George Hatch
Elite Member
- Joined
- Jan 15, 2002
- Professional Status
- Certified General Appraiser
- State
- California
The LO is obviously trying to stuff the subject property into a loan program that it doesn't qualify for. I'd bet money that the lender has a program, albeit with different LTV and terms, that the subject property will qualify for. This is a case where the LO is trying to get the appraiser to do their dirty work rather than try to do it the right way.
The next time a clients suggests that it is the appraiser's job to write the report so that the property will qualify for a loan, we should be telling them that: "No, it's the LO's job to place the property into a loan program that it qualifies for".
Failure to disclose on the appraiser's part puts all the responsibility on them and none on the LO, which is where it rightfully belongs. If the loan goes south, the LO will claim that the appraiser lied to them and that they had no idea such things were going on. Even if the appraised value is correct, the failure to disclose gives the lender palusible deniability "If we had known there were two units on that lot, we would never have made this loan". This could make the appraiser financially liable for any financial deficiencies, even if their value was right.
Disclose, disclose, disclose. It's the only way we can protect ourselves. If the LO is screwing around with the appraisal, they're also being creative with credit reports, income and employment verifications, etc. Let the idiot clients find idiot appraisers. The market will eventually sort them out.
George Hatch
The next time a clients suggests that it is the appraiser's job to write the report so that the property will qualify for a loan, we should be telling them that: "No, it's the LO's job to place the property into a loan program that it qualifies for".
Failure to disclose on the appraiser's part puts all the responsibility on them and none on the LO, which is where it rightfully belongs. If the loan goes south, the LO will claim that the appraiser lied to them and that they had no idea such things were going on. Even if the appraised value is correct, the failure to disclose gives the lender palusible deniability "If we had known there were two units on that lot, we would never have made this loan". This could make the appraiser financially liable for any financial deficiencies, even if their value was right.
Disclose, disclose, disclose. It's the only way we can protect ourselves. If the LO is screwing around with the appraisal, they're also being creative with credit reports, income and employment verifications, etc. Let the idiot clients find idiot appraisers. The market will eventually sort them out.
George Hatch
