Anbody Else Notice?

[Mike Simpson]

Sometimes industry changes & trends take place so subtly you hardly even notice them. That was the discussion I had with my wife this morning after talking to my mortgage lender clients. I still maintain a small contingent of mortgage lenders I don't mind working with.

I don't know if these changes are a sign of industry transformations or an indication that my marketing techniques are finally bearing fruit.

I've read other posters on this forum state they call their clients if their estimated value is lower than that on the Purchase & Sale Agreement, Owner's Estimate or Lender's Estimate. I do the same & I complete the assignment first, and then pick up the phone to give em a 'heads-up.'

Well this morning I called three different mortgage lenders to tell them their appraisals were gonna be low. One by $44,000, another by $23,000, and yet another by $10,000. Not one of em gave me any grief. The one whose appraisal came in $44,000 less than the owner's estimate told me; "what it is, is what it is, I can't sell it if the comps are miles away and the values inflated. I've never had a problem with shopping your appraisals Mike. I really appreciate your work." The other two were equally pleasurable.

Two of these guys won't even work w/Realtors, and another defends me against unreasonable real estate agents. Either he's sending their work to another appraiser or he's dumped em. Either way his orders aren't slowing down. Additionally, my fax rings often while the front line's growing quite--I love this!

I hope it's a indication of what's taking place in our business, but if it's the result of our marketing strategy--I can live with that too.

-Mike

 

[Bemis Pownall]

Mike

Heads up in this business is very important
so is communication.

Peace Out

 

[Steve Owen]

I hadn't noticed any change. The few mortgage companies I still do business with have had that kind of attitude for a long time.

Some of the bankers get pushy on commercial or industrial work every now and then, though. I once had a banker say to me: "If you don't bring it in high enough for me to make this loan, the customer will just go down the street to my competitor." I replied: "So, would you rather lose money on this deal when there's not enough equity to support the loan, or would you rather have your competitor lose?" That brought this particular guy around pretty quick - most of them are okay, sometimes they just lose site of reality.

 

[Terrel L. Shields]

Ran into a banker in a cafe at lunch few days ago. Asked me if I knew so N so. Yep. Why? I've been getting calls from the State Appraisal Board Director wanting copies of their appraisals. Oh? I played dumb, I knew the appraiser was under fire. He volunteered, " well I guess their over-appraising finally caught up with them.".........like they don't know who isn't and who is reliable?

 

[Mountain Man]

Terrell, just a little quiz to see if you could/would possibly fill his appraiser's shoes?? The size could vary from request to request. :lol:

 

[Terrel L. Shields]

Nah, they know my work, but the appraiser is local and borrowers do request for this person. Several years ago FDIC told this bank that they did not want to see anymore of the person's work in file..Took couple of years before they would accept appraisals from em...that's when i went from doing about 1 per 2 mo. for them to doing 10/mo. or more. Also, works on the extreme East side of my area so they tend to send those that direction. This is extremely conservative bank lending their own money. Basically they appraise it inhouse, then if they decide to make the loan call me. They don't even check to see if my appraisal is similar to theirs. They don't even have a mortgage originator in the main branch only a branch bank in a larger town nearby. They refer them there if someone wants sec. market.

 

[Blue1]

Mike,

It's always been my contention that any lender wants a "gold" appraisal. That is, one that will stand up to scrutiny, one that is done professionally and one that reflects a REAL value. Any experienced lender wants a good product. Inflated appraisals invariably get reviewed and "cut" which is something most lenders don't want. If an appraiser "sticks to his/her guns, eventually they'll have good clients. But it takes time......

 

[Mike Simpson]

Blue 1-

It has indeed taken time. I had an employer once tell me they had to go through 10 people to find 1 good one. I believe the same holds true in reverse...it's difficult finding clients who don't want a rubber stamp. That's why I had to deversify.

Kinda feels like things are changin though. After you've been in the business for awhile you can feel these things comin. Just feels like change. Don't know how long it will last though...talked to a client this evening--he said sales are startin to pick up...here comes those pesky agents!

-Mike

 

[Atlanta CG]

My wife sold a new home recently. Appraisal ordered & done, sent in but rejected. Seems the appraiser was on the "do not use" list. Another appraiser was sent in, and same result. Lending officer requested a copy of the list, and it was 10 pages long. Things are a'changing.

 

[liznindy]

My favorite client (mortgage broker) also mentioned a "Do Not Use" list of appraisers which was sent to them by their investors.

I also recently received a call from a client (for whom I do review work occasionally) who is compiling a list of appraisers to give to their clients (mortgage cos.) with the intent that if these appraisers are used the loans will sail through underwriting more easily.

Cream rises to the top?!! And even if it doesn't, Just Do What is Right!!

I read in the local newspaper this past month.....Another Indiana appraiser indicted on mortgage scheme.......In this instance, the mortgage brokerage owner, the "self-proclaimed" investor, a real estate broker, a real estate agent, and the closing agent have all received sentences ranging from six months home detention to 30 months in prison.