Another solicitation

[bobburnitt]

Same problem in Texas. It is "legal" for them to ask, just not legal for you to comply with their "requests" (although the appraisers that have lots of work do comply with these aforementioned practices).

I laughed out loud when I read the newest Texas Senate Bill regarding the above. It says something like: it is illegal for the user of the appraisal to PAY AN APPRAISER for a report that has a predetermined value blah, blah, etc. Translation: it is perfectly OK to hammer on every appraiser in town for a pdv, just not OK to pay them for it. I guess if they stiff you on the bill, it is a form of CYA.

BB

 

[Pamela Crowley (Florida)]

Follow up:

Received a phone call from them yesterday. She verbally said that I must have mis-understood, that when she read it again she could understand how I might have perceived it and that she is going to re-write the solicitation. Also asked that I send her my resume, fee schedule, etc. PLUS, stated that they always ask for the completed appraisal and pay for it. They just want to know as soon as possible regarding the 'value' so the client can restructure their deal. Yeah, right. That can't possibly be true when they say 'check the value' and 'if it's not in the ballpark'.

I'll bet that I never receive ANY orders from them.

Worse: This appears to be an appraisal shop turning to AMC wannabe. Appraisers doing it to appraisers! Makes me sick!!! Guess I just found a shop full of 'tell me what you need' appraiswhores. I will follow up more!

 

[Anonymous]

Pam,

Great response to them. However, I love to play devils advocate. As far as the condition of the home goes, if I know a client will not lend on a home in anything under "average" condition, I have no problem stopping and letting them know that after the inspection, I found the home to be in below average condition and offer to finish the appraisal or or let them pay me a trip fee. Usually, I dont even do a full inspection. If the outside looks below average, I walk through the inside, the go to the car and call. I do not feel this has anything to do with value, but with underwriting guidelines and saleability of the loan. I normally have no clue what kind of value they are looking for I have finally got 99% of my clients not to put it on the order.

As far as the "stop and call" if value isnt there. This has been brought up many times and USPAP allows for taking the order in stages. I do not agree with this option as I believe it is in conflict with both the Conduct and the Management sections of USPAP. However, we all know that even AI promotes in its USPAP classes, at least the part A I took, that this canbe done by accepting the assignment in stages. I think it is time we simply get to gether and have it banned. And long as it is allowed in any form, it will continue and those who do it will get the work.

We are in a time when now all most all of the large national banks are using AMC's. The brokers in my area are much worse than AMC's as far as appraiser pressure goes. I would much rather work for an AMC where I do not have to deal with the direct contact and whinning from the local LO. Most of the reputable AMC's do not pressure the appraisers at all. Period. If one does, I drop it. Personally, I like working for them. All are EDI'd, payment is prompt, and no crap from LO's.

 

[bobburnitt]

Bill,

If you "stop & call" them when the condition is less than average, they will be grateful to you of course, however, they will then simply call another appraiser, just as they will when shopping the value. And believe me, they won't have any problem finding one who will call it anything they want.

I have taken USPAP many times, and never had any instructor put his seal of approval an stopping the assignment when the value is not there.

AO 19 describes "giving them a range" with a disclaimer that the value reported is a limited appraisal, and that when a complete appraisal is performed the value may change. The problem is, nobody I ever talk to wants a range, they want to know if I can make value, and if I can't, they want to call Dolly Dealmaker who can or is willing to.

If you stop the appraisal because of condition, and I have done that several times, the "lender" will simply call another appraiser and you are aiding them in "shopping" the condition. There are some LO's out there who will abandon the loan when they find out that the subject property is below their guidelines, however, they are a small minority. This is Texas, home of Enron.

Stopping the assignment for sub-guideline condition is better than lying about it and calling it something it isn't though.

BB