Latest Appraiser Bias Lawsuit

[George Hatch]

What I noticed is there were sales in that area of properties in inferior condition that sold for a little more.

If I thought the value conclusion in the lower appraisal had more support than the higher appraisal then I'd say so.

 

[Non Sequitur]

What I noticed is there were sales in that area of properties in inferior condition that sold for a little more.

If I thought the value conclusion in the lower appraisal had more support than the higher appraisal then I'd say so.

Maybe, but I can't believe that location isn't the driving value influence for this property. Again, start with researching the adjacent properties for data or at least a direction to go in (there's only three). Second, I'm spending serious time in front of the screen searching up and down that interstate looking for ANY sales/listing data and expanding distance/date of sale well outside of typical lender guidelines if needed. Then I would search land sales (resi and commercial) along the interstate. And I would not offer an opinion of value for this property without a detailed H&BU.

Or I would have found an excuse to withdraw. Even at the $600 fee the second report collected this is a loser, not to mention a risky assignment for a GSE loan and form.

 

[Joe Flacco]

I mean, it is a $100k loan. How risky is it. Sofi will give you $100k unsecured at 8%. Getting sued for bad appraisals is probably the biggest risk.

 

[Non Sequitur]

I mean, it is a $100k loan. How risky is it. Sofi will give you $100k unsecured at 8%. Getting sued for bad appraisals is probably the biggest risk.

That's the backstory we can only speculate about. To your point, I'm a little perplexed too. From my experience, the three banks I worked for would have jumped at landing a young professional with a $100k loan. That property would have been booked on the portfolio side with an Eval from my desk. Really weird Wells tried to bang that into the secondary market.

 

[Terrel L. Shields]

Try becoming an appraiser and working with AMC's lady.....

Wonder who she sues when "non-bank" lender repo's her house?

 

[Terrel L. Shields]

To your point, I'm a little perplexed too. From my experience, the three banks I worked for would have jumped at landing a young professional with a $100k loan.

Your community bank would lend without batting an eye unless the house was really badly over-valued compared to the LTV. I bet it was looking for a secondary market loan and had "issues" undisclosed.

 

[Non Sequitur]

Your community bank would lend without batting an eye unless the house was really badly over-valued compared to the LTV. I bet it was looking for a secondary market loan and had "issues" undisclosed.

Yeah, I’ll bet there are several small community banks in that area specializing in scratch and dent loans. Judging from both of the appraisals, the property is a lendable asset, even if it’s taken as an abundance of caution. Again, very weird from that angle. I know several loan officers who would love to have a young dentist in their portfolio to cross sell all kinds of products.

 

[Elliott]

Like the Marin City couple who thought their WWII house on piling was in Sausalito and the two Professors whose house fronted a parkway with match comp next door, its hard to feel sorry for a dentist with a rental house in a 'fair' location on a postage stamp sized lot, and she got the $100K she wanted. I wished they knew the pain these allegation lawsuits cause a professional appraiser.

I once did a dentist's house near a slide zone. I gave him a decent value and a few months later we were sitting at golf course bar. I told him the 'slide potential' concerned me, but I figured he could find some cavities to make the payments. Totally pizzed him off. Learned that dentist can't take a bar joke. Oh, and I once dated a dentist.....that's another story.....she went on to work at a prison to keep her license.

 

[George Hatch]

In my view none of that matters. When someone pays for an appraisal they deserve to see a reasonable appraisal report out of it. Even if they aren't the intended user.

 

[NC Appraising]

Yea comps 4 and 5 on the lower appraisal was really weird. No Idea what the point of those were,

Comp 4 has a similar view per the grid.

Perfect example.....when the lender or the AMC requires you to use a sale to avoid across the board adjustments.

They probably included the sale to avoid a across the board adjustment. A checklist comp to make every one happy.

I do it to. But I state that this sale was only used to include one sale with a similar view. I know stupid...I wish this practice would end. Perfect example on how doing stupid shet like this proves nothing. Go to the market derive the adjustment and make a across the board adjustment. Include the data in the report....