More On Free Comp Checks

[Steve Owen]

Likewise, I don't have a problem with what Mark & Dennis posted. If they want to work for free, that's really up to them under current regs. Fortunately, what they are suggesting would not be possible in Missouri (non-disclosure state) in most cases.

Personally, I prefer to get an order for an appraisal rather than wasting a lot of time doing free work.

But, here's the real deal... most MB's asking for comp checks are not looking for a desktop appraisal... they are looking for pre-determined value. Why should we throw stones at those doing it the right way?

I think that the observation that some loans might close with this "comp check" desktop appraisal and an AVM is valid. But, free economics will sort that out... if it happens too much, then Mark and Dennis will be out of business and there will be more for you and me.

However, what free economics won't sort out is the Skippy giving the MB exactly what they want... pre-determined value. That's the rub, and that's the difficulty facing any honest appraiser who wants to stay in business.

You all know that I fired my last MB over two years ago. Personally, I don't miss it.

Sure, I'll still do secondary market mortgage work, if they want an appraisal they'll get the best product I can produce. But, no comp checks, no putting my license on the line with any illegal action requested, and payment up front. I don't work for free... just my personal business decision.

 

[MARK JOLLIFF]

Dennis and Mark, If what your doing is legal and USPAP compliant then I don't see how anyone can have a legitimate #itch about it. Almost all of the criticisms of comp checks were the fact that they were illegal. If it makes business sense for you to do them and they are done in a legal way then I commend you for taking the extra effort that most will not take. As for how you conduct yourself on this forum I must say your a better man than me cuz I would just tell'em all to BITE ME!!!

 

[Webbed Feet]

To All,

Is this becoming metaphysical? ... Just what does metaphysical mean anyway? Does anyone want to send me a copy of their engagement agreement for desktops or "Type C" comp checks? I'd love to see one. Has anyone ever managed to get one signed?

Barry Dayton

 

[Joyce Potts]

I hate bring this up, but there was a time when comp checks were not only legal, but a standard business practice. And there isn't a 'old timer' in here that didn't do them!

Then came the S&L bailout and USPAP and FIRREA, etc., to help set the appraisal profession/industry on the straight and narrow.

Now comps checks (outside of being USPAP compliant, of course) have been forbidden since 1992 (?) for the most part, and look much better things are!!!.

Much the like the prostitute, it's an illegal activity in most states, but it goes on everyday and all the legislation in the world is apparently not going to change it.

Pam, you know what I'm talking about. I'm NOT advocating comp checks.

Maybe we need to rethink things.

 

[TC]

I hate bring this up, but there was a time when comp checks were not only legal, but a standard business practice. And there isn't a 'old timer' in here that didn't do it!
.

Boy, you are so right. We did them all the time, especially if we had already appraised the property. Of course, that was before licensing which has corrected all the lending problems. :new_smile-l:

TC

 

[Caterina Platt]

Joyce,

Re-thinking the system is exactly what needs to be done. We've said it a million times. Take the order function away from the commissioned loan officer and any person within his/her reach. Have the keeper of the gold order the appraisal. He/she who is open to exposure if the loan goes bad should be the party who engages the appraiser. Period. Nonsense stops at that point.

 

[Webbed Feet]

<snip>Much the like the prostitute, it's an illegal activity in most states, but it goes on everyday and all the legislation in the world is apparently not going to change it.

Pam, you know what I'm talking about. I'm NOT advocating comp checks.

Maybe we need to rethink things.

Ms. Potts,

In some ways I am with you. Can't solve the problem? Well then change the problem! Let's all lobby to make it legal that as long as it is a mortgage broker requesting it that all appraisers can legally verbally blurt out any stupid value opinion they want as long as it's not in writing and as long as nothing predetermined for a mortgage transaction is agreed to. No certifications, no five years of work file, no nothing.. just go ahead and blurt out anything you want.

There, now we'd all finally have an even playing field on this matter and the results of following mortgage loan appraisals would be the mortgage brokers problem for expecting a prior meaningless value to be blurted out to them. Perhaps brokers who finally understand what a desktop appraisal is, or raw neighborhood sales data, and were willing to cooperate with us in order to get better services in some manner .. then would.

I just want an even playing field, that's all.

Barry Dayton

 

[TC]

Joyce,

We've said it a million times. Take the order function away from the commissioned loan officer and any person within his/her reach.

Sorry, don't agree with that. Maybe if it's a BC lender, but some of my best friends are LOs that order directly to me, and trust me, I KILL deals, and I still get work from them.

We just need to eliminate predatory lenders.

TC

 

[Mr Rex]

Sorry, don't agree with that. Maybe if it's a BC lender, but some of my best friends are LOs that order directly to me, and trust me, I KILL deals, and I still get work from them.

We just need to eliminate predatory lenders.

TC

Agreed, licensing standards for those in the mortgage lending world and more enforcement on Skippy McBroker would cut out a lot of the BS. Former used car salesmen of the month appear to be the cream of the crop on the mortgage originating side.

 

[Joyce Potts]

Forgive me once again, BUT I dare say that comp checks are not really the problem, IMO.

IN THE OLD DAYS, if I was asked what the comps were a'look'n like--and I said something like...."I'd say between $150,000 and $165,000", but it depends once I get out there...."

Then they order the appraisal thinking their going to get $165,000 and then badger me to get it up to $170,000. (I'm such a tease)

I go out there and it's a...well let's just say it's what I call a POS (poor or substandard, lol) and my appraisal comes then comes in at $145,000.

What is the problem??

Some are of the opinion that if they verbally PUT OUT (pun intended) a number, they're obligated, regardless of what the property looked like at the time of inspection.

I just don't see how that obligates anyone. If the skippy is going to inflate the appraisal, he's going to inflate it regardless of whether or not he originally promised to do it in the first place.

I've never been one to say no, if the circumstances change.

But then I was never a 'great' date either.