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Promises . . .Promises: If you'll just do this ONE "Comp Check"!

Everyday appraisers across the country are called by potential clients with offers of work IF they'll just to this one FAVOR!

Yesterday I blogged about my call from a mortgage broker in Chicago. She asked, "What's your fee for an appraisal in Danvers, IL?" I told her. Then she asked, "How you you feel about charging an extra $100 so that I could make a little something-something on the deal?"

Today I've got a great example of how one broker went Fishing For Appraisers. As you read the letter below, ask yourself: Is the mortgage broker looking for a free appraisal or is he really just shopping for the appraiser with the highest Comp Check value?

After-all, he knows the appraiser ". . .can't hit every one" but if the value "looks good" the appraiser will qualify for their list. Read on!

Dear Sir:

I am a mortgage banker with XYZ Home Loans and need QUALIFIED APPRAISERS ASAP.

We are a mid-sized lender performing just shy of 1 billion annually in loan volume and have just recently entered your state. We originate mortgages in half the country with over 150 mortgage bankers centrally located in Anytown, USA. In addition we have just started a sister company XYZ Home Settlement Services that provides title and appraisal services for our company and a list of others.

We have just begun to market in your area, which means at present we do not have any appraisers in your area. We drop over a million pieces of mail on a monthly basis and to test your region we dropped 50K mailers last week with overwhelming response.

For any new area we break into, we must find competent appraisers. Since we do not have any appraisers in your area, you could be the first approved appraiser in XYZ APPRAISAL NETWORK, which could mean anywhere between 10 to 25 appraisals per month.

However, let us go one-step at a time. Let us start by running a comp check. If it looks good, we will go forward.

I also need a copy of your current E&O, appraiser's license, W-9 tax information, area of coverage, and contact information.

If you can legitimately get some values and of course, we know you cannot hit every one but if it looks good, we can get you in as an approved member of XYZ APPRAISAL NETWORK.

Once that happens then all 150 Mortgage Bankers that have workups will call you first because you will be the only one approved in your area.

So let me give you the name and address of the property in "ANYWHERE" County where I already have a deal:

123 Your Street

Any Town, USA

I look forward to doing more business with you in the future.

Have a great day,

John Doe

Our_appraisal_logo_sm_blog_2 Author: Brian J. Davis, RAA - Brian Davis & Associates - Brian has over 23 years of appraisal experience in Central, IL and hosts the Appraisal Scoop blog and the WinTOTAL Users Group an email forum for appraisers.

Posted by Brian Davis on 08/29/2007 07:37 AM

Comments (8)

comp check, humor, mortgage

Post is included in group: Appraisers

8 Comments on Promises . . .Promises: If you'll just do this ONE "Comp Check"!

AUG

2007

I am not an appraiser, and could go either way on this one, but I have a hard time believing that in this market they are just setting up shop in your state, and that they are getting a overwhelming response to any one mailer.

Brian:

Just when you think you have seen it all.

James -

Exactly! The whole thing is a scam preying on those appraisers that are scrambling to make the mortgage payment. They've got ONE DEAL and they want it to work!

Like every other appraiser, I get similar telephone calls on a daily basis. I actually had one "honest" broker tell me that they had ALREADY called several other appraisers for a comp check on the property in question.

I'm not an appraiser and I don't know what is asked of you normally but, I would be very suspicious of anyone asking for that much information. Most of what the are asking for contains very private information including your tax id number and address. I could be overly cautious but I would suspect a scam. Be Careful.

Marie -

Great point! The information that broker asked for is COMMONLY requested!

FIRST there's the possibilty of Appraiser Identity Theft:

There are three main scenarios of appraiser identity theft and forgery currently taking place.

First, there is the appraiser-trainee who is fed up with splitting fees with their sponsor/ mentor and has decided to forge their mentor's name and affix their mentor's license number to reports without their mentor's knowledge or permission.
Second, there are appraisers who go phishing for license numbers. The term phishing refers to the current internet ploy by computer hackers to scour cyberspace for usable personal data that can be exploited.
The third and most disturbing trend involves persons who never were licensed appraisers, yet find this to be their crime of choice. Like those who go phishing, they come up with almost random victims and prepare bogus reports for hefty fees.

SECONDLY there have been cases where loans are funded with just the information this broker has asked for: The Appraisal Scoop article Comp Checks: Shifting Liability to Appraisers? discusses that possibility.

SEP

2007

I think you better watch out, Brian .... you could be making a very pretty template for another Loan Officer out there :-) - This one came to me in an email a while back. I just think that if you're going to send out a form email, make it at least look professional (like yours does).

Sara -

WOW! I just looked at the date of YOUR "Comp Check". Some forms are just TIMELESS I guess?! You KNOW that mine started out just as ugly as your letter. Sorry if I helped perpetuate that thing.

Our_appraisal_logo_sm_blog_2 Author: Brian J. Davis, RAA - Brian Davis & Associates - Brian has over 23 years of appraisal experience in Central, IL and hosts the Appraisal Scoopblog and the WinTOTAL Users Group an email forum for appraisers.

SEP

2007

No worries, Brian - There was bound to be a 'grammarcist' out there that would have come up with similar verbiage :-)

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