A question for review departments

[James Micozzi]

[I just want to know why staff reviewers of major lenders dont call appraisers on it.

Doug

Do you think that these staff reviewers might not know the market area that the subject is located in???:Eyecrazy: a lot of staff reviewers are in other states than the local appraiser.

 

[Ultraviolet]

ten characters ...

 

[Doug Wegener]

Stable

this is a "trick question"!!! I often see a decline over the prior 12 months, but in the past 30 to 60 days of that 12 months sales appear to be stable or slightly increasing, did we hit bottom? is the market actually stable? What picture are you painting? In the last 12 months yes you could say declining, but current market is ?????? What would you say? To many variables? What does it take to support an comment of a "Stable Market"?

Not a trick question. If you see a market stabilizing for a few months then you say it has been declining for the last year and appears to have stabilized in the last couple of months.

IMO, (just my opinion) 30 days is not long enough to spot a trend unless you have lots of sales.

 

[Doug Wegener]

All

Doug,

How do you know what the results of the review process are? How do you know staff reviewers aren't "correcting" erroneous fee appraisals without ever contacting the original appraiser? Do you automatically assume all appraisals are accepted by lenders without question? How does one even know when there's been a review, or if a loan has been closed or denied when one has done an appraisal on a property?

I'm just curious how you've formed the general assumption that all staff reviewers are giving bad appraisals a pass?

Here are some tips: Provide interior photos; if prices are declining and there's an over supply - SAY SO. If there are adverse external, physical or functional issues - SAY SO. If you don't it will just be obvious when the reviewer drives by or goes inside the subject - after conducting a full market analysis, researching alternative comparables and confirming all sales used ... there goes your credibility on the next report across the reviewer's desk ... and then out comes the fine tooth comb ... and then the broker finds someone else who can get through review ... :icon_wink:

Save the reviewer (and your future business with THAT lender) some time by telling the truth ...

EDIT: For the record: Some of the market segments in my area declined between 12/06 and 3/07 and have made a remarkable comeback to 2006 levels or above. Others show a complete flatline over the last two years or so. Not all markets are declining, and a temporary "dip" is not indicative of such a market.

Yes, I check each submarket closely when I'm reviewing ...

How did you form the assumption that I thought "All staff reviewers are giving bad appraisals a pass". I never said that.



I know for a fact that some staff appraisers let this get away (One posted on this thread that the declining box meant nothing to him) . Mortgage brokers dont want the "declining box" checked, sometime kills the loan. So
many appraisers dont check it since it will kill the deal and mean no more work. Dont tell me it aint so, I know it is.

 

[Ultraviolet]

ten characters

 

[Ultraviolet]

Mr Evans:

Thank you for the vote of confidence. I definitely agree - what's up with not providing interior photos .... ?

 

[Zero]

The problem is, a lot of appraisers don't even do a real market analysis, they just scratch their heads and check a box, expecting that to be adequate proof of their "knowledge" of the neighborhood and/or market area. Good reviewers actually do a market analysis, in which case they probably do know as much (or more) about the neighborhood and/or market area as the box checker.

 

[TC]

The problem is, a lot of appraisers don't even do a real market analysis, they just scratch their heads and check a box, expecting that to be adequate proof of their "knowledge" of the neighborhood and/or market area. Good reviewers actually do a market analysis, in which case they probably do know as much (or more) about the neighborhood and/or market area as the box checker.

Aren't most reviewers appraisers?


TC

 

[Zero]

Aren't most reviewers appraisers?


TC

yep....good reviewer=good appraiser....didn't mean to make the categories sound mutually exclusive.

in other words...good reviewer/appraiser who does market analysis (regardless of location) can often know more about the market than box checker being reviewed.

 

[3 Putt]

I think there are some people who think all reviews are being done the same. If you call my office and ask for a review, we will discuss the possibility of 2 assignments.
1) Review the report. (check facts, USPAP compliant, etc.)
2) Check the reports value and provide our own conclusion if needed.

There are also other reviews that are completed to check and see if the report meets the lenders guidelines only, similar to a restricted report. Yet someone will hear a review was done on their appraisal and the get upset and blow off the handle. In today's lending enviroment, lenders are looking for ways to get out of smelly deals, sometimes the appraisal report is just the scapegoat.