We are trying to rfinance. Anyone use Loan Depot?
They are quoting lowest.
The appraisers know what kind of appraisals the customer wants, so if they want to get hired again they will naturally be tempted to shade the results in the desired way. The same kind of thing happens with professional arbitrators where it's a big company against an individual. The individual has no idea who the arbitrators on the candidate list might be, where the big company knows and will select ones that they feel are favorable. The arbitrator, in turn, knows that the individual is not a repeat customer.... they hire independent appraisers, so not sure how much control they have there. ...
In the middle of refi with them now. So far, so good.
As for the low ball appraisal, they hire independent appraisers, so not sure how much control they have there. In my experience there can be huge variations in valuations between different appraisers.
The appraisers know what kind of appraisals the customer wants, so if they want to get hired again they will naturally be tempted to shade the results in the desired way. The same kind of thing happens with professional arbitrators where it's a big company against an individual. The individual has no idea who the arbitrators on the candidate list might be, where the big company knows and will select ones that they feel are favorable. The arbitrator, in turn, knows that the individual is not a repeat customer.
It's really more human nature than anything evil.
Interesting. Is this regulation specific to mortgages? My only recent contact with appraisers involved finding one and ordering the appraisal. Just like hiring a plumber or a CPA. In fact we are in the middle of one of those right now involving a piece of lakeshore.Those days are long gone. Several inches of Federal law (Uniform Standards of Professional Appraisal Practice or USPAP) make sure appraisers are assigned at random by an outside organization and appraisers are no longer able to be influenced in the manner you have suggested. Appraisers are probably more regulated now than any other profession.
Interesting. Is this regulation specific to mortgages? My only recent contact with appraisers involved finding one and ordering the appraisal. Just like hiring a plumber or a CPA. In fact we are in the middle of one of those right now involving a piece of lakeshore.
Those days are long gone. Several inches of Federal law (Uniform Standards of Professional Appraisal Practice or USPAP) make sure appraisers are assigned at random by an outside organization and appraisers are no longer able to be influenced in the manner you have suggested. Appraisers are probably more regulated now than any other profession.