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

[DB]

#3 .... plain and simple. Just proved it in the post above yours.

 

[Doug in NC]

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

I think I know your answer, but what does USPAP say? It is a difficult decision to make. On the one hand, you have your livelihood telling you if you complete the order, you may be off that lender's call list. If you decline the order, you have made a valuation decision, and based on that decision YOU have made the decision not to complete the assignment, and it is my understanding that you will be in violation of USPAP. Even if you fail to charge for the cancelled assignment, it is unethical for you to base acceptance or decline of an assignment on whether or not you can make value. USPAP gurus please correct me if I'm wrong.

 

[Diana Malcolm]

I received an order last week from my free listing on AppraiserUSA.com. thanks Wayne!

The order stated "please call if value is an issue". I looked everywhere on the form for a value- there wasn't one! They forgot to put the value! (but didn't forget the note to alert them if value is a problem. )

The order was COD, so instead of contacting the client, I called the borrower to make appointment. The first words out of my mouth were " Per your lender, I need to collect the fee from you at time of inspection. If you need a certain value, I can not do the appraisal. " He said "OK and no, value is not an issue, I only am borrowing half what it is worth."

I said great and we set appointment. He never said a number. The client never said a number. His check was good. I thought it went well. thanks again, Wayne

 

[Bobby Bucks]

Since I began shrouding MBs my life has gotten much easier. I am now down to 2 MBs that I recognize because I knew them before getting into this business and they understand and appreciate my position. As for any other MBs, they simply don’t exist. They can phone me 20 times a day about a copy of a prior report with another client, fax me as many requests as they wish, but there is no law that says I even have to respond. The overwhelming majority of MBs are simply not worth the time involved to conduct business. You’re only as good as your last deal. As for that tiny minority of MBs who are honest and above board I include those 2 that I still accept orders from.....of course they are honest and struggling in a business that rewards the worst of human behavior. 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.

 

[Tawfik Ahdab]

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

You use the word "surprise", from which I infer that you would not be delivering what they expect. This implies to me that the role of the appraisal is to validate a lender's expectation, and if, not, that something is "wrong".

But nothing is wrong, as the lender's expectation SHOULD HAVE NO PLACE in the performance of the appraisal assignment, which includes its acceptance.

I'm only writing this for clarification, Greg.

 

[Lee SW IL]

QUOTE]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? [/QUOTE]

Just because the appraisal is not meeting the contract price does not mean this is a dead deal. Your job is to give an unbiased opinion of value. The buyer can renegotiate the purchase price or walk. I do not give a heads up to lenders that the contract or estimated value is not going to be hit. I let my report do the explaining. When a pissed off LO or HO calls I just point them to the report. If the LO is local, I tell the LO to drive by the subject and comps, if they have better comps that I missed let me know. If they b*tch about the fee, sorry but you ordered an unbiased opinion of value, which is what you received. We should be paid for our services.

But in the real world, typical appraisers or unprofessional appraisers will lower themselves to the unprofessional loan officers. Now if you have called your 10 year client in the past, they are going to expect you and every one of us to call for a “head up” grouping all of us into the same category. Which is just BS!

Now stopping the appraisal process because of say the condition of the home, cost to cure issues, is another story.

 

[jeff samolinski]

and thus my constant references to don't take the cheese but you may have already taken the cheese without knowing it- How many times will you not take the cheese before you finally do take the cheese!!!! There are few professions like ours where we are constantly exposed to bend or let slide our ethics by the very ones that we work for-It is not humanly possible to be continually exposed to these things and not ever slip up. ie.. something has to be done about those that are baiting the traps!!!!

 

[Donald Swenson]

Hi all:

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. Lenders are encumbering properties with loans of specific amounts and terms. This is their problem. Lender's are not planning on selling the property that is being encumbered with a loan, so our "market value" opinion is really inappropriate. Market value (read the definition) assumes a TRANSFER of ownership. Is the lender selling the property? Usually NO. Rather they are encumbering the property with a specific loan amount and with specific terms. Is the loan amount 50% of your MV opinion? Is the loan amount 100% of your MV opinion? Is the loan amount appropriate for this property, location, condition, and emerging trends? Yes, if the lender forecloses on the property at some later time, then they need a real opinion of how they can maximize the selling price to salvage their encumbrance. But, initially, the lender just wants to make a sound loan on a particular property. Keep in mind that when I use the term LENDER, I am talking about those persons that are really responsible for underwriting prudent loans. Most LO's and Broker's are not the real lender. Why aren't we, as appraisers, getting to the crux of the problem before we proceed with our appraisal? Why no dialog about the proposed loan amount and the terms?
Why not some dialog about the legal issues involved in the proposed transaction?
As a prior lender, I would submit that we need new thinking about the real problem at hand before we proceed with any appraisal. HELP!!!

Don

 

[jeff samolinski]

And as I have said many times before- what is needed is for all of the players in this integrated process to sit down together and come with some changes that meet the needs of all those involved and some rules that all must play by-but no we have USPAP to bind us and the users are free to constantly temp us to violate USPAP.
What a system.

 

[Doug in NC]

Here is what an honest appraiser gets for doing his job:

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

And he thinks what I do is unethical. Is this what they call "lender pressure"?