Brad Pack - Please Help Me - The Hotline has me running circles

[The Sheriff]

Brad... Brief background...

I used to work for one of the nation's largest appraisal firms in Phoenix. Upon opening my own firm, I hired an appraiser from their Tucson office to work with me in Phoenix (he was also my college roommate from back in the day). An office manager from the Tucson office recently called us because she has a staff secretary that is purchasing a house in Tucson (where we do work still), and where we also have a good relationship with our prior firm. They had to turn down the order from the broker because of their in-house policy of not doing employee appraisals (great policy IMO). We did not take the order on as well for the sake of maintaining a positive relationship with our prior firm. However, between the seven of us that are appraisers between our two firms, we had a very good hunch that the sales price was going to be a big "ain't no way it's happening" situation. But, that's why they get appraisals done.

Well, out of the blue, we had a copy of the appraisal forwarded to us after the number was hit saying value was good. The wrecklessness of the appraisal though has all of us looking at each other wondering who do we turn to so this girl doesn't start upside down by 10% or more on her house?

I have no problem forwarding the email with the report... Things that should be considered though... The subject is a two story property... two recently closed two story sales that were not included closed $20K less than the opinion of value. The appraiser utilized all single story sales for comparables 1-3 instead, with the exception of sale #4 (a two-story which closed in August of 2007). He called all the sales contempory design on the grid instead of saying one story or two story (effectively ignoring market data showing buyer preference for single stories over two stories in the market place). The market is DEFINITELY declining in that area with an oversupply of comparable housing, however, stable was checked, as was in-balance. Therefore, no time adjustment was ever made (not even for an August sale from 2007). Of course you have a bunch of the minor issues (MLS photos being utilized in the report - which is really sad considering the comp furthest away utilized was less than 0.39 miles and most comps selected were less than 0.10 miles).

I'm not trying to be a watchdog for the industry... people like Pam can have that distinction. I honestly feel bad though for the buyer because in all likelyhood, the DEU might not flag the report (I have not spoken to the borrower myself - someone in her own office in Tucson might have, but I've kept my opinion just between myself and my Tucson appraiser that works with me now).

I spoke to someone in Santa Ana, and they stated that they couldn't do anything (I offered the case # so they could possibly have it reviewed - but he wouldn't take it). I know you guys are overwhelmed right now... but hopefully you can take the five minutes to have someone independent look at this file. If I went about this the wrong way, I sincerely apologize... but I tried calling the hotline and maybe I just spoke to the wrong individual. He said the DEU makes all the calls in cases like these... but what happens when the DEU can't see what many of us can see. He told me to contact the DEU... but seriously, what is the chance of calling the mortgage broker up and getting the DEU's # so I can say their is some real carelessness with an appraisal that could possibly effect the broker's deal. No broker in their right mind wants to jeporadize a deal in our economy's state.

Thanks for your time Brad... I really appreciate it. Good luck trying to keep our industry honesty.

 

[Michael Tipton]

Visit the attached link in case you do not hear from Brad. Page 7 has contact info.

http://www.HUD.gov/offices/pih/programs/ph/rhiip/docs/reportfraud.pdf

 

[Brad Pack]

Brad... Brief background...

I used to work for one of the nation's largest appraisal firms in Phoenix. Upon opening my own firm, I hired an appraiser from their Tucson office to work with me in Phoenix (he was also my college roommate from back in the day). An office manager from the Tucson office recently called us because she has a staff secretary that is purchasing a house in Tucson (where we do work still), and where we also have a good relationship with our prior firm. They had to turn down the order from the broker because of their in-house policy of not doing employee appraisals (great policy IMO). We did not take the order on as well for the sake of maintaining a positive relationship with our prior firm. However, between the seven of us that are appraisers between our two firms, we had a very good hunch that the sales price was going to be a big "ain't no way it's happening" situation. But, that's why they get appraisals done.

Well, out of the blue, we had a copy of the appraisal forwarded to us after the number was hit saying value was good. The wrecklessness of the appraisal though has all of us looking at each other wondering who do we turn to so this girl doesn't start upside down by 10% or more on her house?

I have no problem forwarding the email with the report... Things that should be considered though... The subject is a two story property... two recently closed two story sales that were not included closed $20K less than the opinion of value. The appraiser utilized all single story sales for comparables 1-3 instead, with the exception of sale #4 (a two-story which closed in August of 2007). He called all the sales contempory design on the grid instead of saying one story or two story (effectively ignoring market data showing buyer preference for single stories over two stories in the market place). The market is DEFINITELY declining in that area with an oversupply of comparable housing, however, stable was checked, as was in-balance. Therefore, no time adjustment was ever made (not even for an August sale from 2007). Of course you have a bunch of the minor issues (MLS photos being utilized in the report - which is really sad considering the comp furthest away utilized was less than 0.39 miles and most comps selected were less than 0.10 miles).

I'm not trying to be a watchdog for the industry... people like Pam can have that distinction. I honestly feel bad though for the buyer because in all likelyhood, the DEU might not flag the report (I have not spoken to the borrower myself - someone in her own office in Tucson might have, but I've kept my opinion just between myself and my Tucson appraiser that works with me now).

I spoke to someone in Santa Ana, and they stated that they couldn't do anything (I offered the case # so they could possibly have it reviewed - but he wouldn't take it). I know you guys are overwhelmed right now... but hopefully you can take the five minutes to have someone independent look at this file. If I went about this the wrong way, I sincerely apologize... but I tried calling the hotline and maybe I just spoke to the wrong individual. He said the DEU makes all the calls in cases like these... but what happens when the DEU can't see what many of us can see. He told me to contact the DEU... but seriously, what is the chance of calling the mortgage broker up and getting the DEU's # so I can say their is some real carelessness with an appraisal that could possibly effect the broker's deal. No broker in their right mind wants to jeporadize a deal in our economy's state.

Thanks for your time Brad... I really appreciate it. Good luck trying to keep our industry honesty.

Sheriff - Thank you for your polite and professional post. Please contact me via Pam Crowley. We'll see what we can do.

Pam - Please give "Sheriff" my ""general" phone number and extension (privately). Thanks, Pam!

 

[Michigan CG]

Mr. Pack,

Thank you for responding after the latest rude diatribe directed at you. You are a link to the powers that be and hopefully we can all contribute to the betterment of the current situations that have come up.

Please note folks that this thread will be highly moderated and all replies and comments will looked at closely.

Let us be part of a solution, and not editorialize on things that cannot yet be fixed.

 

[The Sheriff]

Thanks Brad... I will keep my eyes open for Pam's email.

 

[ZZGAMAZZ]

Mr. Pack recently responded to my private message by referring me to an individual in his office, and she has been extremely helpful on several occasions.

One thing that confuses me is that a lot of folks on the Forum are very upset about the nuances of FHA appraisal inspection and reporting requirements, although our industry in general is based upon nuance.

 

[starmansf]

Dear Sherriff-

With all due respect, as you were not involved in this deal why are you inserting yourself? If something of an egregious nature has occured, leave it to others. It does smell fishy, but it aint your fish.

 

[The Sheriff]

Never received the email from Pam FWIW... I guess this fish ain't getting fried. Gotta love the skippy appraiser...

 

[Pamela Crowley (Florida)]

Sorry it took me so long to find this! I have been away from the computer. Message sent to The Sheriff.

 

[Workbox]

Dear Sherriff-

With all due respect, as you were not involved in this deal why are you inserting yourself? If something of an egregious nature has occurred, leave it to others. It does smell fishy, but it ain't your fish.

Since, some here indicate that we are part of the problem, we can also be the solution. He is doing his duty to promote and preserve the public trust. I think some appraisers are experienced enough to know what lines to cross, some lines need crossing, we can and should not live in fear when doing the right thing.

I have sent stuff to Pam, it does work, and thank you Brad. It's a good feeling to know that you are listening. Cheers.