Exclusion from a panel

[Linda B.]

So the very confusing thing is that the AMC does not have any concerns about my work. This came from a lender they support. They were shocked by the notice from the lender. I work for the AMC - so this whole thing is confusing and a mess. I spoke with the "lead" AMC rep and they are as confused as I am, and told me to go ahead and work on assignments. I forwarded this information to the lender, who said if I take assignments from them, they will file a "charge against my E&O" what???????? Needless to say I have a call into the ACLB and to my E&O rep.

 

[Surf Cat]

I spoke with the "lead" AMC rep and they are as confused as I am, and told me to go ahead and work on assignments. I forwarded this information to the lender, who said if I take assignments from them, they will file a "charge against my E&O" what???????? Needless to say I have a call into the ACLB and to my E&O rep.

Yeah.....no meeting. Try and find out from the lead AMC rep (who is confused as you are) what violations, negligence, lack of support, whatever....that you did or didn't do and why there were no stips or an ROV.

 

[Fernando]

I reread your thread.
You mention items at question.
1. How did you consider a home regarding permits. If no permits, you give no value? I admit I use to do that but the market determines that.
2. Did you put a subject to cleaning carpet of the stains? Is that subjective?
3. Home value doesn't like your value. How off were you from purchase. When I was young, I would be stubborn to stick to my value even if 2% off.

 

[Linda B.]

The home with a permit issue was an FHA buy. Buyer was the broker. A three bed 2 bath home was converted without permits to a 2 bed/3 bath home - all without permits. I called FHA and the local municipality. Per FHA the home changes have to meet or exceed the local standards - which state electrical and plumbing changes have to be permitted, etc. The broker/buyer was not a fan.

The second FHA purchase had been a rental; the basement was so soiled with animal urine and feces that I had to wear a scarf over my face to go inside the basement. I asked as a health/safety concern to have the basement carpet cleaned. Both buyer/seller agents did not agree.

Third non permitted sale had an ADU, non permitted that was used as an Air BnB and being sold as such with documented potential income per year. Non permitted ADUs can't be used for short term rentals in this municipality. There were also non owned solar panels, which the seller wanted full value for. Per FHA/Fannie and Freddie - no value for solar unless owned outright. Everyone was not happy.

Your thoughts?

 

[Elliott]

FHA has their rules. There is no reason why an appraiser would shy away from their standards. Realtor monkey is just trying to throw feces at the wall. If I were removed by this AMC, I'd probably report them to FHFA for violating the Fair Housing Act. : )

 

[J Grant]

The home with a permit issue was an FHA buy. Buyer was the broker. A three bed 2 bath home was converted without permits to a 2 bed/3 bath home - all without permits. I called FHA and the local municipality. Per FHA the home changes have to meet or exceed the local standards - which state electrical and plumbing changes have to be permitted, etc. The broker/buyer was not a fan.

The second FHA purchase had been a rental; the basement was so soiled with animal urine and feces that I had to wear a scarf over my face to go inside the basement. I asked as a health/safety concern to have the basement carpet cleaned. Both buyer/seller agents did not agree.

Third non permitted sale had an ADU, non permitted that was used as an Air BnB and being sold as such with documented potential income per year. Non permitted ADUs can't be used for short term rentals in this municipality. There were also non owned solar panels, which the seller wanted full value for. Per FHA/Fannie and Freddie - no value for solar unless owned outright. Everyone was not happy.

Your thoughts?

I am not advising as an FHA expert, though I do a fair number of FHA reports each year. But from my working knowledge -

First home - FHA does not require permits. As far as I know, it does not require compliance with building codes. It asks taht the work be done in a workmanlike manner (similar to the main dwelling ) and asks for two copies of non-permitted additions - or enclosed garages, etc.- in your property. There was no addition - the people modified the interior. I would have recommended a plumbing and electrical inspection disclosed that no permits were found, but the work was done in a workmanlike manner ( if it was ). If I see safety issues in non-permitted work, such as dangling wires, then I would require an inspection.
.
Home 2- clean the carpet - I might have called to remove carpet and clean the subfloor. Neither one is expensive. But stinky is not a safety and health issue - I might recommend it, but not require it. ( I did not see it so I can't day) I might anonymously report them to animal control at some point because that is disgusting for the pet and unsanitary

Home 3—Even if a property is being used as an Airbnb BnB, I only use long-term leases, month-to-month or yearly, for rent comps. This might lower the indicated rental value, but that's too bad. Using long-term monthly or annual leases for residential properties is a Fannie Mae requirement.


How do you find out that all these people were unhappy? Were you talking to the owners and buyers about these issues, or were they contacting you to request a more detailed report? I find appraisers who get over inovlved with parties tend to draw the complaints. After report is finished, any unhappy people wwoho are not happy or want to discuss the appraial, I direct the to contact teh lender and tell them that I can not discuss it with them per the client.

 

[J Grant]

So the very confusing thing is that the AMC does not have any concerns about my work. This came from a lender they support. They were shocked by the notice from the lender. I work for the AMC - so this whole thing is confusing and a mess. I spoke with the "lead" AMC rep and they are as confused as I am, and told me to go ahead and work on assignments. I forwarded this information to the lender, who said if I take assignments from them, they will file a "charge against my E&O" what???????? Needless to say I have a call into the ACLB and to my E&O rep.

You made a mistake, in my opinion, in forwarding this information to the lender. Their response was not good. If your client is the AMC, you deal only with the AMC and let them deal with the lender. Keep a low profile, consult your E and O, and let the AMC handle it however they are going to handle it.

Did the notice of concern about these appraisals come to you from the lender or from the AMC?

Not sure who initiated the idea of a hearing, or if that was a misconception.

 

[Linda B.]

Re FHA - I opended a case with FHA on the first home - they sent me the FHA links, etc - but said " From FHA: Improvements Standards - General Improvement Standards
All improvements to existing Structures must comply with HUD’s MPR and meet or exceed local building codes. " - which I added to the appraisal along with the opened FHA inquiry.

Second home with dirty carpet - the buyers wanted to rip out the carpet - but did not own the home "yet" - the owner was in a dementia facility - so did not have much say in the process. I did not want to be part of ripping out the carpet and leaving subflooring - as HUD/Fannie/Freddie say that there has to be floor cover and if the deal fell through - I might be on the hook for the carpet.

In our municipality - the city states in bold letters no short term rentals for non-approved structures.

These three assignment occured over a one year period of time. In each case the realtor contacted me to change the appraisal requirements (not make subject to). They all went through the same lender, so I am extrapolating that my name has come up as a difficult appraiser.

No value issue, no issue with the quality of the appraisal.

The AMC is an arm of the lender. The AMC does not have any complaint about my work. No quality issues, no turn time issue, minimal revisions. They are as confused as me. This came from the lender and just shocked me. I do know a local realtor did not want me to do an appraisal - (same lender).

I contacted local ACLB and my E&O - it might be a fair housing issue - not a quality of appraisal issue. It is frustrating that a realtor can pull the carpet out from under you for doing your job as we are trained to do.

I don't get involved with owners/buyers. I want to get in/get out and do my appraisals and remain unbiased. I do hear things from the realtors, and if the sale is subject to - they are usually not happy. I am in a smaller area in Southern Oregon, so there are a few realtors that are heavy hitters, if they go to the lender and say they will not use me - the lender will listen.

 

[J Grant]

Sounds like you did a good job - best of luck.

 

[Tom D]

I don't think anyone here has a good answer since the AMC likes you, and the lender is what about what and why. So like jgrant says, be cool bro, see what the man has to say.

I would love to see a written report on what now happens with da lender jury. Say what? I hope it goes well also.

That is not more scarier than having 2 HUD agents, with guns, knock on my door. Turned out to changing the appraisal value after being sent in, but was interesting being interrogated by those 2 agents.