Blew a deal - LO is ticked

[Otis Key]

Not all MBs are bad. Remember that. However, the first thing I do, when they start all that cwap, is provide them the phone number to the state board (not the URL - let them look it up).

 

[c w d]

90SQFT is not an error. It's a variation. Anything less than 5-7% is good in my book. 90SQFT should have no appreciable effect on value.

 

[PropertyEconomics]

Dear Mortgage Broker,

Thank you so much for your inquiry involving the property located at ......... I need to advise you of a few things however, 1) The report is very well supported and I have carefully reviewed my documentation and am very confident in my value estimate. 2) As you will recall upon our first communication, I informed you that an owners estimate of value could be considered lender pressure in California and that we did not guarantee values under any circumstances and you informed me to complete the assignment. 3) The address and telephone number of the State Board is as follows ......... Finally, Please be advised that upon contact by the State Board I will be obligated to turn over the appraisal report and all of my work files regarding this property. I have duly documented and included the emails you have sent to me and they will be included in my response to the state.
I certainly understand that market conditions have been negatively affected not only in our state but all across the country. I appreciate your concern for your borrower and I trust in time they will understand that an honest valuation is what is mandated not only by California law but also by federal requirements. Given these factors I will be unable to return the fee paid to me for this assignment, as it could not only be considered a violation of the Standards of Professional Appraisal Practice, but also reflects both your and my fulfillment of the contractual obligations regarding the appraisal of the property.
I thank you for your emails and will await contact from my State Board.

Respectfully,

XXXXXX

cc: California Attorney General

 

[LadybugLover]

I like that one - do you mind if I cut and paste it into my next email - I'm sure I haven't heard the end of it from this guy - although it's been 2 hours since I sent him my last email stating that I was comfortable with my OPINION of value and would not be refunding anything to the borrower.

Oh well, off to an election night party with our local State Assemblyperson - one of his best colleagues in the Assembly is a former appraiser, so I'm sure he can put in a few good words for me with OREA if I need him too!

Mary

 

[Kevin Mc]

We don't do "deals".We do appraisals. You did your job, nothing more.

 

[hal380]

You did not "Kill the Deal", you wrote the obituary. It was already dead by the by the reality of the market place.

Hal

 

[aussie ken]

You did not "Kill the Deal", you wrote the obituary. It was already dead by the by the reality of the market place.

Hal

Good line Hal.........can I use down here?

 

[hal380]

Sure can Ken, If you use it now it is tomorrow there right? and I said it today - yesterday, so you came up with it first.

Hal

 

[CANative]

Mortgage brokers catch hell from angry borrowers who have been told they can't get a loan. I don't think borrowers fully realize that the appraiser and broker are completely independent from each other... all they know is that they desparately needed or wanted a loan, they have paid out enough money for a couple of weeks worth of groceries and now... nothing.

Brokers don't explain enough about this dynamic because they fear they won't get a shot at the deal; not all appraisers are competent; after all it's just an opinion; appraiser's don't help matters by their lack of business communication skills; the entire process is a big mystery to borrowers, brokers and many appraisers.

When there is a HUGE discrepancy in what the broker and borrower had in mind and what the appraiser delivers there is a strong feeling of being ripped off. Right or wrong, that's how they feel. I don't think anyone is served when an appraiser leaves a client to dangle in the wind and deal with the aftermath on their own.

 

[Webbed Feet]

<..... snip.....>
When there is a HUGE discrepancy in what the broker and borrower had in mind and what the appraiser delivers there is a strong feeling of being ripped off. Right or wrong, that's how they feel. I don't think anyone is served when an appraiser leaves a client to dangle in the wind and deal with the aftermath on their own.

Mr. Boyd,

I see your point, but your post disturbs me just the same for stopping it at the place you did. It seems to imply the appraiser is somehow responsible for the situation. Today there are so many ways for this to have been checked on by the mortgage broker before ordering an appraisal that there just is no justifying involving any appraiser in a blame game. Even any bright homeowner should grasp a gap that big has happened in at least some cases before the appraiser becomes involved. AVM's, desktop appraisals, both could have been employed beforehand.

The entire problem is both the homeowner and the mortgage broker did not want to pay a penny or do any research on their own ahead of time. The mortage broker wanted what we call unaccepable assignment conditions to be the fall back position if things did not work. It was the old "hit the needed number or don't do the assignment, or if you do and can't hit it give us the money back" ploy. Our industry members have constantly, and for years now, tried to suggest possible solutions to this issue. It's the mortgage side that will not accept any of them because they are not all free of charge and instantaneous.

Webbed.