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Old 06-18-2013, 07:41 PM
 
Location: Austin
7,244 posts, read 21,755,019 times
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It's interesting that the two appraisers are saying above that they speak with the lenders all the time, yet mortgage people say they cannot speak to you at all. Even the post above from willow wind says you appraisers cannot speak with the mortgage person, the main contact for the buyer. Apparently the laws aren't as cut and dry as each side likes to think they are.
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Old 06-18-2013, 07:44 PM
 
Location: OK
2,825 posts, read 7,530,825 times
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Quote:
Originally Posted by BigV View Post
was supposed to close yesterday, but in the AM, the underwriter requested one additional comparable from the appraiser, resulting in an extension to closing to this Friday.

How long does it usually take for the appraiser? Loan officer figures about 48 hours for appraisal review and then 48 hours for underwriting.

I actually found a very comparable house (also a new construction, closed by the same builder, identical model) two doors from my (yet to be purchased) house. This home was not included on the appraisal likely because it was mapped incorrectly (showed up about 30 miles east of where it should have showed up, even though the address was correct). Since I'm a RE broker also (and a buyer) I have called the MLS to have the mapping corrected and it was.

Sucks that we can't talk to the appraiser to point these things out. Any input and help would be appreciated.
In all likelihood the appraiser knew about that sale. Quite frankly, I don't know any appraiser who relies on MLS mapping.

It is more likely that the house next door could not be used because it is by the same builder. With new construction FNMA wants us to find sales by competing builders. It does allow 1 sale by the same builder but i prefer for all my comparable sales to be either resales of from other builders.

Quite frankly, I am surprised that, as a broker, you are not aware of this.
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Old 06-18-2013, 07:45 PM
 
Location: OK
2,825 posts, read 7,530,825 times
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Quote:
Originally Posted by FalconheadWest View Post
It's interesting that the two appraisers are saying above that they speak with the lenders all the time, yet mortgage people say they cannot speak to you at all. Even the post above from willow wind says you appraisers cannot speak with the mortgage person, the main contact for the buyer. Apparently the laws aren't as cut and dry as each side likes to think they are.
Actually, they are. But sadly, frequently brokers and lenders are not that aware of the rules and regs in their own industry.
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Old 06-19-2013, 06:48 AM
 
624 posts, read 1,069,875 times
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Quote:
Originally Posted by Annemieke Roell View Post
In all likelihood the appraiser knew about that sale. Quite frankly, I don't know any appraiser who relies on MLS mapping.

It is more likely that the house next door could not be used because it is by the same builder. With new construction FNMA wants us to find sales by competing builders. It does allow 1 sale by the same builder but i prefer for all my comparable sales to be either resales of from other builders.

Quite frankly, I am surprised that, as a broker, you are not aware of this.
Well, the issue was that the appraiser was tasked with finding one comparable with same GLA as the subject property with minimal adjustments. They have found plenty of comparables but they had to adjust the value on all. They used a different house by the same builder but with a larger square footage (also sold for more money) as a part of their appraisal. I'm not aware of the FNMA rules requiring use of sales by competing builders. Do you have a link to the rules, by chance?

Thanks.
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Old 06-19-2013, 07:29 AM
 
Location: MID ATLANTIC
8,670 posts, read 22,853,798 times
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Most lenders have put policy in place that loan officers are not suppose to have direct contact with the appraiser, due to fear of an appearance of impropriety. However, some banks will allow seasoned loan officers contact the appraiser as long as there are no discussions regarding value. More and more audits are putting a firewall between the two. With appraiser independence, I can legitimately pick up the phone and ask the appraiser to address the high land value on the report. Or call and tell them the combination on the lockbox has been changed. But many banks don't want the headache of defending the telephone call - it's a legal nightmare. So, the wall has been put in place. I suspect what most have been running into is company policy, which is trending for the loan officer not being able to talk to the appraiser.....the processor can.......and so can the underwriter. but the gold standard is no one that earns a commission should be talking to the appraiser.

Agents: have at it.....you can call all day long. I did have an active duty buyer once contact an appraiser and yell at her for a low value and not long after his commanding officer bit him in the rear. (she went back to the VA and forwarded the nasty email)
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Old 06-19-2013, 07:57 AM
 
624 posts, read 1,069,875 times
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Quote:
Originally Posted by SmartMoney View Post
Most lenders have put policy in place that loan officers are not suppose to have direct contact with the appraiser, due to fear of an appearance of impropriety. However, some banks will allow seasoned loan officers contact the appraiser as long as there are no discussions regarding value. More and more audits are putting a firewall between the two. With appraiser independence, I can legitimately pick up the phone and ask the appraiser to address the high land value on the report. Or call and tell them the combination on the lockbox has been changed. But many banks don't want the headache of defending the telephone call - it's a legal nightmare. So, the wall has been put in place. I suspect what most have been running into is company policy, which is trending for the loan officer not being able to talk to the appraiser.....the processor can.......and so can the underwriter. but the gold standard is no one that earns a commission should be talking to the appraiser.

Agents: have at it.....you can call all day long. I did have an active duty buyer once contact an appraiser and yell at her for a low value and not long after his commanding officer bit him in the rear. (she went back to the VA and forwarded the nasty email)
My issue is the slow response by the Appraiser. It seems like they have one week for any response, even if the contract closing date has lapsed. There is no sense of urgency on their part. I wish I could buy a house with multiple loan officers handling my case, so that I can close with the quickest. But I can'd do that, can I? So I must suffer as a result, or lose a sale. If I were buying a place that was less then perfect, I would not be so worked up.

What's making matters worse is the builder refuses to extend financing contingency when they extended the closing date, effectively making me risk all of my earnest money (substantial amount, which they required at the start of the contract).

Does Appraiser care? They don't seem to be. Does underwriter care? Negative. If I lose my money and not close, they'll just move on to another contract. Alas, this is the new state of things. I wish there was something I could do.
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Old 06-19-2013, 08:28 AM
 
3,020 posts, read 8,593,104 times
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Quote:
Originally Posted by FalconheadWest View Post
They're supposed to be going through the management companies who assign out the appraisals now. Around here, appraisers will not take lender calls, and lenders won't dare call them. They send messages through the management companies if they have any issues.
Yea I'm aware of appraisal management companies (AMC's). Those came about largely because of the HVCC laws which no longer are in effect. The Frank-Dodd Act is now the thorn in the side of lenders and appraisers. There are no requirements for lenders not to contact the appraiser. The only requirement that I know of is that the commissioned loan officer who stands to make money on the loan cannot "engage" the appraiser. Essentially he can't be the one to hire him or her and cannot try to influence him or her.

Of the half a dozen loans I've done for lenders over the last few months, I've talked to the lender in every single one. But...... I don't appraise houses (I could if I wanted to; just don't want to). Most lenders and loan officers dealing with home loans are still bending over backwards to remove themselves from the appraisal process. But is it the law? Nope, and not a binding or legal requirement of any kind that I know of. Some lenders may have stuck to outdated policy however.
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Old 06-19-2013, 08:28 AM
 
Location: MID ATLANTIC
8,670 posts, read 22,853,798 times
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You can apply with multiple loan officers, but you may not get the full builder concessions.

I am assuming this is a conventional loan? (because VA is another story altogether). The appraiser is only as good as the AMC he/she works for.......if they work for a bottom feeder AMC (Appraisal Management Company), they are getting paid below market wages and they are making up the income in volume. We have a range in appraisal fees of $425 to $575-$600. Most of the loan officers in my company have learned (the hard way) that the $425 AMC is far from a bargain.

What doesn't make sense to me, most new construction lenders use the same AMC, and within the same AMC, typically each subdivision goes to one appraiser due to the comps not being in the MLS system when they close. Most builders only put 1 home in the MLS and write several contracts on one listing and little (if any) of the closing information is entered (and then it's usually not correct). New construction appraisals can be difficult for this reason. Most people think it's because the builder wants his hands in your pocket again.......they do, but there are some solid reasons not to go outside.......and most require their in-house folks to be competitive. Did you by any chance go with your own lender and not the builder's? If you are going with the builder's lender, they should extend. If you are going outside, you are right, they probably do not take ownership of one low appraisal when the rest are coming in just fine and won't extend. They know exactly how much they can re-market that home for a quick closing, and it's probably higher than your contract. Stinks, but it's the way it's working right now.
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Old 06-19-2013, 08:47 AM
 
624 posts, read 1,069,875 times
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using own lender now.
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Old 06-19-2013, 08:48 AM
 
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One of the problems with getting appraisers to do things fast is the rules and regulations in place. They get worse for lenders and appraisers by the week.

To get another comparable on the part of the appraiser requires the appraiser to certify that they personally viewed the comparable sale. Which means they have to go drive past it and take a photo of it. They have to put down on the appraisal report the type of financing used for that sale. They could ask the real estate agent. However, then they have to depend that the real estate agent is giving the right info. Maybe the agent forgot. No appraiser is gong to take that chance then get slammed if it gets field reviewed. So they have to head to town hall or county records, depending on where you are in the country.

Thus, finding another comparable, getting the info needed to use the the comparable and actually putting it into the report may take quite some time. No appraiser is hanging doing nothing. Most appraisers work long and crazy hours with lots of driving. They're not going to drop what they're doing to go get you another comparable. You're not the only appraisal they're dealing with. Other clients may have similar requests. By the end of the week, they may have 10-12 hours of extra work that lenders are asking them to do.

No one is trying to make you lose your loan, make your life miserable, etc. It's just that everyone in all phases of the loan process is busy. Sometimes you just have to wait your turn.

PS- on VA loans, the appraiser, by VA regulation, is only permitted to speak to the SAR about the appraisal. SAR = staff appraisal reviewer. That's why virtually anyone else gets ignored by VA appraisers.

Like I said the rules & regulations are unbelievable, drive everyone nuts, but to stay out of trouble, most people in the lending loop try to follow them.
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