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Lender Pressure?

Do you think this mortgage broker is guilty of lender pressure?

  • Yes

    Votes: 36 67.9%

  • No

    Votes: 17 32.1%
  • Total voters
    53
  • Poll closed .
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Bert Ward said:
However, I advised the client that there was no way I could appraise it for $320,000 or higher since the market had proven it was not worth this much because no one was willing to pay $320,000 for the subject.
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Read your USPAP, and I am not finger pointing. I was merely making an observation. You told them you wouldnt appraise it for 320K. Thats a "benchmark" value, and you just informed them it would not appraise that high. Written report or not, what you have done is APPRAISE the property.

Even if you dont give a value, you simply answer yes or no in relation to a value given by another, you've appraised it. No way around it.

Im on the appraisers side of things, but what you have described (to me) is clearly not lender pressure. They merely voiced an opinion of what they were expecting. They never threatened to withhold business - they might have since - and I don't blame them, because the way you handled it was not very professional. If I had said that, I'd honestly expect to never hear from those folks again.

Ive done similar things - very often - we all have put our foot in our mouths before, and will again. But as time goes on and the more experience you gain, you'll learn - like I have - to try to avoid situations such as these.

todd rightsell

PS...how do you know my brother??..He used to be partners with me appraising, but I bought him out a few years back (1999/2000) and he now is in the art business - his wife draws pictures EVERYBODY wants...lol
 
OK for those who think it was wrong to state that a home is not worth what it will not bring in the open market...let me just say that this is not something I decided to make up. An instructor held in high esteem by the NC Appraisal Board & NC Real Estate Commission has been teaching his students this concept for several years now.
 
Bert Ward said:
OK for those who think it was wrong to state that a home is not worth what it will not bring in the open market...let me just say that this is not something I decided to make up. An instructor held in high esteem by the NC Appraisal Board & NC Real Estate Commission has been teaching his students this concept for several years now.
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Bert, unless you are privy to the facts of the listing, you don't KNOW what the property will or will not bring in the open market.

Take my example earlier of a seller who won't close for 6 months because the house he's building won't be ready until then. Will that affect whether someone will buy the house? Absolutely. Will that affect the Market Value of the house? ABSOLUTELY NOT.
 
Todd, you have a legitimate debate about what constitutes an appraisal, I'll give you that. However, this lender was trying to use me to "get values" and I would think you would at least give me the benefit of the doubt since you don't know the history of this mortgage lender. However, I guess there is nothing I can tell you....
 
Bert, PM me who this is, I would really like to know, because he is on a very slippery slope if he is telling you and others to tell a MB that a house is not worth $X without doing an appraisal. If its who I think it might be, I wouldn't be surprised.
 
PL, how about the seller is in debt up to their eyeballs and has an adjustable rate mortgage. They need to do one or two things...sell the house or do a "cash out refinance". You should not be jumping to conclusions...
 
Bert,

You are probably correct in saying that the home isnt worth 320K. That's pretty logical. Its not definitive tho...

If you want to run your shop like this, and talk yourself out of good paying work before even seeing the property, then feel free. Nobody is stopping you. Our collective point seems to be that the situation could have been handled better, and most on here seem to agree that a discussion of the value of the home should not have taken place at the point in time it did. After all, the broker (according to his own words) could have lived with a figure slightly less. You should have appraised it for what its worth and THEN discuss the value with him. If you had come in at 305K, he might have been able to make his loan and the whole situation would have never happened. Instead, you lost a client for good - not only that, but I'd be willing to bet he has told his 10 best MB buddies by now too!

Point is - you could have appraised the property - gotten some paid work, AND possibly a new client rather than alienating a client from the very beginning.

Please don't get so defensive. After all, your initial post asked for our opinion on your situation, and I am beginning to think that you might not have liked the opinions you received. Thats fine - we all have a right to disagree.

And I think if you were to ask your esteemed teacher what he/she feels about the same situation, you may be surprised at the answer.

todd rightsell
 
Pam Patty wazzdifference eh? Call her the Paminator...put this lender 'on the list'.
 
Bert Ward said:
PL, how about the seller is in debt up to their eyeballs and has an adjustable rate mortgage. They need to do one or two things...sell the house or do a "cash out refinance". You should not be jumping to conclusions...
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Hey Bert, I'm not the one who jumped to a conclusion, you did. I said you need to know the facts BEFORE you can come to a conclusion. You obviously disagree ...
 
I just wanted to know - what it was like working with Adam West?
 
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