That's It! I Have Had It With Lenders.

[Doug in NC]

Got a rush order over late last week. Lender claims he had an appraisal done late last year, but now is hoping to get a new appraisal for a few more thousand.

We send an appraiser out to do the job. Value comes in near previous value so lender is really angry. "I can't believe you didn't tell us before you went ahead and finished the appraisal!" I tried to explain that we did not know the condition of the property before we went down there, and that we had to go down there before we could get the most recent sale information to do the appraisal. Lender is livid.

To make matters worse, low life lender 1 gave his office buddy our contact info. He gave us an assignment to do in the same town. Same scenario, had recent appraisal but wanted higher value, rush order, got realistic value, but I haven't talked to this guy yet.

How unprofessional of an appraiser to not give the client a value before he does the inspection!

One things for sure, I am raising fees on any new lender client that comes to us for work; the aggravation of dealing with disgruntled unprofessional lenders has pushed me over the edge. On second thought, maybe I'll stop doing work for them altogether. Lenders shouldn't request an"appraisal", they need to cut to the chase and just start making their requests for a "CONTINGENT APPRAISAL".

Is lender pressure an epidemic in our industry or what!

Maybe I'll take the afternoon off today.

 

[tommcsherry]

How unprofessional of an appraiser to not give the client a value before he does the inspection!

Geez Doug...you ought to report yourself and revoke your OWN license! :rofl: :rofl: :rofl:

 

[Mountain Man]

Me too Doug. Had one cancel yesterday because I would not appraise it over the phone for the owner. She specifically asked if their "needed amount" was on the request, and I could make it? Told her I didn't know what it's worth until I did the appraisal. She got pissed, LO called to cancel and wanted to ream me as he almost lost the loan over "my attitude". Told 'em to take it somewhere else.... talk to the hand, because the ears aren't listing ..... I don't work like that, and I'm not taking his insults.

A sign of the times.... they have been living on their own blood, and are now trying to suck out the marrow.

 

[Doug in NC]

It's such a condescending attitude. Obviously these loan officers "expect" that the appraisal should come in at desired value or the appraiser should know better than to complete the report. Guess they don't teach any lender ethics at Dealmaker's Loan school.

I took 'em to the school of hardknocks and they don't like my teaching methods. I'm sorry that their loan deal didn't work out, but dammit I am USPAP-mandated NOT to be concerned with where the value comes in at. My job is to prepare an unbiased appraisal. Despite what Skippy is doing all over the country, once a valuation opinion is formed, it's too late to "stop and submit a trip fee". Sure it makes them mad, but it's because the current system is so overwhelmingly corrupted. I don't see any hope of there being any meaningful changes made either.

 

[CANative]

I inspected a property for a purchase appraisal yesterday morning. As soon as the tenant opened the door, I knew the appraisal would not support the contract price.

I drove off the "yuckky" comps and one of the "good" comps to use for bracketing.

It's a 10 year client. Should I call him and let him know the situation? Or just surprise him with the appraisal?

 

[jeff samolinski]

I don't know what the answer is- we have signed petitions, we have written to the asb, we have written to the new head of the mortgage brokers, we have written to congressmen, we have as a group here on the forum made many many many efforts to get someone to do something and to no avail-

I too am tired of it!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

[Ted Martin]

You really need to lower the stress in your life.

None, I repeat NONE of the clients in the lending world really want an appraisal. From their perspective individual loans are like air molecules in a tire, as long as the tire (loans) will hold air till they sell the car (loan portfolio) they don't care. Let the next guy worry about fixing the flat, and then claim that he ran over the nail in the road and that it the tore (LTV) was fine when you sold the car (portfolio). Fannie, Freddie, CW, WF, etc. etc. etc. don't care about appraisals for individual properties. The bean counters are in charge and as long as the bad loans and losses are at or below some predetermined loss threshold they don't really give a rip. The only reason for ordering the appraisal in the first place is to have somebody to hang when things go wrong.

Saying that, on a case by case basis an appraiser doesn't have much to worry about. A friend of mine tried to turn an obviously fraudulent report (bogus and non existent sales and addresses) over to the FBI and was told that they don't follow up on single appraisals only cases where a pattern of multiple transgressions can be established. His experience pretty much mirrors mine with respect to client lenders, and the state board, if there isn't a pattern of multiple abuses they don't give a rip.

In that environment predetermined values make sense from the perspective of the borrower and the lender.

Relax, work up the reports with a value that you feel comfortable with and if the borrower and lender don't like it TOUGH toenails, it's your neck on the line.

The fix for our problems is more authority for underwriters. If the underwriter had the authority to make a loan for $100,000 on a $95,000 property based on their opinion of the borrower's credit worthiness they wouldn't be beating us up to make a $95,000 property a $100,000 property. They push it off on us because we are the only independent voice in the entire lending process. The rest of the process is fill in the blank. The skill level of the average loan officer, broker or underwriter has been dumbed down to the level of a Walmart greeter. The good broker / loan officers that I know are equally frustrated because they have only have products X, Y or Z and never get to use their knowledge or professional judgment.

 

[DB]

Had very near the same conversation with a lender this morning already. They were steamed because I didn't call them before I did the appraisal and accused me of just taking the peoples money. Claimed they ordered the previous appraisal which came in a $63K 3 years ago and was done by an out of town appraiser who flat out lied in the report. Said comps in a totally different city were only 4 miles away and worse. I got chewed on like a bone!! I told her that I knew I was going to be the bad guy for pulling the property back in line with the market. She said that she had actually been in the house a few days before me and knew the condition that it was in.

It was quite comical. I expressed to her that I had given her an honest and accurate appraisal for her to make a lending decision by and it sounded to me like she was able to make that decision based on my report and that she should be thanking me.

I don't think I will be doing anymore appraisals for her or her company because I don't "do things the way her other appraisers do. They call and give me a heads up on these situations so that we don't waste the customers money!!" ..... Clueless ... absolutely clueless! :lol:

 

[Stone]

Sorry if this comes off as aimed at you, Ted. It is intended as a more general statement, but the quotes are necessary for context.

None, I repeat NONE of the clients in the lending world really want an appraisal.

That is just not accurate. I have bank clients that actually do want an appraisal. Between my two best bank clients, I believe I have only heard back a few times about a low value, and they simply wanted a little clarification for when they told the homeowner. This may have to do with the fact that this is a bank and has much more at stake than a mortgage company, but they are indeed part of the lending world.

I wish people would stop with the blanket statements about the entire lending world throughout the entire country. It seems absurd to think that anyone knows what every client is like throughout their own state, let alone all 50. I feel this detracts from the debate.

 

[Ramon A. Olivarez]

Scenario: Trusted client calls for appraisal on property. You, the appraiser, are familiar with properties in the area, the market, etc. Loan amount stated on the order is $99,000. You, the appraiser, know that sales in the area/location/situs of subject will not support loan amount, not anywhere near that. Sales of comps show value are at $60,000. Same type homes, area, etc.

Do you:
1) Call client and advise him that appraised value will not be anywhere near loan amount?
2) Will you go appraise property, and after review, call client and tell him that appraised value will not be anywhere near loan amount? Charge him only trip fee.
3) Do you do the appraisal, charge the client and wait for the phone call that will certainly follow?