In the May 2008 issue of Mortgage Banking, Robert Murphy, Chairman of ValuAmerica, Inc. and founder of Lender's Service, Inc. (LSI) outs many of the well know (by appraisers) issues with lender and loan broker pressures on appraisers. Download How_To_End_Appraisal_Pressure.pdf
Mr. Murphy says: "As long as commissioned loan officers or mortgage brokers pick and talk to appraisers, there will be appraiser pressure, inflated values and mortgage meltdowns like the one we have just experienced."
As the founder of two vendor-management companies (Lender’s Service Inc. and ValuAmerica ), I have discussed this issue regularly with clients over three decades, and no one ever disagreed—at least in theory. But when the push back came—and it always did—it would come from the same place: retail lending. Loan officers would complain about new appraisal ordering procedures, and their managers would acquiesce rather than risk losing their star performers.
Download How_To_End_Appraisal_Pressure.pdf by Robert Murphy
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