Let The Borrower Pick The Appraiser

[ucbruin]

(my bold)

Simple: Because I strongly disagree with the broad brush of this post:







While I didn't make this clear in my post, I suspect I'll have to make it clear now:
The system I detail and can confirm already happens does not happen in all cases and for all lenders.
It does happen and does not cause a huge blockage in the pipeline for those lenders I know who use such systems.
But they are not trying to close the loan yesterday either.

Ps. I'm talking residential here.

My thoughts are, that your example of "what already happens" reflects a very small percentage of the real world of residential appraising....

I couldn't imagine BofA residential appraisal dept. or TSI, or you pick the large lender...
Calling the borrowers to ask which factor was most important to them and which appraiser they wanted to hire based on fee and turn time quotes.....
No offense....

 

[timd354]

A system such as this will allow you to market your services. At least the borrower, if he chooses, has the option to hire an appraiser based on several factors, fee being only 1 factor.

The number 1 factor that many borrowers would look for in an appraiser is finding the one most likely to hit the need value or ignore property condition issues that could affect loan eligibility.

 

[ucbruin]

The number 1 factor that many borrowers would look for in an appraiser is finding the one most likely to hit the need value or ignore property condition issues that could affect loan eligibility.

Probably.
But at some point one must accept the idea that the appraiser is ethical....

 

[timd354]

Probably.
But at some point one must accept the idea that the appraiser is ethical....

While I accept the idea that most appraisers are ethical, I certainly believe that there is some small, but significant percentage of appraisers who are unethical and/or incompetent and allowing borrowers or loan officers/loan to have any hand in the appraiser selection process increases the chance of adverse selection of those appraisers and therefore is unacceptable.

I not sure why I even bothered to get involved in this thread since borrower selection of appraisers will never happe.

 

[hastalavista]

Probably.
But at some point one must accept the idea that the appraiser is ethical....

Let's accept that as a given.
What is my advantage in such a system where I am directly negotiating with a borrower? What benefit is it that I would achieve that outweighs my perceived benefits by dealing directly with the lender instead (where I'm very comfortable negotiating my fee and turn time)?

 

[ucbruin]

While I accept the idea that most appraisers are ethical, I certainly believe that there is some small, but significant percentage of appraisers who are unethical and/or incompetent and allowing borrowers or loan officers/loan to have any hand in the appraiser selection process increases the chance of adverse selection of those appraisers and therefore is unacceptable.

I not sure why I even bothered to get involved in this thread since borrower selection of appraisers will never happe.

I agree with both of your statement...

Unethical appraisers will exist regardless any system put in place

And the scenario will never happen....

Just wanted to see if appraisers really wanted to have complete control.....

 

[ucbruin]

Let's accept that as a given.
What is my advantage in such a system where I am directly negotiating with a borrower? What benefit is it that I would achieve that outweighs my perceived benefits by dealing directly with the lender instead (where I'm very comfortable negotiating my fee and turn time)?

For your business model there would be no advantage....
But for those appraiser who truly believe they and the borrowers are being taken advantage of, this could be another option, albeit an unrealistic option and as Tim points outs, a never going to happen option.

Several appraiser appear to want to control their fees and turn times, protect the borrowers, protect the taxpayers, promote public trust, yada, yada, yada but don't seem to like the idea of being given the opportunity to do so. .

 

[TRESinc]

But for those appraiser who truly believe they and the borrowers are being taken advantage of, this could be another option, albeit an unrealistic option and as Tim points outs, a never going to happen option.

if an appraiser truly believes they are being taken advantage of by their client then it's time for new clients.

 

[form1025]

What would be different from the status quo?, low bidder gets the order.

 

[J Grant]

so you are saying that the borrowers would do the EXACT same thing that you accuse AMCs and lenders of doing yet you want them to stop it under the guise of "public trust". amazing world you live in...

Yes, I believe the borrowers selection is a bad idea yes because they would Do THE EXACT same thing...so why does that excuse the lenders and AMC's for acting in a manner contrary to public trust? The lenders should know better, and they get bailed out by the taxpayer. The public does not know any better and nobody bails them out as individuals if they lose their home.

Amazing world you live in ...just because an appraiser on a bulletin board floats an idea that won't happen, you still think it's fine for lenders and AMC;s to act unethically in appraiser selection while they gouge fees. You'd rather hurl snark at other appraisers than hold lenders and AMC's accountable for their actions.