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Appraisers Not Happy with HVCC

From Ken Harney’s weekly real-estate column:

Well, you might ask: Since appraisers in the past have often complained about pressure from loan brokers and realty agents to “hit the number” — that is, turn in valuations high enough to allow transactions to go to closing — aren’t they happy about the new prohibitions?

They’re not.

Many local appraisers have built up long-standing, legitimate relationships with brokers, small lenders and Realtors as sources of assignments. Under Fannie’s and Freddie’s new rules , they fear, the mortgage business will shift away from local brokers to large national lenders, who’ll use big “appraisal management companies” to handle home valuations.

Those management companies, according to a joint statement issued by the four largest appraiser trade groups, are not regulated at the state or federal levels, and “place appraisal quality last,” while refusing to compensate experienced appraisers fairly.

It appears appraisers complaints about the inadequacy of Appraisal Management Companies is reaching the public.

Comments
  1. JUST SAY NO!

  2. Robert Fulton

    APC should garuntee the appraisal if a home buyer must rely on the APC appraiser then if I lose value they compensate. I have met very few appraisers that do qaulity work min to get his fee and no qaulity check. I say if your going to hold the buyer to the loan then let the buyer hire the appraiser and let the appraiser have a fiducary responsabilty to the buyer. Much as the Realtor does. Then the buyer can work with appraiser or be sued by the buyer for not doing qaulity work. This will allow the market to weed out the bad.

  3. In order for appraisers to gauge the present market, they should be able to allow greater weight to active and in escrow comparables, which are obviously more current than 6 month old sales.
    “Many local appraisers have built up long-standing, legitimate relationships with brokers, small lenders and Realtors as sources of assignments.” This will be just one more area for customer service to go out the window.

  4. Greg

    Here’s an interesting article

  5. Stanley L. Reaney

    This has been brewing for sometime. I for one am tired of my income being penalized because of my honesty.
    I performed single family appraisals for Fannie until they hired EAppraisalas a middle/man. At that point, I terminated my association with Fannie Mae. People pay me to work for them, I do not pay people to work for them.

  6. liz

    Cochise – are you for real? I can’t believe an appraiser would write that and violate USPAP. The buyer can’t be in ca-hoots with the appraiser for a loan. The client has to be the bank/AMC. Also, you need a spelling lesson.

  7. liz

    Sorry Cochise. I see someone named Robert wrote that bad response. It gets confusing on this page who wrote what. You are a reputable appraiser.

  8. I am in South Miss the only appraiser (GA) in the county, We have three banks and I do no work for them. Local banker nick name me (low dollar). If you use sale’s in the county you get value of county property. Had an appraiser 1/24/09 work on three house’s did not ask me for the 1st comp. gpenn

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