I wanted to hear everyone's take on Fannie mae's code as of January 2009. Do you see business to go as usual or some major issues bearing ahead. Personally, i feel this can be a deal breaker. If the brokers don't have control over an appraisal the problems I foresee are as follows:
1. expediency and reliability!! if appraisers don't have to answer to the brokers that are feeding them their bread than they can take their time tally and the loan process can even take longer!!
2. we all know appraisers who know the area and who don't. if the appraiser selected gets work for an area he is not so familiar with he most likely wont come up with proper comps. (sometimes MLS is not the only source for comps) and this can be a huge problem.
3. refinances.... many times prior to doing a refi, I call the appraiser to see if the value is actually there as the borrower so adamantly professes!! if the appraiser can find comps than I go ahead, if not I don't waste mine or the borrowers time, however now we wont have that luxury so we will have alot of borrowers with money wasted on appraisals and guess what my time wasted.....
additionally my sympathies lay with appraisers!!! I have great relationships with excellent ETHICAL appraisers who get work from me because of their promptness, and clean work. I like working with appraisers who are familiar with a neighborhood and can give a clean accurate appraisal. the worst is when I get a sloppy appraisal and it gets killed in underwriting. I prefer if an appraiser tells me upfront :this cant appraise, and instead of wasting my time, the buyers, seller, Realtors, attorneys time we just lower the price upfront!!
also how about all their time they put into cultivating relationships, I have over ten years of relationships with excellent appraisers do to their great work... that can all go to trash now that we cant order work from them. if an appraiser is used to making 100k annually, their income can suddenly drop to 50K!!! (sorta like socialism)
I think this is an important topic as it affects all of us... please share
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