Today our appraisal firm received a frantic call from a mortgage broker we occasionally do business with. We have had a number of problems in the past from this firm with being pressured for values so we don’t encourage the relationship. In order to curb the pressure, we require payment in advance for all work from this firm and firms like them.

The call goes like this [names withheld to protect the guilty?]:

Mortgage Broker: The appraiser and supervisory appraiser that signed your report are not approved by the out of state bank we are submitting the report to. The report looks terrific but we need the names changed.

Appraiser: What do you mean? Are other appraisers in our company approved?

Mortgage Broker: Yes, we need you to change the names on the report so we can get this loan done. We send you a lot of business and this is not a big issue.

Appraiser: Sorry, we can’t do that. Do you realize what you are asking?

Mortgage Broker: Yes, and its not a big deal.

Appraiser: No, thats not possible.

Mortgage Broker: Exasperated sigh, [Click]


  1. TMan August 18, 2005 at 8:58 am

    If the Mortgage Broker had done his homework ahead of time, and knew which appraisers would be acceptable to the bank, and had requested those people ahead of time, this issue would have been avoided. Some people don’t like cherry picking the people ahead of time, but the Mortgage Broker/their client is paying for the service, and I’m sure that if they requested it, MS would have either complied, or turned away the business.

  2. Ashish Shah August 25, 2005 at 10:47 am

    Just like employees at investment banks have compliance issues when buying or selling stocks, and have to have an investment account at their respective banks, are there any restrictions for appraisers buying and selling real estate investments? There could certainly be a conflict of interest in many cases.

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