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Someone help enlighten me

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Michigander

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Oct 23, 2003
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Certified Residential Appraiser
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Okay, I simply do not understand corporate mentality, so those of you with experience in it (please I really want some measured comments from those who have worked in a corporate environment, be it banking or other, not so much the independent fee appraiser simply due to the independent nature of the beast).

Why on earth, in this crazy environment, are the powers that be still pushing fast turn around? Why is it that the most experienced and reasoned appraisers are not yet rising to the top, but are still being booted from these large companies as layoffs occur? I simply cannot fathom the mentality that lets go quality appraisers because their productivity isn't as high as the guy down the street (who happens to miss things due to the speed which they are working).

I am still of the mindset that if you do it right the first time it saves everyone time, money, and tremendous hassle down the line. That does not appear to be corporate mentality though, even as the sky falls all around us.

Vernon, Mentor, Skibs, folks that have worked in a corporate setting; why?
 

Restrain

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Jan 22, 2002
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The companies are chasing money. If they can get a job done quicker and cheaper, they're happy. That's the bottom line, especially in the financials these days.
 

Wendy

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Managers are typically were they are because they made the numbers look good to their bosses. Easiest way to do that is quicker and cheaper.

They have no real incentive (except in a few really good companies) to encourage quality over quota.
 

liznindy

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Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Indiana
Yeah....and see where quicker and cheaper got us...

We all get to pay for the sloppiness of the financial companies (and our grandkids too)....
 

Elliott

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Apr 23, 2002
Professional Status
Certified General Appraiser
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Oregon
Serena,

1. During the go-go years, the money behind the mortgage market (including
Fannie) didn't care a wit about bond or credit rating because everything was
golden. We are saturated with MBs that were trained to get the deal done
and there was no significant consequences for doing the bad loan.

2. The fundamental idea behind appraisal licensing is that all appraisers are equal.
TAF has even advised that a 'comp check' is legal and can be done for the price
of a business decision.

3. I'm sure there's a third reason, something to do with lenders, but I haven't
had my coffee yet.
 

Michigander

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Oct 23, 2003
Professional Status
Certified Residential Appraiser
State
Michigan
I understand that the old philosophy was simply in the sheer volume of numbers, but the new paradigm should be a flight to quality, shouldn't it? I am not seeing that. I am seeing the same old same old and it saddens me greatly. Was really hoping that the corporate "brains" (sarcasm intended) would see that this is a very part of the problem we face now, and that actually knowing what you have and what the value is would be important.

Or am I just a hopeless optimist?
 

Mztk1

Senior Member
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Dec 3, 2006
Professional Status
Certified Residential Appraiser
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Florida
Get the job done first, tweak it later. That's the corporate mentality. The biggest burden in our department was the ones who "Did it right the first time". That meant you could be waiting all week depending on how much of a perfectionist you were working with.

Restrain is right. The bottom line is most important, and how it changes from day to day, week to week and quarter to quarter. You always have to beat out the last quarter and doing it "right" one quarter will cause a drop in your dividend payouts.
 

Michigander

Thread Starter
Senior Member
Joined
Oct 23, 2003
Professional Status
Certified Residential Appraiser
State
Michigan
If this is truly the case, then why do we care?

Jim Klos, please describe how the burden was created by those who did it right the first time? Thanks!
 

The Warrior Monk

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Mar 30, 2005
Professional Status
Certified General Appraiser
State
New York
Why on earth, in this crazy environment, are the powers that be still pushing fast turn around?

Because of lower work volume. Anyone that works on commission needs to get the deal closed to pay their mortgage at this point, and other involved entities such as AMCs need the money to stay in existence.

Why is it that the most experienced and reasoned appraisers are not yet rising to the top, but are still being booted from these large companies as layoffs occur?

For many reasons. One major one is that companies have simply gone out of business. The shutting down of Greenpoint and Delta, and the layoffs at WAMU, here put a whole lot of appraisers on the street, regardless of qualifications. For others, there simply is no position for them. They can't sell loans, and have shut down wholesale divisions as a result.

I am still of the mindset that if you do it right the first time it saves everyone time, money, and tremendous hassle down the line. That does not appear to be corporate mentality though, even as the sky falls all around us.

This isn't quite true. It is only true of a certain segment of the business. Those involved in the lending process that didn't care about quality in the past are either going out of business or going through a painful transition.

Other entities do care about quality, and it is business as usual...they're still making good loans and you don't see their names as plaintiffs in Lis Pendens. There volume is down, though, just like everyone elses.
 

Ron Schwartz

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Joined
Dec 11, 2002
Professional Status
Certified Residential Appraiser
State
Florida
I have been personally contacted by several of my long time clients large organizations asking me to lower my fees and wanting to know if my turn around time could improve from 2-4 days to 1-3 because there are much cheaper and faster appraisers out there!!!
 
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