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

[Surf Cat]

The whole point of it is that they are trying to avoid paying the whole appraisal fee and that is ****ty.

Hey Joe, haven't you seen some of the threads here where the AMC appraiser's order was canceled "on the way to" inspect the subject? Now that.... is scum of the earth, AMC ***kery right there.... you know they found someone to raise their hand for even cheaper than the appraiser on the way to the subject....

 

[Fernando]

Doesn't anyone remember in the mortgage broker days when your appraisal didn't come in at the number needed to make the deal work and "everyone" was upset? The borrower wanted a refund, the mortgage broker threatened never to use you again, Etc.

I gave my best mortgage broker clients "the list" of questions like in my post number 27. This way, when I gave them my verbal comp check (stop it, you did them too) my range was more realistic based on the answers they got from their borrower clients. Instead of looking at the very top end of the value range in the neighborhood, they started to see a more realistic view point to better work their numbers.

Regarding AMC's, when I got an answer from a borrower that stated something like "we've lived here for 40 years and haven't done anything" red flags go up and I don't do "any" pre-work with the exception of comparables. I'm already thinking it could be a beater.....

In initial call to owner, I always ask if anything done to property since they moved in. It gives me a general idea what to expect.

 

[CGinMN]

Our engagement letter doesn’t say stop work if it’s a C5, but many of our appraiser will call and check in for direction and when they do it’s appreciated. Also, frankly, appraisers have different interpretations about what constitutes C4 and C5, and as a lender I can give feedback on these matters. It’s not supposed to have to work this way, it should be the appraiser informing the client, but we all agree there’s some subjectivity at play. I understand what our underwriters will accept and what they won’t. From there it’s the appraisers call.

 

[Fernando]

Sometimes after I let client know subject will be in C5, client still wants to proceed with the loan which surprises me.
Be upfront with client and let them decide how to proceed.

 

[BRCJR]

It's totally different. Tidewater you give notice and then proceed to complete the order. They don't say nevermind we will give you $100 for your troubles.

I understand the difference. I was trying to indicate it was not too distant from the process. You are providing advance notice to a client regarding the property.

The client then makes a decision about what to do. That is somewhat Tidewater. Provide relevant market data and move forward or stop the process.

 

[Sadie]

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.

I always ask for this very reason, Also knowing ahead of time makes writing the report easier in the long run. Sometime sthe answer is the property is a mess and we need to refinace to pay for the repairs.

 

[sputnam]

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

No

 

[shrubberyvaluation]

Hey Joe, haven't you seen some of the threads here where the AMC appraiser's order was canceled "on the way to" inspect the subject? Now that.... is scum of the earth, AMC ***kery right there.... you know they found someone to raise their hand for even cheaper than the appraiser on the way to the subject....

Yep. had one reach out to me that I never worked for with an assignment. Engagement said I would get $0 if cancelled before inspection, I asked for clarification if I was en route and they said I would get $0. I said find someone else or change the terms.

 

[djd09]

No

they dont say stop and call if all is well....

 

[Fernando]

When rear yard is unkept and growing like a jungle, do you mention that in report. Condition rating is only for the building.
The unsightly yard, I'd would say minimal landscaping if that is appropriate.
By the way, one of my rental's yard is like that. Never went to the back ever.