Once upon a time there were two borrowers whose loans were set to close within a week of each other.
Borrower number one was fortunate that his Loan Officer worked with a wonderful appraiser named Mark. Now Mark was the ideal appraiser - conservative, but not too conservative. He used only solid comps and always made reasonable adjustments. When the Loan Officer submitted a loan with Mark's appraisal, she never had to worry about value. Appraisal Review? Bring it on.
Borrower number two, on the other hand, went to our LO mid-way through his transaction with an appraisal he had already paid for by a wicked appraiser we'll call Ron. Since the borrower had already paid for the appraisal, our heroine agreed to at least begin work with the existing appraisal. Upon review, she was crushed to realize that there was going to be a problem. Every one of Ron's comps crossed a major boundary! We're talking MAJOR boundary - as in the 163, 15 and 8 freeways. The poor Loan Officer couldn't even quote a rate to this client so sure was she that a review and value cut lay lurking in the shadows at the lender's corporate office.
Now for the Dicksonian Twist:
Our heroine sent both loans to the same lender - actually apologizing to her Rep for the shoddy appraisal that was sure to be a problem and not wanting her good reputation to be tarnished. But alas! True Blue Mark's appraisal was cut by more than 20% and Bad Boy Ron's break-every-major-boundary-rule appraised value held.
The End
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Epilogue: Always true to her word and able to take value cuts in a single bound (thanks to a short period of really awesome rates, dude), our heroine was able to change lenders (and the new lender did not even review the good and solid appraisal) and grab a better rate for borrower number one at the same time! So, all the borrowers lived happily ever after, after all.
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