A question for review departments

[KinIL]

I'm going to have to agree with some of the other posts that blame is spread accross severeal factors.

A large part of it is that reviews are going through non-local companies and their staff lack geographical competency. Just because they have access to the local MLS doesn't mean that they can discern the different submarkets in a large metropolitan area, therefor they have no idea what relevance a particular check box has.

Prime example being that I just had to rebut a BPO and a review appraisal based on their interpretation of the market. Niether were aware that the subject I was appraising was in a very unique submarket... everywhere else in the town (which is very desirable) lots sell between 3-400k, whereas in the 8x4block submarket the subject was located within, lots sell between 7-800k. This is all despite that rigorously outlined and explained the unique submarket, because of the fact that the BPO came from Florida and the appraisal review came from California...

 

[Renee Healion]

Amazing

...This is all despite that rigorously outlined and explained the unique submarket, because of the fact that the BPO came from Florida and the appraisal review came from California...

And your subject is in IL? So, India really can't be too far for such work.

 

[Artemis Fowl]

Just had a (former) client tell me that 2 recent loans are being closed based upon field reviews. They were reviewed because I marked the declining value trend box and that would have "killed the deal". 1 full legal size page of market conditions comments, graphs and analyses exhibits as support in my report. Reviewer marked his stable and it went thru. WTF?!?! Would love to see his supporting data.

Only consolation is that both reports are attached to that loan package.

Why bother? Gettin' real frustrated...

 

[Michigander]

I'm going to have to agree with some of the other posts that blame is spread accross severeal factors.

A large part of it is that reviews are going through non-local companies and their staff lack geographical competency. Just because they have access to the local MLS doesn't mean that they can discern the different submarkets in a large metropolitan area, therefor they have no idea what relevance a particular check box has.

Prime example being that I just had to rebut a BPO and a review appraisal based on their interpretation of the market. Niether were aware that the subject I was appraising was in a very unique submarket... everywhere else in the town (which is very desirable) lots sell between 3-400k, whereas in the 8x4block submarket the subject was located within, lots sell between 7-800k. This is all despite that rigorously outlined and explained the unique submarket, because of the fact that the BPO came from Florida and the appraisal review came from California...

Did you describe all of this and support it in the appraisal to begin with?

 

[KinIL]

Did you describe all of this and support it in the appraisal to begin with?

I sure did. I even included a an additional addendum with map in which I highlighted the subject submarket. I know that BPOs tend to be completely independent (as in no insight to the value being suggested by the appraiser) and don't receive a copy of the report, but sometimes I wonder if some reviewers aren't just looking at the subject information, subject photos and comp grid, then skipping over the rest.

 

[Ross (CO)]

....with the recent attention made by Fannie and Freddie to the need for appraisers to analyze and disclose (detailed) market trend data within appraisal reports....and the fact that this requirement is perhaps an enhancement to one's market data scrutiny compared to a few years ago when everything was like the proverbial rocket soaring off of the launchpad....then an equal discussion about S.o.W. might enter in any appraiser's engagement process prior to an appraisal order.....and the resulting agreed fee that is arranged.

Thorough neighborhood-market area-submarket-(total) market discussion is the NEW reporting obligation that appears to be trumpeted across the land, and rightfully so. If one's client takes an intermediary serving role between the appraiser in the field (that's you!) and the eventual and ultimate funder (insurere) of the true loan deal......then there is likely a cross-roads approaching each of us whereby a sincere "re-visit" to one's URAR fees (and others) is necessary.

I wonder if the $175 URAR-ers will still maintain that pathetically low amount of fee......knowing that discussion of market and trend data is virtually EXPECTED in all of one's typical reporting situations. Skip-i-dee-doo-dah. One such client in the national market scene made a striking call for those to heed the Fannie/Freddie notice(s) about market trends and disclosure. I wonder if rising appraiser fees will compliment this mandate.

 

[CANative]

Ross...

I don't know about anyone elses territory, but pounding out narrative to describe current market conditions in each of my little cluster communities has made the appraisal process a nightmare. I feel like I'm losing money with each report I do and I'm losing business because I charge too much.

 

[Craig in Oregon]

Make 'em all happy

with such "comfort words for the MB world" as:

"market is stable at an increasingly declining rate"

"market is increasingly stable after decreasing alarmingly"

"market prices appear to be increasing despite oversupply of active listings
which are selling at a stable 12 to 15 month supply rate"

"market is stable and the horse is still in the barn"

I write a long paragraph of specific neighborhood market analysis for each lender intended report which is part MLS info and part my take on micro and macro trends based on 30+ years in real estate in west central Oregon.

Seems to help. Greg has my empathy, we have difficult diverse markets here
also.

 

[Lloyd Bonafide]

with such "comfort words for the MB world" as:

"market is stable at an increasingly declining rate"

"market is increasingly stable after decreasing alarmingly"

"market prices appear to be increasing despite oversupply of active listings
which are selling at a stable 12 to 15 month supply rate"

"market is stable and the horse is still in the barn"

I write a long paragraph of specific neighborhood market analysis for each lender intended report which is part MLS info and part my take on micro and macro trends based on 30+ years in real estate in west central Oregon.

Seems to help. Greg has my empathy, we have difficult diverse markets here
also.

Craig - Your mind is really sick and twisted. :icon_mrgreen: But Skippy could have a field day using these comments, unless you've already copyrighted them.