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Refi Volume Choking The System

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Frank Bertrand

Junior Member
Joined
Aug 21, 2002
Professional Status
Certified General Appraiser
State
Pennsylvania
Had a complaint last week that the time I took to do a report caused the owner to lose a low refi rate.

that's a new one on me. I have the original fax from the lender to the AMC with the date 22 July 03. I doublt I am responsible for any delay since I got the order on 18 Aug 03.

Now the washington post has an article about owners mad they lost the lock. I suppose the lenders don't want to finance at the low rates and just let them expire.

I suppose we have something else to worry about when the owners are looking for a scapegoat.

www.washingtonpost.com/dp-wyn/articles/A44861-2003Aug25.html
 

Carnivore

Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
frank,

Serves the AMC right since they are always looking for the lowest snuffy out there, eventually, they land on you, by then the damage is already done.

Dont let them use you. I always tell the owners when I got the order, they usually are quite surprised because th LO lied and told them I had it weeks before.
 

jtrotta

Senior Member
Joined
Jan 16, 2002
this past late Spring Lenders were quoting 30 day turn times; because of the glut of Refi's they had to expand to 45 days and then 60 - when they found they could no longer handle the volume or there weren't enough appraisers in a particular neighborhood, they bumped the rates up. They've bumped the rates up over the summer, why ?? There was an article in one of the local rags that said, Fed won't raise rates for another year at least, hmmmmmm.

LO's lock rates when taking orders and before they get back the credit info are askin fer trouble; ifn they know their area and how busy appraiser's are, why would they make a commitement for a short term deal and why are they not shopping around, jus like when yer buyin a car; check out everything and whoever offers the best deal is where ya go.

It's all the LO's fault, they're just seekin more Benjamins and could care less if anyone gets a deal er not.

B)
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
But it is sooooo easy to just blame the appraiser! Yesterday I had two assignments completed and off to the lenders. In both cases an hour later I received a call saying "Oh, the 1805 was incorrect, we put the wrong sales price on it, Or, we forgot to include a counter proposal or contract change" "Can you redo your appraisal?".

The issue isn't can I do it...it's should I do it? A thousand or fifteen hundred dollars is usually not a problem. I know I am not THAT good anyway...but should I do it? When I finish an appraisal it is sent electronically to the lender (SAR) and to the VA. If I change my value conclusion am I appraising to a predetermined value?

I am just so tired of scrambling to meet short deadlines in the height of a refi boom that has stressed all of us maximally only to have to redo everything because the lenders are screwing everything up. Personally I think it will be very nice to get back to a normal pace of four or five assignments a week.
 

Richard Carlsen

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Michigan
LO: The sales price is actually $1500 more than what we told you. We did not send you the last page of the P.A. with the counter offer. Plus the UW wants you to put the legal description in the report. I’m faxing you a copy of the legal right now. Can you redo the appraisal?

ME: Sure can. That will be an Update due to change in reported sales price and a new date for the report as of the date of the Update. I'll have to see if there are any newer, relevant sales to consider. My fee for an Update is $150. And oh by the way, I'll be leaving for Canada on the 3rd of September and will be back in the office on the 15th. Unfortunately, I am booked full with orders between now and then and cannot fit it in. You should have the Update on the 17th. Just send me a fax order and we'll get at it as soon as I get back.

(Translation: What makes you think that it is my job to freely correct your mistakes, errors, omissions or short-comings?)
 

Bobby Bucks

Elite Member
Joined
Jan 27, 2002
Professional Status
Real Estate Agent or Broker
State
North Dakota
Because of the backlog just to CYA or CMA, when the lender asks for an additional comp or an addendum I have been referencing the inspection date and signature date to reenforce to anyone who may wondering that if there is a delay and a rate goes up, it's not my fault. I had a broker raise hell last week and demand that I remove those comments from a 4th comp which was requested 6 weeks after the effective date. It appears someone dropped the ball and it was not me. Did I remove that comment? naaaaaaah :p
 

Non Sequitur

Elite Member
Supporting Member
Joined
Feb 14, 2002
Professional Status
Certified Residential Appraiser
State
Louisiana
BB said it all, CYA on those stupid UW requests. When asked for that magical 4th comp or an addendum as to why there's clouds in one comp picture and not the next, I always reference the original inspection date, along with the date the appraisal was signed and turned in. And I always start of with "As per UW's request dated 8/26/2003"........
 

jeanwillick

Junior Member
Joined
Jun 2, 2003
Professional Status
Licensed Appraiser
State
Michigan
I was told by a loan officer this week that they can lock a rate for 30, 45 or 60 days. They are having trouble getting title work and appraisals in a more timely manner due to the refi boom and can't always make it in the 30 day lock period. I ask "why wouldn't you lock a rate for 45 or 60 days if you know the title company and appraiser are 2 to 3 weeks behind?" His reply "it costs extra to get the 45 or 60 day lock, but the borrower can buy the lock for an additional 1/4 point or $250 per one hundred thousand" . This interprets to "the borrower will gladly pay the extra to keep the lower rate & I won't have to pay it myself". You dig??? so they have to have someone to blame besides themselves for why they are charging the borrower the extra moolah to buy his lock and we are the natural target.
 
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