Realtors & Lenders wing again

[Don Clark]

I am a VA Fee Panel Appraiser and have been for over 10 years. For the past 2 years local Realtors have been accusing VA Appraisers of "Low Balling" value, another way of saying we did not hit the sales price. This has caused numerous meeting with local Realtors and Lenders by the VA Staff from Roanoke Regional Office. The VA has assured Realtors and Lenders that this is not the case. Now, however, all local VA Appraisers in the Virginia Beach-Norfolk-Chesapeake and Portsmouth area of Virginia are being required to participate in a "Pilot" program. The program requires that the VA Appraiser notify the designated contact on a VA Request when the appraisal will come in below the sales price. And, the VA has authorized the appraiser to talk directly with either the selling agent, listing agent or the lender. The lender/agents once notified have 2 days to provide the VA Appraiser with any data such as pending contracts, listings, or other data to support an increase in value. They are to do so on a format similar to the URAR grid showing similarities and differences. The VA Appraiser is to then take that information and make a decision whether or not to raise the opinion of value or not. If the VA Appraiser does not raise the value he/she is to document on an addendum the data received, what it was/is, and from whom received, and reasons why an increase is not warranted. To me this is a clear violation of the Ethics Rule. It does not violate Confidentiality as VA is the client and has given permission to deal directly with agents. however, it causes the appraiser to consider a predetermined value and work toward an opinion of value that favors the client. This means that an appraiser is no longer the objective, disinterested third party. This to me creates bias.

Also, in regards to new construction, the VA Regional Staff is going to develop a list of options and establish values for them. To me this is an appraisal. The VA Fee Panel Appraiser is then supposed to use this list of cost/value????? to form opinions of value for new construction.

The fact that an appraiser tells the lenderor Realtor that a value is below the sales price------that is an appraisal by definition. To then be forced to consider data supplied by those with bias and an interest in the outcome of the appraisal, is a real ethical dillema.

This is a real concern. No VA Fee Panel Appraiser wants to lose their appointment to the fee panel. What is likely to happen is that VA Appraisers affected by this will simply hit the sales price at all cost, and the lender and Realtor pressure wins again. If this program is a success here, it will most likely be the program for all VA appraisers. Your comments are invited.

Don Clark, IFA

 

[Pamela Crowley (Florida)]

There goes the last of the basically honest orders. Makes me wonder why I bother to try so hard.

 

[Ben Vukicevich SRA]

Don,

No different than the old FHA reconsideration of value process but seems the VA doesn't want to wait for the appraisal/value to be sent to the lender. Seems the new system would be a pre-mature reconsideration?

Hey, it's VA. All they want is speed. Meet the 5 day turn time or else. Can't do that by issuing the appraisal then requesting a reconsideration of value, right? Too many days go by.

Since the brokers will never fill the grid/form out correctly, you simply write "Reconsideration of value not warranted" on the form due to blah, blah blah and send it in. That's what we used to do.

Regarding the option values, that was always a neat one. FNMA has the same BS on their new master appraisal forms. The appraiser does the work, then they just add the base price and the option values together and come-up with a final value. FHA always had that for a master appraisal. I never saw one in all the years I was an FHA appraiser. Builders are smart and won't go near that process-hey, where's the value for the closing costs they sneak in??? Not there on the form so they won't use it.

Ben's take on the matter.....VA needs to pump-up the volume of loans so they stay in business. Look at the consolidation of the offices. Doesn't that tell you something?

Ben

 

[Larry Lyke]

Don --

Geez.

There is an easier way to do it. The Realtors could send in their appraisal of the property when the buyers make application for a loan.

 

[BenLuby]

Now I am demoralized. I always thought that the VA's job was to protect the veterans and their dependents, not to pucker up behind realtors.
The VA appraisers I know go out, do a straight forward appraisal, never bother arguing value, because they have done a straight shot. And the lender doesn't get any say so on who gets to do the appraisal.
Of course, now the VA is supposedly making it harder for the appraisers to get their money. Too bad somebody couldn't catch one of those realtors on tape calling their appraisal a low-ball figure. A solid appraisal against that comment could probably get a good lawyer's mouth watering. That would border on slander. Maybe even cross over into that state. But you should have seen it coming. The government for the people and by the people is for big business and bought by big business. They could fix a lot of these problems, but it would cut their purse strings, so they are just going to kick the people in the groin with cowboy boots on until the swelling goes down. Just keep on plugging and e-mail your reps. Maybe they'll do something... it is an election year, tends to get a bit of the wax out of their ears. Good luck.

 

[Mike Garrett RAA]

The VA is caving in on all fronts. First it was the time period required, now it's let the appraiser handle the reconsiderations. Just remember the Golden Rule....them that has the gold makes the rules!

Our Regional Office has cut it staff by more than 50% and has taken on more states. They are over worked, under paid, and at the mercy of the
Banking Lobby. It's a no win for everyone.