VA Appraisal Question.Comps.

[roxgro]

Appraiser Question

That's really a great idea...I'm an experienced Realtor, however, I do NOT understand the appraisal process..and I'm not alone. Question for you, if you have time: I don't understand the new rules concerning the appraiser "selection". I was under the understanding that the appraiser HAD to be selected from the AMC, however, I got an email today from www.mercuryvmp.com, Mercury Network Appraisal Service, and got the impression that the appraiser can be "picked". I live in AZ, just in case the rules vary by state. How does this really work? Can a mortgage broker choose the appraiser?? It's been a real problem here. Thanks!

 

[David Beasley]

So far as appraiser selection for VA appraisals, that's simple, the lender goes to TAS on the VA web portal and plugs in the pertinent data to request an appraisal and an appraiser is assigned (randomly, from the VA fee panel) to the case by the "computer". It is a blind draw. You CANNOT PICK an appraiser on a VA appraisal request, period. You can't even request/cancel/request/cancel to shop for one like you could when the computerized rotation started with the VA back in '99-2000 or so. Once an address is assigned to the VA appraiser, that's it (unless there's a conflict of interest on the appraiser's part, or some other far flung issue). Every time you cancel it and re-request it, the same appraiser's name will continue to pop up. Again, this was a safeguard that became required when stubborn lenders kept trying to get their "pet appraisers" once the rotation went electronic by shopping for them with repeated cancellations/reorders.

As to VA loans and AMCs, yes, that can happen. But only by the dumbest and laziest of lenders IMO. The VA loan program is EXEMPT from the HVCC because they already meet the HVCC standard for what is basically a blind-draw or rotating appraisal assignment system that they've used for decades now. I do like it when I get a VA request from an AMC though - I laugh at their $225 fee and 48 hour turn time, and remind them that the VA sets my fees and turn times, not them.

For non-VA loans, then yes, some sort of appraiser rotation should be implemented by the lender. This rotation, however, does NOT have to be under the umbrella of an AMC. AMCs are the scourge of the real estate industry, and I hope that you don't have to deal with many of them...but I know that's unlikely. The HVCC does not say anywhere within in it that AMC use is mandatory. Most lenders can't read, think AMCs are required, and is the reason most appraisals are being routed through the money-sucking middlemen. Once the FHAs start coming in, in big numbers, with full fee disclosure (ie: "Appraiser was paid $225 for this appraisal.") and folks start seeing $500 'appraisal fees', with an appraiser stating IN THE REPORT that they were only paid $225...things may begin to change...but I wouldn't hold my breath. You'll see some in-house rotations, with oversight by non-commission-paid lender personnel start to pop up again after that, but AMCs are here to stay since only people that benefit from them seem to be able to make the rules governing them. Thankfully, there are several local lenders near me who are already forming (and have already formed) their own rotating "appraiser panels" and aren't going to pork their borrowers or appraisers by subjecting them to an AMC's fees for a service that isn't really needed.