Choice Finance

  • Home
  • Blog Home
  • Contact Us
  • Apply Now

Posts Tagged ‘appraisal changes will affect quality of loan process’

New appraisal rules BAD for the borrower

Monday, March 31st, 2008

I appreciate the chance to be heard on this subject of appraisers and what we can and can’t do in the near future. I believe that the quality of the loan process will suffer greatly if these proposed changes are made. Those who seek to change this interaction between the appraisers and the loan originators do not realize the increased cost and the greater risk that will be placed on the borrowers shoulders.

When I order an appraisal I need my appraiser to know unless a certain value is there, to not proceed with the appraisal. Very frequently, in fact on almost every loan I ask them to run comps first to make sure the value is there. I don’t want to waste my time or the client’s money if the loan can’t be closed.  Many times, they have both told me that value requested was not available. That’s what an honest appraiser should do. I believe the vast majority do just that.  If the few bad apples aren’t playing by the rules, there are ways to deal with them. What about putting greater responsibility on the lenders who review the appraisals?  If an appraiser does poor work or is using fraud to justify a value, the bank should refuse to accept his work.  This is done all the time now, but needs to be a streamlined process with rights and responsibilities for both sides.  I only use two appraisers that I trust to perform all my appraisals for me.
-
When I closed a loan in Florida for example I used someone that doesn’t know how I work and vice versa.  The last loan I did in Florida, the appraiser was almost a week late getting me the appraisal, had drastically cut the value to an absurd level in my opinion and then cursed me out and threatened not to send the appraisal even though he had already been paid.  A terrible experience from start to finish.  Why was it so bad?  In my opinion it was that bad because I had no idea what the appraiser was like and how he conducted business.  He also did not know what I expected of him. I don’t know of anyone that likes to do business with a person they don’t know. 
-
This happens occasionally now due to geography. 
It could happen every single time very soon!!  It will be a new person that you must place your trust in for every single transaction. This can be what happens on VA loans when we don’t interact and order the appraisals.  You are taking the factor of accountability out of the loan originators hands.  The appraiser will not be as likely to put in the time to find the comps that justify the sales price/value.  It’s also true that we have no protections against, lazy, unscrupulous or just plain poor appraisers.  We will have none and certainly our customers will have no protections either.  Once again the rule that is designed to help people will hurt them. They just don’t know it yet. And who do you think they will blame.  Some nameless, faceless appraiser or the person (loan officer) who told them everything would work and that the loan they wanted, the loan they needed, the loan they had to have won’t work?  We won’t even be able to tell them why if these rules are enforced.  We will get into trouble for asking questions and making sure they did their job correctly.
-
When I began this business I used a few appraisers before I selected the two I currently have chosen to use. They didn’t do a good job, they made mistakes and when I asked them to correct their mistakes they took days, sometimes weeks to even return a phone call.  If this lack of contact is encouraged and even mandated; this will occur over and over from coast to coast.  Make no mistake; this will directly affect the borrowers in a negative fashion. Loans will take longer to close, locks will be extended at a cost to the borrower, and many loans that should close simply will not.  All because people in power don’t think through the ramifications of their decisions.  Shouldn’t that be EVERYONE’S first interest?
-
What’s best for the borrower?
more on the new appraisal changes
 
-

I’d love to hear your stories since the HVCC rules went into affect, please click here and share!
brentmendelson3.jpg     Brent Mendelson

Tags: appraisal changes will affect quality of loan process
Posted in 1) Questions for Loan Officer, 2) General | 102 Comments »

 


Mortgage loans- West Virginia, Delaware, Maryland, Washington D.C., Virginia, North Carolina, South Carolina, Georgia, Florida Colorado California California D.C. Maryland West Virgina Delaware Colorado Virgina North Carolina South Carolina Florida Georgia

  • Recent Comments

    • $8,000 First time buyer credit | Maryland Virginia (1)
      • Mortgage Blog: tax credit gives up to $8000 for first time buyers (defined as not having owned a home for the past...
    • What is mortgage insurance? (PMI) (4)
      • Mortgage Blog: Insurance, tax write off through 2010 A provision that allows homeowners to treat mortgage insurance...
    • Who is the Federal Reserve? | Who owns the Federal Reserve? (23)
      • loan officer: More on the FED (click here)
    • New appraisal rules STINK | hurts borrowers (9)
      • Mortgage Blog: problems all started with the Home Valuation Code of Conduct, which was implemented May 1 by Fannie...
      • loan officer: GREAT video on HVCC and how it is not only hurting borrowers, but how the big Appraisal companies being...
      • BrentMendelson: 35offsuit, I would LOVE to know what you do for a living or how you claim to know what massive fraud...
      • 35offsuit: This is a bunch of whining from loan officers and appraisers who have engaged in a fraudulent symbiotic...
      • loan officer: Please take the time to contact the following: NY Attorney General Andrew Cuomo’s Office: (212)...
      • AJ The Appraiser: www.hvccpetition.com sign it
      • loan officer: Make phone calls, more importantly, WRITE your congressmen: SENATORS Benjamin L. Cardin (D) Phone...
      • lo: Link to petition HVCC, http://www.petitiononline.com/ hvcc/petition.html
      • Brent Mendelson: Sorry to hear your story but again not one bit surprised. Remember I hear that Senator Chris Dodd...
    • New appraisal rules BAD for the borrower (102)
      • Mortgage Blog: problem is the current crop of appraisers being used has included some who are inexperienced in or...
      • Dave Ganapoler: poorest conditioned homes in my neighborhood. Thirdly, none of the remodeled comps had all new...
      • c bowen: The way appraisers are doing there job anymore we might as well do away with them and just use a technology...
    • FHA mortgage, does HUD owe you a refund? | FHA insurance (2)
      • kevin smith: i refinanced in april 2009 i went from a fha to conventional loan and i am waiting for my refund for the...
    • Home Affordable & Relief Refinance programs (2)
      • 2nd lien holders | Mortgage Blog: Home Affordable | 2nd lien holders The Treasury Department has announced an...
      • Travers: amazing stuff thanx :) When will real estate prices bottom out?
    • Mortgage financing 2009 | md dc va (1)
      • maryland, virginia, d.c. | Mortgage Blog: all mortgage insurance companies are now refusing to insure any condo loans...
    • HVCC rules, How have they affected you? (2)
      • hurts borrowers | Mortgage Blog: rules STINK | hurts borrowers There’s a new sheriff in appraisal town and the...
  • Recent Posts

    • $8,000 tax credit extended
    • Mortgage Insurance, tax write off through 2010
    • HELOC in today’s market | Bob Kearns
    • 125% refinance | Making Home Affordable
    • Calculating Credit Scores
    • Good rates, good inventory, bad appraisal process
    • $8,000 First time buyer credit | Maryland Virginia
    • Getting Rid of Mortgage Insurance
    • VA loan for Home Improvements
    • DC Area Sales Rebound
    • Appraisals, HVCC | Dear mortgage client..
    • Increased loan limits- Reverse mortgages
    • Reverse mortgage to buy a home | md va dc
    • Making Home Affordable | 2nd lien holders
    • Condo financing | maryland, virginia, d.c.
  • Post a Blog!

    • 1) Questions for Loan Officer
    • 2) General
    • 3) Testimonials
  • Choice Finance®

    • 1) Loan calculators
    • 2) FHA mortgage rates
    • 3) fha loans
    • 4) Choice Finance®
    • Secured Loans Comparison
  • Register

    • Log in
    • Entries RSS
    • Comments RSS
    • WordPress.org
  • Twitter

    • Financing a manufactured home www.realestatewebmasters.com/blogs/alex621/8832/show" class="twitter-link">http://www.realestatewebmasters.com/blogs/alex621/8832/show/ 2009/11/06
    • Qualifying for a loan when you are on Fellowship http://bit.ly/4r0GgQ 2009/11/06
    • Tax credit details http://bit.ly/hOrUb 2009/11/06
    • Friday's rates are HOT, http://bit.ly/1MjFT9 2009/11/06
    • The legislation also includes a tax credit not exceeding $6,500 for move up buyers who have owned their current homes for at least 5 years. 2009/11/06
    • Borrower income limits have also been increased to $125,000 for individuals and $225,000 for couples. 2009/11/06
    • Homebuyers will qualify for the tax credit until April 30, 2009, and have an additional 2 months (until 6.30.09) to close the transaction 2009/11/06
    • The legislation will be sent to the President, and upon his signature, made law 2009/11/06
    • The House just passed the $8,000 first-time homebuyer tax credit 2009/11/06
    • Happy Friday! Look for improved rates today.. 2009/11/06

Mortgage Blog is proudly powered by WordPress
Entries (RSS) and Comments (RSS).