Considering filing complaint for lack of market conditions adjustment on stale comps

[throwaway12345]

Yes you can file a complaint -BUT- A State Board cannot pay monetary damages and only deal with the appraisers work so you have to know what your goal is ? If you are looking for monetary damages ? That goes to a court of law and a lawsuit and your attorney will have to prove what damages you suffered ? And your lender is the client so you need to get $20,000 set aside to defend the claim. The appraiser typically has E & O insurance-- AKA errors and omissions insurance for $500,000 to $1,000,000 and his-her insurance carrier will normally run you out of money unless they offer what I call a go away fee . ( You need legal advice and money ) otherwise it's normally a waste of time and energy unless you just want to prove a point..

No damages or losses here. I guess my only motivation would be to prove a point and ensuring that this doesn't happen to anyone else in the future. In my market, people already have the deck stacked against them toward owning a home and this type of behavior doesn't help.

 

[throwaway12345]

Here's the problem I have with suggestions that the borrower take their business elsewhere: The appraiser is being paid to provide a competent service, which means they owe their client and users a competent service. I know people are busy but I don't consider throwing 3 dated sales at a contract price to conclude to a much lower value conclusion to be an example of a reasonably diligent effort. What reader *wouldn't* look askance at such a minimal effort?

I kill report the obituaries of a lot of deals in my day job, possibly more than anyone else on this forum due to the types of properties I appraise. I don't use 3 comps for ANY assignment unless the property in question is so unusual that I'm struggling to even come up with 3. And I certainly don't lowball a value without taking additional steps to demonstrate why that contract price *cannot* be considered a reasonable expression of MV. If I'm coming in low then the burden of proof is on me and I need to show my work. Devolving to "trust me, I have a license" is not an example of professional practice.

IMO

This is phrased much better than I could have written

I was just the options for the OP at that point.

Valid options and much appreciated

 

[throwaway12345]

Alsie said, "I think that if you read all of the author's posts on this thread, you'll see that he is mostly miffed at the perception that his suggested market data was "blown off". Had the original appraiser simply discussed it and elaborated on his own analysis in a revision to the report, this thread would probably not have existed. (And I believe that he said that he 'got the loan' and closed - just had to come up with a bit of cash to do it)."

Hmmm, so if the OP 'had' got his full loan would he had been as concerned about filing a complaint? Only he can honestly tell us. We don't know very much about the ROV request, how the OP presented it, or who it went to. The original appraisal or the desktop reviewer? It has been my experience that some AMCs re-phrase or re-write ROVs and the appraiser's response, and when I get a ROV, the lender is asking the appraiser if there is something being presented which the original appraiser and/or review overlooked and if it would change their opinion of value. It is just as probable the comparables used were the best available in the appraiser and/or reviewers opinion, then they were, if only, lacking a better bed side manner when presented with a ROV.

If I hypothetically received the full loan (appraised value = contract price), I would not likely file a complaint provided I found the report credible. I'd be paying more to the seller overall, but sure if it's supported then who am I to argue.

If hypothetically the appraiser provided support for a 0% market conditions adjustment, then I would not likely file a complaint either. I'm not an appraiser and am capable of admitting when I'm wrong or missed something, so who am I to argue in that situation either.

I couldn't tell you what happened to my ROV either. For all I know it ended up in the trash.

 

[Mejappz]

It would be best to file a complaint against the AMC, Lender, GSE, or HUD. All four are responsible for the mess. Filing a complaint against the appraiser is useless. Most states regulate AMCs. Appraisers are overworked, underpaid, and overregulated.

 

[throwaway12345]

Well, that depends on whether the subset of properties that compete directly with your home show that a positive time adjustment is indicated. The problem there could be that there is not a very big data sample for that subset of properties, so there is no conclusive answer. I suspect that this is what the original appraiser found.

Now the secondary question is "Is there basis to go outside of that data set to the larger market data set to justify a positive time adjustment?" That is not an easy question for an appraiser to answer, and I'll fall back on my observation that the original appraiser may not have discussed this clearly enough in response to your ROV.

If the seller lowered the price to come closer to meeting the appraised value, I'd call that a victory and move into the home.

That was my line of thinking as well. If there isn't enough data in the narrowly defined scope to come up with a conclusive answer, further analysis is needed. If I missed something and the appraiser has support for a stable market, then by all means tell me and I can go away.

If there isn't any support and it's a case of "I don't want to do any further analysis" or "I refuse to change my value", then that's fundamentally wrong. And I'd like to think most folks would agree with that.

 

[George Hatch]

I can guarantee you that if you tell the lender that you consider yourself a minority this complaint will go to the top of their to-do list with a bullet.

 

[Mejappz]

That was my line of thinking as well. If there isn't enough data in the narrowly defined scope to come up with a conclusive answer, further analysis is needed. If I missed something and the appraiser has support for a stable market, then by all means tell me and I can go away.

If there isn't any support and it's a case of "I don't want to do any further analysis" or "I refuse to change my value", then that's fundamentally wrong. And I'd like to think most folks would agree with that.

Did this order go through an AMC?

 

[throwaway12345]

Did this order go through an AMC?

No clue. I'd have to ask my lender.

 

[Mejappz]

No clue. I'd have to ask my lender.

Look on page six of the URAR, above the name of Lender.

 

[throwaway12345]

Look on page six of the URAR, above the name of Lender.

View attachment 52192

Ah, got it. No AMCs involved, name says "No AMC"