Desk Appraisal is killing deal - 1 day before signing - HELP!

[Doug DeMars]

I hope the technical banter didn't scare the OP away...I'm curious how this whole thing turns out.

I appreciate the observations made by Meta about current SOP for BofA. I suspect most lenders are doing this...and even the "little guys" are starting to perform "desk appraisals" for every file. My question would ask if these are really "desk appraisals"? I wouldn't be surprised if these are actually AVMs disguised as desk appraisals. A subtle difference in many ways...but a large difference in cost.

This is a new world we have stepped into. When recently asked to do a FHA purchase, I got a note from the processor before I even set the appointment or got a copy of the PA:

fyi the automated approval has a red flag on value estimate asking u/w for careful review

 

[NORTON]

What is enhanced DR? How should I charge? Is that real the lender always can choose lowest no matter what. I am a green reviewer any one can help?

ENHANCED usually means even if u agree with value....you need to add two comps to "ENHANCE" the original value / appraisal. It should be clearly spelled out within your SOW.

Regarding you being a green reviewer....maybe u shouldn't be performing the review, by your own admission!

 

[Metamorphic]

Meta, it would make an interesting thread of someone obtained a copy of a LARA report, 100% of the entire thing, and posted it. Then we could tear into what is really happening for any public member to read. I'll say this, from what I recall ....... the sentence almost at the bottom of the PDF document link is what I took to explain about everything that is going on a long time ago...

http://www.landsafe.com/landsafe/value/LSA0007.pdf

Bluntly said, as long as the original appraisal is ordered through Landsafe a LARA may not be needed. So maybe you are correct, maybe the scope has been intentionally tampered with to mess with any loan originator that fails to order an appraisal through Landsafe.

Get a complete LARA report for us. Start a new thread. I'm sure many here would enjoy ripping apart what is being done and placing it in a proper real estate appraisal context instead of a lending propaganda one.

I've got two LARA's in my files, and I'd happily post at least a redacted version if the client was mine too loose, but it isnt; its my supervisor's business. I dont think I could filter them enough while retaining enough detail to play with that a clever person at LS couldent figure out which file they came from and behaive in a punative fashion.

Both LARAs were on for appraisals originated through Landsafe so dont believe the marketing.

 

[David Beasley]

Regarding you being a green reviewer....maybe u shouldn't be performing the review, by your own admission!

I would've said to maybe not do their first few reviews unsupervised, or without some sort of experienced supervision. We all had to have our "firsts" (first appraisal, first review, etc), because without them none of us would have ever become appraisers in the first place. We all had to step off the diving board and into to the pool at some point. Your advice simply says, you've never done it before so you shouldn't be doing it at all...I say, you've never done it before, you shouldn't do it "alone" until you have a good grasp on how to do it.

 

[Webbed Feet]

I've got two LARA's in my files, and I'd happily post at least a redacted version if the client was mine too loose, but it isnt; its my supervisor's business. I dont think I could filter them enough while retaining enough detail to play with that a clever person at LS couldent figure out which file they came from and behaive in a punative fashion.

Both LARAs were on for appraisals originated through Landsafe so dont believe the marketing.

Do they have preprinted instructions, are they a "form" with definitions and certifications? We don't need any of the field input data at all.

 

[Metamorphic]

Pg 1.
Standard order info, property address, order info, loan program data, original report data, appraiser, etc. Big box in the middle that says "Landsafe Certified Value, Landsafe has determined the value of this property to be $XXXXXX" A box of "condition for approval of collateral.

Pg 2.
Box Borrower info, transaction type, property rights
Box called "Analysis of available appraisal documentation" Has space for "Original Report info, Second report info, third report info.
Original Report is a LS product (yes/no), same for 2nd and 3rd reports
Box of property info limited to type, age size, and site size.
Box of "Value Opinion Conclusion"

Pg 2 and 4 are text addendums.

I'll sift through this and give you an idea of what's "data" and what's boiler plate.

Under "Additional Data Provided by Client" "Price trend ZIP = -xx% in 6 months, - XX% in 12 months"

Additional LS Data Resources Researched "capes, sitex win2 data, realtor.com, etc"

There's a short re-telling of the appraisal, a summary of each comp, and anything they found odd about the adjustments.

There's a reconcellation section where it discussed the strengths and weaknesses of the appraisal.

The money statement goes something like this. The subject's last sale in a declining market, the issues mentioned with respect to the appraisal and the superior nature of many of the comparables amenities supports a value of $xx.

Basically that's it. They've got a generic analysis of the market from the client based on zip code. Some guy writes a couple paragraphs that demonstrates he paged throught the report. Then, without any numeric analysis, without any attempt to do some sort of qualitative analysis, they say the resutls "tend to support a value of $xx".

Really, there's no there there except what the reviewer might write in an addendum. The form is set up to support anything more than describing the property/client, and document what resources and documents they were looking at.