Appraiser Independence Violation?

[J Grant]

I sold RE as an agent for over 5 years and get along fine with them, but the indifference to regulations of an agent and arrogance of them to exclude an appraiser they don't like is appalling, I never tried to pull that when I sold RE and the better agents don't engage in such tactics. A legitimate broker should sanction an agent for doing it.

 

[J Grant]

A RE agent has a right to be at an appraisal (assuming home owner gives them permission), which is different from an appraiser blocking access to an appraiser. A RE agent does not have the "right" to exclude or select appraisers lending per regulations

When RE agents picked appraisers and excluded appraisers prior to HVCC it created havoc in the markets and led to value pushing. You want those days back again? Either support appraiser independence, or not there is no middle ground.

 

[J Grant]

Appraisers who dislike the fact that a small but vocal segment of RE agents try to circumvent regulations is not the same as "Disdaining " RE agents.

 

[hastalavista]

And let me say this. A commercial appraiser depends on agents even more than residential appraisers imo. Much more. A commercial appraiser would not want to start the appraisal process with a letter like the OP sent.

Here is another thought. On the commercial side, I may need that commercial agent some where down the road for data on a comp that they sold or rented or have listed etc. I might need them on the residential side as well.

I talked to 5 commercial leasing agents today; they effectively gave me all the information in the hour to solve my remaining appraisal problem for an assignment I'm working on. All were happy to help.
But, I have near-similar experiences with residential agents/brokers.

I always wonder if it is a "regional" thing? (Happy agents in a happy market here; dour and sour agents where others work ).

 

[Michigan CG]

An agent is not allowed to exclude appraisers of lenders choice or get to "ask for another appraiser" . Interfering with a lenders' right to choose appraiser and AIR regulations. You deserve to reported for not letting an appraiser in if you have been getting away with it, the lenders who go along with this nonsense are not in compliance with regulations.

Can you back up these statements?

 

[Terrel L. Shields]

I always wonder if it is a "regional" thing? (Happy agents in a happy market here; dour and sour agents where others work ).

Well, I don't know. But I kept a Missouri license years ago for a while because I had a trainee "over the line". He was a broker in MO himself, and had no issue getting info from local brokers - at the time there were about 5 MLS's covering a rather small area. MO is non-disclosure. But when I would go talk to one of them, they often simply refused to talk to me, claimed they could not (confidentiality) unless I belonged to the local MLS (which was BS since Dan belonged to only one MLS) and I did belong to an MLS that includes one Missouri county as part of the MSA but is Arkansas based. There was only one agent there I could depend on and that was because she used to be my neighbor, had been a local AR agent for several years, and I had dated her previously.

 

[J Grant]

http://www.freddiemac.com/singlefamily/appraiser_independence_faq.html#13

Go down the questions and see "selection of appraisers", question about RE agents ( #2). The lender selects the appraiser. , do your own research on it so many varied agencies and regulations about appraiser selection to look through. A RE agent excluding is selection by exclusion, the lender had it right by not allowing the RE agent to do that in OP's case.

 

[hastalavista]

A RE agent excluding is selection by exclusion, the lender had it right by not allowing the RE agent to do that in OP's case.

That is very tortured logic. So tortured that it breaks the bounds of common sense IMO.

How about this:
The lender selects.
The parties object.
The lender decides.
The parties accept or move on.

That's the way it is.

 

[J Grant]

I lack time to pore through every page in Dodd Frank, TILA, Fannie etc, to find a link to their verbiage about appraiser independence/ lender selection of appraisers. The link I provided in post # 67 above is from Freddie Mac that a lender can not allow a RE agent to select the appraiser (paraphrasing, see link for their language.)

My reasoning is not "tortured" at all. Of course a RE agent excluding a specific appraiser is a form of selection, and a lender permitting such is allowing the RE agent to participate in the selection of the appraiser. What if an agent excludes one appraiser after another until their pet favorite gets assigned ? Or agent excludes simply because an appraiser came in ""low" on a deal a year ago? Or they don't "like" an appraiser?

 

[J Grant]

"Q23. May a person on a lender’s staff who is not part of the loan production staff and does
not receive a bonus or commission based on loan closings provide an appraisal
management company a list or panel of appraisers to use for loans involving a
specified mortgage broker, real estate agent, or loan officer?
No person on a lender’s staff may provide an appraisal management company a list or panel
of appraisers to be used for loans involving a specified mortgage broker, real estate agent, or
loan officer. AIR specifically prohibits lenders from accepting appraisal reports completed by
an appraiser selected, retained, or compensated in any manner by mortgage brokers and real
estate agents. Mortgage brokers and real estate agents must not be involved in the selection
of appraisers for an approved panel or specific assignments under any circumstances. Please
refer to Section IV.A for further information regarding who is authorized to select and retain
appraisers. "

The above right from Fannie. Note they state ANY CIRCUMSTANCES, that would also mean the circumstance of selection by exclusion, since there are two basic methods of selection that exist, one is to pick a person, the other to exclude a person. I presume Fannie did not state that specifically because they they don't every form of gaming the system that might occur.

Selection by exlusion means the agent had a hand in selection and they are not the client, they have a vested interest etc. Why are appraisers supporting this in any way shape or form would be the question