New FNMA ROV requirement

[Shawangunk RE]

Just realized the lenders are now sending out ROV disclosure notices to every borrower for appraisals completed after 11/1. This should be fun! I think its time for me to retire.

 

[George Hatch]

So proceed accordingly. If you know the chances of getting an ROV are increasing then figure out strategies to cut them off before they even get going. Stop playing the odds.


Be more accurate with your subject descriptions so you don't have to hear how you didn't mention the fence in the rear yard or the recent water heater.

Solicit and offer to consider whatever sales they think are relevant. If they have a list in mind and it doesn't mesh with your own opinions then say so in your report and explain why their comps aren't comps.

Disclose the criteria and the search parameters and then comment "properties which don't fit these criteria cannot be considered more similar to the subject than the sales presented in the SC".

Try to get a feel for what they think you should be doing so you can address those ideas in your report.

This is somewhat of a game of wits. Be smarter than your opposition. Try to keep one step ahead of them.

 

[J Grant]

There is no strategy to cut an ROV off.

Appraisers need to charge more upfront—will we be able to? For all the BS being endlessly added, addressing all the post-appraisal stuff takes longer than the appraisal, including the inspection.

 

[Shawangunk RE]

So proceed accordingly. If you know the chances of getting an ROV are increasing then figure out strategies to cut them off before they even get going. Stop playing the odds.


Be more accurate with your subject descriptions so you don't have to hear how you didn't mention the fence in the rear yard or the recent water heater.

Solicit and offer to consider whatever sales they think are relevant. If they have a list in mind and it doesn't mesh with your own opinions then say so in your report and explain why their comps aren't comps.

Disclose the criteria and the search parameters and then comment "properties which don't fit these criteria cannot be considered more similar to the subject than the sales presented in the SC".

Try to get a feel for what they think you should be doing so you can address those ideas in your report.

Here's the thing, I rarely get ROV requests for "inaccurate info", its always the zillow hunters who send over 15 "comps" they found on zillow, which 90% of the time are listings, not similar at all to their home, etc. The ROV request form has a spot for 5 "comps". That is alot of extra work and takes time away from getting appraisals written up. Its just more bull****.

 

[Shawangunk RE]

There is no strategy to cut an ROV off.

Appraisers need to charge more upfront—will we be able to? For all the BS being endlessly added, addressing all the post-appraisal stuff takes longer than the appraisal, including the inspection.

100%. this profession is hardly worth it anymore. completely disrespected, considered racist, regulations up the whazoo, AMC crappy fees, calls and emails non stop. Its just ridiculous.

 

[J Grant]

100%. this profession is hardly worth it anymore. completely disrespected, considered racist, regulations up the whazoo, AMC crappy fees, calls and emails non stop. Its just ridiculous.

I am fortunate to have lenders who do not use an AMC, if I had to do AMC work I;d probably pack it in - even without an AMC cut with a better lender Fee, which seemed good a year ago, it has not kept pace cost of living and the increasing minute and the fact that WAIVERS are taking most of the easier work and each appraisal is complex now, regardless of price range.

 

[Shawangunk RE]

I have noticed also an increase in crazy complex properties. We only have 2 regular lenders that do not go thru an AMC. One orders mostly drive by's and the other sends us maybe 4 a month, they are small local lenders. We also have had a couple of MLS mergers, which increased our costs significantly.

 

[Dublin ohio]

I honestly can't remember the last time I had an ROV. Must be luck

 

[djd09]

it is the clients requirement to estimate value to the dollar...so give them a range...a large one from low to high

 

[George Hatch]

Here's the thing, I rarely get ROV requests for "inaccurate info", its always the zillow hunters who send over 15 "comps" they found on zillow, which 90% of the time are listings, not similar at all to their home, etc. The ROV request form has a spot for 5 "comps". That is alot of extra work and takes time away from getting appraisals written up. Its just more bull****.

Of course. But if you have actually reported your search/selection criteria in your report and then followed up with the comment that sales which don't fit those criteria cannot be considered as directly comparable as the sales you presented in your SC then you will have pre-loaded your response to the ROV. All it takes from there is a cut-n-paste of that section of the report along with the comment "these sales don't fit my search criteria and are not more similar than S#1- S#6".

You're basically providing your client with the means to say that you already explained why you didn't use outside comps, whereas if you don't summarize your criteria in your report then they have no way of saying that. Failing that, you have provided yourself with the opportunity to tell the complainants to RTFR because you already directly addressed the issue of comp selection being about "most similar".

If you pre-load your report with the explanation then vomiting it back up upon demand takes no more than 30 seconds at the most. Moreover, they can't spin this response to imply that you are ignoring their valid data or are attempting to cover up after the fact, because you started off being one step ahead of them to begin with.

The reason you're not changing your report is because you started off with most proximate, recent and similar. You don't even have the discretion to replace more similar with less similar. It's not that you won't lie for them, but that you can't lie for them.