Are there any lenders that want true appraisals

[Lonnie Heward]

I know all of you probable deal with this. I am an licensed appraiser and I have recently started my own company. I seem to be running into a problem with the few new lenders I have wanting me to push values. I hear on a daily basis that "it appraiser for$..... a year ago. Do none of the L.O.'s realize that their previos appraiser may not have been honest or that the market is in a plateau or even declining? I am fustrated, does any one have suggestions how to find clients who want honest appraisals. I find it tough being the bad guy all of the time. How do other appraisers compete with the number hitter appraisers out there?

Lonnie

 

[Pamela Crowley (Florida)]

LOs just love to attack new appraisers hoping you are too hungry to abide by the rules - or too dumb.

I don't know of any easy way to get through this. It took me over 5 years of sticking to my ethics, being blackballed, and wondering how I was going to pay my bills (after I figured out how to get enough gas for the next inspection and something in my stomach) before I finally had enough of the better LOs as clients.

Make sure you do COD ONLY!

 

[wyecoyote]

Lonnie,

My suggestion is to look for you local banks and credit unions. They are really tough to get approved with but no questioning of values. They do not even request a value on their orders. Like I said they are real tough to get approved with though. There are some local mortgage companies that are good to deal with but you have to pick through them like Pamela stated to find the good ones.

Ryan

 

[Restrain]

They pay less, but AMCs (Lenders Service, et al ) don't ===== as much as independent brokerage firms. They just want the appraisal done and if you don't make value, they don't ===== as much. If the value's not there, it's not there. They serve as a buffer between you and the lender.

Give Lenders Service a call.

Roger

 

[yvonne dill]

No- There aren't.

Companies only make money when they write loans.

And let me tell a tale from the corporate side. I went to work for a major lender. I was told they wanted honest valuations of their REO stuff. Their REO stuff is 95% junk. Pure junk. I thought great. No number hitting here. 2 months later the auditors in LA LA LAND (CA) are upset. Seems I'm too honest. My numbers don't even approach origination. The VP who told me to give honest valuations, doesn't call me in to tell there is a change in game plans. I hear all of the negative stuff about my "unsupported" low ball stuff via grapeline. No one parks me on the carpet, which tells me I'm wholly defendable. It's as big of a number game on this side as it is on your side. I'm disappointed. Here's the way I look at it, my pay isn't even half of the private sector income. If I have to hit somebodys number, I just as well be paid for it.

 

[Ken-NC]

Just get used to it. I was blackballed from a local mortage company for refusing to arrive at their value. I had incredible comps on this particular appraisal (one was literally next door) and the underwriter was in complete agreement with me.
About two weeks after I submitted the appraisal, the company I work for received a phone call and was informed that I could no longer perform appraisals from this company! No problem.

An interesting sidenote: After my boss had a similar run-in with this company, our firm has not received an appraisal request from them. Boo Hoo!

Trust me. It's better to recieve less work - especially from dishonest lenders! Your reputation will be rewarded.

 

[Kevin Shannon]

Pam said,

"Make sure you do COD ONLY!"

Once again thats terrible business advice for a newcomer, they'll be out of the business before they get into it.

Reputable clients and Lenders do not and should not pay COD.
It's all part of the business, any business.

Kevin Shannon

 

[Mike Simpson]

Expand your horizons, learn to think differently than the rest of the herd!

There's more to life than mortgage lending appraising. The pool of clients is smaller but so's your competition. Research entities which require your services and market to them...they not only want to know what a particular property is worth, they need to know.

Diversify...be free!

-Mike

A note regarding Appraisal Management Companies (AMC's). They not only take 25-60% of your fee, they'll pester the heck out of you on the phones...we no longer accept orders from AMC's. I consider their cut--my health care, retirement & vacation fund (that's right I might actually want to take a vacation once every two years or so!). And never mind their constant requirements that you update their (your) software, or the automated underwriter (built into the software) which checks your report, and if it isn't robotic (conforming) enough you can't even send your appraisal!

 

[Joe Birrell (NY)]

There are a few, very few and it takes a long time to find out who they are. Over the many years there was this constant pattern of accounts lasting as long as it took to kill the first deal. Soon, there would be one to replace them, until another deal went south. After years of this, I finally
reached the point of having 6 or 8 honest lenders who I only deal with
on a regular basis. There are still new scam artist trying to con me on a weekly basis, but after 25 years I can tell within the first 30 seconds of taking with them what their true colors are. After doing this for so long and suddenly a new account appears, I'm automatically suspect. I want to know who did their work before ? Where have you been all this time ?
Why me ? These are strictly COD's. It's usually that their regular appraiser is swamped and they want me to help with the turnaround time. Sorry, I have my regular and loyal customers to service first, I'll take the assignment but the turnaround time isn't going to be quick. I've been called in my various federal and state investigators over the years and I can look them straight in the eye with nothing to hide. There is a lot of scams going on out there be careful, you'll never know the implications until it's to late.

Hold your ground and don't cave to the pressure. I always put the monkey on their backs, let them prove it's worth more, they never can.
Your reputation will soon become known one way or the other. It's weird but the scam artists will call you when it's their ox that is being gored, and they want an honest appraisal on the property they are buying. You can also start focusing on private work, it pays more and there is little to no pressure.

Good luck.

 

[Mike Simpson]

Once again Mr. Shannon pops in with his typical one-two line shot at a regular poster...you must be a real pleasure to work with Kevin!

Reputable clients are not defined by whether or not they require an appraiser to be paid via COD or whether they pay the appraiser themselves at a later date. I've a number of clients who're very 'reputable.' They rely on my professional opinion and NEVER pressure me to hit a predetermined value, they simply opt to have the appraiser paid at the time of the inspection...which is great for me!

However, I cash the check everytime before I deliver the report. I've even been trained (by the payer) to verify funds before beginning the assignment. For those banks which won't verify funds...I don't even begin the report until the check has cleared...the payer can then blame their banks, and their banks policy for any delay.

Lastly, I understand there are those who work for AMC's and I've read their rationale. For me, however, I cannot understand why they or anyone would willingly give away (literally) tens of thousands of dollars for the previlege of working for one of these entities! I simply have too many uses for $10,000, $20,000, $30,000 or more.

-Mike