Mark,
While what you say ruffles many feathers here, my own included, the fact of the matter is, you're here and you're willing to discuss the issue. I value that, and will attempt my best to make good use of this opportunity.
Yes, there are ways to remain USPAP compliant and perform this service, but bear in mind.....it's far more work than it's worth 99% of the time. We are not philanthropists. The old 'I just don't want to waste my borrower's money....' has probably played on all our heart strings at one point or another until you consider the reality of the situation.
We are professionals. This is what we do for a living. Our time is worth something, or at least it should be. Your doctor won't give you a 'health check' over the phone to avoid an office visit fee. (extenuating circumstances exist from time to time, but it's not a service
they offer as a rule)
The termite inspector won't give an opinion without doing his job and getting paid.
An attorney charges you by the 10th of an hour for simple phone calls.
Your doctor and your dentist will charge you for their time and opinion, whether it makes you happy or not. You need to know the truth, right?
This is likely one of the only professions where our customers try and get away with this behaviour. The loan officer/mortgage broker sees us as a necessary evil to get past. Fine. So be it. The investor writing that check to fund the mortgage, however, probably sees it a bit different and is counting on our truthful and unbiased opinion.
Back to the 'wasting my borrower's money' nonsense. Think for a moment what these loan officers stand to make with a successful closing. It's far more than what us fee for service folks make. That's the deal with commissioned sales...there's a risk involved and time invested does not always pay on every deal. Does that heartfelt concern for their borrower's money remain in tact when it comes to the LO's fees and commission? Think they're sharpening their pencil and shaving off all the unnecessary charges, point spread premiums, etc. when it would benefit their own pockets? Doubtful, isn't it?
Let's expand on that 'wasted' issue. What are they paying for? Think past the 'rubber stamp to loan closing' mentality they have for a minute. They're paying for an opinion of value. It's not our job to insure a mortgage to thier liking or desires. They need to know the value of the collateral. If the number doesn't suit their desires, I can't help that, but they still got some useful information. They found out the true value of their home, and the fact that they may need to re-group on an approach to financial bliss. Sometimes it's a re-group back to financial health.
When I tell someone the truth that doesn't meet their expectations, it's about as much fun as telling my screaming 2 year old she doesn't need a 3rd popsicle. She won't thank me, but we're doing the right thing.
When we do this 'comp check' thing, and we tell someone the bad news, what do you think is going to happen? They will exhaust all appraiser contacts in hopes that someone will give them their magic number, right? They still have that $zzz fee stashed away from not making this month's mortgage payment (the loan officer said this was OK as we're going to close before it hits 30 days past due.
) and they search for the guy or gal who's willing to be an accomplice in their ill fated plan. Don't get me wrong here, I won't pad my own pockets with someone's last dollar when I can tell from 10 miles out we're way off. But then, I won't be taken advantage of by that value shopping person that's been living way beyond their means and using the house as the annual ATM either.
Sorry to ramble here, but over the years, we've beaten this issue into the ground with pages and pages of posts. I'd doing my best to offer the condensed version.
h34r: 
