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Updated almost 11 years ago on . Most recent reply

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Michael Moikeha
  • Investor
  • Portland, OR
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BPO Agent Question

Michael Moikeha
  • Investor
  • Portland, OR
Posted

I was searching around trying to find out how a BPO agent is actually chosen? In the past I have had a great agent, and I was wondering if a particular lender uses the same BPO agents, or if they are pretty much randomly chosen from a list?

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Bill Gulley#3 Guru, Book, & Course Reviews Contributor
  • Investor, Entrepreneur, Educator
  • Springfield, MO
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Bill Gulley#3 Guru, Book, & Course Reviews Contributor
  • Investor, Entrepreneur, Educator
  • Springfield, MO
Replied

Joel, Thousands, Really?  Is there some past life I don't know about? LOL   Tighten the jib, reef the main and hold the true course.  :) 

A bank will first seek brokers and recommendations as to agent's  qualifications, experience and an ethical side if they have had any sanctions before they send out invitations for a BPO, they can't nor would they take any jake leg who just passed a test. They may ask in an announcement but they will vet the agent and/or broker.

I know that while there is a vetting process, some banks (asset managers') standards may not be too high, but I doubt they hire those right out of school. They would be wasting time and money hiring a newbie Realtor.

One good way to vet a BPO is for the lender to ask appraisers, appraisers want business but many don't, won't, can't give a letter of opinion and appraisers know who the good agents are as they see them on the contracts for every assignment.

They lenders also know from their experience with Realtors.

 Bad thing about high BPOs is that the asset manager may know good a well the opinion is off, but they can use it to negotiate with, at that point, you're pointing out the deficiencies and mistakes used in the appraisal process to beat them down and, that may just tick them off as they might figure the next buyer won't be as sharp. BPOs are a mess and came out of cost cutting needs processing REOs that got piled up on lenders, it's not an ideal way of doing business but does cut costs. And, there are a few great agent/brokers who can do a good job, many may have been appraisers!

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