So far fourteen states have passed legislature to restrict Loan Officers from discussing or even being able to hire their own Appraiser. Some think our Government has gone too far with this, but if think there are some good ways to look at what is happening.
Years ago our Appraisers would come into the L.O.'s office and tell us how good the "service" would be. Now being the good L.O. I would ask if he would be able to bring the numbers in for us. "Sure" would be the answer, and here ya go, we now have a solid relationship. Not such a great idea in the real world these days. Now the Appraiser will not have to step up to the plate as before. Now he or she can simply rely on doing their job, which is a tough one these days. Finding comps now are harder than ever to make a sound call on the appraisal, to make the numbers fit the purchase agreements purchase price.
We are traveling down a different path now. The Loan Officer can no longer discuss with the Appraiser any figures before and during the transaction. This protects both, the Bank, and the buyer. There is much more to all of this, and as time progresses I will share with you more information on an Appraisal Management Company and what they are all about.
I hope this helps some one out here with a piece of information that is going to hit home hard soon. In fourteen states, it has already happened. Take care.
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It's a good thing Bob. Everything has to change in business. Weeding out is necessary to produce a different kind of outcome. There were too many problems with appraisers giving the loan officer estimates to reflect the sale of the house just to get paid! Now, we know it did not happen in every situation, but enough to warrant correction, right? With these changes and in the current market, are you seeing a demand for BPOs?