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The Numbers Game

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Julio E. Sune Jr. (FL)

Senior Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Florida
http://www.inman.com/inmannews.asp?ID=36329&CatType=B

["If it looks as though the appraisal could come in low, the mortgage broker might hire an appraiser who has a reputation for appraising on the high side. This will maximize the chances of the loan being approved."]*

*"An appraisal IS NOT the number needed in a file in order to make the deal go through" [JES]
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Looks like I'll be composing a nice/nasty letter to the editor tonight!!!!

:twisted: :twisted: :twisted:
 

Ghost Rider

Senior Member
Joined
Apr 27, 2003
Professional Status
Banking/Mortgage Industry
State
Connecticut
I'm so sick of the appraisal being the only thing that the brokers can't manipulate. It is what it is......Do I feel bad when Johnny can't refi to send his daughter to college?? sure, but it's not my fault.....the home is worth what it is worth. Appraisers don't make the market, we simply report it. If you wanna get mad, get pissed at your neighbor who bought the same house as yours down the street and only paid $100K for it. Don't blame me if that "sets the market".....

Whats wrong is that they can change any other number they life.......I knew one mortgage broker who would sit with a borrower and pull their credit report, and see a charge off to XYZ gas, and ABC Electric, and......wow, you got your phone shut off, lets see........He'd reach into a locked file on his desk, and pull out letterhead from EACH OF THESE COMPANIES.....he had letterhead from every major utility and phone company in the state, must have gotten them from a dumpster or had them printed himself, and write a letter, sign it, and send it to the underwriter to get a loan approved. Took the whole credit history out of the equation.......

now THAT is scary!!!!!!!
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
Back in my old retail business, we used to be told in every committee meeting that the single largest and most controllable expense is payroll. Now, 12 years into this business, I envision mortgage companies having meetings and making the statement, "The appraisal is the single largest, most controllable number in the mortgage process."
 

Ed Potrafke

Sophomore Member
Joined
Dec 17, 2002
This article made me sick to my stomach, so I just had to write them a letter.



To whom it may concern,

I read your article titled "Today's Tip: Appraisal key to refinance amount". Let me tell you, I am shocked. Do you realize that your advocating mortgage fraud? Do you realize that if someone is caught following your advice, they could end up with a concrete bedroom.
As an appraiser, I am totally disgusted to see a publication such as Inman News advocate this type of criminal behavior. The market is what the sales point to, not the number needed to close a loan. To do otherwise would be unethical, and illegal.
Once again, I am shocked to see such an article in Inman News. Not only is this practice illegal, it is a disservice to the person getting the loan, especially in these uncertain economic times. This is the type of fiasco that lead to the S&L scandals of the '80's. What happens if the person loses their job, and can no longer afford their home? Is the mortgage broker going to buy it, when they can't sell it, due to it being worth less than the loan amount? I doubt it.
I've shared your article with my many ETHICAL friends, in the real-estate and financial fields. Needless to say, we will view Inman News in a whole new light now.


Sincerely,
Ed Potrafke
 

Paul DelleDonne

Sophomore Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Delaware
The article reeks of Bruss or one of his Schmengie Minions.
 
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