FHA APPRAISAL VANCOUVER, WA
FHA appraisal requests are up significantly this year.
I was a specialist for FHA appraisals before they went to lender selection of appraisers in the early 1990’s. The FHA had chosen several appraisers locally to watch for indications of fraud in the market; flips and contract fraud, etc. After lender selection of the appraiser went into affect seems the lenders did not want those appraisers that followed the FHA rules to do their appraisals. They wanted those appraisers that would respond to the whims of the lender and not adhere to FHA insurance needs. Then, the FHA got into trouble and the appraisers got blamed. Probably rightly so. At least, to blame the appraisers that ignored the FHA concerns about property condition would be justified. But, those appraisers were chosen by the lenders for the appraiser’s pliability, not their integrity. Oh, those rascally lenders. Seems the stories about the lenders mistakes keep coming up, then someone else gets blamed and the lenders get bailed out. They are all about FREE MARKETS until they stumble and fall. Then it is “Where’s my government bail out?” But, I’m whining, aren’t I?
Fannie Mae is now looking at the possibility of black listing lenders who manipulate the appraiser into producing fraudulent appraisals. The pendulum has swung. I have been complaining to FNMA since the 1980’s about the lenders black listing appraisers for not committing fraud on the lender’s behalf. I guess a lonely voice was inadequate to affect the change. A few hundred billion dollars in losses and loss of market confidence seems to have gotten their attention.
Pacific West Appraisal Services, Inc.
pwas.net
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