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Flagstar Bank suspension

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Wayne Henry

Thread Starter
Junior Member
Joined
Nov 17, 2003
Professional Status
Certified Residential Appraiser
State
Maryland
I recently received a notice that I was suspended from this banks roaster. I do not know to much about this bank and I guess one of the few brokers I work with went through them for a loan. I remember the subject property in questions which had a few back and fourths with the broker, requesting additional sales which I provided. I have 4 sales and 2 active sales in the report as well as a ton of comments explaining why the property is worth more because it was completed renovated. It seems this was not enough, so they say, therefore, they ordered a secondary valuation (which they will not provide) ... (not even with the names inked out , lol). They were nice enough to include the sales that the "Secondary valuation used" and to my amazement the value variance between the highest and lowest sale was from $88,000 to $109,266, the sale that sold for $88,000 was almost a year old, one of the sales said in the remarks it needs some work and the last sale was a 2 bedroom house significantly smaller than my subject.

This really gets me because I have a feeling they do not want to lend on this house and there using my appraisal as a way out. Do you think it is wise in my rebuttal which they did offer me 10 days to respond that I let them know I am turning there notice as well as my response to my local state licensing board. I feel after what happened to me with AMC's and there blatant disregard for explanations when it comes to audits that it is necessary to have a third party involved to assure I am treated fairly. I understand that they can do business with who every they choose to but that holds true in my opinion more to AMC's then direct lenders. If a direct lender takes you off there roaster they had better have a darn good reason to ruin your name...in my opinion. If any one out there has a better idea on how to handle this, I would appreciate your help. Thanks in advance.
 

JENIFFERW

Member
Joined
Nov 26, 2007
Professional Status
Licensed Appraiser
State
California
Give them a copy of the Cuomo deal, which is going to include a rebuttal clause for blacklisting. Look at #8 on pg. 1 of the HVCC. Can be found on the thread regarding breaking news, about pg. 2 or 3 under improving the profession.
 

OSU Beavers

Elite Member
Joined
Jan 10, 2007
Professional Status
Licensed Appraiser
State
Oregon
First LandSafe now FlagStar, ouch.
 

Mary Tiernan

Senior Member
Joined
Dec 16, 2003
Professional Status
Retired Appraiser
State
Michigan
I received a duplicate letter from Flagstar yesterday about a file which had been handled, accepted, and my standing with Flagstar approved.

Now, they want me to do the same thing. I kindly reminded them that this matter had been handled positively and if they fail to find the records regarding the previous response to the same letter to let me know.

What I wonder is, why again? And now another appraiser has received the same letter. They must be going through some of their files - mind you, my situation was previously handled last spring. Based on the sales they provided, it is not a secondary valuation, merely an AVM. There's no way an appraiser would choose the sale properties they provided for the subject - but, they did occur in the "area" in the past one year . . . .

Also, do not respond to Flagstar until you receive permission from your original client. . . . But, do respond and let them know why you did not utilize the "sales" they provided in the report. It is in your best interest to remain in good standing with Flagstar - only because a lot of other lenders look at their approved list.
 

timd354

Elite Member
Joined
Jan 11, 2008
Professional Status
Certified Residential Appraiser
State
Maryland
Wayne, I am a Maryland appraiser also and can tell you that Flagstar is used by a lot of people in Maryland, so you definitely want to respond. Just point out why the comparable sales that they used are not appropriate and why the ones that you used are. Keep it very professional and definitely do not say anything about turning anything over to the state licensing board as this will just inflame the situation and cause you to get labeled as a troublemaker and then you will be put on the "do not use" list for sure.
 

Midwest Guy

Senior Member
Joined
Dec 12, 2006
Professional Status
Certified Residential Appraiser
State
Missouri
They sell to CW, I believe you mentioned troubles with Landsafe.

I recently received a notice that I was suspended from this banks roaster. I do not know to much about this bank and I guess one of the few brokers I work with went through them for a loan. I remember the subject property in questions which had a few back and fourths with the broker, requesting additional sales which I provided. I have 4 sales and 2 active sales in the report as well as a ton of comments explaining why the property is worth more because it was completed renovated. It seems this was not enough, so they say, therefore, they ordered a secondary valuation (which they will not provide) ... (not even with the names inked out , lol). They were nice enough to include the sales that the "Secondary valuation used" and to my amazement the value variance between the highest and lowest sale was from $88,000 to $109,266, the sale that sold for $88,000 was almost a year old, one of the sales said in the remarks it needs some work and the last sale was a 2 bedroom house significantly smaller than my subject.

This really gets me because I have a feeling they do not want to lend on this house and there using my appraisal as a way out. Do you think it is wise in my rebuttal which they did offer me 10 days to respond that I let them know I am turning there notice as well as my response to my local state licensing board. I feel after what happened to me with AMC's and there blatant disregard for explanations when it comes to audits that it is necessary to have a third party involved to assure I am treated fairly. I understand that they can do business with who every they choose to but that holds true in my opinion more to AMC's then direct lenders. If a direct lender takes you off there roaster they had better have a darn good reason to ruin your name...in my opinion. If any one out there has a better idea on how to handle this, I would appreciate your help. Thanks in advance.
 
Joined
May 2, 2006
Professional Status
Certified Residential Appraiser
State
Ohio
Join the club W. H.

I got my Dear John letter from Flagstar about a month or so ago. I did a somewhat complex assignment and it was apparently reviewed by a member of F-Troop. (um...yep, I can't walk on water and occasionally make mistakes, but this job was not one of 'em) On this particular assignment I had to spend most of the day at the recorder's office researching the deeds and going back to the original 1866 plat because of a statement made by the owner that I felt I needed to verify (although we know owners never lie, right?). Frankly, I was not particularly professional in my rebuttal as I felt the review was deficient (subject was 2900+-/SF and reviewer replaced one of my comps with a 1600/SF dwelling). I have not heard anything from Flagstar as to wether I will get reinstated and I do not much care. The fact that the review did not meet standard 3 does give me some cause for legal action, but I understand Flagstar may be in trouble in other areas and I may wait a spell longer before I initiate any legal action.

Ain't appraising grand?
 

Elliott

Elite Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
Wayne said, This really gets me because I have a feeling they do not want to lend on this house and there using my appraisal as a way out.

Here's what happened to me. HO calls irrate, says he didn't get his loan
because of my report and he wants his appraisal fee back! I ask him
about what happens and it turns out the MB threw me under the bus
(most likely) because he couldn't get the loan through, so he conviently
made me the scapegoat. But I did get the after the report skatter map
with 14 sales on it, asking me, "Why didn't you use these." Of course
they were all stupid sales to use and not similar to the subject. What
was really wierd was they wanted specific comments on two sales
which were $50K higher than my value of the subject (what's up with
that?).

I talked to the borrower, calmed him down, he tells me his interest rate.
And I say, wow that was a good rate and rates have increased since
them. My theory is the Lender wanted the higher rates loan today
rater than that teaser rate they promised a month ago, and came up
with some flimsy reason not to do the loan. A 1/2% difference on a
lot of loans can easily work out to $10-15K in the value of that
money sitting around in someones safe. Lots of incentive to throw
the appraiser under the bus, he's just an appraiser.

So I ask the HO if he's going to still get another loan? And he says,
"No I've decided not to get another loan." Wierd?
 

Tony Lehn

Junior Member
Joined
Oct 28, 2002
Professional Status
Certified Residential Appraiser
State
Indiana
Wayne. Very interesting. The same thing happened to me in December. Flagstar sent my letter. That was after they informed me they did not like my original report, along with what appeared to be a BPO. I am guessing on that portion of the detail. I guess it could have been an AVM. Anyway, I did the rebuttal, pointing out that I had a comp on the original report that was the next door neighbor, and was very similiar and that the "other valuation" had all bank owned homes from very undesirable neighborhoods, blah, blah, blah. They did not care. That is my tale.
 
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