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UW is asking for the following corrections?

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nevalues

Thread Starter
Freshman Member
Joined
Jan 13, 2008
Professional Status
Certified General Appraiser
State
New Hampshire
Time adjustments are not acceptable. Appraiser to re-evaluate and remove time adjustments.
I checked the market as declinning and adjusted sales over 90 days at a rate of.58% per month as per market indications. What am I supposed to do here??
 

Marcia Langley

Senior Member
Joined
Aug 26, 2005
Professional Status
Certified Residential Appraiser
State
Missouri
ne,

Market adjustments are at the sole determination of the appraiser.

First, make sure the request is comming from an actual underwriter and not someone sitting in a mortgage broker's office or an AMC office, or someone who is an LO.

This is a serious request only if it comes from an actual UW.

Second, it is also the appraiser's responsibility to provide solid documentation in their appraisal report to support the market adjustments, or lack thereof.

If you have already provided that solid support for you adjustments in your report, then you can refer the UW to that.

If you did not, you probably should cheerfully add an addendum that provides it.

This market trend analysis is very important to clients and a grave responsibility for the appraiser.
 

David Wimpelberg

Moderator
Staff member
Moderator
Joined
Mar 30, 2005
Professional Status
Certified General Appraiser
State
New York
I would tell the UW that market evidence indicates that the market is declining. Hopefully that evidence was included in the appraisal report, but if not, I would suggest sending it.

If the UW disagrees and is making demands, I would require the UW send the evidence that indicates otherwise.
 

nevalues

Thread Starter
Freshman Member
Joined
Jan 13, 2008
Professional Status
Certified General Appraiser
State
New Hampshire
What kinda solid documentation are we talking about. It is a condo appraisal I used 6 comps. 5 of them are exactly the same as the subject, 2 new ones, less than 90 days and 3 older ones 7 & 8 months old. By just looking at the comps provided and the time of sale you will clearly see that there is a decline in the market. Newer sales are 6 to 8% lower than the older ones, and we are talking about a perfect case scenario here. exactly similar comps, same GLA, room count, location....etc. I just do not know what else I have to put in there, and why she came back to me with this request. If I remove the time adjustment comps will be way off. Does not make any sense.
 

Marcia Langley

Senior Member
Joined
Aug 26, 2005
Professional Status
Certified Residential Appraiser
State
Missouri
ne,

I imagine she wants to see some discussion about the trend in your comments. Wants to see some math and some stated conclusions from you.

I agree that the request as you have posted it ...

Time adjustments are not acceptable. Appraiser to re-evaluate and remove time adjustments.

is an improper request. She can't just tell you to remove it. But she has so now you have to respond. Either give her some more written discussion about how you arrived at your adjustments or tell her you stand by what you have already provided and do as David suggested and ask to see her support for her own opinion.

If she gives you some valid data that you had not considered, consider it.

A more appropriate thing for her to have done in the first place would have been to say she disagreed with your analysis and given her reasons. Then you would have something to rebut.

But just saying "remove it" with no associated reasoning is not right.
 

Doug Meyer

Senior Member
Joined
Sep 13, 2003
Professional Status
Certified Residential Appraiser
State
Indiana
Are we talking about an underwriter from the mortgage brokers office who is just wanting you to take out these adjustments so their loan will fly or from a truly LENDER underwriting department. There is a difference.
 

nevalues

Thread Starter
Freshman Member
Joined
Jan 13, 2008
Professional Status
Certified General Appraiser
State
New Hampshire
I just left her a message to call me back. I do not really care if she likes it or not. I will not be changing anything unless she comes back and give me a very good darn reason for this request, which I doubt she has. I already did my research when I completed this assignment and explained my conclusions very clearly. I just never had such a request before. Thank you for your help and I will keep you updated on this.
 

nevalues

Thread Starter
Freshman Member
Joined
Jan 13, 2008
Professional Status
Certified General Appraiser
State
New Hampshire
Am not sure yet Doug. The assignment was ordered by a mortgage lender/broker. They do some loans in house and broker some loans too. I have been doinng business with this company for a month or so and am not really sure on how they handle the UW part of the loan.
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
Give the comps .58% per month less weight in the reconciliation.
 

Carnivore

Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
Second, it is also the appraiser's responsibility to provide solid documentation in their appraisal report to support the market adjustments, or lack thereof.


What publication places emphasis on this specific type of market adjustment over other market adjustments we make?
 
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