Problem with the Appraiser that the Reverse Mort Lender is using...

HI Adakin,

I am certain this answer comes way to late to help, but since you answered another person's question quite well, I thought it only fair to address your question.

Unfortunately, you had little recource in contesting value since the AMC in all likelihood ordered the appraisal from an FHA approved appraiser (regardless of their local experience). Unless you were able to prove factual inaccuracies or could have provided additional comparables that perhaps the appraiser missed, the value would stand for as long as 6 months (today - appraisals are valid for 4 months).

I do hope that all turned out well for you.

Best regards.

Hi Pwirth,

We did close on our RevMortg loan, but stated in the closing docs that we didn't accept the appraisal. I'm a Certified General Appraiser and senior review appraiser with another lender (that doesn't do RevMortg loans) while the AMC appraiser hired by the bank is a Licensed appraiser (in our state there are Apprentice, Licensed, Certified Residential and Certified General categories for appraisers).

As you suggested, I did provide the bank with numerous comparables that were more like the subject property and provided photographic evidence disputing their appraiser's claim that his comparables were similar.

Now that the closing is over, I've filed a complaint with our states Licensing Board listing the various USPAP (Uniform Standards of Professional Appraisal Practice) violations that were in the bank's appraisal.

When I did that, I discovered that the bank's appraiser had been judged guilty of over a dozen violations by the board over the past two decades. In my hope to protect future borrowers from this person, I've requested that this appraiser loose is license. I'll update this post once the LLR board's findings confirm my claim that the licensed appraiser violated USPAP and our state's appraisal regulatory laws.

Thanks for your input, Adakin Valorem

Based upon the supporting facts you provided, if I was your Loan Officer, I would have appealed the Appraisal. The Mortgagee Letter says you can get another one if the Underwriter agrees it's inferior. But you can't hire the Appraiser, your Loan Officer hires the Appraiser. Raymond

Raymond,

We did provide a complaint to the Loan Officer and requested a different appraiser. They simply forwarded my specific complaints on to the original appraiser who revised his report, but didn’t address any of my complaints.

We did that dance over a half dozen times. When I submitted my filing with LLR (state licensing board), they found him guilty and revoked his license, never allowing him to provide appraisal services in this state again.

With the loan long since having closed, the bank has no idea that the appraisal they choose to use was found to be in such violation of numerous USPAP regs that the appraiser is no longer in business… not fined… not suspended pending add’l training or other such sanction… but revoked!

I did, in fact, hire another appraiser, knowing full well that it wouldn’t apply to the pending transaction, but only for comparison with the bogus report. The bank even asked for a copy directly from MY appraiser… and they still refused to use someone other than their AMC guy.

Anyway, that appraiser is no longer able to harm anyone else…

Adakin