How to End Appraisal Pressure Once and For All

[dbm494]

Mortgage Bankers Article:
http://www.mortgagebankingmagazine.com/files/ArticleSnippets/2008/MB-ExecSuite.pdf

Bob Murphy advocates use of technology to remove loan officer interference from the appraisal process. Good article on the pressures and problems.

 

[TJSum]

There we have it, the better run AMC is the perfect fix.

 

[panappr]

"My company, for ex a m p l e, has a software platform, known
as ValuNet xsp. It uses an algorithm to select appraisers.
Unless the controls are ove r r i d d e n , a loan officer can’t see
who gets an appraisal order. The selection is made based on
the appraiser’s credentials and licensing, location, wo r k l o a d ,
past performance and USPAP rating".


Unless the controls are overridden????

You will probably be seeing allot of articles with new software being promoted. I'm not saying he isn't a worthy advocate, but palease....

 

[ddnma]

"My company, for ex a m p l e, has a software platform, known
as ValuNet xsp. It uses an algorithm to select appraisers.
Unless the controls are ove r r i d d e n , a loan officer can’t see
who gets an appraisal order. The selection is made based on
the appraiser’s credentials and licensing, location, wo r k l o a d ,
past performance and USPAP rating".


Unless the controls are overridden????

You will probably be seeing allot of articles with new software being promoted. I'm not saying he isn't a worthy advocate, but palease....

What's a USPAP rating and how is it determined?

 

[panappr]

What's a USPAP rating and how is it determined?

Good Standing

 

[Mike Kennedy]

Mr. Murphy should read threads on here from IC Appraisers regarding the quality of his operation.


Mr. Murphy was INCORRECT in 1 assertion and CORRECT in 1 poignant.......yet unanswered .......question of the Decade.......

Interestingly, there is at least one business practice that
the code missed and the Uniform Standards of Professional
Appraisal Practices (USPAP) REQUIRES: providing appraisers with sales contracts for first mortga g e s. If we really wa n t appraisers to arrive at a true value without any prompting, w hy give them the precise number we ’re trying to hit?​

OCC Reg states "lenders MAY provide a copy of a contract" - NOT......."MUST ! " ​

USPAP states: "must review - IF AVAILABLE DURING THE NORMAL COURSE OF BUZ"​

CHIEF COMPLIANCE OFFICERS AND CHIEF APPRAISERS AT EVERY LENDER CAN END THE CHARADE...........ONCE AND FOR ALL ......​

ON MONDAY..........!!!!!!!​

"IT IS THE POLICY OF THIS FINANCIAL INSTITUTION NOT TO PROVIDE ANY APPRAISER WITH ANY ADVANCE ESTIMATE OF VALUE, LTV RATIO, OR CONTRACTED SALE PRICE $$$$$ - PERIOD". WE REQUIRE INDEPENDENT OBJECTIVE AND ETHICAL APPRAISERS TO DEVELOP AND DELIVER WHAT WE PAY FOR ........A TRULY INDEPENDENT, AND TOTALLY OBJECTIVE, OPINION OF VALUE. ANY EMPLOYEE, OR THIRD PARTY AGENT (AMCs OR MORTGAGE BROKERS) PROVIDING ANY ADVANCE VALUE OR PRICE INFORMATION TO ANY OF OUR APPRAISAL VENDORS OR INDEPENDENT CONTRACTORS WILL BE REFERRED TO STATE LEGAL AUTHORITIES AND/OR THE FBI FOR ATTEMPTED COERCION AND/OR EXORTION." ​

HAVE A NICE DAY. ​

 

[Conservative in Virginia]

Monday?
monday monday

did I miss something?

 

[Claude From NY]

The main reason why AMCs are in business has been revealed, to prevent inflated appraisals.

 

[Diego Lopez]

Mr Kennedy, the contract is an important piece in the appraisal puzzle, how else is the appraiser going to know what $$ will make the deal work.


But seriosly, if you are looking for market value "the most probable price..." then I think a valid sales contract might have some weight given that a buyer is willing to pay X amount for the property.

 

[Marcia Langley]

Holy moly. Mr. Murphy, the founder of two big AMCs has published his acknowledgement that AMCs have never been more than lip service and a smoke screen for appraiser independence. The very thing they were supposed to be designed for.

I'm especially impressed he admitted that terms like "quality" were code words for "hit the number". I'm actually quite astounded.

But now he needs to save his company and I'm thinking his legacy as well.

But his solution is exactly what it was in the 90s. Only fancier technology.