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Underwriter asked for another appraisal

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Jasonganem

Thread Starter
Freshman Member
Joined
Jan 4, 2007
Professional Status
Licensed Appraiser
State
New Hampshire
I did an appraisal 2 weeks ago on a Ranch style single family home. The underwriter sent a request to add 2 more comps to justfy value which i did. One day later i got an email from my client stating that the underwriter has asked him to use another appraiser to appraise the property and that if the value comes the same then she will approve the transaction, with no further explanation. This is the first time this happens. we have been appraising over 25 years and am really upset with this request. I do not want to lose my client's confidence in my work. What should i do??. I went back and looked at the appraisal i submitted and i found no problems in it but the underwriter wanted 2 comps up to 90 days old and there was none in the area, so the only thing i can think of for not accepting the appraisal is that I added 2 comps that are 7 to 8 months old and i explained that.
 

Carnivore

Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
jason,

This may not be about you or your work. Its probably all about the "I never pay my Bills on time" borrower!
 

Kevin A. Spellman

Senior Member
Joined
Aug 30, 2003
Professional Status
Certified Residential Appraiser
State
Massachusetts
Your report could possibly be participating in a loan program that requires the underwriter’s to request indicators of value that are less than 90 days. An open dialogue to client with the presentation of current offerings, pending sales and expired listings could help to support the market conditions you have stated, but not the value.

If your report can provide analytical data to demonstrate the sales activity per quarter or per year that could curb the request for two additional sales if they do not exist. Is your subject a typical property or are there characteristics that are not typical. I do believe the current market conditions may not be economically beneficial for most appraisers, but the assignments that we do receive can elevate an appraisers skills specifically in the communication of the appraisal assignment.
 

Chrispy

Freshman Member
Joined
Oct 13, 2005
Professional Status
Certified Residential Appraiser
State
Florida
Keep in mind, many lenders are using AVMs and BPOs. If your [professional, thoroughly researched and detailed] appraisal is not with in a few % points, then they will question. You did what you are paid for- a quality appraisal report. They are checking against flawed data sources. Stick with your guns. That is why we get paid the big bucks (heheheheh) and why BPOS and AVMs are cheap.
I have one MB who checks every appraisal against Zillow and calls me when the numbers don't match. My answer- has Zillow seen the subject or the comps?
 

Lloyd Bonafide

Senior Member
Joined
Jan 15, 2006
Professional Status
Certified Residential Appraiser
State
California
I did an appraisal 2 weeks ago on a Ranch style single family home. The underwriter sent a request to add 2 more comps to justfy value which i did. One day later i got an email from my client stating that the underwriter has asked him to use another appraiser to appraise the property and that if the value comes the same then she will approve the transaction, with no further explanation. This is the first time this happens. we have been appraising over 25 years and am really upset with this request. I do not want to lose my client's confidence in my work. What should i do??. I went back and looked at the appraisal i submitted and i found no problems in it but the underwriter wanted 2 comps up to 90 days old and there was none in the area, so the only thing i can think of for not accepting the appraisal is that I added 2 comps that are 7 to 8 months old and i explained that.

If you are comfortable with your report, don't worry about it. Some lenders are requiring two appraisals on certain types of loans - that's their choice. In fact, assume that another appraiser will be doing a second appraisal or at least a detailed field review on every property you appraise - it tends to make you more careful about your work.

I'm also getting requests to have two sales within 90 days, etc. on some appraisals. If they do ask for that, try to give it to them. The market in some areas has changed so much in 90 days that a sale from 4-6 months ago or longer isn't really valid sometimes.

Obviously you have already used the best comparables in your report. If there are no truly comparable sales within 90 days, try another similar area, or at least give them a pending sale or an active listing. A sale from 7 or 8 months ago isn't what they are looking for.
 

Lobo Fan

Elite Member
Joined
Nov 28, 2004
Professional Status
Certified Residential Appraiser
State
New Mexico
I had a weird one like that the other day. UW came back and wanted the adjusted value of all my comps to be 5% or less top to bottom. I was using 6 comps and my range was just under 10% which I thought was pretty good. I quizzed the UW and it turned out to have more to do with the credit rating of the borrower. There was nothing I could do to comply. So they sent it out for another appraisal or a field review. I guess the second opinion was pretty close to mine. Never heard another word.
 

Chris Colston

Elite Member
Joined
Jul 24, 2003
Professional Status
Certified Residential Appraiser
State
Florida
Don't sweat it too much. It really has nothing to do with you or your report. It's just the nature of the weird times we are in. I just had one of my value opinions cut 39% by UWs who claimed to use two different AVMs to prove I was too high on my value. I just wonder if the AVMs took into account the 2.5 acre stocked lake, the 1,600 sf barn (with 4 stalls and tack room) and the 3.5 acres of grazing land when the value was cut. Me thinks it just considered the house and compared it other houses without all the other amenities.
 

Cob

Senior Member
Joined
Mar 30, 2006
Professional Status
Certified Residential Appraiser
State
Texas
AVM's and BPO's I have never understood when they cut a value of an appraisal because of one of these.:shrug:

Then why not just use those to do the loan in the first place if you're going to base the value on that or cut an appraisal value because of a BPO or AVM value. You would think it would be the other way around.:Eyecrazy:
 

hastalavista

Elite Member
Joined
May 16, 2005
Professional Status
Certified General Appraiser
State
California
AVM's and BPO's I have never understood when they cut a value of an appraisal because of one of these.:shrug:

Then why not just use those to do the loan in the first place if you're going to base the value on that or cut an appraisal value because of a BPO or AVM value. You would think it would be the other way around.:Eyecrazy:


Jacob-

While the UW may be relying on some other valuation product, that has not been established.

I'm only bringing this up because that's how many urban legends get started on this forum- a forumite ponders aloud "what if it were this", another considers it in their response, and before you know it, a new thread is started "UWs use Zillow to cut values!" (Although now that I type it, it doesn't sound so off-the-wall, does it? :laugh: ).

More likely, a number of things were done to evaluate the particular appraisal and the entire loan submission which may have included an AVM product. In my experience, the UW has the ability and authority to make the lending decision based on an appraisal unless some fixed threshold (such as LTV or market value) is crossed.

Another way to look at this situation is this: If UWs start acting like this on a regular basis for no apparent reason, our volume should double, no? :new_smile-l:
 
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