No appraisal needed for sales.

[Chris POklacki]

Just a few days ago I got an order for an appraisal of a single family home for a sale.
Later that day I got a call from the LO saying forget it they dont need an appraisal. It seems Countrywide doent need one. All they need it the buyers to have good credit, something like a 700 rating or higher, and 20% or more down.
I get along well with the LO and spoke with him for a while about this. The buyer has good credit they dont even need emplyment verification.

Is this Begging for fraud or what?
How hard is it for people to get info on a persons credit and get loans on that persons name, take the money and run? I am sure the possibilitys are endless for those out to rip off anyone they can.

From what I understand no appraisal needed is not that uncommon but I am lucky in that my biggest client (25-100+ orders a month) wants full appraisals because many of the customers refinance whenever rates change I do many of the same homes more than once in a three year period.

 

[Fred]

Chris,
It is my recollection that Countrywide stopped using appraisals, like, 7 years ago.

 

[bradellis]

Chris,

This sounds like Fannie Mae's new program where, instead of an appraisal, they pay a $200 fee and Fannie buys the loan. Can't be sure though, without more info.

To Steve,

Countrywide owns an AMC called LandSafe. They were ordering appraisals on virtually everything. Actually, they still do, but for these exceptions that will likely arise.

Brad

 

[Leon Stewart]

Chris,

This sounds like Fannie Mae's new program where, instead of an appraisal, they pay a $200 fee and Fannie buys the loan. Can't be sure though, without more info.

To Steve,

Countrywide owns an AMC called LandSafe. They were ordering appraisals on virtually everything. Actually, they still do, but for these exceptions that will likely arise.

Brad

I think FNMA recently lowered that fee to $ 50.

leart3

 

[Chris POklacki]

Like I said I am lucky, I dont do anyhting directly for Countrywide or any AMCs. I cant imagine dong this for anything less than my full fee.

The lenders I deal with get the loans funded with whoever they want.

I have seen, and have testified in court, on realestes fraud and this seems to be a dream come true for people looking to make fast illegal money.

 

[jtrotta]

Just my opinion;

$50 is paid by the Borrower; $200 is paid by the lender; to the best of my recall, none of the Banks need an appraisal if they assume full liability if the debt goes bad. It doesn't get interesting until the highly qualified borrower, goes sour-looses their job and everything goes bad.

 

[Dee Dee]

Time out!
Countrywide is one of my favorite clients! They pay me well, on time, no crazy deadlines, no stretched values. Best of all it seems that they only work with A-grade paper...so I don't have desperate and demanding homeowners picking on me. Biggest complaint, but one I can live with, is that most of the jobs they send me are humongous homes that take forever to measure and sketch. A small trade-off for how fair they are to me. I rarely charge them extra for the larger homes, but if I do they don't even flinch. If it's a hurry-up job and I don't think I can fit it in, they'll offer to bump up my fee without my asking if I'll just get it done (amazing how you can juggle your schedule if the circumstances are right).
If I could get a couple more clients like Countrywide I'd be happier than a pig in mud.

 

[Chris POklacki]

Yea, The majority of the appraisals I do are for middle or upper class homes, people with good credit and usually very little problem.
I know the client I have does use Countrywide a lot and gets worried if the customes has just ok credit ratings.
I just never worked for Countrywide directly but am happy to work with anyone that pays and just wants a real value.

 

[Pamela Crowley (Florida)]

I would love to work for Countrywide but, in the Jacksonville area they are extremely low fee - high pressure. No thanks.

 

[Paulette in Texas]

Dear Forum: just completed SALE with reported great credit on buyers coming from...forgiveme back East where things are different than here in Tx. Well guess what? This really great credit risk was agreeing to purchase for $275k a lovely house in a neighborhood with predominant value $200 and no sales to support their value UNLESS you left the neighborhood to go to stronger competing neighborhoods. Sure we could have MADE their numbers. But it wouldn't have been the market value. Lender didn't have aproblem with our standing by our guns. Actually, with me, it's firing them. This buyer was so lucky to not have purchased this home as they were waaaaaayyyyy over the market for this little subdision. It cost them $300+ nationals fees to find out that they were NOT making a smart choice. Course, they could have gotten a lot of reports that would have rubber-stamped their value and it would have been a kick in the head 2-3 years later to find out that they really didn't have the vaue in it that they paid for. Hold on to your wallets...FNMA may well be able to ramrod this new sucker program right on through. We taxpayers will just have to be around to pick up the pieces...doesn't anybody remember the s&l glory days? Have a great one. Paulette in Tx
Rottsrule and go w... shih tzus is quiet and sweet. Have a great one.