Since when are bedroom photos required by fannie mae?

[NC Appraising]

What is your basis for this statement? IOW - there's no doubt some appraisers cut corners. I'm just curious why you think the motivation is to commit fraud? What is there to gain? They're paid the same whether they commit fraud or not, so why do it? Doesn't it make more sense that they do it out of laziness? Out of ALL the mentorships I've done with folks from the great state of TX, not one disciplinary action has been the result of fraud on the appraiser's part. Every single case was out of laziness or ignorance.

Now - are there appraisers who commit fraud? Probably so - but there has to be motivation to do so. For instance, I know of several cases where the supervisory appraiser SAID they inspected the home, when in reality they didn't. That is fraud. But what is there to be gained from that? Economies of scale.

What is to be gained from being deceptive about the condition of a home? Nothing that I can think of...

My mentor, got spanked by FHA for not reporting the condition/defects. He is no longer appraising. I hate to say it, but I was trained by a skippy factory. They trained most to do this. Some appraisers stood their ground, some did not. The ones that did, lets just say that the mortgage brokers were not happy.

The same reason SOME appraisers are number hitters. Committing fraud. No difference......not reporting the condition/needed repairs vs number hitting. Both are committing fraud. So ask yourself, why do appraisers hit the target? We will not get paid more? The pay is the same.

What is the motivation? Afraid of getting less work? Avoid UW stips, more issues for them when they state issues...churn and burn baby, pisses the re agent off (might have marketed to them), makes the loan go through...makes them look like the good guy?

Why do SOME appraisers mark everything as C3, when it's plain to see in the MLS and their appraisal that it is a C4 home?

The same reason SOME appraisers avoid noting adverse external issues (most AMCs now require aerial maps...wonder why?)

Take FHA assignments for instance. When the loan closes and the MLS states FHA financing....you go to the pics and see chipping paint. Obvious.

 

[alebrewer]

My mentor, got spanked by FHA for not reporting the condition/defects. He is no longer appraising.

Is that because he was committing fraud? Remember - fraud has to have an intent. IOW - there has to be an intent for fraud to be committed - it can't be ignorance, laziness, or sloppiness.

The same reason SOME appraisers are number hitters. Committing fraud.

If those appraisers are INTENTIONALLY lying about the value of the home, I'd agree that it's fraud. Again, though, my personal belief is that most overvaluations (and undervaluations) stem from ignorance, not intent to deceive.

not reporting the condition/needed repairs vs number hitting. Both are committing fraud.

Both are unacceptable appraisal practice. Both are NOT necessarily fraud.

So ask yourself, why do appraisers hit the target? We will not get paid more? The pay is the same.

But.... IMO, there IS a clear motivation to 'hit the target' - more business. So, then, it's not fraud that drives the decision, but rather the hope for future work. As opposed to misrepresenting condition - the clients WANT the numbers to work - most clients I'm aware of aren't fans of misrepresenting condition. Maybe that's just me being naïve...

Why do SOME appraisers mark everything as C3, when it's plain to see in the MLS and their appraisal that it is a C4 home?

Laziness or ignorance.

The same reason SOME appraisers avoid noting adverse external issues

Again - laziness. Not wanting to do the extra analysis required to sufficiently address the issues.

Take FHA assignments for instance. When the loan closes and the MLS states FHA financing....you go to the pics and see chipping paint. Obvious.

No question - but is that a result of an intentional desire to deceive, a desire not to have to do a final inspection, or ignorance? Most likely - it's door #3.


I guess my point is that - with all the poop that's being thrown at appraisers right now - some legit and some made up - why would you want to throw fraud into the mix? And coming from one of our own? And I thought I was a pessimist...

 

[Tom4value]

Maybe I am getting cranky in my old age but I have definitely changed my attitude about pushback from homeowners and tenants about photos. We made an appointment. I told them I need to see ALL rooms. If we have an appointment at 10 am, I have no patience for, “can’t go in there, my son is sleeping “ or “my husband is taking a shower”. You knew that for 24 hours! My time is as important as getting your loan or selling your house. Either get them up or let me peek in and snap a photo. I can angle Sleeping Beauty out of the shot.

 

[Fernando]

Maybe I am getting cranky in my old age but I have definitely changed my attitude about pushback from homeowners and tenants about photos. We made an appointment. I told them I need to see ALL rooms. If we have an appointment at 10 am, I have no patience for, “can’t go in there, my son is sleeping “ or “my husband is taking a shower”. You knew that for 24 hours! My time is as important as getting your loan or selling your house. Either get them up or let me peek in and snap a photo. I can angle Sleeping Beauty out of the shot.

Even if someone is sleeping in the room, I always found a way to take a bedroom photo at an angle.
Hard part is if someone is taking a shower in bathroom. I tell owner I'll be back to take photo. One time I forgot to come back and take bathroom photo. Ugh.

 

[NC Appraising]

Ok

Is that because he was committing fraud? Remember - fraud has to have an intent. IOW - there has to be an intent for fraud to be committed - it can't be ignorance, laziness, or sloppiness.


If those appraisers are INTENTIONALLY lying about the value of the home, I'd agree that it's fraud. Again, though, my personal belief is that most overvaluations (and undervaluations) stem from ignorance, not intent to deceive.


Both are unacceptable appraisal practice. Both are NOT necessarily fraud.


But.... IMO, there IS a clear motivation to 'hit the target' - more business. So, then, it's not fraud that drives the decision, but rather the hope for future work. As opposed to misrepresenting condition - the clients WANT the numbers to work - most clients I'm aware of aren't fans of misrepresenting condition. Maybe that's just me being naïve...


Laziness or ignorance.


Again - laziness. Not wanting to do the extra analysis required to sufficiently address the issues.


No question - but is that a result of an intentional desire to deceive, a desire not to have to do a final inspection, or ignorance? Most likely - it's door #3.


I guess my point is that - with all the poop that's being thrown at appraisers right now - some legit and some made up - why would you want to throw fraud into the mix? And coming from one of our own? And I thought I was a pessimist...

Ok...

What about checking the middle boxes. I was taught only to check the middle boxes. Seems like most appraisers did this too. Very taboo to mark the increasing box.


What about adjusting the comps right up to the 15%net and 25% gross guidelines? Even fannie caught on to this.

I could go on all day long. You and I know why.....

It's about appraisers not rocking the boat.

Are we really playing this game? I'm I opening up pandoras box? Not suppose to talk about these things in public?

The majority of appraisers are good. But the bad appraisers get rewarded.

 

[Ricky LaFleur]

I just use whatever photos the property data collector gives me.

 

[Fernando]

I just use whatever photos the property data collector gives me.

Am I out of the loop? I thought data collectors are a future thing.
Are lenders using data collectors now?

 

[TC]

Common courtesy/sense dictates asking the person who let you into the house if there are anyone in a room when the door is closed.

Someone in bed....
I just tell them to pull the covers over their head....

I've done that a lot or just photoshop the covers.

 

[Fernando]

I've done that a lot or just photoshop the covers.

I don't photoshop my photos. I may crop it to get rid of sights I don't like.
Photoshopping seems wrong for unaltered details of a photo.

 

[TC]

I don't photoshop my photos. I may crop it to get rid of sights I don't like.
Photoshopping seems wrong for unaltered details of a photo.

Cropping alters the photo as well. Plus, it's great for eliminating power lines.