At a recent conference, the topic of revisions and conditions came up. So many loans are lost every year due to the untimely handling of revisions and conditions. This is a huge problem in our industry, not to mention how silly it is to lose months of hard work over improper phrasing or a typo in a report.
For those of you who are unfamiliar with this topic here is a quick break down:
The appraiser fills out an appraisal report and sends it to the lender. Then the lender’s underwriter goes through the report and requests changes or corrections; we call these revisions and conditions for the report. It comes back to the appraisal management company and we ask the appraiser to make the changes. The loan cannot be funded if the there is a mistake on the report, no matter how small, or if the report is not filed on time.
Currently, 19 states have passed laws requiring Carbon Monoxide detectors to be in homes and California has been one of those states since July 1, 2011. These laws are long over-due because unlike smoke, CO is odorless, colorless, and will affect you quickly, which makes it a silent killer.
We have noticed recently that many failed inspections are due to the fact there is no CO detector in the home at the inspection time, which results in a re-inspection fee of $150.00, after the detector is installed. People often confuse smoke and CO detectors but they are not the same thing. Smoke detectors have been required for many years but now both are necessary to pass inspection.
The price of a CO detector has dropped since many states began passing laws mandating them and you can now buy them for around $20 at places like Target or Amazon.com.
You must give your employees the tools they need to succeed and to be knowledgeable about this industry. Educating employees and coworkers on the “do’s and don’ts” of appraisal forms will help all of us in the long run.
Provide staff with a list that articulates what is appropriate or not when speaking with an AMC and what information is allowed to be passed along from the AMC to the appraiser.
Last week I received an order with a note asking if I could please send a particular appraiser. This is against the rules; you cannot request a certain appraiser.
You may not ask who is doing the appraisal, even after we sign off on it. The soonest you can receive this information is when we deliver the report.
Do not include your property estimate. If you put a value estimate on the form I cannot send the form into the appraiser.
We are so happy to announce some big changes to our company website including our new blog! For the past two months we have been working behind the scenes, updating each section, adding photos and basically infusing more of our personality into the website.
The most important thing to us here at AAA AMC is customer satisfaction, so we welcome your comments and feedback. If you ever have any suggestions of how our website can better serve your needs, please let us know.
I am going to be blogging regularly here so I invite you to visit often and leave comments.
I recently came across this article “Appraisers left high and dry as AMCs shut down” and felt compelled to blog about this because it is a very important subject that concerns all AMC, appraisers and lenders.
When I started my AMC branch there were a few other AMC’s that started up around the same time, and it seemed that they were growing faster than me. This made me feel that I might be doing something wrong and concerned that my business might never expand.
Two years later those same AMC’s began to close their doors and I realized that I was on the right track. Those branches were using their money to expand their operation instead of paying their appraisers on time and therefore losing quality of service. When reports needed revisions made, their appraisers were reluctant to do them because they hadn’t been paid for the original report. Thus the lenders they were servicing were not able to secure the requested revisions and were unable fund loans.
As president of AAA AMC for the past 5 years, I have picked up a few tips and tricks that can help save my clients time and money. Here is a suggestion that may help make your next appraisal inspection run more smoothly.
Many times when an agent orders an appraisal, they’re not aware that FHA inspections are more involved than inspections for conventional loans. This may result in the appraiser finding issues with the property and requesting items to be fixed for FHA’s minimum property requirements. This means the appraiser will have to come back for a re-inspection, which causes delays and additional costs to the buyer.
The good news is this can all be avoided when the agents address potential property issues ahead of time. FHA inspections use the three S’s as guidelines: Safety, Structure and Security:
Safety: They are looking for items that may impact the health and safety of the occupants.