Much like many of my posts, I am inspired by something that happened to me, is happening, or has happened to someone else, or in this case, a blog by another ACTIVE RAINER. I spoke to a couple of senior members on this website before I posted this information, because I had considered linking to the blog that inspired me, as well as some of the comments that had been left.. Well, after much thought, I have decided to just post information instead...and let everyone reading draw their own conclusions!
This is a VERY evil two word phrase right now, so be patient and I will tell you why!
First of all, there are NO WAYS AROUND the HVCC rules, period! - I thought I heard an echo.......yes, now I know I heard an echo! You simply cannot and should not, get around these rules!
Obviously by now, we ALL KNOW about, and are complaining about this ruling!
That is NOT the point of this blog!
Click here for a direct link to the HVCC rules!
Recently, the issue had been brought up regarding a REALTOR meeting the APPRAISER at the home and providing Comparables to said appraiser!
There are many quality Realtors like Lenn Harley that believe it is part of their JOB and responsibility to be there, especially if they are the listing agent! In this market, I AGREE! However, BE CAREFUL what you say!
Well, I was concerned about this, and did QUITE a bit of investigation on this topic PRIOR to writing this blog....and HERE is what I found out!
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Here is a qoute from an Account Executive first, then I will follow with my other comments:
"Darin,
I heard back from a few different sources and they all agreed that no, a realtor would not be allowed to meet with the appraiser or give comps to the appraiser. Per the code could be looked at as undue influence on the appraisal."
Well, I didnt stop there. I then phoned a company that does 3rd party appraisals through RES DIRECT, which is Wells Fargo's "go to" company. I spoke to the "Head Honcho" there, and this is what he said...paraphrased....(btw- he preferred to remain anonymous, as well as their company)..I am currently honoring that wish!
His thoughts were that there is NOTHING wrong with a REALTOR (obviously in most cases the listing agent) meeting the appraiser at the home. He even went on to say that if they provide COMPS in a nice, professional folder, and dont TALK to them about value... he considers that just fine! He also thought it would be okay to walk around WITH the appraiser answering questions about the home, but again, HE STRESSED to NOT discuss home values or the current market conditions!
HERE is where it gets tricky and very precarious for a REALTOR! My contact went on to say that he receives a DAILY "UNDUE INFLUENCE REPORT". This report details Realtors that have been mentioned BY THE APPRAISERS THEMSELVES or the 3rd party COMPANY that employs the appraisers, for CALLING EXCESSIVELY, or for trying to "persuade them", or even ASKING questions regarding "pitfalls" and if they used or will be using a specific comparable etc..etc..etc.. In NO UNCERTAIN TERMS if he gets a Report on an ACTIVE LOAN with a REALTOR that has been mentioned on his "Undue Influence Report", WELLS FARGO will NOT BUY THE LOAN! Keep in mind, now we are not just talking about being there when the appraisal is done, we are also talking about KILLING THE DEAL!
I then took it ANOTHER STEP further...and spoke to 2 different appraisers! One of them I have never met in person, and only have had 1 transaction EVER with! She stated that she has NO PROBLEM with a LISTING agent meeting her at the house, but does consider a REALTOR providing her comps to use as "undue influence". Her logic is that the REALTOR is assuming she doesnt know how to do her job, and that by providing them, they are telling her where to look!
The 2nd appraiser felt ALMOST exactly the same. What she went on to say though was that even if a REALTOR provides COMPS for her to review, that they OBVIOUSLY still look up their own! However, there have been many cases where the COMPS provided actually MATCHED case for case on the ones that she used! She complimented Realtors for the job they do, but did say that they have a hard time understanding the rules THEY must follow concerning distance, recency of sale, size, and adjustment values!
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IN THE END, it truly does not matter HOW you feel about this subject, the rules are the rules! Obviously, these rules were created by the mis-use of the LENDER/APPRAISER relationship, and undoubtedly, were made worse by the pressure being put on the Lender by the REALTORS and buyers/sellers alike!
Here are DIRECT QOUTES from the HVCC rules:
Section 1
Sub-section B
#5
requesting that an appraiser provide an estimated, predetermined, or desired valuation in an appraisal report prior to the completion of the appraisal report, or requesting that an appraiser provide estimated values or comparable sales at any time prior to the appraiser's completion of an appraisal report;
Or, Section IV
Sub-Section B
#4
the lender, or its agents, and any appraisal company or appraisal management company providing the appraisal to the lender do not provide the appraiser any estimated or target value of the property or the loan amount applied for (except that a copy of the sales contract for purchase transactions may be provided);
UNDUE INFLUENCE - While they specifically mention LENDERS many time, they also list the word AGENTS too! This is being INTERPETED as Realestate Agents! My guess, is that the NEXT change involving HVCC will include the SPECIFIC words, REALTOR, REALESTATE BROKER,SELLING AGENT,LISTING AGENT and the like!....sooooooooooooo
Get to know it, and stay the heck away from it!
It's only 6 pages long! If you want a copy, email me at Darin@osmwi.com
Ill send you one!
Thanks for reading & Keep selling!
-Darin-
As always, I welcome your concerns,comments,issues and suggestions!
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