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Tulsa Mortgage : Podcast 136 – Part 1

Steve: This is SteveCurrington.com in the Steve and Tyler Show, episode number 136.
Speaker 2: Welcome to the Steve N Tyler show. With SteveCurrington.com and Tyler Whyburn.
Steve: Who negotiated the contract for you?
Tyler: A realtor.
Steve: You are pretty smart.
Tyler: Yeah.
Tulsa Mortgage Steve: Good for you, man.
Speaker 2: They’re talking about everything you need to know about mortgages, home loans, and more. Nobody knows mortgages like these two. Get ready, because here is Steve and Tyler.
Steve: Yo, yo. It is SteveCurrington.com and Tyler Whyburn.
Tyler: What’s up?
Steve: Man, it’s early in the morning, and we are closing deals like crazy. If you are listening on … You are listening on SteveCurrington.live on iTunes, on our podcast, the Steve N Tyler Show. Thanks for tuning in.
Today we are talking about appraisals. Specifically, how long are they supposed to take? How long do appraisals take? And how does the process work? People just don’t understand. We just ran into this yesterday. And why is that important, I would say, to the process? Why do you care if you’re a loan officer? Why do you care if you’re a consumer and you’re doing a loan? Right, Tyler?
Tyler: Yeah.
Steve: Talk to me about a problem that can happen with an appraisal.
Tyler: If it comes in late, that’s going to be painful. I mean, we had one recently that was supposed to come in about two, not one day before the closing Tulsa Mortgage disclosure’s supposed to be issued on file. That would be tough, because then you gotta slam it underwriting. Hopefully they have time to look at it. Closing disclosure goes out. I mean, you’re talking everything … The stars have to align for that to happen [crosstalk 00:01:44]
Steve: At TLC, we have a technology company that is our third-party, what they call an appraisal management company. And so, if you don’t know this: long time ago, there’s this thing called the … Do you remember it, Tyler? It’s called the-
Tyler: Mercury network?
Steve: No.
Tyler: (Laughs)
Steve: No. There’s a thing called the Home Valuation Code of Conduct. It’s the HVCC. It was all part of the Dodd-Frank Act, along with all the other rules Tulsa Mortgage that we have to follow. Now, I don’t disagree with the premise of what they did with the Home Valuation Code of Conduct, right? What did you say it was?
Tyler: [00:02:26] Yeah, that one thing. I forgot. Just left my brain.
Steve: Tyler’s crazy. All right, so the Home Valuation Code of Conduct says that your loan officer, Tyler Whyburn, cannot pick the appraiser because they don’t want Tyler to influence the value. Apparently, this was happening. Not with us, but apparently, loan officers were calling appraisers and saying, “Bro, I need this house appraised for $300,000 or this deal don’t work, so make sure it happens.” And maybe it was worth that, maybe it wasn’t, but the appraiser came back with their $300,000 value.
So they’re trying to separate the lender or loan officer, and the appraiser to make sure that there’s not any hokey-pokey going on there, you know? So they’re like, “Hey, you don’t talk to him. He doesn’t talk to you.” So now we have to pick from a pool of appraisers. Now we have to build our panel of appraisers, but we don’t get to hand-select what appraiser goes out, does an appraisal report. Because that would … If we don’t hand-select them, then people cannot claim or have the thought that maybe there was some collusion or some discussion about value or anything like that.
The other thing is: as a company policy for TLC, and I know a lot of companies are like this, our loan officers don’t really know who the appraiser is until Tulsa Mortgage we get the report. I can see it. I can log into the system because of my access. I can see who the appraiser is. But we wouldn’t want Tyler to know the appraiser until he gets a report, because there’s only a few appraisers on our panel. We don’t want them to be tempted to influence value, right?
We order it. It’s through a third-party system. That’s cool. We get to sign one of the appraisers on our panel. But our normal turn time is … Our requirement that we have is ten days. That’s what we have set as a company because there’s a lot of other things that have to happen, and when we get a rush, we get a rush. But ten days is normal turnaround time from the time I order it to the time the appraiser inspects the property and returns the report. Ten days.
So that’s how long it should take. Many times it takes less time than that. We’ve had appraisals … We actually had one yesterday that we might get today. We ordered it yesterday. He did the inspection yesterday and we might get the report by today or tomorrow, right?
Tyler: Yeah.
Steve: That’s rare. That doesn’t happen that much, but when we need it to happen, we can because we can call our third-party appraisal management company and we can say, “We need to get this put on a rush. Can you contact the appraiser?” We also have a way through our appraisal management system to communicate with the appraiser and the third party through an online portal where we can ask questions or make requests or that kind of thing. That’s all documented, and that way you know that nothing hokey-pokey is going on. Right, Tyler?
Tyler: Yeah.
Steve: So, it can take longer, just like Tyler said. So what we have to do sometimes, as a lender, what might have to happen is an appraiser rejects and appraisal order. Appraiser gets the order and says, “I can’t complete this report. There’s a conflict of some kind.” We had one the other day that the Tulsa Mortgage appraiser said, “I already did an appraisal on this property for the seller, a private appraisal, just four months ago. And I think it’s a conflict of interest for me to do this appraisal.” So he rejected it. So then I had to get reassigned. Sometimes that can take another day for it to get assigned because they’re trying to find another appraiser on the panel to accept it. So that can happen, right?