Can a lender require an appraiser to be designated?

[TooMuchCoffeeGirl]

Attorneys often require MAIs. I have lost mineral appraisals because I am not an MAI. I queried one about what MAI is credentialed to value minerals and they had no answer. I saw one such report and basically he hired an engineer to give an engineering value to a well. He valued the well, but not the whole property and by doing so undervalued it by roughly 2 magnitudes.

Doesn't surprise me to hear this. In decades of reviewing both residential and non-residential appraisals, the percentage of seriously shameful appraisals have come from designated appraisers. It's always disappointing when designated appraisers are touted as being the cream of the crop and it just isn't reality.

 

[TooMuchCoffeeGirl]

Thats shocking that a Real Estate Attorney doesn't even know the basics of FRY-Inter-agency-- Dodd-Frank etc Now with that being said in private loan and brokerage scenarios he can contrive any kind of dribble he wants and so me thinks he is just designing a business model to either profit from or is simply incompetent. We have attorneys in my family and I know many over the years and its amazing how many goof balls pass the bar exam. My sister use to work for a division of AIG Insurance that all they did was sue attorneys for malpractice and they one a lot of their cases. My best guess would be he is just marketing some new twist to the Realtors-Brokers and mortgage brokers but who knows.

It's 'simply incompetent.' Makes it worse that he's in-house counsel for a VERY large brokerage that has their own home loan company.

 

[Deleted member 152047]

Attorneys often require MAIs. I have lost mineral appraisals because I am not an MAI. I queried one about what MAI is credentialed to value minerals and they had no answer. I saw one such report and basically he hired an engineer to give an engineering value to a well. He valued the well, but not the whole property and by doing so undervalued it by roughly 2 magnitudes.

I know two appraisers (man and wife) that value minerals, mines, springs, etc. Both are MAI's and SRA's and they are great people.

 

[Terrel L. Shields]

wo appraisers (man and wife) that value minerals,

I know a few mineral appraisers who are MAIs. I don't know many MAIs who are mineral appraisers.

 

[George Hatch]

It's 'simply incompetent.' Makes it worse that he's in-house counsel for a VERY large brokerage that has their own home loan company.

Non-appraiser not being familiar with appraisal stuff. No big deal. Happens all the time to one extent or another.

 

[glenn walker]

I know two appraisers (man and wife) that value minerals, mines, springs, etc. Both are MAI's and SRA's and they are great people.

No issue with MAI I was trained by one like everyone there are good ones and bad ones in general I have found the newer ones-- that being designed in the last 15 years seem much better and more aware then the ones I worked under in the mid eighties at the S & L. That was pre-licensing and many were old and not very motivated and some frankly had no idea what they were doing and thats where they developed the name "made as is " Today's newer MAI is at the top of their class because it takes a lot of work to get the MAI and no longer just a good old boys club. Denis DeSaix who left the forum got his later in life and he was one hell of a good appraiser and bailed me out many times .BUT there are also a ton of good CGs so as usual we have the good and the bad .

 

[jay trotta]

No issue with MAI I was trained by one like everyone there are good ones and bad ones in general I have found the newer ones-- that being designed in the last 15 years seem much better and more aware then the ones I worked under in the mid eighties at the S & L. That was pre-licensing and many were old and not very motivated and some frankly had no idea what they were doing and thats where they developed the name "made as is " Today's newer MAI is at the top of their class because it takes a lot of work to get the MAI and no longer just a good old boys club. Denis DeSaix who left the forum got his later in life and he was one hell of a good appraiser and bailed me out many times .BUT there are also a ton of good CGs so as usual we have the good and the bad .

Happens in any profession, we are not alone, although most do not go on to a Public Forum and pick apart the Bad ones. Look at some of the Lenders out there, and lets not get started on AMC's and Politicians....ha, then again we all like to poke fun

 

[Terrel L. Shields]

"made as is "

Made as Instructed. That didn't happen much here. But an old retired MAI from Las Vegas who served on the equalization board admitted to me that when you were valuing a casino in Vegas and the mafia was involved, if you didn't want concrete shoes in Lake Tahoe, you needed to be abundantly optimistic on valuations. Yep, I never wanted to value property for the Mafia. Being clubbed with your own wheel like in the Sopranos ...that beats the concrete overcoat.

 

[glenn walker]

Lincoln Savings MAI never saw a parcel of and that wasn't worth at least 50% more that its real value but after all that was before licensing and appraising was an art-form and nothing more than opinion and thats what sent the Feds packing because it was almost impossible to accuse an MAI overinflated value No -USPAP - No Licencing and the Standard Appraisers defense was thats my opinion and Im sticking to it . Before the internet and E-mail almost all deals were made on a handshake and no paper trails to entrap someone. E-Mail has probably brought down more people than any other tool in history between it and text messages its crazy what people send back and forth .

 

[Zephyr999]

Credential bias is a real thing too.
It's a CHOICE to go further...some do it for the grade/letters after name and others for the knowledge.