Valuequestor: (November 23, 2010 3:14pm)

I wish the ONE solution to the situation appraisers find themselves in was better sales skills. This issue has been one of the big disconnects between appraisers and mortgage originators since I started 25 years ago. We have always been discouraged from acting like sales people. We were discouraged from advertising because it looks unprofessional. Times change and you need those skills to go after Realtor, Attorney and other private work. BUTT... BIG BUT. Frank do you really expect appraisers to use sales skills on AMCs? They have been handed half our paycheck and it will ONLY be given back to us by force, backed by state or federal regs. You can be buddies with whom ever you want. I still work with the devil myself when I can get decent terms........but they are still the devil and I don't forget that fact. May God hold you in the palm of his hand....but not squeeze too tight.

Valuequestor: (November 23, 2010 2:39pm)

Oregon Appraiser: Excellent post and idea to act on. Whats not to like about it if you're California....and close to begging for money.

Oregon CR Appraiser: (November 23, 2010 2:37pm)

Another big beef: LSI and other AMCs being allowed to force turntime and due dates onto appraisers (even on weekends/holidays when things are closed); thereby unacceptably changing the Scope of Work. Legally, the appraiser is the only one usually entitled to determine the level of work for an assignment. All the appraisals that would be so much better (higher value?) if the appraiser took another couple days to work in some extra in-depth analysis into their workload, but can't because they have a 48-hour turn time DEMAND breathing down their neck... everyone involved suffers. Fact: since HVCC every appraiser has felt "pressure" and "coercion" to deliver a report. If some want to use turntime to compete and that's their niche- fine; go for it. I didn't stop your business model pre-HVCC either. But when anyone thinks it's ok to dictate irrational turntimes to ALL appraisers and now I'm not being allowed to work my "good quality" niche to make a living?? Pure BS....

Oregon CR Appraiser: (November 23, 2010 1:50pm)

NAIFA and Appraisal Institute have proven they're not the answer... So what next? TAVMA's members will likely figure out a workaround to paying full fee to appraisers. I believe the greed involved is insurmountable by individuals… I don’t see it ever happening. I have a Washington Post article here on my desk that reports Countrywide had $173 MILLION in appraisal revenue in 2007. I have little doubt AMC’s are skimming over $1 BILLION every year in appraisal fees. People KILL for less. I’m dual licensed as an Oregon real estate broker and Oregon has a state law preventing real estate brokers from sharing their commissions with any non-licensee. I think one good answer might be for individual appraisers to work in their own state to enact such a law for appraisal fees. All those skimmed fees leaving all our states… it’s an easy sell to state legislators, because it also keeps that money in the state where it belongs! Happy Thanksgiving! ;)

Oregon CR Appraiser: (November 23, 2010 1:48pm)

The Problem: The anti-fair trade rule (HVCC) took nearly every client my appraisal firm had and litterally forced them to use another company (AMCs). I guess that would be fine if AMCs would earn their own income, but they don't. They have to steal the appraiser's income, because they can't prove their own worth to their clients. I love you guys at TBWS, but no damn book or blog or marketing is going to force an AMC to give me my income back. When my local standard FHA lot & block is $450, but some AMC wants to pay only $275-325... and some skippy appraiser is willing to punch it out... I can't "prove" my worth as an excellent appraiser, because they don't care. Tina, we can't sell our product to our customers, because they'll just say to talk to their AMC. Frank is absolutely right.. we need a national appraisal entity to step up!! NAIFA and Appraisal Institute have proven they're not the answer... So what next? TAVMA's members will likely figure out a workaround to

Swarm The Banks: (November 23, 2010 1:23pm)

Wow, a huge arrest in Northern Ohio over alleged appraisal bribes. http://www.wkyc.com/news/local/news_article.aspx?storyid=160171&catid=3

GODLIKE: (November 23, 2010 12:56pm)

No Dan their latest mission is to serve the underserved. I was semi-agreeing with you in that originally the underserved was just about anyone who wanted to own a home. And I'm not headed to your website. I'll wait for someone else to report back and tell us it's safe to go there and is worth the time and effort.

stantheman: (November 23, 2010 12:19pm)

Here we go again. I had been working with Equifax (AMC)for about a month and have now been told by them that "MY FEES ARE TO HIGH". J.C. when is going to stop? I was told my work was fine and that asking for $300 for a SF FHA was to much and that they had appraisers that would work for $150 to $200. Are you guys nuts? Don't you see that our fees should be going higher not lower. Let me state that usual and customary fee for 1 SF home at my company is $300 add FHA for $50 more. If you are working for less. Shame on you. Don't you think you can do better than $150 Cheap Sh_t work? Why did you work so hard to get your cert. ticket If you didn't think you could and should make more than avrage hourly rate. Someone stand up and take control before they put all of us out of work.

DanSchweihs: (November 23, 2010 10:52am)

GODLIKE: FHAs primary mission was to “Serve the Underserved”. Spend some time on the Internet and you will confirm this. FHA has picked up a lot of other “missions” along the way. Their original primary mission was to help prospective homeowners who were responsible but not financible by banks in the 1930s. Try to have an open mind and check out the solution at: http://www.hard-loans.com/Solution.htm.

CalifornialoansbyBryan: (November 23, 2010 10:46am)

Agree with Clulessdad and Frank. Need to know the strengths and weaknesses of all your lenders. I signed up with UWM because of your endorsement and we have had great success on the first 2 loans we sent them. Both loans closed in less than 15 days and i was shocked! I didn't believe it was possible, and wouldn't have tried them without them being on your show. Every lender has their strengths and weaknesses, our jobs as brokers is to use them at the right times and for the right borrowers and i was very impressed that UWM actually came thru with what you guys said they would.

tinna: (November 23, 2010 9:54am)

Thank you Frank for your comments regarding appraisers needing to stand on their own two feet; I cannot agree with you more! This is our profession and we owe it to ourselves to be professional. That means learning how to sell our product and produce quality results (I am not talking about hitting numbers or unrealistic turn times) that demonstrate our knowledge of market areas in an articulate and educated manner. Respond to UW with professionalism and in a timely manner and you will see referral business. I also what to note that the panel model is one that appears to work. When the panel has to be approved by a board of directors with work samples, the confidence in the appraiser's skill set is increased. Have a great Thanksgiving everyone!

mdeery: (November 23, 2010 7:42am)

Low rates and borrowers remind me of teenagers! Its like a party they went to and got free drinks, now they are being told they need to BYOB. They dont give a hoot that rates were at 6% 2 years ago, all they know is what they hear and see today..well at leat only 90% of them behave like this LOL. Happy selling.

GODLIKE: (November 23, 2010 7:36am)

Yup, I said Construction standards! They said if we are going to do long term loans (I believe it was 7 year loans) then we need to have homes that will last long term. We think of FHA standard carpet as being super cheap, back then FHA standards were seen as restrictive. Lathe & plaster interiors (now sheet rock) was only done on the more expensive homes. Those stories about the interior of homes being plastered with worthless stock certificates in the 20's are for real. They papered the back side of the wooden exterior between the studs. We have a lot to thank FHA for.

GODLIKE: (November 23, 2010 7:32am)

DANSCHWEIHS on one hand you couldn't be more wrong about FHA being created to "serve the underserved". That's a new slogan just created a few years ago. On the other hand just watch "It's a Wonderful Life" on TV this year. Replace Bailey Building and loan with FHA and you'll see why FHA was created. At that time virtually everyone was underserved. They created most of the lending and underwriting & construction standards we take for granted today.

frankgaray: (November 23, 2010 7:07am)

Thank you Clulessdad. Well said.

frankgaray: (November 23, 2010 7:05am)

Ezradams - I'll have to add to the books for to read Jeffrey Gitomers Little Red Book of Selling. Chapter One specifically. It's titled Kick Your Own Ass. I'm sorry to disagree with you, but this battle is yours to fight. We've spoken at several appraisal meetings and I find it sad that most appraisers don't understand that they have the ability to get whatever they want, they just don't do it. You're a salesperson bud, now sharpen your skills and go out and sell. The appraisal community needs a leader. Someone needs to rise up and teach appraisers how to get what they want in this new environment we find ourselves in. This person needs to be an appraiser, it's not Brian and I. We'll do what we can and have done a lot already, but you all need your own voice out there. Go to www.theappraisalshow.com and start working with Bill and Tina. "You" Ezradams. "You" need to go to the lender and work this out. Now sharpen those skills and get to it.

Clulessdad: (November 23, 2010 6:59am)

I don't see UWM as an end all in lenders. Unless a lender sells direct to the agencies, you are GONNA get overlays. I see UWM as part of the broker's portfolio of lenders, one who can act quickly. There are times when that is unnecessary. A point that is not discussed on this forum is the one huge advantage brokers have more than direct lenders. That is that we have the flexibility to use many different lenders for many different reasons. UWM just has their niche, and we should see it as that. Got a 620 FICO? Use Wells. Need speed? Use UWM. Need real low rates? Use Provident. Need speed and conv? use provident. Need a 580 FICO FHA? Use First Mortgage. Need no overlays? Use Fremont or AMX. Brokers who lock themselves with one lender miss a lot of opportunities.

Bono Vox: (November 23, 2010 6:57am)

EzraAdams - are you asking them to give up a sponsor just as they are starting to monetize years of hard work? Surely there is a better idea out there. Panels are better than AMCs because appraisers prioritize fatter paychecks, it's easier to "communicate" with the appraisers, and there is better quality control. As I've said several times, I love my panel and I'm glad my appraisers are getting paid.

mmt110: (November 23, 2010 6:34am)

Personally, I prefer to work with regional/non-national lenders who have very open communication with me (tells me when they are having trouble reaching HR for final VVOE - the MLO needs to follow up as well) AND have an AMC process that keys on using LOCAL appraisers. I do NOT feel an appraiser covering more than one entire MLS area is doing anyone justice. Covering more than 5-6 counties (30-45 mile radius) is just too large a coverage area. Until we demand this of every AMC, we'll continue to get appraisers who travel well over 60 miles to do appraisals in our markets. The vast majority of local appraisers where I am from do not travel to another MLS coverage area to do appraisals - they freely admit that they cannot intimately know more than one MLS area like they are required. If we demand LOCAL appraisers for our reports and there is consistency of pricing within the market, the lowest bidder issue will disappear. I ask for an appraiser w/in 20 mile radius of the subject property

DanSchweihs: (November 23, 2010 6:30am)

Wrong. FHA was invented to “serve the underserved”: To be the mortgage insurer of last resort not to be an AAA-paper insurer. Today, FHA is crowding private mortgage insurers out of the market and rejecting the prospective borrowers they were created to serve. What is the average FHA credit score today? I would do the same thing if I ran FHA and I could get away with it. Here is a solution that required no federal money; brings the private mortgage insurance companies back into the market to do what they can do best; provides the opportunity for a housing recovery: http://www.hard-loans.com/Solution.htm spend a few minutes with the arithmetic on this page and you’ll find it difficult to argue with the two plus two equals four logic.

kkric: (November 23, 2010 6:11am)

le.knopf Yes, my experience too. For instance, on FHA Streamlines they are full doc on income, AND have an appraisal requirement. In general, they have about the worst underwriting requirements I have encountered. And, if you are delayed by the incessent demand for additional items, and they were inaccurate in letting you know timing, they will not extend a lock more than once. (You then relock at worst pricing). And, their regular lock extensions are very expensive - 0.625% for a 30 day extension. They have cost me about $20,000 in lost commissions on loans I sent there. I'm not going back for more of that.

lenman: (November 23, 2010 5:57am)

Guys, I heard alot of your comments on people not paying their mortgage should get out. The other day you talked about banks not being able to foreclose due to bad paperwork. If the banks don't have the proper paperwork why should the home owner move. Our laws were set up to protect the people. If banks want to break laws then they must pay the price.

Ezradams: (November 23, 2010 5:56am)

Frank, Brian: Thanks for taking notice of my post regarding the lender using AMC's instead of working with appraisers directly! Apparently I did not get my message across clearly to you. The problem is not with the wholesale lender...it's with TBWS for continuing a relationship with said lender. As champions for appraiser rights, I put the ball in your court since you have the ongoing relationship with this company. I spoke with a principal of the company and failed. (They don't know me from Adam and could care less what I have to say.) So, it's up to me to "sell you" on why this relationship is not in your best interest. To start, it counters just about everything you've said in the past regarding appraiser rights and use of quality over price. Please don't lose the credibility you've worked so hard to achieve! It's time for TBWS to stand on principal and apply some pressure to this company that you've partnered with. If not you...who else?

le.knopf: (November 23, 2010 5:33am)

Here is some different feedback on UWM. They have many UW overlays...so be prepared. For example, if LP or DO requests 1 yr taxes for S/E, UWM will still ask for 2 yrs taxes. Also, my recent closing was delayed and rescheduled because they weren't able to complete a qc verbal voe prior to drawing docs. They left a voice mail with HR that wasn't returned in time. I was not contacted to assist in expediting this process. Client was furious!

Swarm The Banks: (November 23, 2010 1:38am)

I heard this same speal from other sources in July of 09, that mortgage interest rates were going to start going up. Why not offer an interest rate dip allowance to anyone who is "on the fence". Why doesn't the government offer a program where anyone who gets approved now for a home loan gets a 2 year window in which if interest rates go down, they automatically get their own interest rate lowered by the same percent of decrease? Would not that pretty much remove any hurdle over waiting for interest rates to drop some more?

Swarm The Banks: (November 23, 2010 1:32am)

Is it 6 billion, or 6.9 billion? What's .1 billion among friends? Call it almost 7 billion, no?