David McPhee

OK, there may be some thread drift here but I thought this article in todays Seattle P-I was worth posting. See any parallels? Countrywide sued over accusations it blackballed appraisers By AUBREY COHEN P-I REPORTER Countrywide Financial blackballed home appraisers who refused to make valuations meet agreed selling prices, according to a lawsuit filed Thursday. Details: hbsslaw.com/CFCappraisers. Capitol West Appraisals, of Boise, Idaho, says in a lawsuit filed in U.S. District Court in Seattle that Countrywide loan officers pressured its appraisers to increase valuations or otherwise compromise appraisal standards in three loan transactions and, when the company refused, Countrywide put Capitol West on its "Field Review List." Countrywide, the nation's largest home mortgage lender, doesn't accept reviews from appraisers on the Field Review List unless they're accompanied by a second review from someone else, which means mortgage brokers will not use such appraisers for Countrywide loans, the lawsuit says. Furthermore, since Countrywide is such a major player and brokers do not necessarily know which lender they will use when they order an appraisal, they won't use Field Review List appraisers for any loans at all, the lawsuit alleges. "Countrywide is in position to force out of the business honest appraisers," said Steve Berman, the lead lawyer in the case and managing partner at Hagens Berman Sobol Shapiro, in Seattle. "They can use their market power to basically blackball these people." Countrywide could not respond immediately to the lawsuit's allegations Wednesday morning. Capitol West's revenues have fallen by $8,000 a month as a result of being on the Field Review List and a Countrywide employee has told the business it will remain on the list for at least a year, the lawsuit says. As of Aug. 28, more than 2,000 appraisers were on the Field Review List and some have stayed on for more than four years, according to the complaint. Berman said the list includes more than 50 appraisers in Washington. The lawsuit seeks class-action status to take in all affected appraisers nationwide and compensatory damages, but does not name an amount. The lawsuit also alleges that any appraisal submitted to Countrywide from a Field Review List appraiser automatically goes to Countrywide subsidiary LandSafe, which then "shoots holes" in the evaluation in order to further discredit the blacklisted appraiser. Lenders and loan originators have little reason to ensure homes are worth the agreed selling price these days because most mortgages are sold into the secondary market, the lawsuit says. It says the inflated sales prices end up as comparable sales, artificially inflating prices. P-I reporter Aubrey Cohen can be reached at 206-448-8362 or aubreycohen@seattlepi.com. Read his Real Estate News blog at blog.seattlepi.com/realestatenews.

"separation of home inspectors and structural pest inspectors" In the California, San Jose area there are separate pest, structural, roof & HVAC inspections done per transaction. I can't say what percentage of these transactions get these specific inspections, but I can say the general home inspector in Washington State has much more to shoulder than in the Bay area.

After seeing some of these old glass-lined guys still around, I've wondered why their not being produced anymore. It's almost like the industry leaders all got together and agreed amongst themselves not to produce any more units that will actually stand the test of time. Or perhaps it has to do with glass getting into somebodys (hot) drinking water?

Thanks for the comprehensive response. It seems they put alot of faith in the caseworker. We may may have only so much power as the aforementioned gnat; but a feisty gnat it is.

Hausdok, The bill, to my knowledge, has been given over to a Sunrise Review panel. Can you explain what all this entails? Are inspectors better off for it? Dave McPhee

Pathetic, I've had to deal with the state a few times recently, and let me tell ya, they are on a different planet than the rest of us. While most of us return phone calls promptly and follow through on things we say we'll do (ie. I'll call you back in two days after I've researched it) , the state apparently does not deem these things necessary for normal business activity. In the private sector, you behave professionally or go broke. In the public sector, it seems, you can do pretty much what you want with no checks or balance system present. Discouraged in Seattle

I liked the book. I thought it was well organized and insightful. I thought the photographs of frequently-encountered deficiencies were well chosen. Rex mentions taking plywood boards up to the attic with him so as to access the far reaches better. I've asked around and no inspector I know of does this. It seems like you could do more damage than good in this manner. David McPhee Washington State