Should Some Interference Be Allowed In The BST Areas?

[JustinD]

Originally Posted by hcv123

2) When I bought my 1st house, I pursued financing through 2 different lenders (my nature). They each brought in their own "professional" appraiser. 1 appraisal came in at 420K. The other at 520K. Sorry, but based on my experience - PLENTY of pick and choose!

I can believe you prior to a certain date but as someone who worked for the largest mortgage lender in the country and now works for the largest government sponsored mortgage investor in the country, I can assure you that if there is now the slightest proven impropriety the appraiser and appraisal is gone forever. The Wild West of appraisal is long gone. Now, you more than likely would forced to use the first appraisal in even if the second comes in a million higher unless you can prove error in the first by negligence. Trust me, it’s not easy.

[hcv123]

Originally Posted by JustinD

I can believe you prior to a certain date but as someone who worked for the largest mortgage lender in the country and now works for the largest government sponsored mortgage investor in the country, I can assure you that if there is now the slightest proven impropriety the appraiser and appraisal is gone forever. The Wild West of appraisal is long gone. Now, you more than likely would forced to use the first appraisal in even if the second comes in a million higher unless you can prove error in the first by negligence. Trust me, it’s not easy.

It was after the "appraisal reform". As mentioned in my post, the only reason there were 2 appraisals, I submitted applications with 2 different lenders. Each did their own appraisal. These were supposed "professionals". The price of the house was $535K. The $420K appraisal was a joke - I was very well versed with the market at the time and expected a 480-520 appraisal. The 420 was the appraiser used by a bank with whom I had a relationship for 20+ years. The 520 was from a recommended mortgage broker who I never even met. The bank ended up apologizing and refunding all my application fees. Just saying - anytime subjectivity is involved - grossly different opinions/outcomes are possible.

As much as the grading companies and many collectors would love it to be as objective and easy as an 8 is an 8 is an 8, it is just not reality.