local appraisers | Controversy among the evaluators

Controversy among the evaluators





The presence of Ontario brokers in Quebec causes unease within the Order of Chartered Appraisers
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Many financial institutions employ valuation brokers in Ontario to evaluate the homes they fund in Quebec. The work is contracted out to appraisers in the province, resulting in lower prices and deteriorating working conditions, according to approved appraisers.
Pierre Couture
PIERRE COUTURE
Saturday, December 5, 2015 21:14
UPDATE Saturday, December 5, 2015 21:14
Reports written in less than two hours, measures taken blindly, no site visits: the methods of some evaluation firms raise more and more questions within the Order of Chartered Appraisers of Quebec (OEAQ ), learned The Journal.

For some time now, several financial institutions, including Desjardins Group and National Bank, have been using the services of valuation brokers in Ontario to evaluate the homes they finance in Quebec.

However, these brokers, such as Nationwide Appraisal Services (NAS) and Brookfield, subcontract the mandates obtained to Quebec appraisers.

As a result, prices paid dropped and working conditions deteriorated, according to approved assessors contacted by Le Journal.

Prices fall

In the last two years, prices paid to brokers by financial institutions have almost dropped by half, from $ 500 to about $ 300, with imposed deadlines (less than 24 hours).

By keeping their quota, Ontario brokers are sending work to a Quebec sub-contractor appraiser for less than $ 200, according to evaluators.

"We noticed that some evaluators could write and sign up to five evaluation reports per day, while we have the misery to do one correctly", denounces the owner of a firm in Quebec evaluation that required anonymity.

"How do you want quality to go? It's scrap. I do not understand what's going on in our industry, "says another Montreal evaluator, whose firm has seen its turnover fall by $ 400,000 this year.

The Concerned Order
Joined by Le Journal, the Order of Chartered Appraisers is very concerned about this situation and the unease that currently divides its members.

"This is a very worrying and very problematic issue," acknowledges the President of the Order, Richard Lahaye.

Since the beginning of 2015, many meetings with members of the Order have been held in Quebec City and Montreal to remind them of the importance of doing their job well and serving the public with recognized practices.



3 WAYS TO DECELATE A BAD EVALUATION REPORT
NO VISITS OF THE PLACES

Some evaluators do not even visit the homes evaluated. Others go on the spot, but do not enter the buildings.

BAD COMPARABLE

A rushed appraiser will not have time to look for comparable properties recently sold in the chosen area. Some appraisers compare residences with an age difference of 30 years.

BAD DIMENSIONS

Some appraisers rely solely on the dimensions provided on the fact sheets by real estate brokers. In many cases, the dimensions of the residences are wrong.



The banking world pointed out
The outgoing President of the Order of Chartered Appraisers, Richard Côté, who also heads the evaluation department of the City of Quebec, is of the opinion that the pressure exerted by the banking world is at the root of the ways of doing things very well. of some evaluators in Quebec.

"Is the public well protected? Financial institutions cut prices and demand tight deadlines. Inevitably, it is the quality of the evaluators' work that is at stake, "he says.

Important pressure

According to the latter, "many homebuyers are currently vulnerable" because of these practices, imposed by financial institutions and whose financial guarantees are provided by the federal and the Canada Mortgage and Housing Corporation.

Several evaluators contacted by Le Journal argue that some institutions exert significant pressure on the evaluators. How? "They want a price and they let us know.

"These institutions are going to the volume of loans and there are big bonuses related to the performance of mortgage brokers. If, for example, a house is valued at a low price, it is quickly known, "said an evaluator with 25 years of experience.

The Order of Chartered Appraisers would like the work of a chartered appraiser to be protected in Quebec by the Office des professions. Which is not the case. For now, an appraiser may decide to leave the Order and continue to evaluate homes without being bothered.

"It would be the best way to protect the public," says Richard Côté.

Desjardins defends itself

Desjardins Group, which holds close to 40% of the Quebec mortgage market, defends itself by putting pressure on the valuers by imposing tight deadlines and very low prices.

"Each fund is autonomous. Leaders can do business with whoever they want, "said Desjardins spokesperson André Chapleau.

He argues that services provided by Ontario brokers are not a problem in the financial services cooperative.

In Saguenay, the caisses populaires have stopped dealing with some of them because of the controversy over their practices with local assessors.