What if.

[Alison Swain]

What does my appraisal skills (or lack thereof) have to do with a homeowner's unwillingness or inability to pay the mortgage payments every month?

 

[Hamlet]

There are too many variables in play that cause foreclosures to happen. Appraisers should be held accountable for what they do, their appraisals, not the lenders bad decisions, homeowner problems, etc.

 

[AJL118]

A Lot Of Extra Time & Vacant Thinking

This is the dumbest thread I have seen on the AF in my over 2 years of lurking.

Tony

 

[ghrousseau]

What if appraisers were held responsible for the loan performance on the houses they appraised?

I mean, how about some sort of tracking tied to our license number?

For sure, you could have a foreclosure ratio...maybe a delinquency ratio, and also a sale to appraisal ratio for foreclosed properties.

Caveats:

I know that appraisers who do low volumes would possibly be affected more harshly.

I know that foreclosures can sell below a good appraised value just b/c it is a foreclosure...

But, as these numbers shook out, a benchmark could possibly be established based on volume, total dollars appraised, etc?

Any thoughts?

Appraisers determine value only...........they do not and should not determine qualifications for borrowers. FHA and VA underwriters are scored and reviewed based on performance. FHA and VA approved lenders are reviewed and scored based on performance. This idea is just as silly as making the title officer responsible for the performance of the loan. TO's are responsible for issuing a clear and valid title to the owner and lender. I could go on and on..........bad idea.........end of story.

 

[AJL118]

Added: What on earth would possess the OP to pose such a negative hypothetical to an audience who, for the most part, are trying to survive? I just shake my little vacant head.

 

[liberated]

Added: What on earth would possess the OP to pose such a negative hypothetical to an audience who, for the most part, are trying to survive? I just shake my little vacant head.

Too much free time on our hands...

 

[Tucson Appraisals]

And another thing to consider is...what does the appraiser have to do with the borrowers credit score or repayment performance history? Nothing! Bad idea. Sorry.

 

[Roy Courtney]

There were times that I did an appraisal and the borrower met me at the home. In some of those situations the home value and condition was not at problem at the listed price. However, the borrower was someone that I would not have loaned YOUR money to much less mine! The lender did not ask me if I thought they should make the loan. They only asked me what the property was worth. If I had reviewed the loan application, credit report, etc. there is no way I would have approved many of these loans. That is why I believe that the UNDERWRITER is the person MOST at fault in this whole mortgage crisis!

 

[Mztk1]

They don't post them, but I have been told by reliable sources that lenders already keep these stats. One lender I heard weights each loan on a risk ratio which is factored into the the foreclosure rates of the appraiser, the broker, underwriter, et. al.

 

[ZZGAMAZZ]

Sidebars:

--How stupid and pointless it is that the appraisal is linked to the buyer rather than the seller in order to avoid collusion.

--Why not align the appraisal with the property owner who is selling the property? Buyer who doesn't agree doesn't have to buy. After all, it's all a wash because of the Q/C system inherent in the underwriting process (NOT).

--Why not align the appraisal with the Title company or some other sort of horizontal integration.

--I agree that the original post as posed appears to be less than thought-provoking; however, the paradigm it is a changing...