The third party

[Mike Garrett RAA]

 

[Pam]

No, the keywords are THE APPRAISER MUST

 

[Paul in bama]

If you can't do that little bit of work to tell the appraisal who the intended user is then you don't deserve the commission.

 

[Pam]

There are plenty of things that brokers and loan officers do that they should be taken to task for. Not identifying each and every possible lender at the time the appraisal is ordered isn't one of them (especially since the USPAP specifically makes it the appraiser's responsibility and allows for the identification of intended users by "type").

For example: I'm Broker X. I intend to send it to Conforming Lender A. Conforming Lender B lowers its rates 25 BP for the same program. Conforming Lender B is now my intended user.

Conforming Lender B reruns the credit. Borrower no longer qualifies. I send it to Subprime Lender A. Subprime Lender A is now my intended user.

Subprime Lender B initiates a new program, that suits my borrower's needs better than anything Subprime Lender A has to offer. Now Subprime Lender B is my intended user.

When I ordered the appraisal it was implicit that I was a mortgage broker and that my purpose in ordering the appraisal was to support a mortgage loan for the specified borrowers. Providing investor quality appraisals is the appraiser's job when working for loan brokers. Any appraiser who couldn't figure out that Conforming Lender A, Conforming Lender B, Subprime Lender A and Subprime Lender B are my intended users should be looking for a less mentally taxing line of work.

 

[Mike Garrett RAA]

Dear Pam....Are you smoking dope? It isnt our job to retype an appraisal every time you decide to sent it to someone else. End of story!

 

[Pam]

Who said anything about retyping the report? I certainly didn't.

Personal insults are uncalled for, but by the way, I don't smoke anything.

 

[Mike Garrett RAA]

Each time you ask for the client or named user to be changed, it is necessary to "retype" the entire report as the client name appears on everything!. Granted it really isn't all that hard to do but still very time consuming. Do you accept the reports EDI? Just to make one change on a report it takes no less than 5 steps and, for me cuz I am slow as hell about 15 to 20 minutes to complete.

Step 1. Retrieve the report from archived files and move to work in progress.
Step 2. Open file and remove electronic signatures.
Step 3. Make physical changes to report, electronically sign, and save
Step 4. Print copy for file and print to .pdf
Step 5. Create email document and attach .pdf file and sent.

Personally I am please to know you dont smoke...I dont either.

 

[George Hatch]

Pam,

First of all, if the appraisal met the original Client's (guidelines) and was truly suitable for submission to Lender A, there is nothing that prevents Lender B from using it in its present form, without any changes of any kind. Especially when the lender's reviewer can add their extras as part of their review. Of course, if the review staff is working beyond their own geographic competency and resources, I guess that poses a diferent problem.

The fact that Lender B now wants a 'better' appraisal with more detail or additional comps is immaterial to the original engagement. It is the very height of arrogance for Lender B to expect the appraiser to exceed their original agreement at their own expense and without consideration of any kind for their other committments.

I'll ask the following questions one more time. If you don't want to answer, you don't have to.

Is it really your opinion that an appraisal prepared for a mortgage broker is, by definition, literally open-ended and cannot close until everyone who touches it dictates to the fee appraiser what their guidelines are, above and beyond the minimums agreed to in advance by the original client? That future intended users (who are not the Client) are free to dictate terms after the report has already been submitted and accepted by the original Client? Remember, the engagement is between the client and the appraiser, not the intended users and the appraiser. Is it really your opinion that the client and the intended users have absolutely no responsibility in calling out their requirements in advance so that the appraiser can have a knowable and defined standard to meet?

Meanwhile, since we're talking about appraisers who should find less mentally taxing jobs, how about lenders/investors who are too mentally taxed to do things right in the first place?


George Hatch

 

[Pam]

Again, who said anything about retypes? I certainly didn't. The originating broker remains the named client. The lenders are "other intended users."

My only point is: If you work for brokers, it's your responsibility to do investor quality work. The vast majority of requests for additional documentation I have seen fall into the following categories:

Sketch (no room locations, doesn't match photos, no dimensions, doesn't match grid for room counts/locations)

Map (comps clustered distant from subject, no location map at all. comps so distant they are on 4 separate maps)

Comps (dated, distant and/or dissimilar)

Sections not complete (no legal description, no cost approach, etc.)

Internal inconsistencies (functional depreciation in the sales comparison but not in the cost or vice versa, marked suburban but comps are all many miles distant, photos show arterial location, commercial influence, etc. but no mention of it in the report....)

Lousy proofreading (boilerplate doesn't make sense for subject, subject has different characteristics on page 1 and page 2, appraisal made "subject to" without any mention of what it is subject to....)

Just to be clear, if the report is "investor quality" to start with, the appraiser will probably never know that Conforming Lenders A & B and Subprime Lenders A & B ever saw the report. And when an appraiser accepts an assignment from a mortgage broker, and the purpose of the appraisal is to support a mortgage loan package for the named borrower, it IS the appraiser's responsibility to provide an investor quality appraisal report.

 

[Mike Garrett RAA]

And it's the mortgage brokers responsibility to only accept properties that will meet the guidelines. I am soooo tired of trying to make chicken soup out of chicken poop!

Ohhh please mr appraiser...say that a property that is 35 miles from the metro area is suburban.

Ohhhh please mr appraiser....don't mention any outbuildings or the fact the home owner has a herd of cattle on the property.

Ohhhhh please mr appraiser...don't show any repairs or conditions.

Or my very most favorite....Ohhhhhhhh pleeeassseeee mr appraiser, do all the work but if it won't come up to our "NEEDED VALUE TO DO THE LOAN"...stop immediately and call us so we can cancel the order and stick you with two or three hours of research. Of course we will give you 25 more just like this one so you can make up your loses in VOLUME!

Give me a break! One of these days those of you who were flippin burgers at Mickey D's just two weeks ago will be required to get some education...perhaps 2,000+ hours just to get certified. Take and pass multiple tests, provide error's and omissions insurance, and buy several thousand dollars worth of equipment just to start in the business.

Seems so strange to me there are numerous appraisers here who have been in the business for more than 20 years (myself included) but the average loan officer lasts less than two years. (Source - Colorado Association of Mortgage Lenders Annual Report)