Appraiser Exclusionary List
Exclusionary list not discussed in the House Subcommitte hearing…
Rob Chrisman, in his column in the Mortgage News Daily e-newsletter on 11/18/16, dropped this tidbit of news:
Nationstar Mortgage now maintains and distributes a monthly Appraiser Exclusionary List. Correspondents are encouraged to review the Nationstar Mortgage Appraiser Exclusionary List prior to submitting a loan for loan purchase.
That’s all Mr. Christman said about this.
A huge problem with these lists is the appraisers involved seldom know they are on one, much less why. Reasons could be trivial, or serious.
When appraisers attempt to discuss the situation with the exclusionary list maintainers, they are stonewalled. No one will give direct answers. At least in cases where the volume of work drops off without explanation, and no pre-notification was done.
This is another element of Appraisal Oversight – which was not discussed in the House sub-committee hearing on Wednesday.
If licensed appraisers are to be “banned” from working for clients – especially after completing multiple reports over a period of time – they should receive an official notice from the client, and have an opportunity to respond to or rebut the alleged discrepancies.
HUD and FNMA have such lists, but they do notify appraisers in advance. And that’s only a last resort, after discrepancies are discussed with the appraiser and the appraiser does not bring reports into compliance.
By the way, in our state (WA) we have a licensing law for AMC’s, which is good. A provision of that law is the AMC must notify an appraiser when the AMC decides they can’t use the appraiser any longer. But the wrinkle to this is many AMC’s have multiple lender clients. If one client decides to put the appraiser on a ‘do not use list’, and the other clients continue to use the appraiser, the AMC does not have to notify the appraiser about the singular exclusion. How do I know? Because it has happened to me over a trivial item not ‘required’ by UAD the lender’s underwriters just won’t overlook.