What now for CA appraisers?

[Cob]

I don't get it. It was not about "value". Like a homeowner filing a complaint because they did not "like" the value. It was about not supporting or explaining something that any appraiser I know would have done without thinking. Appraising a property above list when it has been on the market for multiple months with no explanation. A 38% change in value due to ROV and no explanation. Seriously

You are 100% CORRECT that it "was about not supporting or explaining something" but some of it was about value as well, 38% increase in valuation between his original report and a revised report submitted after a reconsideration of value was submitted by the lender. Just my opinion, if you think it was not about "value" that's your right to think that.

In my opinion what happened is, original appraisal report below contract price, ROV sent, appraisal report changed to be 38% higher than original opinion of value, but still not at contract price so they filed a complaint with the board and again, you are 100% CORRECT, this appraiser failed to mention a lot of things in his report, but some of this was about value, an opinion of value his client did NOT like.

 

[Overimprovement]

The problem is this--the easier it is for people to whine, the more work and cost it will be on appraisers. No one is defending poorly supported reports. No one is saying (at least I am not) that most existing complaints don't have some merit. But this new law SEEMS like it could open up a Pandora's Box, and you know realtors will be all over the buyer/seller to file these complaints if any deal falls through because some stupid appraiser did their job to the best of their ability.

I think it's an undeserved injustice to appraisers. The existing system works fine where there are legitimate report problems, but was not intended to be used whenever opined market value<>contract price. Like I said, IF this system starts getting abused, there will be even more exodus from some appraisers, and others who just say "screw it, from now on, MV==price".

Funny how Fannie has basically said one reason waivers and other forms of valuation get used more now is the high percentage of time MV does equal price with full reports. Now we are going to penalize appraisers whenever they don't hold to that equation. Danged if you do, darned if you don't. All to save $500 on the purchase of a million dollar home.

 

[Alsie35]

Every time this thread pops up, I quietly say to myself: " Thank the Good Lord you got out of that place last year."

 

[Tim Hicks (Texas)]

The problem is this--the easier it is for people to whine, the more work and cost it will be on appraisers. No one is defending poorly supported reports. No one is saying (at least I am not) that most existing complaints don't have some merit. But this new law SEEMS like it could open up a Pandora's Box, and you know realtors will be all over the buyer/seller to file these complaints if any deal falls through because some stupid appraiser did their job to the best of their ability.

I think it's an undeserved injustice to appraisers. The existing system works fine where there are legitimate report problems, but was not intended to be used whenever opined market value<>contract price. Like I said, IF this system starts getting abused, there will be even more exodus from some appraisers, and others who just say "screw it, from now on, MV==price".

Funny how Fannie has basically said one reason waivers and other forms of valuation get used more now is the high percentage of time MV does equal price with full reports. Now we are going to penalize appraisers whenever they don't hold to that equation. Danged if you do, darned if you don't. All to save $500 on the purchase of a million dollar home.

Yes, but I continue to get lenders requesting me to change the sales price on the appraisal report to match their new amendment that matches my lower opinion of value. At least twice a month I refuse to do this because all it does support that most appraisals support the sales price. Thankfully, I have Fannie circular 12-2016 to support not having the change my appraisal to match the new sales price.

 

[Fernando]

Yes, but I continue to get lenders requesting me to change the sales price on the appraisal report to match their new amendment that matches my lower opinion of value. At least twice a month I refuse to do this because all it does support that most appraisals support the sales price. Thankfully, I have Fannie circular 12-2016 to support not having the change my appraisal to match the new sales price.

When you get new addenda to contract, aren't you suppose to review it and change your signature date?

 

[Tim Hicks (Texas)]

When you get new addenda to contract, aren't you suppose to review it and change your signature date?

If it happened after the effective date and all they do is change the sales price or seller concessions, we are not required change anything. If they change something that effects the opinion of value we can make changes. Look up Fannie Mae Circular 12-2016.

 

[Fernando]

If it happened after the effective date and all they do is change the sales price or seller concessions, we are not required change anything. Look up Fannie Mae Circular 12-2016

As a business decision, it's a follow up and like to know changes in the sales contract for future reference.

 

[Tim Hicks (Texas)]

As a business decision, it's a follow up and like to know changes in the sales contract for future reference.

If you read the circular, they are required to provide us with changes to the sales contract, but we are not required to change the appraisal to the new contract price.

I have lost zero clients providing lenders with this circular. No, appraisals do not have to match the contract sales price for underwriting.

 

[Overimprovement]

Yes, but I continue to get lenders requesting me to change the sales price on the appraisal report to match their new amendment that matches my lower opinion of value. At least twice a month I refuse to do this because all it does support that most appraisals support the sales price. Thankfully, I have Fannie circular 12-2016 to support not having the change my appraisal to match the new sales price.

My bold--great point, I wanted to make sure everyone wraps their hands around this. Another example of appraisers digging our own graves. Why help lenders put us out of business?

 

[Dublin ohio]

Yes, but I continue to get lenders requesting me to change the sales price on the appraisal report to match their new amendment that matches my lower opinion of value. At least twice a month I refuse to do this because all it does support that most appraisals support the sales price. Thankfully, I have Fannie circular 12-2016 to support not having the change my appraisal to match the new sales price.

If they insist. I just put a signed addendum at the beginning of the report stating that the sales price was changed after the effective date. That way CU does not pick it up since it is not on page 1 of the URAR. Never had a push back.