Lender forced to buy back loan from fannie mae

[JamesRockford]

If the OP has revealed that the E&O Binder page was part of the appraisal report, this is a prime example of why that should NEVER BE INCLUDED.

Quit putting that document in reports. And also quit putting a FULL SIZE copy of your license in reports.

Neither of these have anything to do with loan underwriting.

Seriously?

Some appraisers actually do this?

Yikes.....:new_all_coholic:

 

[JamesRockford]

Many of those leaving the profession have discovered it just doesn't pay in the long run, and many times in the short run.

Many who have stayed are in it because they have known no other line of work and can't stand to think of themselves as being RE Agents without getting upset stomachs. Some are in it because they are the few who have been able to carve out a niche in their respective market which precludes them from being forced to do FNMA, FHLMC or FHA work. Some are staff with local lenders. But the vast majority who perform appraisals think 5 to 10 years experience is more than enough experience to "know everything". They know it will never happen to me because "I write all my reports the same way and have loads of stock addendums that cover ALL situations in every report".

Think about the appraiser with 10 years experience, they have known a rapid increasing market and a crash market. They have really never seen the "normal" market, only highs and lows. They think that todays market is the normal market. I feel now more than ever that lenders Fannie, Freddie and FHA included really just want rid of the appraiser. They want to cater to the "I want it now" society and will keep working toward that end which means going to an AVM whereby they will only have a person who measures a subject and takes interior and exterior photos while letting a machine do all the analysis. Much in the same way they have doing away with manual underwriting.

For years I have said appraisers are paid based upon 3 factors...... Time, Experience and Exposure...... but in reality it has gone to "Perceived Time" and nothing more. The more experienced appraiser for the most part is paid the same as the 4 year appraiser for the common lending report. Appraisers are routinely charging the same for a Million $ + property the same as they would a more conventionally priced home middle or lower class property.

How many have received the phone call asking "when will the report be ready?"Only to answer it will be in today or maybe tomorrow only to then be asked "What time?". Never in my years until recently have clients been so insistent on an actual "Time" the report will be ready. It's as if they don't understand that along the appraisal process there are stops and hurdles which come up unexpectedly. Inconsistent Comparable Information which needs to be reconciled, the need to switch comparables, waiting for verification from a reliable third party source (which most do not perform properly), as well as any countless number of reasons which can pop up along the "writing" of the report.
Every day I see experienced appraisers bend to the pressure of the "I want it now" crowd for the "I want it at this price, take it or leave it".

Excellent post.

And please let me add that recently the geniuses at some AMCs have decided it is worth hiring 100s of folks that have the single job of calling and e-mailing appraisers to provide inspection dates and if the date has not been entered within a day of receiving the report said appraiser starts getting call and e-mail from multiple people.

Here's a random thought....

How about getting rid of all those "phone call" salaries and pay the appraisers more?

 

[CANative]

Seriously?

Some appraisers actually do this?

Yikes.....:new_all_coholic:

How likely is it that some litiginous lender is going to say to himself: "Gee, this appraisal report doesn't have an E&O or license in it. Well, must not have E&O or license so no use in trying to sue him."

 

[23Degrees]

Seriously?

Some appraisers actually do this?

Yikes.....:new_all_coholic:

Some, maybe many, AMC's have this as part of their vendor agreement. Peter at LIA has written a few times as to why this is not a good idea for anyone.

 

[JamesRockford]

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[JamesRockford]

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[Terrel L. Shields]

How likely is it that some litiginous lender is going to say to himself: "Gee, this appraisal report doesn't have an E&O or license in it. Well, must not have E&O or license so no use in trying to sue him."

That's my thought. If they are going to sue, your E & O is the last thing on their minds....they will sue.

 

[Restrain]

If anything pops up in a loan and either a clawback or lawsuit involved, the appraiser will be threatened with a lawsuit or sued. You will be included even when the valuation is not involved (legal issues , etc). If you are an appraiser, either you have been sued or you will be sued. That is the nature of the business.

See it too many times.

 

[Terrel L. Shields]

Tell me about it. I gave depositions Thursday...$30 witness check. Trying to keep it cool. This one doesn't even involve the value, just a sibling rivalry gone bad.

 

[Roy Courtney]

Tell me about it. I gave depositions Thursday...$30 witness check. Trying to keep it cool. This one doesn't even involve the value, just a sibling rivalry gone bad.

$30.00? (solo un poco) Did that make you a hostile witness?