Appraisers' Free Forum

First question, what does REO mean?

second question, for those of you familiar with FAN REO and the somewhat secretive "report card", has anyone else started being selective about which assignments to accept? I've heard rumors that at some point, the bulk of assignments will be based on report card grades; of course it's their right to make that decision and to debate "fairness" is futile.. If that is to be the new game, would it not be wise to allow those "oddball" geodesic dome assignments to be given to your competitors since getting those puppies to within 3% of estimated value will be somewhat of a reach, no? Bear in mind, I'm always within 2% except for condos, with those I’m within 1%
BTW I think they’re about to decrease that shadow inventory, the orders picked up this past week.

I'm hoping to hear from the experienced REO people on this thread, folks like Mr. Otis, Mr Bishop, Haven Jake, etc.

I started being selective a month or so ago. It was not worth my time and effort - so I have declined several orders.

My quality rating was 'gery good' according to their comment on the letter. I want to keep it that way. I will decline any oddballs they throw my way. I'll let someone else deal with the headache.

Are they having a REO conference this year? I enjoyed it last year and was looking forward to this year but have not had any word yet. Do you have inside information on that?

I've only recieved one report card and it was a B+ I believe, that strange thing is it only had about a third of m,y reports for the time period on the card???? My kids laughed about it, thought I was a slouch for getting a B, like I was in trouble or something. Do they even know how many houses they own? I have never attended any of those REO conferences, I don't get enough from them to justify the time and expense of going. I will say this, the people I speak with on the phone are very nice to deal with, most of them have been there for a decade or more.

They no longer use the A, B, C grades. They're using a rating system now where 1 is the best and 5 the worst. I think they're supposed to come out every quarter.

No, I don't think they know how many houses they have. It is amazing when one agent will have a contract on the house and I get an order for an appraisal. They automatically pull it from the agent after so many months and assign it to another. The agents say it is some computer generated system that automatically orders new appraisals every 6 months even if the house is under contract. Not a human involved - no decision making.

I've seen them spend OUR tax dollars cleaning mold out of houses that were not worth 8k. It is mind boggling. We have no shortage of REOs down here.

I very seldom talk to anyone at FNMA. The quickest way to get a response here is email - not through AP.

The conference last year was great. I was hoping there would be another one. I need a break. The Anatole was fantastic. It was pricey but worth the cost to stay near the conference stuff. Plenty of activities all day and every evening. I guess that was my vacation for last year and I won't have one this year.

I would be more concerned about what the rating is based on than about the fact of the rating. Relo companies have been rating appraisers for years. The system is simple... was the appraised value within 3 percent of the selling price or not? Of course, relos are usually pretty nice houses (that can present it's own complications in this kind of market) whereas REOs are often trashed. I wouldn't mind taking on the oddball if I had any confidence that the rating system was going to be fair.

I just hope they don't take the AMC path or even worse, the BPO path. Freddie Mac uses AMCs for REOs and I've heard of REO fees as low as $225.

We were asked to do a REO for $180. We accepted it with a condition....the fee was $400.....they turned it down, but it is fun to make them go through the motions.........

Goodpasture wrote:We accepted it with a condition....

I also wonder if the scorecard, report cards factor in the "SLOB LISTING AGENT FACTOR", I know that I do. Some of them clearly pocket or get creative with funds which should be used for clean up, etc, this is a dirty little listing agent secret. There are two agents that I can guarantee will always sell a property for less for this reason alone. I'm talking about REOs in general and not just FANREOs

Senior Jefe wrote:I just hope they don't take the AMC path or even worse, the BPO path. Freddie Mac uses AMCs for REOs and I've heard of REO fees as low as $225.

I scored in the top three for my region which includes the largest counties in the state.

However, THEY didn't want to pay for quality & I did my last REO appraisal in '04.

Haven't regretted it for a moment.

$225 is roughly what I made as an appraiser trainee in '93. When you consider the cost of running a business...that amount is FAR LESS than I made 16 years ago.

I was having a talk with a local appraiser regarding the future of the industry. I told him I believe valuations will become worthless. No one wants to pay & two year college degrees are being required...where's the incentive.

Something is going to have to give.

Mako wrote:However, THEY didn't want to pay for quality & I did my last REO appraisal in '04.

s

I'd like to propose an alternative possibility. Rather than not being willing to pay for quality, perhaps a large number of them did not know what quality was. To them it looked like you (and me) were charging more than other State certified appraisers who appeared to have equal qualifications.

I believe we are victims of appraisal regulation.

Steve Owen wrote:

Mako wrote:However, THEY didn't want to pay for quality & I did my last REO appraisal in '04.

s

I'd like to propose an alternative possibility. Rather than not being willing to pay for quality, perhaps a large number of them did not know what quality was. To them it looked like you (and me) were charging more than other State certified appraisers who appeared to have equal qualifications.

I believe we are victims of appraisal regulation.

I worked for Goldenfeather & Ocwen.

Management companies compete on fees, and NO business--I can immediately think of--produces the best product for the lowest price.

These MickeyD fees have driven me out of the business. I've done ONE appraisal since '04...that doesn't even pay for the software & insurance!!!

I don't like the word "victim," but Cuomo's HVCC has left appraisers screwed on fees & its blowing real estate deals!

I find it hard to believe that you would sign Golden Feather's AMC contract. I circular-filed that thing as soon as I read it. I could probably have redacted it, but 18 pages??? Not worth the effort, and we had plenty of other work.

Jim Plante wrote:I find it hard to believe that you would sign Golden Feather's AMC contract. I circular-filed that thing as soon as I read it. I could probably have redacted it, but 18 pages??? Not worth the effort, and we had plenty of other work.

I don't seem to remember an 18 page contract.

That was back on '03-'04. We were making the transition from appraising to real estate. I couldn't take the lender/agent pressure any longer & probably would have signed a 118 page contract just to get out.

Sad whats happened to the industry.

The one Tracy got wanted to specify fees and turn times, and it had the onerous "hold harmless" and indemnification clauses in it. I was but a mere trainee back then, but that thing got my back up. I sent'em a letter advising them that they could order their appraisals like everybody else, and tossed their contract. Never heard from them again, and never regretted it.