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

[Doug in NC]

Now I know there are many fine appraisers out there who will rush to say that THEIR MB accounts aren’t like that, they’re as pure as the wind driven sea. My reply to that? Dick Cheney to you for dealing with those *****s and keeping them in business.

Thanks again Bobby for bringing me a chuckle on a down day. I needed that.

And also, my regards to Dick Cheney for having the intestinal fortitude to speak his mind (unlike most politicians) when its necessary. :lol:

 

[Tim Hicks (Texas)]

We are in a business that conflicts can not be avoided. Do the job to the best of your ability and move on. Do you really want to work for a company that does not respect your opinions of value?

Brokers are not bound by USPAP and it is not their job to know our rules. It is their job to make loans.

The biggest problem lies in our own house of appraisers. If we did not have appraisers who played their games, hit any number they need and called if there was a value issue before inspecting, this would never be an issue. I don't blame lenders. I blame appraisers for causing their own problems.

Something else you might want to consider is that not all appraisers do good jobs. I have seen lazy low ball appraisals, too. An appraisal is an opinion of value, but it is possible for your opinion to be wrong. Even me, with my vast knowledge ( :rainfro: ) and unquestionable abilities ( ) have been proven wrong by consumers willing to pay more than my opinion.

All in all, this is my usual rant. Quit whining and being candy asses about things unless you are willing to live with the consequences or you are doing something proactive to help solve our appraisal related problems.

 

[Tawfik Ahdab]

Donald wrote:

The problem with lender clients is that they really don't need an appraisal. What they need is our opinion about the appropriatness of the loan that they are proposing on the property.

That opinion about the appropriatness of the loan that they are proposing on the property could be viewed as a consulting assignment and not an appraisal, right?

What the lender wants the appraiser to do when requesting pre-comping or stopping the appraisal is ultimately to provide a consulting service that will only turn into an appraisal order when the consulting service provides grounds for covering a needed loan amount.

I don't think a single appraiser who accepts an appraisal order perceives himself or herselfas providing a consulting assignment simultaneously with performing an appraisal.

Standard 4: Real Property Appraisal Consulting,Development reads

[Comments on Standard 4-2 (f)(ii)

"If the opinion of value is from an appraisal developed by the appraiser performing the real property appraisal consulting assignment, the appraiser must complete the steps set forth in STANDARD 1 for the type of appraisal (Complete or Limited) pertinent to the purpose and intended use of the opinion of value to be developed. The appraiser’s appraisal-related scope of work must, at a minimum, include those steps necessary to comply with Standards Rules 1-2©, (d), and (e) and, given the purpose and intended use of the appraisal in an analysis supporting the appraisal consulting assignment results, the research, verification, analysis, and reconciliation steps necessary to comply with Standards Rules 1-3, 1-4, 1-5, and 1-6 as applicable."

But here's the rub: in Standards Rule 5-3 (Real Property Appraisal Consulting, Reporting), the certification must state:

"–     I have no (or the specified) present or prospective interest in the property that is the subject of this report, and I have no (or the specified) personal interest with respect to the parties involved.

–     I have no bias with respect to any property that is the subject of this report or to the parties involved with this assignment.

–     my compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal."

There you have it.

 

[Doug in NC]

Tawfik,

We put these statements on every report, but when was the last time we read them?

This one pretty much sums it up:

my compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.

If you accept an appraisal, you can't stop it at your discretion - per USPAP and our own certification page. If you stop in the middle and charge a $75 trip fee or don't charge anything to salvage a client, you violate your own appraiser certification that you sign on every report.

 

[J in Florida]

"Doug,

I have an appraisal from last year on this exact property for a value of $xx,000. Now, a year later you are telling me the value has gone down to ($7K less). This is unacceptable and a company wide email has been sent out to delete you from our preferred list of appraisers. I regret that I have already referred one other loan officer to you. Your practice of increasing the cost of an appraisal and not properly researching the property to make extra money for your company is unethical and will be reported to the appropriate agencies.

JC"


:rainfro: :rainfro: :rainfro:

What a freakin moron JC is.

 

[Tawfik Ahdab]

Doug,

I'm in complete agreement with you. What I wrote was to counter any attempt to weasel out of the responsibility of the appraiser as an appraiser by claiming that the acceptance of an appraisal assigment could be considered part of an appraisal consulting assignment.

P.S. Why don't you give us JC's email address so we can flame him? Pretty please?

 

[Tim Hicks (Texas)]

Originally posted by J in Florida@Aug 5 2004, 01:06 PM
"Doug,

I have an appraisal from last year on this exact property for a value of $xx,000. Now, a year later you are telling me the value has gone down to ($7K less). This is unacceptable and a company wide email has been sent out to delete you from our preferred list of appraisers. I regret that I have already referred one other loan officer to you. Your practice of increasing the cost of an appraisal and not properly researching the property to make extra money for your company is unethical and will be reported to the appropriate agencies.

JC"


:rainfro: :rainfro: :rainfro:

What a freakin moron JC is.

Is JC a moron because he has an appraisal from last year that says different?

JC is a moron, but he was probably given a little help to achieve his prima donna level by some appraiser in the past.

This problem is appraiser created, not lender created. Until our peers learn to "just say NO", this problem will never disappear.

I had this happen just this week. Appraiser put $44,500 on a property last September without mentioning functional, external and physical problems. Now, selling for $50,000 by owner. I put $37,000 on the property now. The loan officer asked me if the property had declined than much in less than a year. I explained that I have no way of knowing about the physical problems, but I doubt it, the functional problem was always there and the external problem has been there for over 20 years.

I told them it was not my fault, maybe they should have called that last appraiser that put his neck on the chopping block last September. Who knows, they probably will.

 

[DB]

That is the problem in the case I described above. Skippy danced into an area that she had no competency and did a bad appraisal 3 years ago for the same lender and now it is up to me to pull it back in line. Did Skippy do her or the homeowner a favor? Nope!! Did I? In reality ... Yes ... they will not make the loan based on my appraisal and the homeowner will not be in debt above their eyeballs based on my report and the homeowner now knows about what their place is worth. Had I played the game, the loan would have been made and this, well beyond retirement age couple, would be homeless in a couple of years and be old and not have a thing in the world to show for it. Did anyone thank me? Nope. Quite the opposite. Been a while since I have had a chewing as good as I got this morning. I enjoyed it because I was able to respond, accurately and professionally and without making an *** of myself, as the MB did. If it wasn't for all the folks on the forum, I might not have been able to answer so readily and professionally. Thanks everyone!!

 

[Doug in NC]

Why don't you give us JC's email address so we can flame him? Pretty please?

Believe me, I would love for a bunch of appraisers to let him hear it from our side.

I am afraid JC isn't the one to blame though. He is probably just doing what the rest of his organization is doing from the top down. I am afraid the rampant obnoxious behavior in the lending industry has got to be taught, it hasn't spread this far on its own. Correction needs to start somewhere at the top of the lending food chain, unfortunately, us little fish don't stand much of a chance against all of the sharks.

 

[Andy Taylor]

Doug,

Tell JC to send copies of both appraisals to the "appropriate agencies" and ask him to let you know the results.