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Drive-by ....for an AUDIT?

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Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Florida
To All:

Drive-by order stated: "The purpose of the report is to establish value for an audit".

Ever seen this before? This order was placed by a very large national lender. They included page 1 of a URAR and a sketch of the floor plan of the subject. If you have any knowledge about the circumstances under which a lender might place an order like this, please let us know.

Regards,


Tom
 

airphoto

Senior Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Pennsylvania
Used to do 'em for IRS .. and for US Marshal's Service ..
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
I'm assuming they are checking on the real value of the properties they hold mortgages on? Then again, a drive by completed by a competent appraiser is only an educated guess. I really hate blind appraisals!
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
I've done many reports in the past "for audit". The banks and lenders that lend their own money will pull several files at random, and send them to us for review or drive by appraisals. They do this as a check and balances on their LOs and appraisers. So when we get the request, they usually are not a regular client. Maybe someone that knows our work, but only wants an honest opinion when they really need it. :wink: So consider it an honor they called you. In the past, we would get anywhere from a dozen or so up to maybe 50. Depending on quantity, location, time frame, etc we will negotiate a fee. Sometimes they want reviews, but most of the time they want a drive by 2055 in lue of a review.
 

Dan Leggett

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Mississippi
With it being requested by a lender I tend to agree with Pam & Mel, probably part of their Quality Control labeled as an Audit.

However it may be the first crack in a dam. If I remember correctly United Companies (aka UC Lending) was brought down by some of the lead investors questioning why foreclosed properties with $300,000 mortgages were selling for $125,000. An audit ensued and it was revealed that their paper was worth around 50 cents on the dollar. These details may not be exact but I do remember some of the reviews.

I think I would call the requestor and fish for a few more details. Who knows, you may: 1) support a reputable appraiser and loan transaction, or 2) shed some light on a bunch of crooks.

Quote a fair fee and allow extra time for extra care. Good Luck!
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
I have done these where a bank is looking to purchase a large package of loans. They are concerned about the accuracy of appraisals and the probable loan/value ratios of the loan package. By pulling a cross -section, they can see if the loans are reasonable or if they're buying a "pig in a poke".

Roger
 
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Florida
To All:


Thanks to all of you for your responses. They started me thinking and looking. This is not just another drive-by. There is an aura of gravity about this one. I'm approaching it that way.



Regards,


Tom
 
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