As a Tampa mortgage lender, I seem to be shaking my head in disbelief a great deal; not at the clients…at the Fannie’s and Freddie’s of the world!
Just when you thought it was safe to go back into the water, those telltale fins emerge from the depths ready to take down the unsuspecting home buyer. (Cue the shark music…)
We all know about how the underwriter-appraiser clashes can kill deals. But now, although underwriters can no longer just arbitrarily slash the value of an appraisal…which of course is good news; the bad news is that if an underwriter and an appraiser cannot come to an agreement on whatever the issue is then one of three things can be done:
- Contact the original appraiser to deal with the perceived deficiencies
- Acquire a field or desk review of the original appraisal
- Get a new appraisal
Well that’s all well and good, but who’s getting shaken down for that additional $375? That’s right, the buyer. (Cue underwater shot of unsuspecting swimmer’s legs…)
When is there going to be an edict that does not gouge the consumer? Why does it seem that every “change for the better” costs the borrower more? Is this any way to effect a recovery to the real estate market? When will there stop being more questions than answers? I need to know.
At the end of the day perhaps the FNMA’s new ruling will prompt appraisers and underwriters to hug it out and just make it work realizing that options two and three are just going to be the messier options. I choose to believe that professionals will rise to the occasion and keep the bait out of the water.