Qc Audit

[Cascada]

One of the appraisers in our office got an email from an AMC showing that the lender did a QC Audit in one of his reports. I reviewed the email with 5 points of clarification that need to be addressed. They state that the loan already closed. I read the report and it was a very complex house, custom built. Value is supported by other custom homes in the area.
I told him he needs to start addressing the questions. Is this correct procedure or there is anything else that needs to be done?
We have never have any of this issues before.

 

[Michael P Jacobs MAI]

One of the appraisers in our office got an email from an AMC...SNIP...I told him he needs to start addressing the questions. Is this correct procedure or there is anything else that needs to be done?

It's just an AMC quality control issue, correct? So, it's simply an inquiry. Appraisers can take any feedback from clients as constructive if they wish, or fight them to nobody's benefit. I know they're a PITA in the rush to keep the pipeline moving (and billable$$ up), but proactively addressing some issues in your report templates (or just remembering to cover them when necessary) can save hundreds of hours over the next few years and promote loyalty (for clients that are not completely fickle). The questions may seem a waste of time to you (and very well may be), but it may be as simple as a box they have to check and might be something on other's quality control lists as well. My advise is always avoid fighting these inquiries - just try to get them off your desk as quickly as practical and try to learn from each one. You aren't going to change THEM by fighting this kind of thing. In 100 years you will not have seen all of them, so get used to this kind of thing and don't let it ruin your day.

 

[Cascada]

It is a bank QC Audit and the email was sent by the AMC. We will be addressing the questions. Maybe providing a list of custom built homes that he research during the scope of work will not be such a bad idea

 

[timd354]

One of the appraisers in our office got an email from an AMC showing that the lender did a QC Audit in one of his reports. I reviewed the email with 5 points of clarification that need to be addressed. They state that the loan already closed. I read the report and it was a very complex house, custom built. Value is supported by other custom homes in the area.
I told him he needs to start addressing the questions. Is this correct procedure or there is anything else that needs to be done?
We have never have any of this issues before.

What are the 5 points of clarification that they are requesting to be addressed? Unless we know that, it is really not possible for anyone to determine whether or not the request is reasonable

 

[DWiley]

It is a bank QC Audit and the email was sent by the AMC. We will be addressing the questions. Maybe providing a list of custom built homes that he research during the scope of work will not be such a bad idea

Given the indication that the loan has already closed, I agree that this is the most likely scenario. It is not uncommon for a post-closing group at a lender to examine a report and then communicate a request for additional commentary back to the appraiser -and most do that through an AMC (though some do it directly to the appraiser).

 

[Cascada]

Why the house has two electrical meters?
- One was for the main house, the second one was for a stable. (no living space just the horses), no office, no commercial and nobody lives in the stable just 4 horses.

Why a detached mother in law suit was included in the GLA?
- The old lady lives in the mother in law suite connected to the house, they share all utilities and the area is attached to the house just that it has a separate entrance. It is included in the county GLA, the blue print of the house and the area is not detached. The appraiser disclosed all this in the report.

Why a comparable was labeled to have a negative location?
- Because it was backing the interstate. Also in the report.

Give a detail of how the quality of construction adjustment was obtained?
- I reviewed the appraisal and he showed how he compared a regular builder construction with a custom builder quality product and how he did the adjustment. I do not know what else they want.

and to provide evidence that the comparable properties used in the report also have separate entrance to their accessory units.

 

[Elliott]

Cascada,
Those sound like regular stips that any residential lender appraisal would get. Post/Pending requests are common.

 

[Cascada]

That is what I thought. I had him answering the questions anyway and they will be submitted

 

[Rlong]

Yes I have seen and had to respond similarly; although it is annoying when some of the information is slready there (i often put “READ HERE>” next to my existing comments.) Not sure if some interpret as too sarcastic or not?

Bob

 

[Cascada]

What a good idea. I usually put Please NOTE, I guess READ HERE sounds better)