Appraisal Articles

I am fairly new to this profession, I have only been appraising since 1998, but I ran into to something today I have not run into before...

I was sent an order, by a lender I have done work for before, requesting a URAR. The conversation that preempted the order was that they had an appraisal done, but the previous appraiser was not on the list of the company they sold the loan to so they could not use it. They were willing to pay for a new appraisal. Sounds good. I also knew that this company required credit card payment from all applicants by paypal before the orders would be processed. Another good idea, the prepayment of appraisals... But this is where the good news ends.

I made a phone call to the number designated by the lender as a first person to contact. I was very surprised to find out that the number they gave me was the other appraiser, surely I had misunderstood.

Sadly, no, and this is the unbelievable part. The lender gave me the number of the previous appraiser so that I could charge the appraiser for the appraisal!

The lender's rationalization was that because the appraiser was not on the list (of the secondary bank not mentioned) that the appraiser should have to pay to have a new appraisal done.

I stopped right in my tracks. I could not believe it. I simply told the other appraiser that under no circumstances would I take payment for this appraisal from him/her and in fact I would call the lender immediately and turn down the assignment. I was appalled that the lender would have the gall.

It is my opinion that if lenders are allowed to deny payment or be reimbursed for a product they can not sell for whatever reason, it is a slippery slope. I told the lender that their request undermined our very profession, and if we did not believe in the principles and ethics under which we practice, what would that make us?

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Amanda Rivera