Thirdly, none of the remodeled comps had all new electrical wiring with a 200 amp service, all new copper plumbing, a swimming pool with or without solar heat, supplemental solar electrical power, an insulation package that includes perimeter wall insulation, roof insulation with a radiant barrier, and double pane windows throughout.

In addition, renewable and recycled materials were used for all of the cabinetry, counters, and floor coverings. No products were used that included solvents, created off gassing, or contained environmental contaminants — creating a safe, toxic free home.

And finally, a high efficiency condenser boiler with comparable radiators, energy star appliances, water saving fixtures, and a drip irrigation system round out the improvements that set this real estate apart from ALL the properties that have been sold and are currently for sale.

THE ANSWER SADLY ON FRIDAY IS PAY FOR ANOTHER APPRAISAL!! Of course who knows that one will be any better. Hold on homeowner, you are about to embark on a long national nightmare. You too appraisers, hope you like working for peanuts and losing the very indepenant nature you use to have. I noticed appraisers used to all be in favor of this new law but now seem to be changing their tune. Welcome to reality. Better late than never. Banks should love this new law, it binds the clients to them unless they want to shell out more cash to switch lenders. Rates lower somewhere else? Too bad. Appraiser did a poor job, too bad, deal with it. This system can and will be junked but how much money and time will be wasted until it is. It is unworkable.
It goes into effect in two days and banks are saying rules will be out in a few weeks!!
UFB.

I just saw the question you asked about giving the borrower a heads up if the credit won’t work. Yes I can do that. I can pull one bureau at no cost to the borrower. If I see a 500 score I can tell them not to do anything else. If I see an 800 score I can order the full credit report which is only 17 bucks instead of 350-500 like you charge more than likely. Wow that was easy so next question Mr. Appraiser?

– In turn stick with FHA Only and if you have to go conventional stick with purchases only especially if they are listed with realtor – but under this new law – conventional refi’s will be a rip off for the borrower – don’t lead your borrower down that road – FHA MI is cheper anyway.

This is an incontrovertible fact that these loan originators cannot deny. They’ve all been told often enough by those appraisers who have refused to cross that line. They know appraisers aren’t supposed to accept assignments that are contingent on returning a minimum value but they routinely turn a blind eye to this corruption. In fact, when they do this they become a willing co-conspirator in the fraud that occurs when their “team player” appraisers fraudulently certify on their appraisal reports that they *didn’t* accept either the engagement nor the compensation for that assignment based on the promise to return a minimum value.

Secondly, loan originators really do need to recognize that the purpose of an appraisal is not to enable their loan. The intended use as stated on every mortgage lending appraisal assignment is to assist the lender (not the loan originator) in underwriting and making a loan decision. Loan originators don’t make underwriting decisions, they don’t grant credit, and it’s not their money that goes out the door. All a loan originator does is show loan products to borrowers and sell loans to lenders.

No appraisal report states that its intended use is to help the borrower obtain a loan and indeed borrowers are not named as intended users of appraisals. If a report prepared by one of these “team player” appraisers ever did truthfully disclose that its intended use was to assist the borrower in obtaining a loan or the loan originator in booking their commission, the lender would be required by federal banking laws to reject that appraisal. That’s why these team players have to lie about the nature of these assignments and the limitations of their relationship with the loan originators.

Because appraisals are not intended to be used as part of the marketing package the loan originators send to the lenders in hopes of “selling” the deal to them, there is an inherent conflict of interest when a loan originator engages the appraiser. The loan originator isn’t the one who makes the relevant decision – the lender is. It only makes sense that the lender should be held 100% accountable for the engagement of the appraiser and their use of the appraisal. It makes no sense to allow the lender to avoid these responsibilities and hide behind the thin veneer of plausible deniability that using outside loan orignators would seem to provide.

It is a huge mistake for loan originators to think – or for their appraisers to allow them to proceed under the misconception – that an appraisal is worthless if it doesn’t help the borrower to obtain their loan or the loan originator to book their commission. If an appraisal prevents a lender from overencumbering a property, prevents a borrower from entering into a mortgage wherein they are already under water, then the expense of that appraisal is well justified.

We now face multi-trillion dollar losses in the general economy that are directly related to the subversion of due diligence efforts – including appraisals and underwriting – in the real estate mortgage lending business. Had more loan originators paid more attention to the reasons why they are required to obtain appraisals and refrained from viewing them solely as a commodity or an element of their marketing their loans to lenders we could have avoided a sizable percentage of these bad loans – because after all, these bad loans never should have been made in the first place.

The Federal Financial Institutions Reform, Recovery and Enforcement Act of 1989 recognized that the the regulated institutions had to be held accountable for the engagement and their use of appraisals. As a result of these trillion dollar losses, it should come as no surprise to any loan originator that these regulations will be expanded upon and more heavily enforced as a result of the abuses in which many of them participated.

Oh yeah, and a pox on your “team player” appraisers, too. Had they done what they were supposed to do and refused your improper requests we wouldn’t have some of the problems with loan originator ignorance that currently exist.