Comments on: Will New Appraisal Standards Stick? http://www.fhaloanpros.com/2008/05/will-new-appraisal-standards-stick/ The Unofficial Guide to FHA Loans & Mortgages Sat, 21 Nov 2009 09:52:34 +0000 http://wordpress.org/?v=2.6 By: Donna Scheidl http://www.fhaloanpros.com/2008/05/will-new-appraisal-standards-stick/#comment-28339 Donna Scheidl Wed, 22 Oct 2008 15:17:49 +0000 http://www.fhaloanpros.com/2008/05/will-new-appraisal-standards-stick/#comment-28339 While I agree there may have been too much influence by lenders on appraisers, my concern is that again our Governemntal agencies are over reacting to a situation and making new guidelines that will have a detrimential affect on the consumer. Under these new guidelines, the consumer in some cases will be paying for an appraisal at the door, and the value for the loan may not be there. I would like to see the lenders made legally responsible to pay the appraiser regardless of the outcome of the appraisal. My experience has been that the lenders have relied too much on the "comp check" system, that they often jump the gun to capture a customer by having the appraiser go out before the customer has committed to the process and they pay the appraiser at the door. In my opinion nothing was accomplished to protect the consumer in all of this. While I agree there may have been too much influence by lenders on appraisers, my concern is that again our Governemntal agencies are over reacting to a situation and making new guidelines that will have a detrimential affect on the consumer. Under these new guidelines, the consumer in some cases will be paying for an appraisal at the door, and the value for the loan may not be there. I would like to see the lenders made legally responsible to pay the appraiser regardless of the outcome of the appraisal. My experience has been that the lenders have relied too much on the “comp check” system, that they often jump the gun to capture a customer by having the appraiser go out before the customer has committed to the process and they pay the appraiser at the door.

In my opinion nothing was accomplished to protect the consumer in all of this.

]]> By: David http://www.fhaloanpros.com/2008/05/will-new-appraisal-standards-stick/#comment-21042 David Fri, 25 Jul 2008 01:37:07 +0000 http://www.fhaloanpros.com/2008/05/will-new-appraisal-standards-stick/#comment-21042 Re: Cost cutter appraisal shopping by Lois You almost always get what you pay for when you shave $50 or $100 off of the appraisers fee (a new appraiser or one who's idea of analysis is looking up the zip code of the property). Cost cutters are also notorious for "hitting" the number you need. Is that really what you want? Much of the current credit crisis goes back to the work of unscrupulous appraisers (and yes I am an appraiser with 16 years experience). Anyone who denies that appraisers played a large roll in this banking crisis is a fool. Knowing the real value of a property is an extremely valuable tool when you're trying to stay out of trouble. If you MUST pinch pennies at least do it in an intelligent way. Make it worth your time Lois. Doug was absolutly correct. You can save thousands of dollars by negotiating heavily with Realtors & Loan Officers (dinking them out of their commissions. Make sense? Re: Cost cutter appraisal shopping by Lois

You almost always get what you pay for when you shave $50 or $100 off of the appraisers fee (a new appraiser or one who’s idea of analysis is looking up the zip code of the property). Cost cutters are also notorious for “hitting” the number you need. Is that really what you want? Much of the current credit crisis goes back to the work of unscrupulous appraisers (and yes I am an appraiser with 16 years experience). Anyone who denies that appraisers played a large roll in this banking crisis is a fool.

Knowing the real value of a property is an extremely valuable tool when you’re trying to stay out of trouble. If you MUST pinch pennies at least do it in an intelligent way. Make it worth your time Lois. Doug was absolutly correct. You can save thousands of dollars by negotiating heavily with Realtors & Loan Officers (dinking them out of their commissions. Make sense?

]]> By: David http://www.fhaloanpros.com/2008/05/will-new-appraisal-standards-stick/#comment-21040 David Fri, 25 Jul 2008 01:24:55 +0000 http://www.fhaloanpros.com/2008/05/will-new-appraisal-standards-stick/#comment-21040 $400 is an extrememly fair fee for an appraisal. The going rate in 1992 when I entered this business was $250. I'm amazed to see that a few smart appraisers are finally beginning to catch on and bill more than $200 or $250. Even though inflation adds around 3% per year to our cost...I am constantly amazed at the number of appraisers who think they can make more money by charging the same fee they were charging 16 years ago. I don't know about you...but I wouldn't trust an appraisers opinion of value whent they can't even figure out that you're supposed to raise your fees rather than lower them to make up for the cost of inflation. Most elementary math students can figure out that problem. I'm also amazed at the reaction of certain clients when an appraiser tells them that the house they want to purchase is worth far less than the purchase price. I've received at least two cursing surmons from borrowers who were about to overpay for homes by around $50,000. You would think that they would thank you for helping them to walk away from a big mistake...but that's not always the case. I'm a firm believer in that the old saying about the customer always being right; so I typically dare them to buy them home just to prove their point. $400 is an extrememly fair fee for an appraisal. The going rate in 1992 when I entered this business was $250. I’m amazed to see that a few smart appraisers are finally beginning to catch on and bill more than $200 or $250. Even though inflation adds around 3% per year to our cost…I am constantly amazed at the number of appraisers who think they can make more money by charging the same fee they were charging 16 years ago. I don’t know about you…but I wouldn’t trust an appraisers opinion of value whent they can’t even figure out that you’re supposed to raise your fees rather than lower them to make up for the cost of inflation. Most elementary math students can figure out that problem.

I’m also amazed at the reaction of certain clients when an appraiser tells them that the house they want to purchase is worth far less than the purchase price. I’ve received at least two cursing surmons from borrowers who were about to overpay for homes by around $50,000. You would think that they would thank you for helping them to walk away from a big mistake…but that’s not always the case. I’m a firm believer in that the old saying about the customer always being right; so I typically dare them to buy them home just to prove their point.

]]> By: Doug http://www.fhaloanpros.com/2008/05/will-new-appraisal-standards-stick/#comment-19110 Doug Wed, 02 Jul 2008 15:51:06 +0000 http://www.fhaloanpros.com/2008/05/will-new-appraisal-standards-stick/#comment-19110 In our market $400 is about right for an FHA appraisal. I can't speak for your market, but from what I have seen from national vendors it is on par for a lot of areas. Also they may prefer to use their appraiser because they have a proven track record. Unfortunately it is no great challenge to become FHA certified anymore, so everyone is jumping in, some without the required knowledge. Also if you really want to save money shop your lender not your appraiser, you can save hundreds not tens. In our market $400 is about right for an FHA appraisal. I can’t speak for your market, but from what I have seen from national vendors it is on par for a lot of areas. Also they may prefer to use their appraiser because they have a proven track record. Unfortunately it is no great challenge to become FHA certified anymore, so everyone is jumping in, some without the required knowledge. Also if you really want to save money shop your lender not your appraiser, you can save hundreds not tens.

]]> By: louis http://www.fhaloanpros.com/2008/05/will-new-appraisal-standards-stick/#comment-10169 louis Thu, 15 May 2008 00:11:37 +0000 http://www.fhaloanpros.com/2008/05/will-new-appraisal-standards-stick/#comment-10169 I am trying to refinance my mortgage. My lender informed me that I would need to use there appraisser at a cost of 400.00 dollars. I told them that I could get it cheaper. They informed me that I don't have a choice if I want to refinance. Why doesn't FHA protect the consumer from over-charging for appraisial fees. I am trying to refinance my mortgage. My lender informed me that I would need to use there appraisser at a cost of 400.00 dollars. I told them that I could get it cheaper. They informed me that I don’t have a choice if I want to refinance. Why doesn’t FHA protect the consumer from over-charging for appraisial fees.

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