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Tired To Death Of That Line...(vent)

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Kathy in FL

Member
Joined
Jan 17, 2002
Professional Status
Certified General Appraiser
State
Florida
Anybody else hearing this a lot lately? Seems like it always is coming out of a mortgage broker's mouth after an appraisal comes up low. Today it was an "owner's estimate of value" that was a good $35K high. Got my appraisal...LO calls, huffy..."That's what he OWES on it!...He had an appraisal done that came out $1K over that in 1998!" (OK, so I asked...then how come he's had what, five years to pay on it and he still owes more than the original appraisal? What did they loan? 125%?) LO says, "I can't believe you didn't call me and cancel when it came up low...he shouldn't have to pay for an appraisal that he can't use."

It breaks my heart. I had very good comps...net and gross all under guidelines, one on the same street...comp photos look just like the subject. An easy one. The homeowner was really nice with a new baby. And now he owes more on the house than its worth...and is trying to cash-out refi.

WHAT IS WRONG WITH THESE MORTGAGE BROKERS?

Now I'm sitting here with his (uncashed) check for $350.00 and feeling guilty. Are they feeling guilty that this guy is in the hole? :confused:

Just seems to be happening all the time, lately...

Kathy in FL
 

Ghost Rider

Senior Member
Joined
Apr 27, 2003
Professional Status
Banking/Mortgage Industry
State
Connecticut
I've heard it waaaaaaay too much....

My Favorite was when I did cancel an order, and charge a trip fee when I got out to the house and saw that the 3 family had been converted (not sure if it was legal or not) to a 6 family - I'm only certified residential, so I called the lender, told them that I could not proceed for the obvious reasons (I only do 2-4 families)........

They don't lend on comercial (5 or more units) properties, and just called the woman, cancelled her application......she called me SCREAMING about it, calling me every name in the book, and how I cost her the mortgage she was gonna get......I said I was not appraising the house for her, I was appraising it to protect the lenders interest, and promptly hung up, I've been getting phone calls from her every day since - they go right to voice mail now......

One word of avice, you should have cashed that check before sending in the appraisal.......Not sure how nice a guy he was/is, but I'd be betting on him putting a stop payment on it quickly!!!!!
 

Thomas R. Merrill

Freshman Member
Joined
Sep 23, 2002
Its all a matter of perspective. In the mortgage broker's definition of a "GOOD" appraisal are the words "commission paid". Thats all they are interested in. They don't house their loans just pass them on like everything else they do. They talk about credit scoring being the main factor of loan approval and don't want to hear that credit scoring means nothing in property valuation. Their definition of a "BAD" appraisal is one that kills their deal...never mind how accurate, competent, thorough the appraisal is. They will tell everyone they know how they got a bad appraisal but never qualify the actual reason why.

In my opinion appraisals don't come in low or high; they come in exactly where they should everytime a quality appraisal is performed.



thommerrill
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Cathy,
I know, vent away..... that always helps. But the HO's are just as bad; do you think the LO would even have a job if someone didn't need his "services". <_<

Next time go to the HO's bank and get it cashed. If it is collect at the door, I don't know "what the value is" until I get my $$ :mrgreen:
 

Frederick R. Ruffell

Senior Member
Joined
Jan 21, 2002
Professional Status
Certified General Appraiser
State
California
Kathy,
CASH THE CHECK!!! it is OK to weep while you do, but you did the work now go and get paid. If you were working for someone else would you still not cash your pay check on this one.....or if you had an employee that had done this one would you be refunding the fee and paying your employee out of your own pocket? I don't think so. CASH THE CHECK!!!!!!
 

Blue1

Elite Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
California
Kathy,

Maybe the borrower can use your appraisal to prove that he got taken to the cleaners by his former lender....As far as the broker is concerned....tell him...."I got paid for an opinion of value and that's what you got. I didn't get paid to come up with a pre-determined value, that would be fraud....wouldn't it?" Cash the check....you did your job......Don't look back (except for not accepting any orders from this broker again).......Hang in there....
 

Travis McGee

Senior Member
Joined
Sep 18, 2004
Cash the check and move on to next job! We have to start thinking like business people and stop wasting time agonzing over this type of thing. What is wrong with your loan officers? Nothing - they are business people pissed off because they are losing a deal and money, and trying to pressure you into a higher value. Don't feel sorry for homeowner- too many people are trying to use there homes as banks instead of getting a second job or reining in their spending. Hope your "nice" homeowner hasn't stopped the check. Good luck.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
You are not a charity, you are a business. Cash the check and move on.

I have stopped when the property is an absolute disaster and charged for a trip only, such as the one I saw yesterday - absolutely full of termites with no remaining value. However, the value is what the value is. If the loan doesn't work, it's not my problem. I did the work, I get paid, and that's life in the big city.

Roger
 

Karl

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Arizona
BRAVO!! Finally comments that look like we are business people. I have a client that has moved up my priorty chain, JUST BECAUSE her instructions are collect COD & Cash the check before sending in the Appraisal "IN CASE" the loan can't be done, she's seen borrowers cancel the check even with a closed loan.
 

Patti Jury

Senior Member
Joined
Mar 23, 2002
Professional Status
Licensed Appraiser
State
Colorado
Since when is it our job to make sure this guy..can get further into debt? I like the Mortgage people who only look to line their pockets and never once think about the good of the homeowner. That is what is driving the market however..

Bad appraisers hitting the numbers no matter where they find their comps and mortgage brokers that can only see $$$$ signs. I fear it will only get worse in the near future.."the Bad guy appraiser" will get more grief in the near future because of the higher than actual values, 125% loans that had an inflated appraisal in the first place, and the push by some agents to over-value the sales prices of homes.. So I think that we as an industry can share in some of the blame as well. I also believe that teh HO has the most responsibily. I agree that if more HO's would go after the previously inflated appraisal/Loan than there would be less of this kind of thing taking place. Educated HO's.. is there such a thing?

I am already seeing it in this market.. especially with the "new Construction" purchases and builder sales prices. The builder sales from 1 year ago are about 25% higher than the resales in the same area.

I guess we just hang in there.. cash the checks and move onto the next assignment as best we can.
I would also suggest keeping a sharp eye on our own industry and do our level best to keep our Appraisal Boards in line and doing their jobs!

I will admit however.. I am a little worried about our futures and the future of the housing industry! I do not believe things will get better until Mortgage Brokers/LO's and anyone pushing a home loan must be licensed. JMHO
 
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