Need a lender that will take apprasial already completed

12 Replies

in my experience  the appraiser would have to change the name of who the client is to the new lender .

just taking an appraisal that was done for someone else you lose the E and O insurance  

Best bet for a solid lead here is to post the AMC used for the one lender and hope any lenders who use that AMC will chime and see if they can just get it re-certified- Worth a shot

Originally posted by @Debbie Farrell :

I am a broker and I have a client that wants to change lenders due to terms of loan not being what they originally said, what other lender will take his existing appraisal?

For us, we are happy to have the appraisal re-assigned to us. The appraiser usually charges the borrower some money (probably $150) for the honor of him (the appraiser) bestirring himself and lifting his typing finger to change the the lender name at the front of the document and hitting the send button.

If the appraisal was done by an AMC that is not on our approved list, our underwriting team will do a desktop review of the appraisal. If the appraisal comps used vary too much from our guidelines or other issues are found then we will insist on another BPO or Appraisal take place.

 

The only type that is usually transferable is FHA because it has a specific case number. Given that this is HML, it will be a new appraiser.

Benjamin clearly demonstrated that there are lenders willing to accept a previous lenders appraisal.  There are also plenty of lenders that will not for various reasons that mostly come down to how an organization decides to deal with compliance.  

There is no law that tells a lender they need a new appraisal in a case like this so it really is up to the lender how they decide to do business.  There are thousands of "this way" or "that way" decisions to make while setting up an origination platform so it's up to the person doing the deciding and everyone else in the company must do it that way regardless of what's allowed by law or other lenders.

My suggestion is to have the borrower call around. It still might be cheaper to go find the best mortgage broker and pay for another appraisal if they won't take the one you've got. You're talking $400-500 and leaving out the part of the equation where this decision could lock your client into the lender they work with. Why would you go with a lender based on taking an old appraisal if their rates and fees are higher? In an industry where origination margins can vary from 1% up to 4% on the back end it could be a way bigger difference than $400-500; It could be multiple points on the loan or a rate up to half a percent higher from some lenders. There is huge variation in the margins lenders decide to charge but none of them want you to know it. Finding the best low margin mortgage broker in your area is almost always the best way to get maximum service with the best rate/fee combination.

Also, you should know and be able to tell you clients why closing costs are allowed to change and what costs are not allowed to change. Understand how rate locks work and learn to advise your clients on the benefits and drawbacks of rate locks. If a client is backing out of a loan because terms changing then something went wrong along the way with communication. Lenders are not allowed to just change terms that they estimated in good faith and they are required to estimate them in good faith. The only thing that usually happens to change costs or terms is that the rate isn't locked or pre-paids were miscalculated. When the rate isn't locked many loan officers fail to completely explain the rate lock process and advise their clients how to navigate it with them. When pre-paids go up people are usually irritated because it was a miscalculation. Clients usually understand they still owe the money for taxes or insurance they are just pissed at the loan officer for failing to properly estimate it. In both of these cases it is definitely a mistake on the part of the loan originator but if you know this stuff and can explain it to them they will have another advocate in their corner looking out and heading off problems before they make a mess.

Originally posted by @Debbie Farrell :

I am a broker and I have a client that wants to change lenders due to terms of loan not being what they originally said, what other lender will take his existing appraisal?

Debbie,

What kind of property is it? What's the value? What terms changed? Did the value come in low and his LTV increased so they didn't get the rate they needed? Lots of questions. Where did you send it originally?

Stephanie