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Agent Attempting To Cherry Picking FHA Appraisers

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Sledge

Freshman Member
Joined
Nov 2, 2016
Professional Status
Certified Residential Appraiser
State
Kansas
Hello, I am new to the forum. I recently completed a FHA appraisal for an AMC. The listing agent insisted on meeting me at the home for the inspection and then proceeded to follow me around trying to see what I was writing and what I was taking pictures of while asking me a hundred questions. No big deal however I finished the report and called out quite a few items to be addressed (fixed) to meet HUD guidelines as I have many times before. Pretty obvious stuff nothing out of the ordinary that I would think any FHA appraiser would of called out. The agent emailed me asking about the items to be addressed and I directed him the lender to provide me any questions he may have. About a week later I get another different FHA order from a different AMC, same agent is the contact for this FHA appraisal. After several e-mail attempts to set up an inspection the agent said he wanted a different appraiser. He first asked me to cancel the order then he cancelled it himself through the lender/AMC. Never had anything like this happen before but I feel he agent did not want me to do the appraisal for second property due to me calling items on the first FHA appraisal. There was no other reason for him to cancel. All conversations were clearly documented via e-mail between the two of us even the part where he said he wanted a different appraiser and that he was cancelling the order. Any advice or similar situations? Any action taken?
 

DWiley

Elite Member
Joined
Apr 4, 2007
Professional Status
Certified Residential Appraiser
State
Tennessee
Hello, I am new to the forum. I recently completed a FHA appraisal for an AMC. The listing agent insisted on meeting me at the home for the inspection and then proceeded to follow me around trying to see what I was writing and what I was taking pictures of while asking me a hundred questions. No big deal however I finished the report and called out quite a few items to be addressed (fixed) to meet HUD guidelines as I have many times before. Pretty obvious stuff nothing out of the ordinary that I would think any FHA appraiser would of called out. The agent emailed me asking about the items to be addressed and I directed him the lender to provide me any questions he may have. About a week later I get another different FHA order from a different AMC, same agent is the contact for this FHA appraisal. After several e-mail attempts to set up an inspection the agent said he wanted a different appraiser. He first asked me to cancel the order then he cancelled it himself through the lender/AMC. Never had anything like this happen before but I feel he agent did not want me to do the appraisal for second property due to me calling items on the first FHA appraisal. There was no other reason for him to cancel. All conversations were clearly documented via e-mail between the two of us even the part where he said he wanted a different appraiser and that he was cancelling the order. Any advice or similar situations? Any action taken?
If you think that there has been an AIR violation, then I recommend contacting the Compliance Director or the Chief Appraiser for the AMC.
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
Same thing happened to me yesterday. The AMC said the LO wanted to "go in a different direction" and cancelled the order. When I tersely responded the AMC rep called me and told me they cancelled the lenders order because of this and wanted no part in it. Good on them.

I wrote an email to the agents broker and sent it:

“No person with an interest in the mortgage transaction shall compensate, coerce, extort, collude, instruct, induce, bribe, or intimidate a person, appraisal management company, or firm for the purpose of causing the appraised value to be based on anything other than the independent analysis of the appraiser.”



http://www.realtor.org/appraisal/responsible-valuation-policy



Mxxx zzz

Broker/Owner

Cxxx zzz zzz

Lxxxx, CA



Good evening Ms. Hxxxx,



My name is Greg Boyd and I am a State Certified Residential Real Estate Appraiser. I am also included on the roster of FHA appraisers published by the Department of Housing and Urban Development (HUD.) I have been active in Lake County since 2002 and have completed thousands of assignments in this County over the years, many of which are located in the Riviera’s.



My purpose in telling you this is to impress upon you that I am an appropriately licensed and geographically experienced FHA appraiser, fully qualified to perform an appraisal at zzz zzz in Kxxxx for the purpose of obtaining mortgage financing using a FHA-insured loan. I am communicating with you because you are the Broker/Owner of xxxxx Realty and employing broker of xxxx xxxx (DRE# xxxxx).



I received an assignment to appraise the above identified property on Tuesday, November 1, 2016 and after confirming acceptance I was provided with the letter of engagement and an FHA case assignment number. I called zzz xxxx (the listing agent and contact person) to set an appointment or to inform her that I have a SentriCard lockbox key card. After identifying myself, she asked who I was and what company I was with. She seemed confused that I was not associated with Dxxx Kxxx and when I asked Ms. zzz if the property had a lockbox she stated “yes and no.” Yes, it had a lockbox but that she didn’t know if and when the key would be there as a contractor or moving company was using it to access the residence to move furniture or personal property (my assumption at this point is that this contractor/mover has a valid contractor’s or other license and that the license number was provided when providing codes for entry.) In any case, I stated that I could inspect the property at any time and was just contacting her to make sure there would be no problem (FHA requires access to the attic and crawl space and other specific items.) She stated that she would have to call me back within the hour to let me know.



She never called me back and the assignment was cancelled about an hour later. It is apparent that Ms. xxxx wanted or expected a specific appraiser for this assignment, likely Dxxx Kxxx or someone from his office, and subsequently spoke to the loan representative to protest my assignment. I notified the AMC that engaged my services stating that this was unacceptable. It is my assumption that they notified their client (the lender.)



This is arguably unethical behavior for a Realtor® and is partially the cause of the severity of the housing crash that occurred in Lake County, in particular the xxxx neighborhoods. I had hopes this type of practice had stopped in the intervening years, but apparently it still occurs. I would hope this is not typical of how your office conducts business. I assume this is an isolated incident.



I am preparing correspondence to the Santa Ana Home Ownership Center (SAHOC) describing this situation as I believe the lender was complicit in the practice of “appraiser shopping” and was able to change the case assignment. My assumption is that this will “flag” any appraisal on this property.



I am also planning on contacting the lenders compliance officer to insure that the reason for reassigning this FHA appraisal was not due to non-availability of the appraiser originally assigned. I do not know with certainty what Ms. xxxx told the lender's loan staff in order to get the appraisal reassigned to a different appraiser. This is a very serious matter for lenders who plan on originating FHA-insured mortgage loans.



My expectation is that you will counsel your employee to insure that there is no repeat of this situation going forward.



Best regards,



Greg Boyd

AR029163

xxx

[email protected]xx
 

Confident Rabbit

Senior Member
Gold Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Washington
:clapping: Thanks, Greg. It takes a lot of time to write a good push-back letter; that's one of the best I've seen.

Here's hoping heads will roll.

Sledge: I too have had to write to an agent's managing broker (not as eloquently as Mr Boyd, though). But I DID get results. Something to think about...
 
Last edited:

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
get confirmation from the AMC and lender why order was cancelled, and inform that by email that the listing agent had called you to cancel prior it being cancelled from the AMC so you assume they cancelled it at listing agent request but you want to verity. and do the same with listing agent , ask that they verify they requested the assignment be taken away from you and reassigned.

Then report the AMC's to FHA and state banking commission. We dont' need AMC's like this in business.
 

DWiley

Elite Member
Joined
Apr 4, 2007
Professional Status
Certified Residential Appraiser
State
Tennessee
Same thing happened to me yesterday. The AMC said the LO wanted to "go in a different direction" and cancelled the order. When I tersely responded the AMC rep called me and told me they cancelled the lenders order because of this and wanted no part in it. Good on them...

Nice letter. Unfortunately, we have had to make similar "interventions." Some just don't seem to realize that those "new rules" are serious.
 

DWiley

Elite Member
Joined
Apr 4, 2007
Professional Status
Certified Residential Appraiser
State
Tennessee
We dont' need AMC's like this in business.

And how do we/you know it is the AMC's fault? The most compliant AMC on the planet cannot do anything about a lender cancelling an order. AIR violations can be documented and reported, and an AMC can stand up to improper actions by someone in the loan production line, but an AMC cannot force a lender to not cancel an order.

That is why I suggested contacting someone in Compliance with the AMC. How they react will show their stripes.
 

Elliott

Elite Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
I would never let a realtor see my notes when doing an appraisal. The information is confidential and absolutely none of his business. I'd tell him to go stand in the corner or stand outside if he is going to interfere with my process of inspection. He gets to look at the final appraisal just like everyone else does. If he has a problem, there's a procedure for that.

As for the "shopping" issue. That's an issue for the AMCs and lenders. I just explain in a note on the AMC website that I screen shoot what happened on the order before it was canceled, and put it in the workfile.

Welcome to the Forum, Sledge.
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
And how do we/you know it is the AMC's fault? The most compliant AMC on the planet cannot do anything about a lender cancelling an order. AIR violations can be documented and reported, and an AMC can stand up to improper actions by someone in the loan production line, but an AMC cannot force a lender to not cancel an order.

That is why I suggested contacting someone in Compliance with the AMC. How they react will show their stripes.

The AMC is one of "those" AMCs run by appraisers. I've done business with them before. They are top drawer. I was satisfied after speaking with them.

The lender... I'm VERY surprised. Our family has done business with them for decades. They've been around (originally out of San Diego) since 1962. My assumption is that the agent either lied (said I wasn't available) or the loan staff is colluding with the agent.
 

Sledge

Freshman Member
Joined
Nov 2, 2016
Professional Status
Certified Residential Appraiser
State
Kansas
Great stuff! Thank You for all of your responses.
 
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