The Culling Process

[Dee Dee]

Bill,
I think I'm getting better at recognizing at what point I have to draw a line in the sand and say "no more" to frivolous UW requests.
I'm also figuring out which LO's I need to boot from my client list. :roll: Surprising how their true colors can come out if they think they're going to 'lose the deal', in spite of my going above and beyond to satisfy the UW's impossible demands, and in spite of having done many appraisals that have sailed right through in the past.
I've got one LO who appears to be holding the fee from an appraisal that I did for him a month ago for ransom as he awaits the underwriters decision on another that is in dispute. I've already been paid for the appraisal that's being debated back in December, UW wants all new comps which have sold since September in the same outlying neighborhood (there are none...zip, zero, nada). Whenever I mention the fee that hasn't been paid the LO dodges my inquiry and starts griping about the one that he's paid me for that isn't settled. At first I thought I was imagining it, but now I'm convinced that he's going to stall paying me unless I can figure out how to satisfy the UW (it can't be done!).
Looks like it's about time to put on my steel-toed boots and stand my ground. 8O

 

[John "Corky" Harry]

Dee Dee,

You are absolutely correct. I have narrowed my client list to a few who seem to care about the mortgage process and conduct themselves in a professional manner, i.e. the larger banks who have a mortgage division. I do not deal with mortgage companies who offer "creative" financing or loan officers who "sugar coat" a assignment and plead for a value. As for the underwriters, "kill em' with kindness". It is hard, but it works for me. I provide a polite response/explanation with a hint of sarcasm thrown in. The processors know it is not directed at them. It is obvious you provide your client with the best product available and as long as you stick to your guns, you will prevail. God forbid something drastic happens to the economy and/or the real estate market. When the smoke clears, appraisers like us (who post on this board) will be the only ones left standing.

 

[Dee Dee]

Corkster,
I certainly hope you're right.
Just got off the phone with yet another good friend who is barely hanging on. A 'friend' through her church had decided to go into the lending biz and, long story made short, she has become the victim of a predatory lender. Sure wish she had talked to me first...if they can make it through another year without losing their home it'll be a miracle. I know waaaay too many people who are too embarassed to talk openly about their finances to their friends and family, and end up being lambs in the hands of any wolf who says they can straighten things out. Breaks my heart to see this happening to such hard working and trusting people.

 

[Joe Birrell (NY)]

In many cases when Uw's make unreasonble requests, they already know in advance that you will not be able to comply, and therfore, YOU are the reason the loan is being rejected. They don't want to make the loan (for a variety of reasons), none of which they want to tell to the borrower. I've often tell they, "close with the documentation you have, or reject the loan, it's that simple. There is no other documentation that I can provide".

Don't worry about it, it's all going to blow up in their faces anyway.

 

[Larry Lyke]

What I'm not hearing in Dee Dee's thread is that there's lots of Private Investors out there.

In the present situation there's the possibility that the intermediary in the loan process is trimming this loan to fit one his Private Investors who has certain narrower requirements, as in idiosyncratic needs per se.

And, by tweaking your appraisal, he can make it fit in the hole.

As the Forum might or might not know, most Private Investors pay a slight surcharge (i.e., pourboix; tip) to get the loans they want -- the cream of the pipeline.

OH YES, INDEED, Dee Dee, you can be absolutely sure that these Private Investors do not want the annual refi-ers.

 

[Dee Dee]

You might be correct in that assessment, Larry.
One of my not-so-favorite soon-to-be former clients is being elusive when I ask him what investor he is using that keeps making unreasonable appraisal requests. Not sure if that is any of my business, but most LO's are pretty open about it, unlike this guy who acted a bit offended that I would ask.

 

[George Hatch]

This situation is just like when the lenders use review appraisers to kill a deal by (improperly) attacking an appraisal. I've heard stories where a staff review appraiser is handed a file and ordered to kill the appraisal, regardless of the lack of deficiencies, specifically because the lender didn't want to honor a loan commitment.

Ever have a perfectly fine appraisal report go out the door, only to have it come back looking like the cat got at it?

If a lender wants to turn down the loan then by all means do it. After all, it is their money. All they have to do is take responsibility for the decision; don't lay it on the appraisal report.

George Hatch

 

[Richard Carlsen]

Let me share with you the final paragraph of a reply to an UW "demand" that I sent last week. I'll bet you can figure out the "requirement".


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IF THERE HAD BEEN TWO ADDITIONAL COMPS CLOSER TO THE SUBJECT THAT THE APPRAISER WAS AWARE OF, HE WOULD HAVE USED THEM IN THE REPORT RATHER THAN THE COMPS SELECTED. THE APPRAISER ANTICIPATED THE REQUEST AND THE NEED FOR ADDITIONAL COMPS TO SUPPORT VALUE AND MARKET LEVELS AS STATED IN THE REPORT. THE ADDITIONAL COMPS ARE INCLUDED AS COMPS 4 AND 5 IN THE ORIGINAL REPORT. THERE WERE NO KNOWN PENDING SALES AT THE TIME OF THE INSPECTION. THE INCLUSION OF CURRENT LISTINGS WOULD NOT CONTRIBUTE TO THE ACCURACY OF THE OPINION OF VALUE. THEREFORE, SINCE THE ADDITIONAL COMPS ARE IN THE REPORT AND USE OF CURRENT LISTINGS WOULD NOT CONTRIBUTE TO THE REPORT, NO FURTHER ADDITIONAL COMPS WILL BE INCLUDED. IF THE CLIENT INSISTS ON A 6TH AND 7TH COMP, THEY CAN BE PROVIDED AT A FEE OF $25 PER COMP. IF SO DESIRED, PLEASE SEND AN ORDER ACKNOWLEDGING THE COST AND A SEARCH WILL BE SCHEDULED IN ORDER TO PROVIDE THEM.

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No response as yet from the LO or the UW.

 

[Pamela Crowley (Florida)]

Too cheap Richard. Last time I had a request that was unreasonable for more additional comps, I offered to do them at $100 each. I figure that if they really want me to go through that, it will cost them.

 

[Dee Dee]

Just heard from the LO on these appraisals today. The investor coughed up AVM comps (6 for each of 2 reports) and the underwriter wants me to address each comp individually as to why I didn't use them. A cursory glance shows that the AVM spit up comps which are smaller, and of course the condition is not mentioned when both of the subject properties have been significantly improved and updated. Upon further investigation I have found that 4 of the 12 comps provided by the 'omnipotent' AVM cannot be found in local MLS (will check county records next).
Now I ask you...should the appraiser be expected to comb, house by house for a half-mile radius around the subject to come up with comps? Not this kid, especially when there are perfectly good and verifiable comps already in the report (which, by the way, I turned in back in mid-December!).
I'm thinking about putting together a fee chart or charging by the hour for frivolous crap like this. It's that or the LO's are going to know up front that requests similar to this will not be done. Period.