Using Collateral Underwriter to Turn Appraisers In

[Terrel L. Shields]

are driving appraisers into suicide and divorce.

Speaking as someone who had a cloud over his head for 2 full years, I can tell you clearly you can develop an ulcer if not careful. I gained some 30 lb. in those 2 years and took 5 get that back off. I developed diabetes then. .Even though I knew the suit was baseless, you have no idea about a judge. When it was thrown out with prejudice the 3rd filing I thought it was over...it wasn't. The bas***ds appealed to the Federal court in St. Louis. I ended up sending a lawyer to the hearing and she got a whole 7½ minutes to defend me. From the time it was filed in Federal court, it took almost one year. It was six months awaiting the appeals court decision. I am glad I wasn't married. I am not the suicidal type...homicidal perhaps but no woman in her right mind would have lived with me. My GF at the time kept a distance when I went into a state. She stomped out of the house more than once and went back home to keep from listening to me bellyache. She was still there after it was done, but the damage was done to the relationship and she left me later anyway.

The very fact an unsigned computer program print out can file a complaint says a lot about how our boards are structured. Those should be rejected without comment but they are as serious as a real complaint and it takes months to get through the process. a year is not an impossibility.

Fannie has been filing complaints against appraisers for as long as I can remember.

But didn't someone sign the complaint? Attach a review? I've never heard of Fannie making a complaint except when they did a formal review on a buy back or REO.

 

[alebrewer]

Speaking as someone who had a cloud over his head for 2 full years, I can tell you clearly you can develop an ulcer if not careful. I gained some 30 lb. in those 2 years and took 5 get that back off. I developed diabetes then. .Even though I knew the suit was baseless, you have no idea about a judge. When it was thrown out with prejudice the 3rd filing I thought it was over...it wasn't. The bas***ds appealed to the Federal court in St. Louis. I ended up sending a lawyer to the hearing and she got a whole 7½ minutes to defend me. From the time it was filed in Federal court, it took almost one year. It was six months awaiting the appeals court decision. I am glad I wasn't married. I am not the suicidal type...homicidal perhaps but no woman in her right mind would have lived with me. My GF at the time kept a distance when I went into a state. She stomped out of the house more than once and went back home to keep from listening to me bellyache. She was still there after it was done, but the damage was done to the relationship and she left me later anyway.

The very fact an unsigned computer program print out can file a complaint says a lot about how our boards are structured. Those should be rejected without comment but they are as serious as a real complaint and it takes months to get through the process. a year is not an impossibility.

But didn't someone sign the complaint? Attach a review? I've never heard of Fannie making a complaint except when they did a formal review on a buy back or REO.

Not necessarily. The compliant could come from a Fannie underwriter or a collateral reviewer, and could be for performing loans or NPL. Generally, there isn't a Standard 3 review attached - it's generally from an internal audit.

 

[Elliott]

Fannie just wants the full faith and credit of the US Treasury and not assume any of the risk. We've seen it once already collapse the banking system. If they are just given one more chance they could 'equity' all the properties that need to be equitied and end racial discrimination in housing, and require an EV in every garage to save the planet. They could set it up so stock holders with millions of shares could make billions of dollars, cash out, and then let the system fail again with Desktops and Evaluation Models, and they would promise to say, "Oh, we are really sorry this time, I guess we didn't properly evaluate the risk associated with real estate mortgages. We promise we'll do better if you give us one more chance, and we have some new ideas that will have even less discrimination and produce better equity."

 

[George Hatch]

First off, the CU system itself didn't submit the complaint. Someone at Fannie submitted it and that someone doesn't have to be an appraiser. Moreover, I'm not aware of any state that requires the submission of a complaint by another licensee to include SR3 review report be attached.

Secondly, as I understand it, D-F requires lenders to submit complaints to the states if/when they run into such problems. No loss or damages necessary.

Thirdly, I've lost count of how many appraisers have complained about Fannie's long history of accepting trash and not cutting these appraisers off, and how that has undermined the business interests of the appraisers who are doing what they're supposed to be doing.

-------------------------

She mentioned that there was a dispute about her condition and quality ratings of the subject. That alone will affect comp selection and reconciliation. If that's the disagreement then that's where her rebuttal should have focused, not on whether her comp selection fit in with her quality ratings. She also mentioned previously being instructed on certain aspects of her assignments - specifically mentioning 2-4s, that she apparently didn't understand before and then setting out to learn more about what she's supposed to be doing as a result of this process. She walked away from this one without any discipline but has modified her work so as to avoid some of these problems in the future.

Hooray, the system works as intended. She has learned from her experience that she needed to tighten up in certain areas. Hopefully her trainees will share some of those improvements in her competency.

Then she runs on about hybrids and desktops not being compliant (factually incorrect) and being indefensible (also incorrect) and our buddy Phil just throws gas on the paranoia.
-----------------------

There is no amount of organizing that is going to persuade Fannie to go more lightly on the work they are accepting (which personally, I approve of them tightening up). What's far more likely is that word will spread that Fannie is getting more selective about what they will/won't accept and the appraisers will respond by meeting those additional expectations. Fannie is basically *demonstrating* their expectations, which is exactly what everyone should want.

 

[residentialguy]

 

[djd09]

was she charged with a high crime or a misdemeanor?

 

[George Hatch]

All this means is that Fannie is becoming a higher maintenance user than in the past. Probably others will follow suit.

 

[shrubberyvaluation]

This is new? In most states, anyone can file a complaint against an appraiser. Fannie has been filing complaints against appraisers for as long as I can remember. Fannie, however, has no authority to discipline appraisers (with the exception of putting an appraiser on their ineligible roster). The state(s) still hold the authority to investigate, and discipline, appraisers. The concern should be whether or not a particular state changes course to become more punitive. Until that happens, the state(s) are still the gatekeepers as regards disciplinary action(s). Appraisers can't retaliate against Realtors or borrowers... why would that be different from Fannie? If the report is solid, then the appraiser should have nothing to worry about with respect to state disciplinary actions...

It is like an IRS audit, just because you did everything right, doesn't mean you have nothing to worry about and I'm sure it can be stressful.

 

[shrubberyvaluation]

Speaking as someone who had a cloud over his head for 2 full years, I can tell you clearly you can develop an ulcer if not careful. I gained some 30 lb. in those 2 years and took 5 get that back off. I developed diabetes then. .Even though I knew the suit was baseless, you have no idea about a judge. When it was thrown out with prejudice the 3rd filing I thought it was over...it wasn't. The bas***ds appealed to the Federal court in St. Louis. I ended up sending a lawyer to the hearing and she got a whole 7½ minutes to defend me. From the time it was filed in Federal court, it took almost one year. It was six months awaiting the appeals court decision. I am glad I wasn't married. I am not the suicidal type...homicidal perhaps but no woman in her right mind would have lived with me. My GF at the time kept a distance when I went into a state. She stomped out of the house more than once and went back home to keep from listening to me bellyache. She was still there after it was done, but the damage was done to the relationship and she left me later anyway.

The very fact an unsigned computer program print out can file a complaint says a lot about how our boards are structured. Those should be rejected without comment but they are as serious as a real complaint and it takes months to get through the process. a year is not an impossibility.

But didn't someone sign the complaint? Attach a review? I've never heard of Fannie making a complaint except when they did a formal review on a buy back or REO.

I had a lender send me a revision saying the CU was saying prices were stable or declining a little bit into prices climbing. I really don't know how the CU rates me in general. I'd hate to get rated low on a complex property because the machine doesn't understand the market/submarket and have a complaint filed for it.

 

[shrubberyvaluation]

First off, the CU system itself didn't submit the complaint. Someone at Fannie submitted it and that someone doesn't have to be an appraiser. Moreover, I'm not aware of any state that requires the submission of a complaint by another licensee to include SR3 review report be attached.

Secondly, as I understand it, D-F requires lenders to submit complaints to the states if/when they run into such problems. No loss or damages necessary.

Thirdly, I've lost count of how many appraisers have complained about Fannie's long history of accepting trash and not cutting these appraisers off, and how that has undermined the business interests of the appraisers who are doing what they're supposed to be doing.

-------------------------

She mentioned that there was a dispute about her condition and quality ratings of the subject. That alone will affect comp selection and reconciliation. If that's the disagreement then that's where her rebuttal should have focused, not on whether her comp selection fit in with her quality ratings. She also mentioned previously being instructed on certain aspects of her assignments - specifically mentioning 2-4s, that she apparently didn't understand before and then setting out to learn more about what she's supposed to be doing as a result of this process. She walked away from this one without any discipline but has modified her work so as to avoid some of these problems in the future.

Hooray, the system works as intended. She has learned from her experience that she needed to tighten up in certain areas. Hopefully her trainees will share some of those improvements in her competency.

Then she runs on about hybrids and desktops not being compliant (factually incorrect) and being indefensible (also incorrect) and our buddy Phil just throws gas on the paranoia.
-----------------------

There is no amount of organizing that is going to persuade Fannie to go more lightly on the work they are accepting (which personally, I approve of them tightening up). What's far more likely is that word will spread that Fannie is getting more selective about what they will/won't accept and the appraisers will respond by meeting those additional expectations. Fannie is basically *demonstrating* their expectations, which is exactly what everyone should want.

Yea, its really hard to know without details. I don't know if her work was trash, or if it was a timing thing. Ive seen plenty of appraisers use different C and Q ratings, it may not effect comp selection at all if they are consistent.