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Uw From Hell

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Joined
Jan 16, 2002
My subject is a 8,316 sf mansion (superior quality materials, finishes. etc.) on 22,507 sf lot (and of course comps are scarce). It is located in an exclusive neighborhood with highest values in the county. Sales
in this are rare due to extremely low turn-over rate. Homes like the subject represent less than 1% of the overall market activity at an given point in time.


Lender orders field review appraisal which gives me passing marks in all categories (yes repsonses on all items). However, reviewer makes a miscellaneous comment on how I should not have adjusted comp 3
for being sold "with 18th century museum quality furniture, valued at $250,000" (I verified this via listing/selling agent as listing indicated it was being sold
with furniture - homes in this area are never sold with furniture). Reviewer did say comps used were best available.

Ok, here comes the UW with the following loan conditions:

1). "Appraiser to delete entire addendum of appraisal report " (which explains everything I outlined in paragraph 1 above).

2). "Appraiser to delete subjective language on page 1 of appraisal report " (the language she is talking about are the words - "exceptional/unique mansion").

3). "Appraiser to replace comp 3 and delete all wording in the report that makes reference to the furniture". (The report goes into great detail as to why there are no other comps available - keep in mind reviewer said comps are best available).

I've gone to battle with this bank before on previous requests to delete specific wording, on the grounds that they do no tell appraisers what to say in reports. The deletion of the addendum would fall into a "misleading report" category - a violation of USPAP - lIMHO.

I'm sitting here biting my tongue :angry: - how would you respond.?
 

Pine Tree

Junior Member
Joined
Aug 19, 2002
Professional Status
Certified Residential Appraiser
State
Maine
I know it's easy to say here.. hard to say to a client but the answer has to be ...
No..
You have prepared the most acurate estimate of value as the current pool of date would allow. To DELETE ( Oh my stars, WHREE do theey get off??) any of the comments pertaining to the appraisal process is to render the value meaningless and misleading ..
Of course, this condition would be a violation of USPAP..
Certainly they would not make such a request if the realized that..now would they??
Errors of omission are no better than errors of commission.. It's your signature on the bottom line.. Not the U/W ( probably 5 years old with 15 minutes experience) and appraiser does not = puppet of 5 year old U/W Good grief! Yes, as you can tell, I have been there and still can taste the bitter pill ... :)
Good luck
Wendy
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Four line reply:

Cannot provide service requested in UW missive of {date}. This would be a violation of professional practice. See also review of subject report that concurrs that the selected comps were the best available as second professional opnion on this matter.

Please note the personal property in sale #3 was properly addressed and represents less than .0X% of total sale value: equivalent to the inclusion of a lawnmower in a less valuable property."



in otherwords SHADDUP :twisted:
 

wyecoyote

Senior Member
Joined
Jan 15, 2002
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Washington
Joe,

Did the underwriter specify this in signed writing? If not I would request the underwriter type and sign specifically what the UW requests. I would also prepare a letter that basically outlined what the underwriter requested you do to the report and state that if you complied with the request the appraisal report would be misleading, violation of USPAP, Title IX, and could result in a fraud to any third party that was not aware of the specified request by the UW. I have found that this usually makes the request go away rather quickly.
 

Carnivore

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

To stall for time you might do the following. As suggested above get this in writing freom the UW. Then submit this to your E& O carrier for consideration, include review as supportive evidence. Tell the UW you are consulting with E&O carrier and you will get back with them.

Time is money. Time you will waste for the underwriter, will cause customer to be po'd. Soon, production willl jump on this wagon and apply pressure to less than worthy UW. This may all go away by itself. Also, make sure borrower knows you have completed appraisal. UW and LO's will blame slowness on you if your not careful.

Good luck bud, hope fee was huge.
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Like Ryan said .... get it in writing, and then flame 'em.

Also would let the LO know that their fees have just gone up due to the extra time required to respond to unreasonable, and unnecessary UW request. (AKA the idiot/aggravation fee :mrgreen: )
 

Willie

Senior Member
Joined
May 30, 2002
Professional Status
Certified General Appraiser
State
Tennessee
Joe, I would send something like. Appraiser has considered your request to omit .............. Upon further consideration of you request, and based on ???????? years of experience appraising residential real estate, that to comply with this request would result in a report which would be misleading and could have an adverse effect on the immediate parties involved to and as far reaching as the shareholders of ??????? bank.
 

Richard Carlsen

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Michigan
There is a simple solution.

Get the UW to make the request in writing with signature.

Then make all of the changes and deletions that the UW requested.

Then put an addendum in the report that says something like this:

"At the specific request of the client, the appraiser was requested to delete the following from the report. (Here you lay out what was deleted and changed) These changes have been made to the report as requested by the client. This addendum is made part of the revised report as specifically requested by the client to ensure that the appraiser’s original analysis and opinions are fully understood by the client."

You will no doubt tick someone off but if you think that it is important to make sure the client understands what you were trying to get at in the first place, I'd figure out a way to get it in the report.
 

Bill_FL

Senior Member
Joined
Aug 23, 2002
Professional Status
Certified General Appraiser
State
Florida
Just to show them how ridiculous this is, I would insert a singlewide as comp 3 and adjust the crap out of it under quality, design and appeal, etc.


Seriously, I think the above responses are good. I would send a letter back stating you are unable to change the appraisal as it is factually correct and altering it would cause you to report a misleading appraisal. Then, be prepared for the request for the 4th comp.
 
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