Order Says To "Stop And Call" If C5 Or C6

[glenn walker]

The appraiser can be as independent as he/she wants but so can the client. Most hard headed appraisers go broke or have few clients that will deal with them but ultimately It's a simple business decision.

Uncle Billy a retired SREA--MAI used to famously tell me Son Bankruptcy comes very slowly but then one day it happens very fast. He filed three times. He also pissed off his clients until he had none.

Remember as long as you have a nice wealthy kind spouse or do this as a hobby then by all means stand your ground and Die on this Hill and declare it's based on your high ethics, principles and morally high independence. Then declare USPAP and say it's unconstitutional and your going all the way to the Scotus. Billy RIP would have cheered you on all the way.

so if the so called 'client' asks you to stop and call them if you cannot hit the number...isn't that the same thing

NOPE NOT EVEN SIMILAR.

 

[djd09]

condition and or repairs needed is a value issue...duh

 

[Mark K]

Looks to me like everything will be C4 or better in the future.

 

[djd09]

i think some of the cheerleaders call it the SOW...

 

[alebrewer]

And this is why folks want to remove the appraiser from the equation.

 

[jay trotta]

Apparently the terms of your engagement require more than just an appraisal report under certain scenarios. If you don’t like the terms, don’t accept the assignment.

OR add sufficient Fee to cover your costs/time.

 

[Surf Cat]

anyone delt with this issue?

Dude.... this has been going on forever.

When you call the borrower to set up an inspection appointment, don't you take a couple minutes to find out about the property so you can select the appropriate comparables?

After introductions, stating who you are to set up the inspection, ask them if they have a few minutes for you to go over the details of their property. Most people are more than willing.... they want the loan.

Ma'am, public records shows your house has 1632 sq.ft. with three bedrooms and one and a half baths... does the sound about right?

"Yes it does"

Excellent! Have you done any modernization, upgrades or additions in the last 3 to 5 years?

"Yes, we had the ceilings scraped and smoothed, installed recessed lighting, and removed all the carpet and installed vinyl plank flooring throughout the entire house".

Wow, that sounds great! Must have made a huge difference.... how about the kitchen and baths? Any modernization or upgrading there?

"You sure ask a lot of questions, I've never had an appraiser ask this many questions before".

Yes ma'am, I want to make sure that I pick the most appropriate comparables in your neighborhood to ensure the most accurate valuation I can provide.

So on and so forth. You've got to finesse it for your benefit. Some people it's easy, some people it's like pulling teeth.

The main point is, you've got to know before you go. Even though I get the most detailed information I can from the borrower, I still bring sales that I believe are inferior and superior to the description I received. Some people over exaggerate and lie, while others are modest and conservative.

Also, in your fee schedule that you send to these AMC's, it should clearly state your cancellation or trip fees.... not just your appraisal fees.

 

[glenn walker]

condition and or repairs needed is a value issue...du

Looks to me like everything will be C4 or better in the futuAlways

It's pretty much always has been that
way because unless a property could be brought up to a C-4 physical condition many lender's wouldn't fund or sell the loan to investors or GSEs.

Fannie can purchase a C-5 but they place limitations and additional road blocks or at least they did with us.

A--C-6 was uninsurable both loan wise and the borrower's couldn't get fire insurance polices, so we never funded them. Those were hard money or rehab loans.

My guess is new UAD and 2026 will see more stringent assignment condition's by many lenders, but I have no proof just guessing based on chatter from the rep's mortgage wholesalers.

 

[Joe Flacco]

“I’m sorry you feel that way. If you are uncomfortable with the terms of agreement, I’ll remove you from our panel at once.”

Probably the best solution here. Help clients solve their problems and get rewarded. Pretend like you know better and make their lives harder, and get sidelined. All of this can be done within the confines of acceptable appraisal practice.

What he seems to be saying is that the request makes him feel pressured to not call properties C5 or C6. That is the appraisers problem if that is the case but it might influence some in borderline situations.

But anyway I agree with the poster that they should wait until the report is complete to see what the rating is. The whole point of it is that they are trying to avoid paying the whole appraisal fee and that is ****ty. My clients don't have such rules.

 

[Joe Flacco]

Like someone else previously said, they probably want to pay $100 in such cases, not the whole $500, or even what is a fair percentage of the fee for work put in. It's bull****.