers. The rest just deal with what ever has been dumped on them in the way of borrowers.

 

[Surf Cat]

They are all looking to do one thing and that is to push every loan through. Sometimes that job is difficult, but no one who gets a paycheck from a lender is in the business of saying no to loans.

That was the problem with the hvcc. Since the mortgage broker was no longer riding the appraiser like a bucking bronco to make it work..... appraisals were coming in low.

Per AI:

The study concluded that HVCC both reduced the probability of inflated valuations and induced a "significant increase in the incidence of low appraisals," while acknowledging that "valuations remained inflated on average" — meaning the shift was real but didn't fully correct the upward bias that had dominated during the bubble.

 

[glenn walker]

Some of you have really high opinions of the ethics and morals of “lenders”. Everybody who’s employed by a lender is by default on the sales side of things. Anybody in the process who scrutinizes deals too hard, will not be employed for too long. Credit analyst, underwriters, it doesn’t matter. They are all looking to do one thing and that is to push every loan through. Lipstick on a pig is the name of the game. Sometimes that job is difficult, but no one who gets a paycheck from a lender is in the business of saying no to loans.

You as the appraiser are guilty as any lender without them there's no reason for you. Their the pimps and your their drivers. If you run cash or numbers for the mafia your a silent partner. How you get on a higher moral horse is laughable at best.

 

[Surf Cat]

You as the appraiser are guilty as any lender without them there's no reason for you. Their the pimps and your their drivers. If you run cash or numbers for the mafia your a silent partner. How you get on a higher moral horse is laughable at best.

Dude....The entire regulatory framework HVCC, Dodd-Frank Title XIV, FIRREA exists for the very reason of historical conflicts of interest where lender side participants were "incentivized" to push deals through. This is the reason appraiser Independence was pushed in the first place.

Appraisers are the speedbump, the friction.....not the lubricant. The entire purpose of the appraisal is to provide an independent check on the lender's desire to make the loan. The appraiser is the only one in the transaction whose job is to value the collateral honestly, not to make the deal work. This is needed more than ever now with lenders raising the threshold for when they can waive an Appraisal, sending non-licensed personnel to inspect properties to bypass the speed bump appraisers.

If appraisers were truly just "drivers for pimps," there would be no need for USPAP, no appraisal licensing boards, no separation between appraisal and lending functions..... yes, I understand this as well on its way.

Your comment makes me wonder what deep, dark secrets you buried along with Uncle Billy, your appraiser mentor.