Bank of America Complaint - The PMI Scam
Recently I paid Bank of America an excess of $450 for THEIR approved appraiser to conduct an appraisal on my single family house with an additional detached house in the rear of property (aka as in-law quarters). They sent out a trainee from a sister city market... this in itself goes against the Uniform Standards of Professional Appraisal Practices' Competency Rule. Sending a trainee out to such a complex appraisal should of never happened, let alone someone from a totally different real estate market. Also, It should of sent up warning flags the moment he asked what the purpose of the loan was and what the mortgage balance is. What the heck does that have to do with getting the true value on my property? Very fishy if you ask me.
Having some working knowledge of what to look for in appraisals I noticed straight away discrepancies when I received the documents. One major issue is that he used duplexes as comps and two of the comps were in excess of 5 miles from my property which far exceeds Fannie Mae's 1 mile desirable comp. area.
I swiftly hired an independent appraisal firm to do a desktop review of the appraisal I received from BOA. The findings were SHOCKING to say the least. This "trainee" should not be getting his license and the supervisor who signed off on it should loose hers. The appraiser I hired found 5 comps all within one mile radius and the range of values were found to be 20-70k above the value the BOA appraiser gave GO FIGURE. My appraiser used the very same style of properties as mine for comps (all single family homes with detached single family homes or rentals in the rear of the property).
What upsets me is that they sent out a trainee from another market who has no knowledge of this area. He used the wrong form, gave wrong comps and did not even follow basic appraisal guidelines in doing so. Bank of America needs to have a department that oversees these appraisers and monitors their practices. Without that thousands of their customers could potentially be getting defrauded.
What it boils down to is a mere $1200 separates me from getting out of PMI based on BOA's appraised value. Their customer service is totally incompetent. To make matters worse after I sent the findings of my appraiser to the dispute dept they in turn simply just forwarded it to the ORIGINAL appraiser for review. Can you believe it??? they are not even opening an internal investigation on his practices? Of course this guy is not going to agree with the findings of MY appraiser. Do you think he wants to loose his job? So guess what: This guy came back after reviewing my desktop review and advised he is sticking by his original appraisal, are you Kidding me?? And that is the final answer? Wow!! The very person who made at least 7 major mistakes on the appraisal wont even agree that some errors occurred. And of course Bank of America has not one trained person willing to call me and go over my concerns. Nadda ONE. Let alone one trained person to oversee the appraisals that are being sent out.
If a multi Billion Dollar Corp does not invest in any trained in house people to look over erroneous appraisals and to set forth basic standards of conduct for the sub contractors they hire, then they should not be in business at all.
So much for standing by one of their core values "Doing the Right Thing for The Customer". I have spent more then 15 hours calling, writing on and researching this matter. Do you think I will at the very least get my money back for this bunk appraisal? doubtful. Let's not forget to mention the additional out of pocket I paid to an independent appraiser for his work. I wonder how many other people this is happening to.
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