As of May 1st, 2009 you will be required to have appraisals done through an Appraisal Management Company. This is being done to protect borrowers from being taken advantage of or is it? I have posted several stories speaking about how the Banks tried to point the finger at Mortgage Brokers of the mortgage meltdown and now we can see that could not be future from the truth.
As of May 1st you will be required to get an appraisal from an Appraisal Management Company if you are looking to purchase or Refinance a home. This appraisal will be the property of the bank and not yours. You will not be able to use this appraisal at another bank if for some reason you are turned down from a particular bank. Just because one bank does not like a specific property does not mean that a different bank won’t like it. The problem here is you could be forced into purchasing several appraisals.
This is clearly an attempt to lock borrowers into a specific bank. If you recall I did several posting speaking about the mess that was Washington Mutual? Washington Mutual clearly did not police their inside loan officers. That is to say the actual employee Loan Officers of Washington Mutual where able to refinance properties with little to no oversight. Please look back at the Washington Mutual Santa Ana, CA properties posting and it will make you sick.
Now the Fed’s are requiring everyone to use an Appraisal Management Company to do appraisals for all borrowers there will clearly be additional cost pasted onto the borrower. Worst of all, these companies will all have ties to the banks. The same banks that did not manage the flow of loans coming through their bank in the past. Do you really think this additional cost is fair to the borrowers?
Today a Mortgage Broker is more important than ever. A Mortgage Broker will know where to place a borrower based upon the qualifications of the borrower and property. A Mortgage Broker will save you’re a great deal of money and their fees will be voluble money spent for their knowledge of the mortgage industry.