Stupid addendum requests

[Pat Butler]

Just started doing some work for Chesapeake again and remembered why I dropped them. Their addendum requests are just plain stupid. Not only that, but their addendum requests come across the fax with the title "THIS IS A REJECTION NOTIFICATION" and a notice of how they just may decide not to pay for that appraisal. Never mind that it took them almost a week to decide whether I should continue on a property with a bad basement. Apparently my time isn't worth as much as theirs.

Got one last week that wanted to know how I made my market change adjustment to an older comp. I said I looked at market data. They wanted to know the source and I pointed them to the "Source" line at the top of the grid. They then wanted to know specifically how I calculated it-- I told them I looked at sales data and saw how much appreciation there was in the subject's neighborhood. They finally accepted that.

Did another one today and and included the exact same language for an older comp. Got another REJECTION NOTIFICATION asking how I did the adjustment. I scratched my head because I answered it in the same way I did last week. They then wanted to know what % adjustment I used. I said, "Just use your calculator and calculate how much $3,000 is as compared to $138,000" She wanted me to calculate it. I said, "No, I'm not doing any sort of exercise in futility. I make absolute numeric adjustments, not percentage adjustments. You calculate it yourself." Absolute nonesense. I had to remind them that they are ordering a summary report, not self contained report.

Did one last week where the subject's roof was entirely shot and covered with rubber roofing for a quick fix. They just draped a huge piece of rubber roofing over the existing roof and it just hung over the edges of the house by about one foot. Other than that, the rest of the house was in average condition. I rated the house as "Average" in the grid and made a separate line item adjustment at the bottom of the grid for the roof situation. They then wanted the roof stuff taken off the grid and put into an addendum. No, I said- I am adjusting for it and that's the appropriate place. After the reviewer checked with an adult, she then told me to make the roof adjustment under the Condition field. I asked how she would like me to label the condition of the house because it still is average, and it would be misleading to change the overall rating just for that one component. And they did order the appraisal on the 1004 and Fannie's guidelines call for Good, Ave, Fair, or Poor on that line. She didn't have an answer and put someone else on the line. The second reviewer thought that her requests were stupid and allowed my original appraisal to stand as-is.

All of us Illinois appraisers are required to report the name of the individual person who actually ordered the appraisal. They wanted that taken off. No, I said- I'm not going to throw my license out the window just for Chesapeck.

I haven't received any addendum requests from clients in maybe a year or so. Chesapeck has sent me a half a dozen in the last week and they're making it nearly impossible to get the appraisals done in time because I can never put theirs to bed. They are almost always style issues rather than USPAP requirements or FNMA guidelines. I think they have a bunch of high school kids reviewing these things......sigh...

 

[Pamela Crowley (Florida)]

You've just listed one of the reasons I don't accept orders from AMCs. The low fees and additional BS is way beyond what I'm willing to do.

Anyone familiar with Star Valley out of CA?

They wanted their address on the appraisal instead of my address. Seems that I remember something about that situation at a Florida Board meeting that said the Appraiser's true address is to be on the report. I don't work out of CA so that request is out the door. Another good tip for any others that are asked to use an address other than their own. Just say "NO".

 

[Don Clark]

8)

Just in case any guys are wondering, Pamela looks better than her Icon on her post :wink:

You are so right Pam. I turned down an order from Mortgage Information Services. They have a 2 page list of supplemental standards that essentially removes any of their liability, makes the appraiser liable for everything. Their order form requires the appraiser to call if the value is $5,000 or more below estimated value, send them copies of comparables, collect COD and they are not responsible in case the check bounces, and they will not pay trip charges. Wanted to know why I rejected the assignment and told them to reasign to some one else. i told them, all the above. Their response was that the information and requirements is pre printed on their form, and I don't have to do all those things. Yes I do I said. If I accept the assignment, that becomes a contract between us. And, I would be in violation of USPAP for many of the things you list. I have already sent them a copy of AO-19 several times. I said I do not need your business, please take it elsewhere. Next year I may go hungry but this year I fell good to have said it.

Don Clark, IFA

 

[John Hassler]

Pat

I would fire that client. Not worth the aggravation anytime let alone when it's busy.

I just got a request to, "provide satisfactory documentation evidencing that the proceeds from the Bank of America 2nd mtg being paid off were used for home improvements". Yeah, right. And, this was a 2055 Exterior report with a LTV of 40%. I told them "no way - ask the borrower for receipts". Are these underwriters brain dead?

John Hassler

 

[Lee SW IL]

I also advised that in Illinois they want the loan officers name on the report. They said they don't get that information. I said ok, I will wait til you do.

They then advised to put the Bob Applebe, CEO of Chesapeak, (I think) I had to explain to them he did not order the appraisal and is not the one that originated the appraisal, per the following. . .

Section 10-15. Identifying client. In addition to any
other requirements for disclosure of a client on an appraisal
report, a licensee under this Act shall also identify on the
appraisal report the individual by name who ordered or
originated the appraisal assignment.

My main gripe about Chesapeak, is that if the cost to cure exceeds $1,000 they advise you not to go any further, they need to discuss with the client and get back with you. Then in the next day or so, if they advise you to continue, they think they can get the report that day. Not gonna happen, I know immediatly if the cost to cure is over $1,000. After I inspect the property, I pick the comps and take the phots, ect.

I havn't totally dropped them yet, I just keep raising my fee, to pay for the aggravation.

Although, due to there silly addendum request, I do put alot more language in my report. Which has cut down on these request.

 

[Charlotte Dixon]

I fired a client a little over a month ago because they were so much grief! And, this was a major lender, not an AMC or some fly-by-night bunch. The last three appraisals I did (in one week) for them were.....SUSPENDED.....It seems they got a new underwriter in there who was wielding the sword of power. These 3 appraisals were prepared in the same manner as those I've done in the last 3-4 years....no different adjustments or verbage. One was a V.A. and the others were conventional. The underwriter also cut my opinion of value by $1,000 on the V.A. one, which caused havoc with the builder of the new construction, and the veteran. And of course, I think, my appraisal was a text book case! One of my conventional appraisals was ....SUSPENDED....because: "When describing the neighborhood as 'surburban' the appraiser may not go farther than 2 miles for comps"....I went 2.2 for one comp. That was a new one for me. The third one that was ....SUSPENDED.... was for another stupid reason, so stupid, I don't remember what it was! Anyway, I just wrote a letter to the mortgage company's manager stating that I wanted to be taken off their ....APPROVED APPRAISER LIST....and stated why. It didn't take much thought to write that letter because I'm still waiting to get paid for a couple of appraisals I did last July and August. I don't have time for that B.S. If I'm guilty, sloppy, or inconsistent, I want to know and I'll fix whatever I did wrong. But to be nit-picky is a waste of everyone's time. Since I dumped that lender my blood pressure is back to normal (whatever that is for an appraiser) :roll:

 

[graindart]

I recently did an appraisal where I listed the garage in Fair/Avg condition. I got no fewer than 3 different people calling me to ask if I could please change it to Average so that the loan could fund. I explained that the garage wasn't in Average condition, and if I had to choose one way or the other, than I'd have to choose Fair. Another couple of calls later and the loan officer is asking if I can write an addendum saying that the garage DOOR is in average condition.

Finally to get them off my back, I wrote "the subject's garage DOOR is in average condition for a property of the same age and condition of that of the subject."

Legal size page with one sentence addendum......what a waste of my time!

 

[Charlotte Dixon]

Finally to get them off my back, I wrote "the subject's garage DOOR is in average condition for a property of the same age and condition of that of the subject." Legal size page with one sentence addendum......what a waste of my time!

:evil: I know.....gets me ticked off, too! :evil: Whoops, got to get that blood pressure under control

 

[Em Tee]

I can't resist chiming in.... here's a request we got in last week: "appraiser to explain why neighborhood marketing time is marked under 3 months, but all comps are 4 to 5 months old". Sure wish I could have answered with some witty remark, but I was too busy hitting my head against the desk!

 

[Ross (CO)]

Thanks to the 4 or 5 of you who have made direct references to Chesapeake and ludicrous addenda requests.... as I have a phone recorder note from the 22nd of October from them. Their rep was inviting me to "get on their list" for my market area. With some of your described hassles of addenda b.s. one might have to add at least $50 to the fee and require pre-pay or c.o.d......which I guess they would not do. Maybe, there is no real need to "chat" with them, after all.