KYLECODY
Senior Member
- Joined
- Apr 26, 2003
- Professional Status
- Certified Residential Appraiser
- State
- Arizona
Recently completed a simple suburban tract home for the VA. Cash out refi I believe. Home was average and not updated. 2016 build so everything was fine just basic. Had three model matches within 3 months. This is a flat/stable market so time adjustments are not needed. Came in at 440k I believe with almost no adjustments.
Three weeks later the lender sends an email for a ROV with 3 "comps" and in the email thread the loan officer is begging basically that the loan can't work unless it gets raised. They submit a support ticket they say to the VA. I just wait to hear from the VA to proceed because sometimes they can cut these off at the pass. The VA never sent me anything directly for a ROV so I figure they just told them yeah, too bad, sorry. End of story.
The 3 comps they sent me had two from within the subdivision that were similar enough but both with swimming pools, which is roughly 30-40k in this price range. The subject had no pool. The 3rd comp was brand new construction, highly upgraded from a different subdivision.. Huh? We dont use new homes for 10 year old homes. All this could of easily been explained away by me in about 3 sentences on a ROV but they never contacted me.
Check the order today out of curiosity and in the notes the VA "reviewer" said "Im pleased to inform you we raised the value to $480k" What in the actual f***? I know the VA reviewer has discretion to bump it up within a set amount if warranted but huh? They didn't account for the large swimming pool adjustments or the other comp being new construction and superior. They ignored the three recent, model matches I used. I dont know if they got lucky with whoever the reviewer was and he just didn't care or if the VA is just willing to throw any number on paper to close the loan and get that interest? The bad thing is now that homeowner, who also overpaid for that house near the end of Covid 2022, will be upside down by a bunch if he has to sell in the next few years. And the next appraiser that shows up will also be the bad guy if he gives a legit value. Did not think I would see the VA go down this path. Shady stuff. They are usually excellent on everything.
Three weeks later the lender sends an email for a ROV with 3 "comps" and in the email thread the loan officer is begging basically that the loan can't work unless it gets raised. They submit a support ticket they say to the VA. I just wait to hear from the VA to proceed because sometimes they can cut these off at the pass. The VA never sent me anything directly for a ROV so I figure they just told them yeah, too bad, sorry. End of story.
The 3 comps they sent me had two from within the subdivision that were similar enough but both with swimming pools, which is roughly 30-40k in this price range. The subject had no pool. The 3rd comp was brand new construction, highly upgraded from a different subdivision.. Huh? We dont use new homes for 10 year old homes. All this could of easily been explained away by me in about 3 sentences on a ROV but they never contacted me.
Check the order today out of curiosity and in the notes the VA "reviewer" said "Im pleased to inform you we raised the value to $480k" What in the actual f***? I know the VA reviewer has discretion to bump it up within a set amount if warranted but huh? They didn't account for the large swimming pool adjustments or the other comp being new construction and superior. They ignored the three recent, model matches I used. I dont know if they got lucky with whoever the reviewer was and he just didn't care or if the VA is just willing to throw any number on paper to close the loan and get that interest? The bad thing is now that homeowner, who also overpaid for that house near the end of Covid 2022, will be upside down by a bunch if he has to sell in the next few years. And the next appraiser that shows up will also be the bad guy if he gives a legit value. Did not think I would see the VA go down this path. Shady stuff. They are usually excellent on everything.
then you could decline
