More comps, please!

[tomster]

Lenders have been asking for "2 more comps" for as long as there have been lenders(that's why God invented them), and most of the time it seems random. I've often suspected that this is a way of eliminating a borrower and blame it on the appraisal. It has gotten much worse lately. I turned in an appraisal with 9 comps, and was asked a few weeks later for "2 more comps". But what can you do? Just do it, send in 2 more comps, even if they are horrible. In my case after comps #10 and #11 were sent in, they wanted "2 more comps!"

 

[Tudor]

Too many LO's and Processor's play at being the UW. Years ago, before I learned my lesson, I would submit additional comparables, too only be asked for more comparables after that.

I don't submit additional comparables till I have it straight from the UW of what they want and why, in writing of course.

 

[Greg Bell]

FHA today , 2 more comps.Very small town and will need to go 40 miles away.Bad comparbales are better than none for these weenies..I suspect they want to kill the deal..

 

[Brad Pack]

You have completed an FHA report and it has been sent to the client. 2 weeks later, the client calls and says underwriting has requested 2 new comps that have sold in the past 60 days, that are similar to the subject (and maybe other "requirements.")

Assuming it is a good report and that your final value is well supported, What DO you do?

My position has always been that the report is for FHA. The lender may use it...but that's it! They do not have a right to request any additional documents that FHA does not require.

They can appeal to the local HOC, in which case the HOC can request a copy of the report, review it and decide. I have never had a situation where FHA has requested anything additional from me. A request for reconsideration of value or a complianace inspection report are FHA required documents, if called for. I know of no others.

Anyone have any experience to the contrary?

HUD is one of the intended users, not the client. HUD guidelines are the accepted minimum standard. As the funding source, a lender, has every right to overlay FHA guidelines with their own "investor guidelines" as long has they don't conflict with the Department's. Any additional fee that may arise for any after-the-fact appraisal stips should be negotiated between the appraiser and his/her client. The additional fee may not be passed on to the borrower.

 

[starmansf]

yes, they can request this. I hope they do request additional comps. I charge for each one: they're currently running at $75 a pop.

Do you work for the bank? or do you work for yourself?

thank you

 

[rcsone]

......I sorta feel these requests for additional comps are in general just part of the current "underwriting process"(?).........immediately prior to this time the figure on page two of the URAR was all that they were interested in, regardless of the appraisal quality and content......and too often they demonstrate their lack of reading and/or understanding of the report by asking questions that are previously answered in the body of the report.......so currently all requests for anything first must be in writing and from someone identifiable as part of a legitimate inquiry......next I will often inform them this is an addition to SOW which I did not agree to prior to accepting the assignment, so added fees result, which are to be paid in advance.......to me I cannot add to my fees AFTER accepting the work assignment, so how can they add to the SOW unilaterally?......I also will agree on re-examination of anything in a report to do at my expense, if the confusion was due to me........if not, I state a supplemental amount which will be due prior to doing anymore work.............in the situation where a sufficent number of qualifying comps are not really available, I always describe and explain the extent of research attempted to arrive at better data and tell 'em of the problem of informational "impurity".........this is an attempt to reveal work resolution results preceding the request for "more of.......?.....".....afterall the level of diligence is determined by the neccessity to produce a credible report........best to all.............rs

 

[tomster]

I wish I had the courage to ask for more money in exchange for "more comps" in this market. Whenever I see "more comps" it almost looks like the "underwriter" is a Dell computer tucked under some minimum wage worker in some cubicle on the forth floor who just got the job a month ago after being laid off from Arby's. It's probably part of their bancrupcy avoidance software. Since you can't actually reason with a computer, and since the actual person doesn't know or care about you or your appraisal, it seems to be practical just to throw in a couple more crappy comps, but keep the weight on the original 3 or 4.