Posted by Cochise on March 16, 2009 at 15:55:05:
President-elect, Appraisal Institute
Jim "the Roach" Amorin mai
Darrick Meneken
As published in Scotsman Guide's Residential Edition, July 2008.
This is perhaps the most-transformative time for real estate appraisers in two decades, according to Appraisal Institute President-Elect Jim Amorin, mai who says that some of the changes -- actual or planned -- will also affect mortgage brokers. With rumors of appraisal changes having circulated for months now, Amorin, mai addresses the ideal relationship between appraisers and mortgage brokers. [WHAT ROCK HAS HE BEEN HIDING UNDER? THE MOST TRANSFORMATIVE TIME I CAN REMEMBER OVER THE PAST TWO DECADES WAS DURING AND AFTER THE INIATION OF USPAP, AND AFTER DEBACLE I WHICH WAS CAUSED BY THE APPRAISAL INSTITUTE, AND MAI'S. USPAP ALSO MADE IT ILLEGAL FOR BANKS AND FINACIAL INSTITUTIONS FROM DISCREMINATING AGAINST APPRAISERS WHO CHOSE NOT TO BE A PART OF THEIR CURRPT ORGANIZSATION, THEY JUST DON'T GET IT!]
Recent proposals call for prohibiting brokers from ordering appraisals. What's the institute's stance on that? Many appraisers have spent years developing good business relationships with honest and ethical mortgage brokers. To remove those folks from the process would take away a potentially large source of appraisers' business. If you're talking about professional and ethical mortgage brokers, then there would be no reason to exclude those folks from the ordering process. [WHAT A F'N IDIOT! APPRAISERS ARE SUPPOSED TO BE INDEPENDENT PARTIES, WITH NO INTEREST IN THE CLIENT OR HIS DEAL, AND NOT HAVE GOOD BUSINESS RELATIONSHIPS WITH SO CALLED GOOD MORTAGE PEOPLE. THIS IS ANOTHER RULE THAT HAS BEEN IN AFFECT NOW FOR ALMOST 16 YEARS, SINCE LICENCING. THEY JUST DON'T GET IT!]
How do you suggest making sure that brokers are honest and ethical? We think one way to do that would be to make sure that there are either civil or criminal penalties against people who put undue pressure on appraisers.
I'm not talking about a mortgage broker ordering an appraisal and having questions about the appraisal. That's a typical, everyday part of what happens, and that's not really pressure. [I BEG YOUR PARDON! THAT MAY BE HOW THE INSTITUTE AND MAI, MADE AS INSTRUCTED, APPRAISERS DO IT, NOT US. THIS VERBAGE IS ATTACHED TO ALL OUR APPRAISERS, MAYBE YOU SHOULD TRY IT.
We are a strictly regulated industry; therefore, any questions regarding the attached appraisal report must be in writing. Any request for corrections or alterations to the attached appraisal report must be in writing and presented with the appropriate USPAP or other Applicable Citation. Please be reminded that in accordance with Federal and State Law, and Public Policy, it is unlawful for an unlicensed individual to attempt to perform a Technical Review. We therefore reserve the right to refuse consideration of, any and all, non-clerical correction request(s) made by unlicensed individuals.]
What I'm talking about is making sure that once we submit that appraisal to mortgage brokers, they don't say, "If you don't raise that value, you're not going to get any more work from us." WHAT IS IT CRY BABY TIME? IF A BROKER TALKS TO YOU LIKE THAT YOU NEED TO TELL HIM TO GO TO 7734. END OF SUBJECT. THEY JUST DON'T GET IT!
What suggestions do you have for brokers working with appraisers? The best thing mortgage brokers can do is provide all the necessary information -- including the current property address and contact information for the borrower -- and be clear about what type of appraisal they're looking for: a full appraisal or a drive-by appraisal. After that, they should stand back and let appraisers do their jobs without any undue influence. [IS HE STUPID OR DID HE JUST FORGET LENDERS ARE REQUIRED TO PROVIDE THE APPRAISER WITH A TITLE REPORT, SALES CONTRACT INCLUDING ALL ADDENDUM, SELLERS DISCLOSURE STATEMENT, RENTAL INCOME IF ANY, AND NUMERIOUS OTHER DOCUMENTATION. THEY JUST DON'T GET IT.]
If brokers are barred from the appraisal-ordering process, what other effects will there be? Lenders will either do the appraisal-ordering themselves, or they'll hire appraisal-management companies to do it for them. In our experience, appraisal-management companies focus on two things, neither of which is necessarily good for the consumer. They focus on who can do the appraisal fastest and [who can do it] cheapest. Ultimately, the outcome will be lower-quality appraisals. [ALTHOUGH I DO AGREE, I ALSO FEEL THAT FOLK'S LIVING IN GLASS HOUSES SOUULD'NT THROW STONES.]
Noting the Real Estate Settlement Procedures Act reform and other alterations to mortgage policy, what's the Appraisal Institute's primary concern? Making sure our members can develop credible appraisals. If we can develop a meaningful process where mortgage brokers can be involved, then many of our members are going to be very happy. They have great relationships with mortgage brokers who help ensure unbiased, neutral and pressure-free appraisals. [THIS DEMANDS REPEATING: "Making sure our members can develop credible appraisals." YOU MEAN TO TELL ME THAT ALL THE BULLSHIT WE GET FROM THE AI YOUR NUMBER ONE CONCERN IS TRYING TO GET YOUR MAI MEMBERS TO PROVIDE CREDITABLE APPRAISAL REPORTS.
AND ANOTHER: "If we can develop a meaningful process where mortgage brokers can be involved, then many of our members are going to be very happy." NO SHIT SHERLOCK, THANKS FOR INFORMING THE PUBLIC ABOUT YOUR MADE AS INSTRUCTED POLICIES. FROM ME TO THE PUBLIC; AN APPRAISAL IS NOT A COLOBERATIVE EFFORT. THEY TRUELY JUST DO NOT GET IT.]
Darrick Meneken is an associate editor at Scotsman Guide. Reach him at (800) 297-6061 or darrick@scotsmanguide.com.
Jim "the Roach" Amorin, mai, Appraisal Institute, MAI