Appraisal Firewall

[Mike Seward]

This sounds very interesting, but as I read the Code, it says the (funding) lrnder is responsible for ordering and paying for the appraisal. How would that that be possible here?

The larger question is this: It's one thing if I sign up with them and ABC mortgage broker signs up with them, but will the funding lender (Amtrust, Flagstar, etc.) accept an appraisal ordered through Appraiser Firewall???

 

[mike32716]

This sounds very interesting, but as I read the Code, it says the (funding) lrnder is responsible for ordering and paying for the appraisal. How would that that be possible here?

This would be no different than FNC and AppraisalPort. The lender still pays you directly.

The larger question is this: It's one thing if I sign up with them and ABC mortgage broker signs up with them, but will the funding lender (Amtrust, Flagstar, etc.) accept an appraisal ordered through Appraiser Firewall???

This is the $64,000 question. From what I have heard several lenders will ONLY take appraisals from the several large AMCs that they have designated. IMOHO this is a good thing as it won't take long for consumers to start screaming at their elected officials when they start paying for multiple appraisals. Stay tuned.

 

[Lloyd Bonafide]

Can somebody explain how a broker or lender can maintain their relationships with their normal appraisers using Appraisal Firewall, and this will still comply with the HVCC? It doesn't make sense to me.

And don't say that it's working right now, because that doesn't mean that it will still work on May 1.

 

[Mike Seward]

How will the consumers have to pay for multiple appraisals?

Lender orders an appraisal through the "designated large AMC".

The appraisal comes back showing (for example) that the borrower is way upside down and the loan is not doable.

End of story.

 

[Mike Seward]

If the Appraisal Firewall is similar to Appraisal Port, why would a lender choose a new start up company over one that is well established?

 

[mike32716]

Appraisers pay a flat rate of 3% of the invoices amount. It never changes.

Looks like it already changed. It says 6% now.

How will the consumers have to pay for multiple appraisals?

Lender orders an appraisal through the "designated large AMC".

The appraisal comes back showing (for example) that the borrower is way upside down and the loan is not doable.

End of story.

Not with respect to value, but with choices. How many lenders are going to accept an appraisal that was done for XYZ AMC when they only approved ABC AMC? Currently, brokers and mortgage bankers can shop various lenders.

 

[Mike Seward]

Currently, MB's can shop various lenders because there is no extra cost to do so. Come May 1st, their borrower may decide that it is too expensive to shop various lenders.

I don't think a borrower is going to pay for three appraisals and then call his elected officials. I think the borrower will quickly lose interest when told he/she has to pay for a second appraisal.

 

[Pamela Crowley (Florida)]

Heard from a very reliable source that a borrower is paying for 3 appraisals on a Wells Fargo closing. Two were from the mortgage broker and were too low, so the Rels appraiser hit the value wanted for it to close.

 

[Elliott]

I was watching Fox's Happy Hour business program. Market dropped yesterday
based on BofA creative accounting. It has become evident to the investor class
that 'big banks are too big to fail' so I guess they might as well make money on
the fees and the spread, damm the torpedos and tax payers, full speed ahead.

It might help the Wells/Rels image if they'd buy a real phone line so they don't
show up as 'blocked' on caller ID. What's up with that?

And finally, since this is the semi-weekly thread on the brilliant idea of a
appraiser AMC, I think it should be called "Silverado" after the fabled money
losing gold mine.

 

[haley123]

curious to know how you are doing with appraisal firewall. i am very interested. thanks