Classless Class Valuation

Baggins says:

That’s not true as a standard though. Each lender may set their own individual policies. Those reviews may be random, or they may be triggered individually by a certain scoring via automatic review results. Many lenders, especially those whom are managing the entire process themselves, may be more risk adverse. This theoretically provides a safer climate for appraisers. Issues are managed internally without as many additional parties.

Then add on various state policies, and additional lender policies. More reviews which could really come back at the appraiser negatively happen with amc work than without. And even if not, the resolutions are different. So I suppose we could both be correct on this issue. The key difference being the dispositions, one side is more likely to handle internally, the other is more likely to just point the finger at the appraiser and file complaints as a standard process. An originating front line appraiser hopes to be unaware of reviews. You know they happen but hope to never hear about it. In my state there is some additional requirement that the amc guarantee that one in so many appraisals gets some sort of additional measure of review, over and above existing lender policy. I think it may be a state based, I’m not sure. Not sure of that one exactly, I never bothered with it, as I’m not doing work for them. But the point from where I sit was obvious, an additional layer of scrutiny for amc’s with the state involved. As if the mis mash of scrutiny the lenders applied, is not enough to deal with already.

One dares to imagine a better way of managing panels and dealing with reviews. Underwriters used to be in charge of appraiser approval lists, back in the day. More frequently is my understanding. Wouldn’t it be nice if upon negative reviews, appraisers could be more routinely cycled out and other more careful appraisers cycled in. Sadly the review function now serves more as a stop gap or additional liability layer protection for complicated scenarios and manual underwriting events. A call for long term awareness of repurchases and the appraisers tied to them seems appropriate. Nobody is going to actually do that though. Repurchases and defaults are not broadcasted and are swept under the rug asap, everywhere. And it would be too complicated of a system, because many laymen would not understand that some areas carry naturally higher default ratios, of no fault of the appraiser for having provided service there. You know, in a perfect world there would be more transparency and less interested party influence, actual errors which result in repurchase would result in more consequences than just claims. Perhaps we could enjoy a new climate where amc’s would not be able to consistently prefer sending lions shares of orders to the extreme discounters whom we suspect carry those higher ratios. Reasons the fnma cu system refuses to publish all the data?

That or requiring round robin and separating billing so amc’s billed for their distinctly different services separately. That is a very simple solution. If you try to talk to any given amc about either round robin or cost plus billing, you’ll quickly find they refuse to even talk about it. A sham wow job every time. There is nothing unbiased or impartial about amc workflow distribution to appraisers, absolutely nothing. It’s as biased as it comes, with just as much risk as a stupid mb pushing comp searches to value shop. Except they’ve monetized that process of shopping, by way of improperly go mingled fees. Oh I said it again, the taboo statement of this industry; amc’s and appraisers should not share a singular bill.

A review is a review is a review. Not anymore. Now it’s a state review, an internal review, a third party review, an administrative review, a forensic review, a mortgage portfolio review, a blind safeguard third party review after funding, a desk review licensed, a field review licensed, or as I just dealt with, a borrower picking his own comps because now he’s allowed to ‘review’ and request rov’s too. Like where is the underwriter on all this? Think there could possibly be conflict of interests with amcs being owned by title and insurance companies lately? Dang.