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Showing posts from October, 2018

Hey Underwriters! Reviewing Additional Sales Will Not Always Mitigate Risk

By Mike Armentrout


Normally I write an article to chime in on a topic as it relates to appraisers.  Rarely do I address colleagues in other related fields outside of my own industry.  Today shall be different.

This post is specifically intended to talk to our lender clients about an increasingly frequent stipulation request we are seeing from many underwriting departments.  That is to comment on or possibly grid additional sales.  Here's how it goes; after we submit a report, an underwriter sends over three to four sales and asks why they were not considered.  Sometimes these sales were discovered in our original research and other times they may be outside of the defined market area.

Appraisers do have the duty to respond to any and all questions that the client as an intended user may have in analyzing collateral.  Such requests should also be handled in a professional manner.  It is certainly a lenders' prerogative and responsibility to scrutinize an appraisal when they are…