Lender Select...is that the problem?

[Annemieke Roell]

Yeah, an honest MB might want to use the same dependable appraiser, but how many MB's are honest? 90% of this site is complaints about being pressured on fee, time and value by MB's of SFR's.

This is true. There are 3 MB in the state of OK we consider clients .... no more.

And once identified by the user of the report, they can request a review. That's the way it should work. If the report is bad, the review should catch it and if the review catches the same guy over and over...off the roster they go...just like FHA did...and fannie should.

We see this happening over and over again with a certain group of appraisers whose reports we write obits for for our review clients. It will be a toss up who will get fired first: us as reviewers because we are killing too many of their deals or those appraisers because the MB can't get any loans placed. Be interesting how this will pan out.

 

[The Warrior Monk]

I agree with PL.

There is a huge divide in this business, which is basically lenders that lend their own money and those that do not. Those that do not are the subject of this thread. Those that lend their own money are a whole different ballgame. They review all of the appraisals that come in, and they do pay more for the more qualified individuals.

Do old brokers command higher commissions than new ones?

All factors being equal, no. But the % commissions are lower on the high-value homes here, though total commissions paid are higher. It sure isn't the newbies that are selling them. The vast majority of exclusives are locked up by the very experienced brokers with the contacts.

It's the same thing with appraising. The experienced old-timer might only get $200 from an AMC for a FNMA-bound report. But do you think the private lender is going to pay the trainee and the experienced old-timer the same fee? Actually, it's likely we'll never know, because the trainee isn't even a consideration in this case.

 

[Otis Key]

It could easily start out with every licensed or certified appraiser on the panel. Value conclusions are a 5% range. From there:

The first 5 (minimum) appraisal reports are fully field reviewed by a panel in place that has a review designation.

And what designation is that?

 

[xmrdfghap]

I really do not like the fee panel situation at all. It is like the "old boys club" where newbies are not admitted. That is what happened with the VA panel. "We have enough appraisers, and are not taking any applications until such a time as one of the existing panel appraisers retire." The whole concept of a fee panel is counter free enterprise. I think it would be relatively simple to reserve the situation. Instead of setting up a bureaucracy to determine who is and who isn't fit for inclusion on the panel and who turn is it next, to simply provide legislation that states, in no uncertain terms that 1) All valuation products are considered appraisals and must be signed by an appraiser with the appropriate license. 2) The client is required, by law, to pay for an appraisal with the right to garnishee the clients income and the right to file liens on the property appraised. 3) Provide stiff penalties for attempting to influence the outcome of the appraisal. AFAIC, pressuring an appraiser is tantamount to attempted robbery of a bank, and should be treated in the same manner. A request such as "Call if it doesn't meet the value we need before proceeding" should get a guy 5-15 years and a $10,000 (minimum) fine.

Good appraisers who provide honest answers to clients will become more valuable and will keep working. Those that prepare bad reports that fail in review, requiring the LO to pay for it anyway will put those appraisers out of business in short order. This will also develop business relationships where if a person is ambitious they can increase their business to achieve success. A fee panel just smacks of socialism to me.....we all share from the same pool and we all get our "fair" share of assignments regardless of our competency. Sorry, I just do not see the creation of another managment organization is going to provide long term good.

 

[TC]

I for one would hate to see this biz go to a rotating type system. I've worked hard to attain and keep clients. Why should some newbie be on the same level as me just because he has a license? How many would be on the list? What criteria would there be to get on the list? No doubt the fees would be standardized. Sounds like a union to me, and I say No thanks to that.

TC