This post inspired by Janet Guilbault's excellent and informative description of the changing world of mortgage underwriting, Time Wasters and Heart Breakers: The End of Loans That Blow Up?
A comment on Janet's post by Melina Tomson got my attention. Melina's comment is very timely for me these days. I have a contract in underwriting but we have not yet received the appraisal. It's now 3 days past the appraisal contingency. Thanks Wells Fargo.
The excuseswe're getting from the loan officer with Wells Fargo is that the appraisal has taken more time than most because of the acreage. Because of the acreage?? The property is 3 stinkin' acres in horse country. I didn't have any trouble finding comps when we wrote the contract and the listing agent didn't have any trouble finding comps when he listed the property.
IS THERE A STOVEPIPE SYNDROME WITH MORTGAGE COMPANIES THESE DAYS?? The loan officer with Wells Fargo says she's not permitted to communicate directly with the appraiser. GEEZ!!!!
PLENTY OF TIME FOR EVERYTHING. The appraiser visited the property last Thursday at 8:00 a.m. I was there to meet the termite inspector and the appraiser was there along with the listing agent to give access and comps. Since the appraiser didn't get to the property until the 22nd, I'm suspecting that the appraisal was ordered late by the loan officer with Wells Fargo. Of course, we'll never know.
The deadline for the appraisal contingency is clearly in the contract for 10 days. The loan officer with Wells Fargo said that it was ordered the day she got the contract which was on the 16th. With so few sales out here these days, one would think that there shouldn't be any delays with an appraisal. Why did the appraiser not get to the property until the 22nd???
All I can say at this time is THANK GOODNESS THE BUYER SELECTED THE LENDER BASED ON THE RECOMMENDATION OF A FRIEND. The buyer does have a good rate, but what's the use of a good rate when the appraisal comes in late and past the appraisal contingency deadline?? If the appraisal is low, my buyer could be faced with paying $Thousands of Dollars over appraisal. For many buyers, this could easily mean a loss of financing. Paying cash above appraisal doesn't give any buyer a feeling that the property they are buying has good value. How much cash we're talking about??? We don't yet know, if or how much. However, my experience over the years is that a delay in the appraisal has almost always resulted in a low appraisal. The appraiser can't find comps to justify the price. We have a contract for about 90% of list and my buyer is very comfortable with the price. In fact, I fully expected an appraisal above contract.
Needless to say, this delay will cost this loan officer with Wells Fargo future business. It will cost her lots of future business. The loan officer with Wells Fargo admitted to the buyer that she didn't see the appraisal contingency in the contract, which I called her about before the deadline and she ignored my call. But, then, why should a loan officer pay any attention to a mere buyer's agent???
When the buyer contacted the loan officer about the deadline, the loan officer's comments were something like "I can't be expected to read every word of a contract:." True, but it would seem that the appraisal contingency would be one thing a loan officer would read. Dates are critical in a Time Is Of The Essence contract, which ours are. It would seem that a loan officer would at least look at the parts of a contract that are affected by financing. Especially if these dates were pointed out by the buyer's agent. But then, why should a loan officer pay any attention to a mere buyer's agent???
THE STOVE PIPE SYNDROME. Are we entering a time when the appraisers are going to be so isolated that the appraiser or the loan officer can ignore dates in a contract??? Is this the beginning of a period where no one can communicate with anyone else because of the undue influence on appraisers by loan officers in the past??? Are present and future home buyers and sellers going to have to pay for the problems of the past with poor service today and into the future????
IS THIS ANOTHER RESULT OF THE MORTGAGE MESS?? Just how isolated are appraisers these days??? I realize that some appraisers were involved in bad loans during the past few years, but I've never considered the appraisal to be the real culprit of the mortgage mess. They, appraisers, were not nearly as involved in profiteering or manipulating mortgage loans to the extent of the Wall Street gangs and the regulators and overseers that enabled them. Listing agents have always been able to communicate with appraisers. Are they now going to be ignored because the appraiser is in one stovepipe and the listing agent is in another??
WHAT ABOUT TRANSPARENCY?? If loan officers with Wells Fargo are not permitted to communicate with appraisers, how will the mortgage company or the buyer or seller ever be able to have any confidence in the loan processing or underwriting process??
I would greatly appreciate any comments reflecting your experience in these matters of:
- communication between listing agents and appraisers
- communication between loan officers and appraisers.
Or, is the experience above simply related to one loan officer with Wells Fargo?
"Honey, are we going to be able to close on the contract on our home?"
"I don't know Dear, the appraisal is overdue and there's a chance the buyer may not be able to close".
Courtesy, Lenn Halrey, Broker, Homefinders.com, 800-711-7988, E-Mail.
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