The Appraiser Shortage Myth Part 43

[J Grant]

Considering the change post 2011 to AMC domination of res lending volume, the problem is now more complex than # of credential licenses per rate of mortgage origination..

AMC selection of appraisers is not just matching a competent appraiser to an order to get the work done. AMC selection revolves heavily around finding an appraiser at a lower fee to get the work done. To that end, if AMC has 20 appraisers on a panel in an area, and 10 of them have fees below $300 and ten of them have fees above $300, a large, the volume of work will go to the 10 appraisers with lower fees. Thus, they are "short" of appraises at the low fees when times get busy. That's what they mean by an appraiser shortage.

The AMC is loathe to use the higher fee appraisers for 2 reasons 1) it is less profitable for them 2) paying higher fees would raise their own C and R "market rates" compliance with C and R- they need the C and R "market rates" to stay low.. The AMC and affiliated with large AMC lender perspective on the business is what is profitable to them. Thus they are solving "their" appraiser shortage by lobbying to roll back education req and reduce training and inspection criteria for trainees, as well as pushing for bifurcated appraisals allowing non appraisers to do the inspection.

 

[J Grant]

duplicate

 

[hastalavista]

I finally get how JGrant is poster of the month; she posts her same posts twice!

 

[Terrel L. Shields]

I finally get how JGrant is poster of the month; she posts her same posts twice!

The Department of Redundancy Department

 

[J Grant]

I finally get how JGrant is poster of the month; she posts her same posts twice!

lol, I changed that to duplicate - next month my goal is reduce my posts as too time consuming, much as I enjoy interacting on the board ( I expect a celebration around that ).

 

[TRESinc]

And you are supplying the above as evidence to what you alleged?

wow things must be hard in your world. i didn't allege anything, that was all you alleging that if an appraiser applied to the wells panel they would have their identity stolen, credit cards and a car loan opened in their name. you not only can't interpret laws correctly you can't even do it to your own posts.

 

[Meandering]

wow things must be hard in your world. i didn't allege anything, that was all you alleging that if an appraiser applied to the wells panel they would have their identity stolen, credit cards and a car loan opened in their name. you not only can't interpret laws correctly you can't even do it to your own posts.

No.

I provided the headline news with links.

Try again.

.

 

[Mike Kennedy]

I finally get how JGrant is poster of the month; she posts her same posts twice!

No she doesn't.

 

[Mike Kennedy]

No she doesn't.

No she doesn't.

 

[Jonathan Miller]

That chart is interesting. I remember becoming concerned about market conditions in 2000 because certain indicators were getting out of whack, one of those being income to median-home-price ratios. I if remember correctly, in 2001/2000 they started tinkering with interest rates, and haven't stopped since. So that chart may indicate that the "normal" annual originations per license credential should be some inbetween the 2000-2001 numbers based on numbers alone. All factors considered, it would probably be less, because it could get ugly if rates were allowed to float to market levels (no government influence...which of course won't happen in the foreseeable future).

Yeah right after 9/11, the Fed pressed rates to the floor (we had already entered a recession in 3Q01 but didn't know it yet. Mortgage lending surged but the market didn't really take off until the beginning of the Iraq war in early 2003. Not because of the war but because of the uncertainty that fogged the market until that moment about whether we would go to war. Lending took off and to keep the pipeline full, lending standards started to deteriorate. I could see the wheels come off the wagon in terms of underwriting standards by mid 2004. That's when Greenspan finally started to ratchet up rates (June 04) after creating bubble conditions and refused to act like a regulator (don;t get me started). Sales volume peaked in 2005 and prices peaked in 2006 (per CS). Your hunch about 2000-2001 in terms of normal is probably right. As far as government rate manipulation, that has been the norm forever. I think we are simply more informed than ever before and it feels like something created in the past couple of decades.