patryan
Freshman Member
- Joined
- Oct 16, 2007
- Professional Status
- Banking/Mortgage Industry
- State
- Connecticut
I'm going to start out by saying they have been my #1 lender for 7 years. Opened my own shop 3 years ago and use them for almost all of our A business... but it doesn't look like we'll be closing any more with them that require appraisals.
I have a plain vanilla deal (74 ltv cash out refi, 765 FICO, full doc) with an appraisal that the appraiser had characterized as "conservative". We had 4 comps, 2 were over 6 months (6.5 and 8 months) and the other 2 were recent but one was 1.5 and the other 2.9 miles away. Absolutely nothing wrong or aggressive with the appraisal. They wanted 3 new comps that were all closed within the last 6 months and closer than 1 mile away.
The appraisal came up with a new comp that was .5 miles / 3 months and 2 current listing (appropriately discounted).
They've rejected the new comps (I have 7 total now). The desk appraisers note was "1 new closed sale over one mile submitted and two listings, not accepted. Three new closed sales within 6 months of appraised date are required or this is not a product for PF."
The closed sale that was "over one mile" is .5 miles away (and I double checked), my confidence in them has evaporated... and again they were our #1 lender, never even had to shop around.
I have to mention that Provident ran some AVM models and they hit for $250,000 and $258,000 (the appraisal was for $250,000).
The new appraisal guidelines that they are using (no more than 1 mile for suburban and no more than 3 months old) will pretty much disqualify every deal that we have here in CT. Our town had only 7 closed sales in the last 3 months ranging from $198k to $644k, and there's nothing wrong with the market here... property still appreciating, reasonable "days on market".
Just venting as I'm working on getting my pipeline with them over to other A lenders this morning...
I have a plain vanilla deal (74 ltv cash out refi, 765 FICO, full doc) with an appraisal that the appraiser had characterized as "conservative". We had 4 comps, 2 were over 6 months (6.5 and 8 months) and the other 2 were recent but one was 1.5 and the other 2.9 miles away. Absolutely nothing wrong or aggressive with the appraisal. They wanted 3 new comps that were all closed within the last 6 months and closer than 1 mile away.
The appraisal came up with a new comp that was .5 miles / 3 months and 2 current listing (appropriately discounted).
They've rejected the new comps (I have 7 total now). The desk appraisers note was "1 new closed sale over one mile submitted and two listings, not accepted. Three new closed sales within 6 months of appraised date are required or this is not a product for PF."
The closed sale that was "over one mile" is .5 miles away (and I double checked), my confidence in them has evaporated... and again they were our #1 lender, never even had to shop around.
I have to mention that Provident ran some AVM models and they hit for $250,000 and $258,000 (the appraisal was for $250,000).
The new appraisal guidelines that they are using (no more than 1 mile for suburban and no more than 3 months old) will pretty much disqualify every deal that we have here in CT. Our town had only 7 closed sales in the last 3 months ranging from $198k to $644k, and there's nothing wrong with the market here... property still appreciating, reasonable "days on market".
Just venting as I'm working on getting my pipeline with them over to other A lenders this morning...
