Some areas have less than a month inventory

[jpinpb]

SDR – I can only go by my most recent (past 2 months or so) experience w/lenders and appraisers. It was an ordeal that was stressful and frustrating. You can tell me all about the new rules, etc. etc.

The original broker we were dealing with ASKED me what number we needed b/c he knows an appraiser that can come in at whatever number we want. This was after we had gone through one of his other lenders that guaranteed no cost IF we had 20% equity. Needless to say, that appraiser came in lower of the 80% LTV.

This isn’t my first rodeo. I have checked the comps in my area and coming in at 80% LTV was easy, considering view and improvements compared to other properties that sold in the area.

After wasting so much, time, effort and energy, maybe they thought we’d pay to do the loan, regardless of the appraisal amount. However, for us, it mattered to get rid of PMI. We didn’t do the loan w/that lender.

We ended up going w/a totally different broker-lending company. That appraiser that came to the house said to me when he was here, “Off the record, do you need to come in at a certain amount?”

I’m not making this up. I was so stressed about all this, I was talking to CAR about it.

Is my situation the rare exception? I am too skeptical to think I’m the only one.

My conclusion: They can come up w/any number, high or low. It is so subjective, variable, etc. Rules or not.

[jpinpb]

I’ll also add, Mr. jpinpb just found a website where people were posting about complaints of this lender, and I’ll just go ahead and name names. Provident Lending. Some of the complaints were pretty much exactly as ours. Too bad we didn’t stumble upon the website months ago. Would have saved us a lot of anguish.

[SD Realtor]

JP I believe yours was definitely the exception as was evidenced with the overall experience with the lender you were working with.

As far as the other appraiser asking you if you need it to come in at a certain amount, that is not the norm as well. Additionally that appraiser will still need to have his appraisal submitted to his management company and it still will need to be approved by them. Obviously the system is not perfect but it is what we have.

I would simply argue that pricing is driven by buyers and not appraisals. At least for now this is the case.

[CA renter]

SDR,

What jpinpb says is true in her case.

Are you not seeing appraisals coming back at *exactly* the contract price again? As you know, this was the norm during the bubble. Things did tighten up in the early years of the bust and appraisers weren’t doing this nearly as much, at least for awhile, but it sounds like things are getting looser, again. I’ve not been involved in any deals recently, so not sure if things have reverted back to “the good ol’ days” of tacit appraiser-realtor agreements, or not. What are you seeing?

[SD Realtor]

I never said anything at all about where appraisals come in at. I said that lenders do not have contact with appraisers. The fact is that most appraisals now are coming at list price and some are coming in above. The facts of the matter is that appraisals are nothing but a subjective opinion based upon comparison analysis. While there is a cost to build component in all appraisals it is rarely if ever used. A home is for sale, a few comps are selected and then the appraiser adds or subtracts from each line item based on differences.

Let me ask you all this… Do any of you believe the appraiser actually visits the comps he uses and walks through them? How should the appraiser deal with a situation when the comps are not sufficient? An appraiser goes to the subject property and maybe drive by a few of the comps.

It is very easy to get all ruffled up about this but I hate to tell you all the reality of the situation is much different. You make it sound like an appraisal is easy to do when it really is an OPINION based on a few phone calls, maybe some drive bys and a study of comp analysis.

There are no realtor appraiser arrangements. In JPs case it was not here realtor it was her lender and as I said that is far from the norm.

Try to understand you are in a BUYER driven market.

[all]

Provident does not resell the loan, they keep it. They have good rates, but they don’t make the qualifying process easy. That is why some brokers no longer work with them.

[SD Realtor]

There is your answer. If you look back at my post the first thing I mentioned was the secondary market. Portfolio lenders can get away with alot more of this kind of behavior.

[jpinpb]

This is the website that Mr. jpinpb came upon recently:

Provident Funding complaints

This particular comment pertains to appraisals:

Provident – don’t do it

I don’t think my case was unique or the exception. I only wish we would have found this out earlier and it would have saved us a lot of grief.

[jpinpb]

We just closed our escrow at 3.25% (30 fixed) last night w/Loan Depot. The appraiser came in slightly above the 80%LTV we needed, though I don’t think it was a favor. It was appropriate according to the comps and conditions of the properties that have sold. Unlike the appraiser that Provident sent.

[Coronita]

[quote=jpinpb]We just closed our escrow at 3.25% (30 fixed) last night w/Loan Depot. The appraiser came in slightly above the 80%LTV we needed, though I don’t think it was a favor. It was appropriate according to the comps and conditions of the properties that have sold. Unlike the appraiser that Provident sent.[/quote]

Weird. One of my refinances going on is Provident. My appraisal came in kinda high…. I did do the ole, here’s “some comps that are close by” trick to the appraiser when he came in…

Now being able to close on time…That’s another question….

[SD Transplant]

ohhhhh boy…..here am I embarked on the same journey (REFI time to get rid of PMI & leave the era of 4.25% rates behind). Curious if my appraisal will make it. I put a lot of $ in the house besides the 10% down when I got it. We’ll see what it means to the appraiser in the next weeks…..ahrrrrrr

[gzz]

Hope you have another 10% down in cash handy!

[Author]

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