here is the other post, if you cann't follow the link

Summary: Propose to use computer-based appraisal (that cost nothing or very little ~$10) for mortgage, like for HELOC. Either bank or homeowner have the choice to hire someone for a second look. However, who order it, who pay it and take the loss if the mortgage doesn't get closed. Bottom line: if homeowners do nothing to change the current way of appraisal, nobody will do anything. If homeowners take action, there is a chance for change. Give it a chance! Please post this everywhere you can and get attention from law makers (feel free to modify if you have a better way of expressing the opinion), if you agree the basic idea in this post!

恳求置顶 for better visibility！Sorry for writing in English, but it shall
be ready for posting on other websites. I also posted this as a reply to a
post “refinance appraisal太低(88b)” , which led me to write this.

I want to promote the idea of changing the way who pay appraisal fees and
how appraisal is done. Here is the proposal: simply use a computer based
method without fees to determine the current market value of houses (like in
applying a Home equity line of credit), this will eliminate the appraisal
fees. If for any reason, a bank want to hire someone to do a human-based
appraisal on top of a computer-based method, the bank should pay it.

Every of us, homeowners, should ask bank to pay appraisal fee - it will be
difficult to achieve, but with more and more of us voice up - I think there
is a hope. Particularly if you current interest rate is already low (say, 5
% or lower for 30-year fixed mortgage), the homeowner should INSIST bank to
pay appraisal fee since the saving from refinance is not significant - we
can risk to break the deal with the bank who says no, just try with another
bank. For these whose current rate is higher than 5%, probably the
homeowner don't want the risk of breaking deal, but it won't hurt to ask -
the point is to voice up, and get it changed!

The rational for promoting this change: it is unfair to do an appraisal the
current way and let homeowners pay the appraisal, which is used to protect
bank's interest in minimizing their loss in case of foreclosure. If the
bank want a appraisal, let them pay it! We, homeowners, don't care much
about the appraisal, but are forced to pay it $300-400 every time of
refinance or purchase - it has nothing to do with our interest. At the same
time, the current way of doing appraisal is a waste - it is not better than
a computer based method to protect bank's interest in foreclosure, which
could happen any time before the mortgage is paid off. Both human-based
appraisal or computer-based appraisal only estimate the current market value
since there is not a good way to predict the future value, which is indeed
more relevant in case of foreclosure. The best way of risk-management for
banks is probably income-based method - look at borrowers income and credit
scores, and of course also run a compute-based appraisal (no fees) to make
sure the loan amount is not out of line. We don't mind if banks agree on
this or not, only if the banks pay appraisal fee. What happening right now
is the bank use an inefficienty method for risk-management and force
homeowners to pay it. The banks gain nothing, the homeowner loss $300-400,
only the these who do appraisal make a living and bring a lot of unwanted
trouble to our refinance process.