First Things first:
Please reference this post here:
on how to begin dealing with appraisal issues.
For those of you who think that the worst is past us, you're half right.
Read On:
If you remember about 9 days ago FNMA/FHLMC/OFHEO & the State AG of New York agreed to some pretty crazy new terms for Appraisal ordering.
This (for agency: FNMA/FHLM & Jumbo) strips YOU the broker and also the retail lender from ordering an appraisal directly from your most favored source. All of this Changes next year January 1st unless somewhere, somehow a Mortgage Banker/Broker has any friends left in Congress and can actually spin the wheels backwards to give everyone appraisal freedom again.
Purpose:
To eliminate the pressures of appraisal ordering percieved or realized between the originator AND the appraiser. To create yet another big govvie organization that will likely have structural and managerial issues after its creation.
Reality:
You can't call one of your best business partners to help make a loan anymore.
This is like VA appraisal ordering: the underwriter will do it for you. They'll submit the order over a blind order system to an automated round robin delivery for your county or region etc.
You won't know who is doing the work, you won't how they'll do it and it will be different every single time.
Also: the borrowers will be paying COD by credit card or TeleCheck regardless of loan approval/closing.

   
Alright, alright.. enough of the bad news, I promised you I would prepare and your appraiser. On my submission requirements and rates pages I have posted the information you need. Specifically-Print out: Appraisal Req Adverse Market.
This is a 1 page sheet you can e-mail to your staff and your favored appraisal partners and realtors so that all parties are prepared when it comes down to "brass tacks".

Some points of interest:
1. 2 Comps closed in the last 90 days
2. 1 Comp in the market area that is a pending sale
3. Make sure you appraiser is fully completing page 1/2 of
    the appraisal grid: to wit:
     The Neighborhood Portion @ the top half of page 1.   
     Within this grid in the Market Conditions be sure to
     Have them add the LP/SP ratio of the current listings
     along with the average DOM for those same listings.

     Page 2. on the grid: the line item: Date of 
     Sale/Time Make sure Days on Market (DOM) are listed
     after the COE date listed.
    
Have your appraiser complete these items in advance and your appraisal will fly through any underwriters hands. YOU WANT THIS TO HAPPEN. Under the KISS formula this will really create a smooth transaction for everyone involved.
FYI ... many of the above listed requirements for declining/adverse policies are actually set in training practices under USPAP/OREA guidelines that no one and I mean NO-ONE has enforced until now. So, the appraisers will know what to do, they just may resist at first but believe me when I tell you. Our (FAMC) guidance is industry leading.
Taking note of Countrywide/Wells moves to cut max financing to 90 or 92%.. we've been there for 3+ months!

You've probably read some or all of what I've had to say over the last couple of months but if you haven't you can keep abreast of the change(s) and my commentary on my Blog Here:

Other Updates: Posted Here on Education Station:

With our Turn times at Just 2-3 Days and pricing as hot as it is you can't go wrong!