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Some Thoughts

Discussion in 'General Appraisal Discussion' started by Brenda Friesen, Sep 20, 2004.

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  1. Brenda Friesen

    Brenda Friesen Sophomore Member

    0
    Jun 8, 2002
    Incest has taken over many avenues of appraisal buisness.

    FHA and VA had purest method -
    No lender choice = assigned from panel
    Appriasers subject to scrutiny = expected quality of work
    Appraisers wanting to do the RIGHT thing - real market value
    Lenders fearful of being "not pure" (might loose right to lend under
    VA and FAH programs)

    Underwriter's trained and tuned into what is acceptable -
    (not just air-head form fillers) - some common sence implied.


    It appears, that for purity sake. and for the sake of the industry it would be be in all good interest to have all lenders apply to State Board to have "next in line" assigned the appraisal assignment. This could elimintate any trend to "satisfy the needed $$" and give the appraiser the > Right to Appraise without fear of lose of job/income/security. We have givven too much to have it ripped from us by self surving LOs; bankers; and unscrupulous greegy business owners.

    It's a Dirty Shame - that we are controlled. (period)
     
  2. Mr Rex

    Mr Rex Elite Member

    151
    Jan 12, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    Live in a rural area with rampoant loan fraud. At least 90% is FHA insured. Yes there are repurcussions, some folks may even serve time. Point is FHA allowed it to happen in it's effort to provide housing to underqualifed borrowers. Wow, wonder what happened? FHA ain't the answer. it's a larger part of the problem. Lenders with a govt guarantee on folks that cant pay rent. If you are intersted visit www.HendersonDispatch.com and click on foreclosed". Eye opening.
     
  3. Ben Vukicevich SRA

    Ben Vukicevich SRA Senior Member

    0
    Feb 9, 2002
    Professional Status:
    Certified General Appraiser
    State:
    New Jersey
    Brenda,

    Don't think the old FHA panel was great. It wasn't.

    What FHA did away with was the control mechanism with lender select.

    They trashed the Chief Appraisers in each of the service offices.

    Just try to pull flips on them. You might get one or two through, then you were shut down when they mandated the Modified Cost Approach on flipped dwellings. It took the air out of the flipper's sails. Modified Cost is mentioned in the old FHA 4150.1 manual. Maybe they should bring it back.

    As far as appraisals...well, nothing spoiled your day like that review appraisal letter in the mail box. A poor rating meant going in to see the Chief. 2 poors in a year and you were gone.

    Yep, without the Chief Appraisers in the service offices, it's all gone to hell.

    Ben
     
  4. Brenda Friesen

    Brenda Friesen Sophomore Member

    0
    Jun 8, 2002
    Ben & Michael -

    Was this before or after the demise of the panel?

    There are ofter rotten apples in every basket -
    B
     
  5. Terrel L. Shields

    Terrel L. Shields Elite Member
    Gold Supporting Member

    316
    May 2, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Arkansas
    I recall the day when your reports were graded and there was feedback if the score was 3 or worse / Don't do FHA anymore, but agree with Michael

     
  6. Brenda Friesen

    Brenda Friesen Sophomore Member

    0
    Jun 8, 2002
    It's not that FHA is the answer -
    The point is that the lender does not have control over the appraiser.
    B
     
  7. Ben Vukicevich SRA

    Ben Vukicevich SRA Senior Member

    0
    Feb 9, 2002
    Professional Status:
    Certified General Appraiser
    State:
    New Jersey
    FHA is not part of the problem.

    Subprime lending is. Subprime wasn't around years ago. If you had bad credit, you just didn't get a house.

    You rented for years until your credit was OK, then you bought. The problem is there's just too much money around and subprime is just a way to take people to the cleaners with bad credit.

    Look at the one guy in Michael's area.

    He made $1,360 a month. With $260 going out for child support. $350 for a car payment--good God who qualified him for that payment--could it be another subprime car loan lender-sure is, and $30 for a credit card. Appraisal aside, how was this guy going to pay even the $500 per month payment he wanted and still have money for other living expenses?

    What underwriter approved that loan??? Subprime. They want the high interest return.

    Kill subprime and there be so much money around, A paper loans will be cheap.

    Ben
     
  8. JSmith43

    JSmith43 Elite Member

    18
    May 5, 2003
    Professional Status:
    Certified General Appraiser
    State:
    California
    How about a mandated 2 appraisals for every transaction? Lender select for appraisal#1 and spin the wheel for appraiser #2.

    If appraiser #1 & #2 get results more than, say 10% apart, then spin the wheel one more time. Kind of like relocation work in that way. Have a governmental entity handle the wheel of fortune spin that would include all qualified licensed appraisers that applied & were accepted to be on the wheel.

    That would get appraisers lots more work, & look how it would screw up the flippers.
     
  9. Brenda Friesen

    Brenda Friesen Sophomore Member

    0
    Jun 8, 2002
    Roger
    Roger
    On the right track
    B
     
  10. leelansford

    leelansford Elite Member

    45
    Mar 29, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois
    Brenda--
    You are correct that the present set-up with mortgage brokers (I pick mortgage brokers because they are such a significant part of the residential mortgage lending scheme..."scheme" does have a certain implication to it, doesn't it?!) being the first line of "quality control" is a farce.
    The fox is guarding the hen house.
    --Lee Lansford, IFA
     
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