[StBernard] LRA appraisers program

[Westley Annis]

Westley,
 
I've been waiting to give you an update on this joke of a program where the
LRA has hired one out of state company to subcontract with another out of
state company to perform appraisals and "re-appraisals" of applicants for
the Road Home Program.
 
Last week this E-appraise-It outfit invited appraisers to an orientation to
learn about the program.  E-appraise-It is being paid $275 by the State of
Louisiana LRA program and then E-appraise-It will skim $125 off the top (for
little work being done) and then give the appraiser $150 for actually doing
all the work.  Even by their own admission, E-appraise-It only had about 150
appraisers express interest in learning about the program.  They were turned
down flat by more than 700 appraisers.  Most of the appraisers attending the
orientation last week were like myself - not committing but attending to
learn what it's all about.
 
Throughout the day (and the day after) I spoke to countless appraisers to
get their feel on the program and if they were going to participate.  Most
said they were not.  A few said they might, but even if they did they were
only going to do a few to a handful each week.  And, as one appraiser
pointed out, E-appraise-It wanted him to commit to doing several each week,
but he could not because as put it "my regular clients like banks and
mortgage companies come first, and if I get additional work from them in a
given week then the LRA appraisals will have to take a back seat."  I
understand exactly what he means because I am in the same boat...and the LRA
or E-appraise-It has to understand that.  It's our regular customers who are
going to be there long after this LRA stuff is gone.
 
Anyway, after speaking with several appraisers here are my conclusions on
how "effective" this program of hiring appraisers at $150 per job is going
to be.  I figure over the course of time (and as appraisers get into the
busy Spring season with their regular lender-clients) most of the appraisers
are going to either cut down the number of LRA appraisals they do each week
(probably down to 1 to 3) or drop out of the program altogether.  Taking
that into consideration against how many appraisers will initially join the
program, I estimate over the course of time (week to week) E-appraise-It "on
average " will probably have about 100 appraisers doing anywhere from 3 to 6
LRA appraisals per week (if they're lucky).  That means, at best they will
get done about 500 appraisals each week - or less.  Keep in mind they might
be getting a little more than that in the beginning, but that production
will drop off over time.
 
Now, the big number..... 103,000.  The LRA estimates they will need about
103,000 appraisals to be done.  YOU DO THE MATH!  Divide 103,000 by 500 and
figure how long it will take to complete the last appraisals.  Even if I'm
way off and they somehow consistently do 1,000 appraisals each week, it'll
still take 2 years to get to everyone who is waiting for their home to
appraised or re-appraised because they initially got a low ball value...and
how would you like to be at the end of that list?
 
This program is going to fail - and fail miserably.  Applicants who have
heard about the program of hiring appraisers are going to sit back and
wait..and wait..and wait for their appraisal - which must be done first
before any award can be determined and disbursed.
 
This is why the LRA is going to continue to allow property owners who have
applied to hire their own appraiser - if they want to.  I think the LRA
realizes this is going to take an awful long time.
 
Needless to say, my phone continues to ring from home owners to do a
pre-Katrina appraisal on their property because they do not want to wait 2
years, 1 year or even 3 months - especially if they are in disagreement with
the first valuation of their property.
 
THERE IS A SOLUTION.  The LRA needs to give applicants the option of either
waiting for one their appraiser to eventually get around to appraising their
property or let them obtain their own appraiser and then be reimbursed by
the LRA.  That would be reasonable.  And "IF" the LRA would go along with
that I would be willing to work for that fee as a compromise.
 
But like I said, that hasn't happned and my phone continues to ring anyway.
 
Thanks and good luck to everyone,
 
John Scurich