Appraiser Independence Violation?

[J Grant]

Mike, the regulations about lender selections apply to lenders regarding loans involving fannie, freddie, FHA , a GSE loan.

If relocation company is not acting as a lender the regulations would not apply, and if a RE agent refers you to an owner and there is no lender involved, the regulations about lender selection would not apply.

 

[Bombadil]

Mike, the regulations about lender selections apply to lenders regarding loans involving fannie, freddie, FHA , a GSE loan.

If relocation company is not acting as a lender the regulations would not apply, and if a RE agent refers you to an owner and there is no lender involved, the regulations about lender selection would not apply.

J Grant is correct the Relo companies are not lending or acting as lenders. They are purchasing the home from the home owner. Relo companies are very focused on the appraiser getting it right. Its not like a lender appraisal were you do the report and never hear back. Relo companies will purchase the home from the home owner for what the appraisers tell them it should sell for in the prescribed marketing time. Then it is taken into the relo companies inventory and re-listed and sold... with the goal of selling the home at the price they paid the home owner. There is a strong incentive to have a zero sum game. Relo companies don't want to make any money off a inventory home and they don't want to lose any money. The appraisers anticipated sales prices are track to see how close they were to the final sales price of the home. Worldwide ERC has a set standard for the appraisers to be with in +/-5% of the final sales price of the home.

 

[Mike Garrett RAA]

Bingo!

 

[glenn walker]

110% correct ... Doodle and Frank are not involved and as I recall Barney and Frank both are now retired to a rest-home : )

 

[Gregory Beck]

I agree kill them with kindness take their comps say thank you and move on.

 

[Denita Neuenhaus]

In our relatively "hot" market it is no surprise that some listing agents specify that a buyer "must get loan approval" from a specified lender. If I were representing the buyer as an agent, not sure how I would deal with this requirement.

^^^This is common in our market for REO properties. The bank owned property asset manager insists on the buyers making application with a specified lender AND a specified loan officer or the asset manager will refuse to look at the offer. BTW, this is not a listing agent requirement, it is a requirement of the asset manager to which the listing agent agrees (in order to get the listing). If such a statement were made in the listing of a traditional transaction the agent would be sanctioned. The seller can not force the buyer to use a particular lender. Even the REO asset managers know this. Their rationale appears to be that the seller's lender can review the buyer's qualifications and private financial information to ensure the buyer has the ability to close.

As an agent, we let the buyer know that in addition to the lender they want to use, they will need to go through the process with the asset managers' selection. It is up to the buyer to make that decision.