Comments on: New Appraisal Rules Make Selling Homes Tougher

By: Coffee

Coffee — Fri, 19 Jun 2009 16:32:09 +0000

Appraisal prices up, service and quality down.

A Flagstaff appraiser assigned to do a Phoenix property. You are not allowed to comunicate with the appraiser. Repeat appraisals sometimes required. So many deals falling apart sue to un adequate value. You have heard of the bidding wars on Bank owned? The Buyer will need the cash to pay for the difference. This is a perverted force to keep and force prices lower in a time when bidding wars are occuring.

Watch the video:

https://www.thinkbigworksmall.com/public/showArchiveVideo/1/4909

By: Coffee

Coffee — Fri, 19 Jun 2009 03:48:16 +0000

Nobody will insure a “attached” property, condo, town home, etc. to boot.

So 25% down in declining markets is normal.

I have many loans that will not close because the appraisal did not support the bidding purchase. ? #!

You heard of bidding wars? No problem; pay the difference in your over bid in cash or NO CLOSE!

By: toysarefun

toysarefun — Thu, 18 Jun 2009 21:07:21 +0000

Here’s a real live scenario of where this bites the customer. Someone I know who has super excellent credit and will never lose an excellent job, locked in at a great rate not so long ago. The home is a condo, bought at the end of 2006 with 10 or 15% down, and paid about 170k, well, the appraiser guy appraised it at 150k, and the LTV is not 75% which is some kind of rule, and so condo owner has to come up with 10k or forfeit costs associated with refinancing.

If applications are down it’s because

By: Tobby

Tobby — Thu, 18 Jun 2009 17:45:57 +0000

Weak article in the Sun-Sentinel. It gives the impression that the banks are happy with the use of AMCs (appraisal management companies). No one likes this format, not the lenders, not the appraisers, and not even the various regulators. The HVCC has had detrimental unintended consequences. The HVCC will likely be revamped as part of a comprehensive federal banking bill. In the mean time many banks are in the process of dumping this AMC model and going to the old-school approved appraiser lists. Approved appraiser lists are HVCC compliant as long as they have a firewall between the appraiser and loan officer. The quality of appraisals, never mind the values, from these AMCs is horrendous. There was some respite from the effect of the HVCC (May 1) as loan applications soared in April and May due to low interest rates, and lenders were busy. Give a call to your local lender and ask them offhand what the new application fees are now for loans. You will be stunned. Banks have been using these app fees as a profit center.

Loan applications in the last few weeks are way down as is the pull-through (apps that close). Overhead is skyrocketing, and a good chunk of that is from ordering reviews and second appraisals on the low quality AMC work. Yeah, there are exceptions, but the fact is that most seasoned appraisers will not work for half a fee leaving the appraisal work to the newbies, often from a distant geographic region.