Reconsideration of Value: How to respond?

[imjiminnh]

If a lender will send the parameters used to produce the additional sales provided for an ROV and sales price isn't a criteria, I'd be happy to review them at no charge. If they send distant, over 6 month, much larger sales from differing markets at much higher pices (or refuse to say how they produced the sales), that's not a request for additional info, it's pressure to hit their number, and I refuse to spend a moment of my time on them. A good client will relay the sales search criteria, a lender looking to push the value won't. There's too many good lenders out there to waste any time mollycoddling (love that word) the bad ones. The DF says that we can be "asked" to review "appropriate" comps, it doesn't say that we have to, can't request further data, or that we can't charge for the time it takes to do it.

 

[Caterina Platt]

Where was the general public's "recourse" during the boom market, when too many appraisals were overvalued? Same thing today, the number hitters have not changed, and they are back at it again, pushing every SC price through. These appraisals don't get flagged for ROV, but they need it the most...more buyers are hurt by buying too high then buying too low, same with people maxing out their equity in a refi. They "like" the high LTV and take out the money, only to be underwater later, unable to sell, and then homeless and bankrupt. Did the eager to please high value appraiser "help" these people?

Caterina, I've heard this unsuported nonsense before , that yesterday's number hitters switched gears and stared appraising "low"...they never changed and are still number hitting, I reviewed two reports last month on purchase appraisals that could have been done in year 2006 with the cherry picked comps, comps that were not used that were more similar but lower priced, undisclosed adverse issues, etc.

The ROV is problematical, esp when generated by a realtor. It is the lender's responsiblity to use competent appraisers who opine MV, and a ROV is no cure for "bad" appraising. It does encourage number hitting, as any appraiser who meets SC price learns they will not be burdened by a time consuming and unpaid ROV. Skippy figured that one out pretty quickly.

Unsupported nonsense? What would you have me do? Upload a copy or two of these crappy reports for your viewing pleasure? Right. :icon_lol:

You can believe me or not, I really don't care. I have seen work from a couple of these folks pre and post boom. It indeed was happening, but in today's allegedly 'new and improving market', I"d be willing to bet they have fallen back on the proir habits. The client I had been doing current review work for decided to broaden the scope of work and shrink the compensation, so I bid them adieu.

As for these ROVs being problematic, no. Grab an ounce of humility. What if it were your home and some arrogant 'appraiser' came sauntering in and only spent a very brief time looking over your house and fouled up your refi? Yes, this is exaggerated many days for the 'kill his credibility' factor, but you and I both know these type of heathens still walk the earth. Those that really shouldn't be appraisers. The public needs recourse. It's a fact of life. The ROVs only become problematic to the lending world and public trust when we appraisers don't have the stones to stick by our guns. I don't happen to have that issue, nor do most of my true peers.

Edit: and for that matter, the number hitter guys/gals are also those that don't like to revisit their reports. They will typically hit 'em high from the start, as it just saves time and their AMC quality ratings.