• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

A question to appraisors from a homeowner trying to refinance

Status
Not open for further replies.

angels303

Thread Starter
Freshman Member
Joined
Dec 12, 2008
Professional Status
General Public
State
Colorado
My husband and I were on a adjustable mortgage till October 2008 and we are trying to lock in to a 30 year fixed. We were working with our bank in early August who was going to get us a fixed 5.9 which at the time sounded pretty good because rates had been fluctuating at 6 and 6.5 Well our bank insisted that we have an appraisal immediatley which we agreed to thinking we were going with them. They told us the appraisal was going to be $395.00 which we said we would pay at closing. The appraisal was done on 8/15/08 and shortly after the appraisal the rates started dropping again and our bank was not getting us the rates that we could get with another lender so we started the process with the new lender and told him that we had already had an appraisal and he said we could go with that one and take the money out at closing and pay our bank that did the original appraisal. Well I get a phone call from our current lender stating that the appraisal we had in August was no good and that we were going to have to have a NEW appraisal at another 300 bucks. Well after investigating online I am reading that an appraisal is good for 6 months but it is at the lenders discretion to request a new appraisal but if the appraisal was going to be done by the same appraisor that it would be considered a recertified appraisal at a discounted price. To me another 300 dollars for another appraisal seemed like a total rip off so I told our current lender that and he went off the deep end on me. Telling me I don't know what I am talking about and that I am WRONG and there is no such thing as a recertified appraisal. After taking about 5 minutes of his ranting and telling me he is just ready to bail out on the loan I told him I would make it real easy for him and WE would bail out first. So here we are back at Square 1 trying to find a new lender but can someone please explain to me Why this lender flipped out on me for only wanting to save my family a few hundred dollars?? I am just totally confused
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Federal Banking Laws and most State Appraisal Laws state that an appraiser cannot simply change an appraisal from one lender to another.

Due to declining markets, most lenders insist on an appraisal being no more than 3 months old now.

Yes, since the appraiser has to do almost everything all over again, including coming to your home to make sure nothing is different than the last time s/he was there, researching and analyzing everything that's happened in your market since the last time, and writing up the new appraisal report with all of the liability that goes with it, the appraiser MIGHT discount a little bit, but this MUST be a NEW Appraisal and has basically no relationship to the one done before.

A different lender is a new and different client for the appraiser.
 

William K

Senior Member
Joined
Sep 21, 2007
Professional Status
Certified Residential Appraiser
State
Illinois
A Couple of questions.

you state "the fee was $395 for the first appraisal which would be paid at closing" correct?

So you did not close therefor did not pay for the first appraisal ?

Was this for an FHA or Conventional Loan?

An FHA appraisal stays with the property regardless of the lender for 6 months.

A conventional appraisal may be used by the lender for 6 months.
A new lender does not have to accept the appraisal performed for another lender and in most instances will not.

If you paid for the appraisal you should be sure to ask for a copy of the report whether you closed or not.

Most lenders have their own approved appraisers for many reasons.
You may not engage an appraiser to perform an appraisal for lending purposes only a lender may.
The lender can ask that the appraisal be paid by you or be paid prior to loan closing and does not have to allow it to be paid out of closing.
 

Mack McClain

Sophomore Member
Joined
Dec 22, 2006
Professional Status
Certified Residential Appraiser
State
Georgia
When you get an appraisal for a mortgage/loan, the appraisal is owned by the bank/mortgage company. That appraisal can't be used for any other reason or by any other bank/mortgage company.

If you go to another mortgage company/bank, they will require their own appraisal. They can't use the other appraisal. The new mortgage company can order the appraisal from the same appraisal company/appraiser. That appraiser may or may not give you a discount on a new appraisal. It is up to the appraisal company/appraiser.
 

Michigan CG

Moderator
Staff member
Moderator
Joined
Nov 1, 2006
Professional Status
Certified General Appraiser
State
Michigan
Appraisal and banking laws are complicated and although they are intended to protect the public it doesn't alway seem that way to the consumer.

I highly advise you to get a copy of the first appraisal for your own records, you are entitled to it by federal law. You must request it from the LENDER....not the appraiser (appraiser is not allowed to give it to you by law -- another protection that is hard to explain).

-----------------------------------------------------------------------------

I am moving this to the moderated Ask an Appraiser section where it might get more responses.
 

angels303

Thread Starter
Freshman Member
Joined
Dec 12, 2008
Professional Status
General Public
State
Colorado
lol I just realised that I am spelling Appraiser, and Appraisal wrong (darn where is spell check when you need it lol) but I guess you got the gist of my dilemna Thanks for the responses I didn't see where anyone mentioned a "recertified Appraisal"? Is it true that they do not exist anymore? I guess I should feel lucky that this lender showed his true colors before we signed off on anything but it P*SSED me off so bad the way he spoke to me--- and I got this information on a web site in a question and answer session by a John Cirincione the National Chief Appraiser of Mortgage Information Systems, so figured he knew what he was talking about since the session was under "EXPERT ADVICE" Appraisal FAQ'S and he did say appraisals are considered outdated after 6 months and by my calculations 6 months would not be until February 2009 right? anyway thanks again for the responses Boy this has been a real eye opener in our quest for a fixed mortgage rate.:Eyecrazy: m2:
 

Mztk1

Senior Member
Joined
Dec 3, 2006
Professional Status
Certified Residential Appraiser
State
Florida
It seems like a very small thing to flip out over. Was it the hair that broke the camel's back?

Things are constantly changing, especially in this business. And, once they do change, it takes a while for the memo to get out.

For instance, the data you got online is wrong. But 5 years ago it would have been correct. We could just re-certify. Many mortgage brokers and others in the business today do not know it is wrong. You found the unusual one who knows recertifying is no longer permitted.

As another example, Mack and I are in disagreement. I believe if you have a copy of the first appraisal and give it to another lender, based on certification #23 in that report, that new lender can use it as is, under the other bank's name.

But if a bank does this, it is limited. For instance, let's say the appraisal is 100% perfect, completed last week, but the appraiser did not make a comment on why comps were over 90 days old, which is a requirement by the new lender and not the first. Well, since the new lender was not and is not the appraiser's client, they cannot call the appraiser and ask him to amend the report. They either have to take the report as is, or reject it.

Once they reject it, a new appraisal is required.

I know whenever you are working with mortgage brokers and used car salemen it feels like they are taking advantage of you. And because so often you would be right it is a tough feeling to shake. But in the case of this broker, it doesn't sound like from your post there was anything shady going on.
 

Tony V

Elite Member
Joined
Mar 29, 2005
Professional Status
Certified Residential Appraiser
State
New York
See your e-mail.......
 

USPAP Compliant

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
When you get an appraisal for a mortgage/loan, the appraisal is owned by the bank/mortgage company. That appraisal can't be used for any other reason or by any other bank/mortgage company.

If you go to another mortgage company/bank, they will require their own appraisal. They can't use the other appraisal. The new mortgage company can order the appraisal from the same appraisal company/appraiser. That appraiser may or may not give you a discount on a new appraisal. It is up to the appraisal company/appraiser.


Very little of what you said is correct. Only the last three sentences are correct and even then...not in all cases. If lender B has an appraisal in their hand that was prepared for lender A......they can use it if they wish. If they don't have it in their hand, lender A may well refuse to give them a copy. A lender can use any compliant appraisal they wish if they don't need it in their name. If the loan is under $250,000.....no appraisal is required for the banks under FIRREA.

The OP has a common and simple problem. Her lender is not willing to use an appraisal that was prepared for another lender. They COULD....but they choose not to. (see USPAP 2008/2009, AO # 30, page A-104 lines 102-110.

The lender wants an appraisal addressed to them. An appraiser must not simply readdress an appraisal.....but the lender will still ask for that to be done and there are more than a few appraisers willing to do that.

The OP has a a problem with their LENDER. The lender can blame anyone they like....but requiring an appraisal addressed to them is THEIR requirement.
 

Anthem

Senior Member
Joined
Mar 10, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
6 Months is what most lenders used to go by now most are not using appraisals that are more than 90 days old and some require even more up to date information.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks