Appraiser ethics

[Mike Kennedy]

Elliot wins the "U DA MAN" CONTEST this month. woohooGood :icon_lolost.

 

[woodyva]

Ladies and Gentlemen:

The appraisal firm that I spoke of in my post does infact show it as 300 a report versus 350, so every 7th is "free". I am not sure how they work it out, butthey have their own underwriters there so they are aware of it a sthe owner of the valuation company and the owner of the lender are somehow related through marriage, or old business affiliation.

I know the lead underwriter is aware of it as i have had beers with her several times and we ended up discussing it.

To kick that one in the head...i have a broker right behind my building that is co-owned by an appraiser. He does all their non-subprime work. I did a lotof sub-prime for their loan officer that specialized in them back a few years ago. I trie dto get some of the A paper, and was told that the owner did most of those. Once I was made aware of it i knew it was only a matter of time before I got to review one. Well I got one and lo and behold right there in the addenda was the disclosure. The lenders were taking them and closing them.

Lenders will take stuff like this, at least they were taking it. I know that the same broker has alligned with another lender in town and that is no longer allowed any longer, but those loans were going through wells/countrywide/wamu. Go figure I guess.

 

[woodyva]

Maybe a Zaio zone owner has something to say on this issue. What kind of disclosure is included in a standard Zaio report concerning the fee paid to obtain the work? Or should I say will be included in a standard Zaio report (if there ever is one).

As long as it is disclosed, it seems permitted. The wisdom of it escapes me. Not only do I not like the idea of paying to get work, but I have to think lenders wouldn't care much for that kind of statement in an appraisal report.

It works, I can't get an appraisal from them ever. I have tried everything I can think of. This same comapny is becoming the big mortgage company locally and hiring away some of the LO's I have worked with for years. They are not allowed to continue to use me once they get there. I wish I could stop them, but things always have a way of working themselves out.

 

[woodyva]

Full disclosure--My client, Jim Mortgage Broker, is also my sister's husband.
Jim gives me all his business and I always do a good job for him, in fact,
I've never once come in under estimated value or sales price in the last
10 years I've done work for him. He also asks for 'comp checks' and I
do them for free, as a business decision. Also as a business incentive,
every 7th appraisal that he orders I give him 'free' and my understanding
is he charges the borrower, but takes the money out of petty cash and
puts it in his own pocket. I am also god-father to my sisters two children.

That is funny, I don't care who you are...

 

[hglenbetts]

Tim, I think it's clear from the other posts that it's not an ethics issue for the appraiser, if properly disclosed.

BUT, if the offer was to Real Estate sales persons, licensed in Michigan, there's a problem. It could be considered stearing, and ANY fees paid to a licensee in Michigan has to be done through the employing Broker. Also the referral (and the fee) would need to be done with the full knowledge and approval of the sales person's customer/client.

Now, for all of you from around the country that are going to tell me I'm wrong, I'm referring to MICHIGAN Real Estate License law.