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Appraisal issue loan question

I was told by my mortgage broker that based on my request and all the questions and doubts for appraisal that I had I have violated Frank Dodd Act. The lender will review my request for difference in appraisal and my thinking and let me know tomorrow Does this create a problem? I'm a first-time homebuyer and asking questions which might have violated some rules but I don't know what to do I'm just not sure... Your input would be really helpful
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April 02 - US
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Answers (7)

I don't see how lowering the appraisal helps you in any way. The seller will not have access to the appraisal, they will simply know that the home appraised for at least the sale price. A higher appraisal means you are likely purchasing a home with equity, which is in your favor. Your lender will only lend UP TO the appraised amount. It sounds as though you are (or were) in an excellent position.
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April 04
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I had opposite case Keith. I wanted to lower appraisal a little. It's my greed I think but appraiser found it violated. Hope I don't create issues. Thanks for your response. I emailed Vince too...I was also trying to know worst case scenario. If possible.
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April 02
jim, thanks for using Zillow's forum. if I were you, I would email Vince Curtis directly. He has contributed more than 6000 comments for this forum. I would be specific on what you did for him to try and help.it appears that your appraisal came in low and your bid was higher and you are required to make up the difference in your bid because the lender is basing the loan amount on the appraised value instead of your offer price. When I used to work in lending for a large bank, the appraisal often came in lower than the homeowner had expected, and I was working in employee lending, so most of the loans were dealing with loan officers, branch managers and VP's so they usually had experience in the business. Here in so cal with inventory being so low, buyers are making bids well above market price, and a good agent will notify you by using a cma (comparative marketing analysis) of similar properties that have sold. Go over the appraisal with the lender and mortgage broker and check the comparables, how far away they are from the subject property, and how recent the solds are. Look for the appraiser's wording of market conditions, amenities of the comparables, and type of sale.If you are buying a standard sale and the appraiser is using short sales and reo's, you might get a bump enough to make the deal work. One other thing you might try if you are using an Fha type loan, and can switch to a 5% down conventional and have another appraisal, from a different lender (pool of appraisers). But if the comparables are recent, close in proximity, and similar in amenities, you are fighting a losing battle. You need to have the numbers to make the deal work, and I have a feeling the agent you are using didn;t do enough due diligence and may have put your earnest money at risk. Good Luck 
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April 02
I was told by my mortgage broker that based on my request and all the questions and doubts for appraisal that I had I have violated Frank Dodd Act.

WHAT exactly was your question(s) or concerns? WHO did you ask the questions to, the appraiser or mortgage broker ?
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April 02
Your lender sounds a bit sensitive and lacks professionalism. But I may be missing much to the story.... You can ask all the questions you want but cannot 'pressure' an appraiser on a value. Being a lender, I am frequently in contact with my appraisers and ask questions. Questions in themselves do not constitute a violation. I'm guessing the value came in lower than expected and both you and the lender are frustrated. It's a common and difficult situation for all. Good Luck!
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April 02
The Dodd - Frank Act prohibits parties to a transaction from pressuring the appraiser in the transaction to provide a predetermined value or misleading appraisal.  Asking questions of your lender, should not be a violation.  Contacting the appraiser directly or having your agent contact them could be a violation. 
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April 02
Well, I don't see how your asking questions and having doubts about an appraisal leads to YOU violating anything. It sounds as though you are disputing the appraisal and depending upon what type of loan you are attempting to obtain, it could delay your closing. If the home appraised low, you should consult with your Realtor to discuss your options and the potential impact.

Best of luck!
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April 02
 
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