Appraiser Independence Question

[ramrcdk]

I think we all know the CU rating is generated and how its used- BUT- a Demand means the appraiser must do something a request can be accepted or rejected, but neither reaches level of of a State Board or FHFA complaint. Only when the lender asks for a value to be changed or something that is not of a factual nature-all the rest is just appraiser frustration which often could be eliminated by simply saying yes or no

Yep.
If you have enough of these requests (1), then the appraiser will learn sooner or later what the proper procedures ARE...was my point. For the Lender/AMC : To just " ask " for a new grid IS not the procedure.

Lender Letter LL-2015-02 February 04, 2015 To: All Fannie Mae Single-Family Sellers Reconsideration of Value Request Requirements. Specifically Page 2 & Page 3.

The value estimate on a " NOV " may be changed if the change is clearly warranted and fully supported by real estate market or other valid information which would be considered adequate and reasonable by professional appraisal standards.
Any party of interest may request a change to a " NOV ". For documentation purposes, every such request must be in writing. Only one request will be completed. The change request must be submitted to the lender. Any request for a change in value that exceeds a 10% increase will require a field review.
REQUEST BASED ON DIFFERENT SALES DATA: Comparable sales (not listings or pendings) must be provided on a grid that are superior to those selected by the appraiser (i.e. more recent, more proximate, more similar, etc.) that closed prior to the appraisal report date.
No more than 3 will be considered; a reconsideration of value is processed only one time since the information provided is considered to be, by the requestor and therefore via FNMA-VA, the information that is most reflective of the subject’s market value at the time of the appraisal. MLS printouts for each comparable sale, showing the sold information, must also be provided to verify the information on the grid.
A concise narrative explaining why the requestor believes the comparables provided in the grid are superior to those selected by the appraiser is suggested to assist the reviewer when the data is examined. Items to include:
*1. Comparables sales provided on the attached grid with all pertinent data included.
*2. MLS cut sheets for each sale on the grid with sales data, including seller concession, on the sheet.
*3. Concise narrative explaining the reason the comparables provided are superior to those selected by the appraiser.
REQUEST BASED ON DISAGREEMENT WITH APPRAISAL ANALYSIS OR DATA: The requestor should provide a narrative explaining the items of disagreement and the reasons for believing the information provided in the report are incorrect. Disagreement(s) with items such as grid adjustments, or subject square footage measurement should be explained and any documentation available to support these disagreement(s) should also be provided. ( Information sources also included: Tax, deeds, maps, etc.)
Items to include: 1. Narrative outlining the perceived shortcomings of the ( FNMA-VA ) appraisal along with an explanation for regarding the reason(s) the information provided in the report is incorrect. 2. Documentation or evidence to supported items addressed in the narrative.
*Fannie Mae Lender Letter FNMA LL 2015-02. This letter states: “Before asking the appraiser to consider any alternative sales, it is imperative that the lender analyze the relevance of the sale and determine if the use of such sale would result in any material change to the appraisal report.”

 

[glenn walker]

I have quite a few over the last few years-never took me more than 10 minutes to respond to what the issues were-So to me its just not a big deal-There have been a few times the request was valid and I changed something or added a comp etc. I just think too many appraiser are too thinned skin and they get all wound up about a lot of nothing.

 

[bnmappraisal]

long ago & some still today, if you have non AMC clients, a phone call to the person/underwriter requesting would be a 1 minute discussion of the question to find out exactly why the request, with an easy resolution. there are no rules against that talking, but it seems to some that we can't talk to anyone. so now you ponder for hours, as to exactly, what do they see that they need an answer to.

Well said, Tom
And that's why I like to work with the small(er) AMCs and direct lenders. I CAN actually still call people and usually within minutes (and not hours or DAYS) understand what they're actually asking of me

These large(r) AMCs/Lenders have just B@$tardized the process, in my honest opinion

I literally know someone (personally - go back years) that works at a large AMC who constantly takes calls from appraisers and their response is "I can't help you. Update the portal!" And that's accepted even sort of SOP for that AMC. I argue with them often that that's a TERRIBLE way to do business, but their response is often "well, that's the way it is!"
Frustrating (FWIW, I do NOT and WILL NOT work with that AMC)

 

[sputnam]

I agree.... a brief phone call almost always works better than a flurry of emails... especially when someone at the AMC has a clue about what appraisers can and can't do.