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[leasedfee]

It was different when all loans were kept in house. The stockholders of a bank were more of a balancing act then. The stockholders wanted to protect their investment and wanted the best appraiser they could find. We see that didn't work either because that was not always the case.

Eli,
Unfortunately, that wasn't the case. Exhibit A would be the Great Depression plus a plethora of other private banking failures. For every conservative bank there are plenty who "want to get the deal done", "make the borrower happy", "this borrower is a very important person", "we really want to do the deal," plus the usual motivations of bonuses, commissions, and revenue generation. Eventually the conservative bank has to relax standards in order to stay somewhat competitive with sloppy and aggressive banks. . . . . . I remember watching a sleazy loan officer going from bank to bank every three or four years once his loan originations started to fail. . . . . . . . At a conservative bank, there was a senior officer at a distant branch who ordered the appraisal after the loan had closed. It is very hard for the stockholders and their board to really understand what is truly going on, especially when the market has been rising for several years and all mistakes get covered up by raising values. . . . .

The capitalist solution is to let the banks fail but that can wipe out innocent depositors who followed the rules. If the govt policy is to guarantee the actions of bankers, it is self-defeating to have the banks order the appraisals when the appraiser is dependent upon a relationship with bankers (or their agents, like AMCs) as their customers.

 

[Eli]

Eli,
Unfortunately, that wasn't the case. Exhibit A would be the Great Depression plus a plethora of other private banking failures. For every conservative bank there are plenty who "want to get the deal done", "make the borrower happy", "this borrower is a very important person", "we really want to do the deal," plus the usual motivations of bonuses, commissions, and revenue generation. Eventually the conservative bank has to relax standards in order to stay somewhat competitive with sloppy and aggressive banks. . . . . . I remember watching a sleazy loan officer going from bank to bank every three or four years once his loan originations started to fail. . . . . . . . At a conservative bank, there was a senior officer at a distant branch who ordered the appraisal after the loan had closed. It is very hard for the stockholders and their board to really understand what is truly going on, especially when the market has been rising for several years and all mistakes get covered up by raising values. . . . .

The capitalist solution is to let the banks fail but that can wipe out innocent depositors who followed the rules. If the govt policy is to guarantee the actions of bankers, it is self-defeating to have the banks order the appraisals when the appraiser is dependent upon a relationship with bankers (or their agents, like AMCs) as their customers.

Notice I edited my post. With many banks it did matter when all loans were in house because the board of directors held them accountable, but unfortunately like you say many didn't. I don't know the answer. I know this current system is not the answer.

 

[Eli]

This current system is an an answer alright but it is not the best answer.

 

[Eli]

Hello – we're in the process of purchasing a home (FHA) in Vancouver, WA. Everything is squared away with the lender and we're only awaiting an appraisal. The problem (as you all know) – there simply aren't enough appraisers in our area to get the appraisal done. We were originally supposed to close on 7/29 (tomorrow) and we've just been informed that our closing is being delayed to 8/31 because no appraisers have picked it up from TSI yet.

We are in the process of moving out and will have to rely on the good graces of family and friends to host our little family of five. Our lender has told us if we can find 3 appraisers who are willing to commit to taking the job, they will be able to move forward.

Is there anyone out there who is willing to help us? We would be so incredibly grateful.

Do you know your appraisal fee yet and where the fee is going and who is paying it?

Please share if you do.

 

[Eli]

Eli,
Unfortunately, that wasn't the case. Exhibit A would be the Great Depression plus a plethora of other private banking failures. For every conservative bank there are plenty who "want to get the deal done", "make the borrower happy", "this borrower is a very important person", "we really want to do the deal," plus the usual motivations of bonuses, commissions, and revenue generation. Eventually the conservative bank has to relax standards in order to stay somewhat competitive with sloppy and aggressive banks. . . . . . I remember watching a sleazy loan officer going from bank to bank every three or four years once his loan originations started to fail. . . . . . . . At a conservative bank, there was a senior officer at a distant branch who ordered the appraisal after the loan had closed. It is very hard for the stockholders and their board to really understand what is truly going on, especially when the market has been rising for several years and all mistakes get covered up by raising values. . . . .

The capitalist solution is to let the banks fail but that can wipe out innocent depositors who followed the rules. If the govt policy is to guarantee the actions of bankers, it is self-defeating to have the banks order the appraisals when the appraiser is dependent upon a relationship with bankers (or their agents, like AMCs) as their customers.

Total independence is the best answer but how do you get there? I feel like I can obscure from value pressure but there is a whole new realm relative to fee pressure now too. The government either needs to quit guaranteeing or take the bull by the horns, imnsho.

I really think since the government represents the public that they should be ordering on loans they are guaranteeing or deposits they are insuring.

 

[markgraybill]

Just curiously, how many days has it been, since you applied for a mortgage, and now, a few days from closing, no one can find an appraiser?

.

We made the offer mid-June. I contributed to approximately a week of delays in terms of getting all the required documents in, but we've been fully on top of everything since then. We still do not have a scheduled appraisal.

 

[markgraybill]

The problem is not so much a lack of appraisers but a lack of appraisers who are willing to work for companies like TSI.

Such a bummer. I've learned my lesson for next time: 1) conventional financing only and 2) local bank only.

I have many clients who I would fit in somehow.

By "clients" do you mean homebuyers, agents or lenders?

 

[markgraybill]

1. What do you mean "if we can find 3 appraisers"?
2. Is the property you're purchasing unique or odd in some way?

1 - the lender has told us if we can find 3 appraisals who will make a "full committment" to appraise the property, they can then choose one of those appraisers to actually perform the appraisal. They've given us this option as a way to try and speed up the process, but still avoid partiality. We just have't been able to find this yet. If anyone is willing, please let us know and we'll forward your info to the lender.

2 – Nope. It's straight forward. It is a 1940's house, but everything is in great condition and our home inspection only turned up 1 or 2 potential FHA issues which the seller has since remedied.

 

[markgraybill]

Fixed it for you.

Ha...okay gotcha. The joke's on me I guess. Any way out of this in your opinion?

 

[markgraybill]

You might want to try a small local bank, typically they have their own roster of local appraisers who they work with directly instead of using a third party AMC.

For sure...that's my lesson for next time, but I think we're way too far along in the process at this point.