Lender Pressure?

[Mike Boyd]

Sorry, I did mean Pamela.

 

[Ross (CO)]

Let's talk sentences. Be more cautious about how readily you toss out the last sentence of your last posting. It only takes a few bad apples in the barrel to spoil the public's perception of all of us. Enough said, no hard feelings toward you.

Now, I bid your notice of how your last sentence of the second paragraph in your original posting might appear. Read it again. These clowns have their own skill-set of experiences and dialog upon which they can drag an appraiser into a call, rough him up a bit, and then get certain replies that give them as much information as they might need. There are countless examples of archival postings here where some have been presented with a verbal statement about an estimated value, or else a desired amount to make the deal fly, and the appraiser shoots from the hip with a remark which sounds certain to negate that very number. So what !....if you could make the statement.........don't make it.

Instead, simply say that you do not have any idea what value that property might bring, and then start asking the caller for their tidbits of factual information about the property and its market.....because it's danged tough for them to throw out a number if they have no facts upon which to base that. A seasoned MB just might toss a subtle insult toward you, like....."Well, surely I was hoping that you would know the markets you serve much better than you apparently do". .....To which I have occasionally replied......."To tell you the truth I surely thought that you would at least know SOMEthing about this house upon which you're trying to stuff another loan ! (I might only say that when the conversation is going down-hill ).

I'm sure you can develop a healthy list of pertinent probing questions and you peel off just those which keep the conversation rolling as you position them for a closing question of your own. You sincerely suggest that they should get the property appraised......and then you ask if they want you to collect your fee for that from the h/o when you visit the property, or do you prefer to follow a company policy of paying mer now as you send over the assignment order ? Shut up and let them select one or the other. If they don't select then the call is over and I thank them contacting me.

Bert, I see your personal bio data as indicating a possible short-term of exposure to the banter of this chat-place. Stick around a while. Apply your skin thickener when the barbs seems to fly.....and you'll soon note that the entire client pressure thing is one of the foundational building blocks which has built this place into a formidable medium. Get this......so many of those out there in the land who SHOULD care about client pressure.......don't, and still deny to this day that it really exists. Carry that with you into another safe and enjoyable weekend.

 

[Hal Mann]

I recently received an Appraisal Request from a mortgage broker to do a cash out refi appraisal for a home that was listed in MLS for $320,000. The "estimated value" on the appraisal request was $320,000.

The lender wanted me to do a comp check which I said I couldn't do.

So what I want to know is do you think this lender is guilty of demonstrating lender pressure?

I have two comments:
1) You're confusing broker with lender. It appears you have been dealing with a broker, not a lender.

2) The broker was indeed pressuring you, but that's what a broker is expected to do. The solution would be to take the appraisal ordering function away from brokers and make it exclusively the lender's responsibility.

 

[William Rightsell]

I Voted NO

Welcome to the forum - we are neighbors and competitors it seems (I am in Greensboro).

I think its merely concern on the part of the lender. You already told him you were leary of the value they wanted before you saw the property. I would have NEVER done that - you just gave them an appraisal when you did, and I HOPE you have a workfile and signed certification in it. I never show my cards until I've seen the property!!!

You told them you couldnt appraise it for what they need, even though you have never seen the property. They said they were cautious of that and that they felt you might have a pre-conceived notion about the property. I agree with thier concerns 100%.

And merely asking somebody for a value (or stating that a particular value is needed) is NOT undue pressure in my book. A lender can ask for whatever they want - no laws against it. Don't YOU ask for things or try to influence people to your school of thought whenever YOU want something?? I know I do.

Just my .02 worth...

todd rightsell

 

[Terraform]

before completing your assignment. Until you are involved in the assignment, you don't have a basis for your opinion.[/QUOTE]



Agreed, accept the assignment, and collect cash at the door.......

 

[Colleague]

PL, you sound like a mortgage lender. The fact is the people who were trying to sell their home and exposed it on the open market for 6 months. The market proved it was not worth $320,000. There is no bias here. Had it been worth $320,000 someone would have paid them $320,000. If you don't understand this then you don't understand the Sales Comparison Approach, which is based on what other people are "paying" for similar properties.

 

[Colleague]

William I don't see you as a competitor and know your brother. I also don't agree with you when you said I did an appraisal. The fact that no one was willing to pay $320,000 for the house is a fact, not an opinion, nor an appraisal. I do have the facts (in a workfile) so stop finger pointing (this website would not allow me to upload the files for everyone to see). Who's side are you on anyway?

 

[PL1957]

PL, you sound like a mortgage lender. The fact is the people who were trying to sell their home and exposed it on the open market for 6 months. The market proved it was not worth $320,000. There is no bias here. Had it been worth $320,000 someone would have paid them $320,000. If you don't understand this then you don't understand the Sales Comparison Approach, which is based on what other people are "paying" for similar properties.

I'm not and never have been a mortgage lender and I don't play one on TV. I am an appraiser who realizes that almost every word I say in the context of an assignment can and will be used in the most beneficial way a client can twist it, regardless of my intentions.

My point was you should NEVER have commited to a value, either specific, approximate, more than or less than, without investigating the property. Saying "it's not worth $320,000 because nobody's bought it for $320,000" is as ridiculous as saying it HAS to be worth $320,000 because that's what a buyer is paying for it.

And I do think I have a pretty good handle on the Sales Comparison Approach.

 

[The Bob]

You're probably right that it isn't worth $320,000 but I would never make such a statement. I think you acted in a very arrogant and unprofessional manner.

 

[Mr Rex]

Bert, I voted no as well and I'm not too far from you. I avoid discussions like you had upfront with the MB for just this reason. I don't pull MLS data, Tax cards or anything else while I'm on the phone with them. I simply say, I can't possibly develop and opinion of value without personally inspecting the house. You don't know, the folks might have made some improvements in the past few days that aren't reflected in the MLS. Just like you wouldn't know if the house burned down last night, you don't know that they ripped out Formica counters and installed granite last night either. You chose to have the conversation with the MB, with bad results, they can't pressure you unless you engage in this conversation. A little different tack would have likely gotten different results.

The only time I talk about value is after I sign and transmit the report, then I can honestly say I had no preconceived or direction of value, regardless of what they may put on the request. Food for thought.