How Do I Respond To A Reviewer

[Carnivore]

Brad,

I sorta of agree/disagree with your last post. I wont directly comment to the specifics.

I am one who does lots of field reviews. I happen to like it although they are much harder than an actual appraisal assignment. Why do I subject myself to this? Simple, I am looking for the really bad boys/girls out there. If your skippy, you dont want me reviewing your report. I go to extraordinary means to destroy your report and eventually your credibility. Its never personal. Its all business. I refuse to look the other way when you fabricate comps, makeup data or gloss over significant physical charecteristics and factual data. Simply, ignoring the obvious by putting your head in the sand wont work with me. That does not mean I approach reviews from a negative point of view. Unlike brad and many UW's I dont ask you respond or defend to a negative( A negative being: Why did you not use these comps?).

Having said all that let me explain my process on a review assignment.

1. I qualify myself for geographical/assignment competence per the appropriate USPAP determined by appraisal effective date. I then attempt to build an appraisal file using your subject data by reference to your report data entry's. Errors begin to appear here and I make corrections and remarks to the first page. they are classified as either major or minor. Major items are noted specifically, minor are covered in a blanket statement.

2. I compile and qualify all of your sales. i.e. deed, gis, MLS . I then locate and qualify other sales.

3. I go get pictures and take notes. If I can I get rear pictures of subject(Even if I have to get out of the car).

A. Today Iwent in a subject. Why, well because the appraiser said it was owner occupied residential. Outside looked like a business, the signsaid "WELCOME, Please Come In". So I did, got a business card, ask secretary about theirservices, commented about how nice this place was and then left with a new perspective of the appraisal report in hand.

4. I now have enough info and I develope my opinion. I report this and if it differs I explain why I think so. End of story.


Desk tops are a different process. I do step #1. and part of step #2(I dont look at other sales just yet). Then I simply look the report over for consistency. If its in a S/D with obvious other sales and your outside this area with your sale I ask for a Field review and start over. I dont render an opinion of value directly. I only state that report appears compliant per scope and purpose and intended use.

I think that desktop review work from an ivory tower is generally to broad in scope and that is where the problems arise. Additionally, to conduct a review from a biased position that the appraiser is wrong until proven correct is way out of line and unprofessional.

Thats all I have to say.

 

[Rich Hahn]

Well my interior of the subject under review shows;
lots of homeowner additions, so many infact there are no homes which have sold that are even remotely close to it in size. Craftmanship is sub par, nothing really complete, site backs to industrial land use, little tiny original furnace to heat this mess. I been thinking hard on this one. Im going to offer the client a letter pointing out all the problems with this property explain this is a complex issue and list a couple of comps which my be similar. Recommend building inspector, permit examination(if there is such a thing), HVAC inspection, structural inspection etc. I wont offer them an opinion of value.

Think this will fly?
There are NO comps which are similar at all.

 

[Pamela Crowley (Florida)]

Rich,

Just skip the potential comps.

 

[Pamela Crowley (Florida)]

Rich,

Just skip the potential comps.

I have no problem letting a LO know there are multiple problems with a property being able to get a mortgage - without providing comps. The problem I do have with something like this is the work I've already done not being paid for - which most will try to weasel out of.

 

[bradellis]

Andrew-

I'm glad you ended with the statement thaat desk reviews are a different animal altogether.

Remember that a desk review and field review are different things and entail different scopes of work. The desk reviewer is trying to figure out if a loan should be funded or purchased (typically). I.e., is there enough compelling data in the reprot to use it and rely upon it?

The field reviewer is first asked to judge the quality and perhaps then provide their own value opinion- depending on the reason for the review. Because you are out seeing the propety- at least from the exterior- it should then follow that your scope is more detailed and probably more reliable than the desk reviewer.

Two different scopes for different purposes.

Brad Ellis, IFA, RAA

 

[Tom Curran]

A little FYI:

I recently got put on Flagstar Bank's black list for adding comps that the underwriter requested. When I asked to challenge the black listing, they sent me a copy of the review which stated "Appears appraiser added comps four and five to "push" the value." No matter my explanation, I am still banned from doing work for Flagstar forever. Flagstar is the underwriter for a good number of mortgage comapnies.

On top of that I just had a similar incident with Wells Fargo, however the reviewer really messed up on a number of things and I was able to change their mind.

Tom

 

[Farm Gal]

Tom:

For future reference: IF you add comps to an appraisal on underwriter request, make SURE you indicate in the report what you did and why... IF the underwriter doesn't like the fact that you added the comps with notation 'supplied at underwriter request' TOUGH! it prevents exactly the sort of scenario you indicate.

I am not going to inquire if there was any possibility that there might have been a 4th, 5th comp that would have indicated another direction in value... generally if they are there and you elect not to use them a brief explanation of WHY would preclude a reviewer hatchet job.

 

[Dale Smalley]

The last example shows you the answer to the first question. The reviewer already has his comps and he knows the value but is giving the guy a chance to pull something out of his hat.

 

[Jungle Boy]

John,

is this area with much investor activity?

Raimo

 

[John Niumata]

No, not much investor activity.