Enhanced, Comprehensive Desk Review?

[Fred]

Jim
I'd charge per adjective, unless the adjective is forensic.

 

[Jo Ann Meyer Stratton]

I guess you could use the 2000 form when doing a desk review with an opinion of value, but this form is labeled as a "field review" form and would not appear suitable for desk reviews.

Some clients order desk reviews to be reported on the 2000 form. And I have done that quite frequently, with it stated very prominently all through the report that the subject property and all comparables have not been observed at the client's request and the information in the report is being relied upon unless there is conflicting information in a public source some where. Then I comment on the conflicting information, decide what is more reliable and then a disclaimer that if more accurate information becomes available in the future, my comments and opinions are subject to change.

My main point in my contributions to this discussion--is the form DOES NOT determine the Scope of Work and the responsibilities on my part to prepare a well supported and well documented report back to the client.

Addendums are your best friend! Or Otis's nomenclature of "Expanded Comments" sounds so good I am changing my templates!

 

[Ray Miller]

My desk reivew is 250 rabbits. It they want additional comparables it becomes a full field review and the new rate is 650 rabbits. Reason, I have got to drive the old comparables, the new comparables and work out a new value in most of the cases. Reviews can just really take a long time to finish.

Devil by dam if I am working for nothing anylonger.

I am just about ready to place a new payment system in place after this week. Had 5 orders that; me, myself and I confirm as COD. Drove out to the subject (four yesterday) and the borrower said the LO told them it could now be rolled up in the loan as to my fee. MyA$$ it can. They had called the lender during the week and told them they didn't have the cash to pay. Called all the LO's and told them that when I got a check on my desk in the next five days they would have thier reports. If no check was forth coming you can bet you *** your borrower and your lawyer will see me in small claims court and just maybe a trip to the FBI for wire fraud. I am not a loan closer nor a collector and I give at the church and all causes I feel thier is a real need. But these over extended dead beat home owners can just live off the rats that are in their basements or naw on the seat covers of thier nice new SUV.

 

[xm39hnu]

Originally posted by Robert Anderson posted...
This is a little extreme, but you have to wonder if it is OK to have one fee to do a review if you agree with the other appraiser's opinion of value and a different, higher fee if you disagree with the other appraiser and provide your own opinion of value. The reason that this question came to mind is the provision in the Ethics Rule that states:

It is unethical for an appraiser to accept an assignment, or to have a compensation arrangement for an assignment, that is contingent on any of the following:... 3. the amount of a value opinion;...

Robert, that's not what you're doing.

The purpose of an appraisal review is to determine the quality of another appraiser's work. Period. If the client wants to expand the scope of work to include a new opinion of value, then the fee goes up.

Since the purpose of a review (desk OR field) is merely to determine quality, a new opinion of value is not necessary. I have mine priced at $250 desk, $400 field. But I think I'll change that to $350 field. No opinions of value provided. Appraisals are $350 base fee; higher with complexity. That should cut out "field" review requests altogether, and provide a fee I can live with.

Seems that this adjective movement is an attempt to get a similar product "on the cheap," similar to what we've done with "drive-by's." It didn't take me long to realize that a drive-by appraisal was just as much (if not more) work to do correctly than a full 1004 or narrative, and I refuse them except for pre-foreclosure with hostile occupants. These "review with appraisal" assignments are a similar attempt to shortchange us. No more for me, thanks.

 

[Charlotte Dixon]

I'll vouch for that! An Enhanced Comprehensive Field or Desk Review is not a new thing. I've done them in the past, but fixed it so I won't be bothered again. My standard answer is:

"Oh, you want an Enhanced, Comprehensive desk or field review, not the regular. That fee is $450" Click. I'm not good at playing games.

 

[xm72mhd]

Originally posted by Jim Plante@Sep 18 2005, 05:34 AM
Seems that this adjective movement is an attempt to get a similar product "on the cheap," similar to what we've done with "drive-by's."

Yeah,

We need to decide what our products are and then adjust for the "add ons" the client invents to tweak what we think the scope of work is. Since I figured out that I haven't got the slightest idea what a field review is, the frustration is that the phone robots have no idea what their boss wants and they think I know what the boss means if they use these adjectives. At least I know I don't know.

Got one the other day. "Field review". So I launched into questions trying to figure out what the boss wants. Several volleys later, "We just want a photograph."

You guys who think you know what these things mean are kidding yourself. You're talking apples and they are talking oranges. I told you about the monkey the other day that got two reviews and was trying to get the reviewer with the highest value to go higher. :dance:

In the world of SFR mortgages the rule is faster-cheaper-higher and it doesn't matter if it's a review or not. The four rules of appraising, CYA, CYA, CYA and then clarify your CYA prior to accepting the order. Probably before you get to CYA #3 they'll call somebody who will muddle through and convince him/herself he/she did a great service for the client and the industry.

 

[Carnivore]

Robert,

Dont take my comment about why I think they order enhanced reviews as meaning that ALL lenders want this. WAMU for example, in no way resembles that remark. They have a very active internal appraisal department that is closely tied with underwriting. There goal is simply to maximize loan production while minimizing risk to them. Its a very good system as far as I can tell from the outside looking in.

Many lenders do in fact want a cheap 2nd opinion and so they use the review as a way to get there. I have tested a few lenders by offering a desktop in lieu of a full review. The fee was very affordable. The beauty of this for them was the desktop was not tainted by the possiblity of being biased. All I ask them to do was provide the first page of an appraisal(names blacked out) and I would build a desktop from there in a very reasonable turn time and reasonable price. Guess what?

Surprise, surprise, NO TAKERS!

Why would any lender turn that down if there UW department had flagged the appraisal? Is it because I would not be influenced by the original opinion(hopping for more business, i.e. rubber stamp)? Probably so, because many lenders only use me one time for these types of enhanced review and I refuse to be swayed.
Hence, I am a deal killer.

 

[Lobo Fan]

I just turned in a field review at $285K and the purchase price and the appraised value was $325K. There were four good comps all very close to the right square footage, all the same age and same neighborhood. Very easy normally. Original appraiser chose comps 300 SF large then adjusted at about half of what I would. Then made across the board $5000 condition adjustments without a word of explanation.

I worry about field reviews more than egular appraisals. Plus they are more work than a 1004 and usually pay less.

 

[Otis Key]

Originally posted by Chuck Mackley@Sep 18 2005, 08:55 AM
I worry about field reviews more than regular appraisals. Plus they are more work than a 1004 and usually pay less.

They pay less if you agree to accept the job for less.

"Enhanced Reviews" have been around for some time. Truth be known, the investor would gain more information, details and quality control by actually placing and paying for a full appraisal assignment and explain it to the borrower in such a way as to let them know that it's not going to have a thing to do with costing them any money, just a little bit of time

 

[T.E. Faravelli]

Clearly an attempt, as stated by Andrew in an earlier posting, to shift liability and exposure on to the reviewer. But there is another motivation. It lies in the agreement between the primary and secondary markets. It is "packaged" as a firewall, so to speak. The problem, as I see it, is there are just as many abuses going on in the review arena. Most lenders are only willing to pay about $65 for a desk review and may be a $150 for a field review; both with opinions of value. Who do you suppose is willing to work for those fees? Mostly the inexperienced and the newly licensed. Reviews, for the most part, are more time-consuming than performing an origination appraisal.