AQB's latest dumbing down by 'Stakeholders' Dropping the College Degree Requirement

[Sadie]

Lots of people with a college degree work for $20 an hour.

Teachers- and they have advanced degrees. Thats what some places pay them

 

[J Grant]

I'm guessing that someone has done a cost-benefit analysis of loans that went bad and discovered that the best possible appraisal report did virtually nothing to stop or even slow the default rates of loans to deadbeat borrowers.

Maybe they should make borrowers have a 4-year degree instead?

Valuaoitns are done for the front-end decision (whether to lend on the property and at what amount )

Tying the performance of valuation to the down the road in X years, the possibility of borrower default was always a red hearing to make the claim that the valuation did not matter - except it does matter, to the market and buyers - and to the investors (and taxpayers ) who buy and back the loans.

An over valuation of course whether by an AVM,, waiver, or appraisal can lead to a higher default possiblity.

 

[Elliott]

The world is changing at an ever increasing rate. There has traditionally been a connection between a higher education and professions. Oregon was just about the only state that 'licensed' appraisers when I started, then in '93 along came national licensing. Fannie, FHA and appraisers use to be on the same side, but that relationship has changed to be practically adversarial. TAF has clearly become controlled by 'what the stakeholders' want.'

Appraising, with PAREA, PAVE, and TAF, are headed away from being a profession of independent suppliers. Eliminating a higher degree requirement appears to lack a worthwhile purpose other than increasing an over supply of appraisers so stakeholders can reduce fees and have more number hitters available, if appraisers are even required in the future. (Just my opinion offered since it is just an exposure draft, like "appraisal bias" and PAREA" which always seem to become 'accepted' as 'proposed.')

 

[J Grant]

I've lost count of how many times I've said the money plays a big role in what everyone is doing - including the appraisers. So I'd appreciate if you would refrain from repeating that lie again.

Sorry, but you can look back at your own posts in these threads and see the pattern.

Most restaurants eventually fail. Same with most other business types. Doctors are quitting because their 3rd party management systems aren't paying them what they want/need. There's no reason for you or anyone else to believe appraisers should be protected from the market for services as it actually exists.

But appraising for mortgage loans was never simply a business, it was the one party ( the appraiser ) who was unbiased and had no interest in a value agenda- look at how they shredded that and yes, the lack of protection was deliberate and done to eliminate a third party speed bump value not supporting a deal - the lenders are not losing their own money, so it never should be just their call.

 

[DWiley]

First initials are F and F for the who...

Can you provide names of anyone at F or F who is pushing this? I have never heard any of them even mention the topic.

 

[George Hatch]

maybe if TAF did less rewriting definitions...and more enforcing of independent...we would be in a different position...what if crooked coumo came back and wrote a new version of the hvcc, or the appraisers started a new petition...or how about an ivpi...

TAF doesn't do enforcement of any type on anyone. Not the govt.

And sure, maybe Congress could be convinced to reverse course and let the loan salesmen run the appraisers again so that appraisers could collect at the door from the borrower (or get stiffed by same). Congress is nowhere close to doing that with the commercial properties but maybe they'll act differently. Just for you.

 

[George Hatch]

I've lost count of how many times I've said the money plays a big role in what everyone is doing - including the appraisers. So I'd appreciate if you would refrain from repeating that lie again.

Sorry, but you can look back at your own posts in these threads and see the pattern.

Most restaurants eventually fail. Same with most other business types. Doctors are quitting because their 3rd party management systems aren't paying them what they want/need. There's no reason for you or anyone else to believe appraisers should be protected from the market for services as it actually exists.

But appraising for mortgage loans was never simply a business, it was the one party ( the appraiser ) who was unbiased and had no interest in a value agenda- look at how they shredded that and yes, the lack of protection was deliberate and done to eliminate a third party speed bump value not supporting a deal - the lenders are not losing their own money, so it never should be just their call.

Please refrain from repeating the lie. I have never suggested that the various companies involved in this sector of commerce were motivated by anything other than their own interests.

Having stated it AGAIN I think it reasonable to expect you to never make that allegation again. And don't even start in again on me somehow opposing C&R or fee separation or HUD disclosures because that is also still an outright lie.

 

[J Grant]

IDK how long someone can be in business for themselves and still object to the reality that everyone involved will always act in their own interests. You went solo in furtherance of your own interests - nobody else's. What gives you the moral standing to criticize the lenders for doing the same (within the context of what the law allows)?

At whatever point these lenders think they can get by on 90% of their deals without an appraisal then that is how they're going to proceed. Most of us will not remain in the appraisal business after that outcome settles in.

Because it was my money only, and my decision to go solo affected only me - for good or bad .

The lenders are using taxpayer backing and other people's money, not their own, and the outcome when it goes bad can be catastrophic - prices tanking, housing markets collapsing, and economic instability. It should not be just what the lenders with no financial stake of their own in each loan making these designs, or if they want it that way, then say no to any bailouts in the future.

 

[J Grant]

Please refrain from repeating the lie. I have never even suggested that the various companies involved in this sector of commerce were motivated by anything other than their own interests.
Having stated it AGAIN I think it reasonable to expect you to never make that allegation again.

Again, , review your own posts when you have time on these topics.. Yes, you have made the generic statement that everybody is motivated by their own self-interests.

But you also frequently have and explicitly attacked appraisers, and appraiser only, for being hypocritical, accusing them of posting in bad faith ( you did it here in this thread to Chad) , that all they cared about was the fee, if they ever claimed to care about anything else. I'll leave it at that, and I appreciate that you've taken a good stand for appraisers on other issues.

 

[J Grant]

Except government. They viewed the origin of licensing appraisers as being "in their own interests" to "protect the public" by regulating RE appraisers. So, if it is in the best interest of the nation to have INDEPENDENT appraisers, then why is it not in the best interest of the public and government to see that appraisers are shielded from pressure, paid adequately to assure that the appraiser can afford the assistance and tools to make a living while doing a good job of being independent, and enough oversight be on the banks to prevent them and the AMCs from starving the appraiser into submission and forfeiting that independence? Why? Because government is about the appearance of concern, not real concern for the class of people who "suffer" from bad appraisers whose only apparent reason for being 'bad' is that they are racist. What BS. The government does not care about the appraiser, nor do they care about the downtrodden minorities. It's all hat and no saddle. It's just PR while THEIR BOSSES (the banks) continue to raid the national treasury... or as Tytler wrote - " ...they can vote themselves largesse from the public treasury."

Exactly.

To see the S/D so grossly out of whack due to AMC's narrow channels of demand that they can see appraisers lowballing each other to get an assignment on a property value worth hundreds of thousands of dollars is sickening. Reducing a professional to a humiliated beggar having to lowball to get scraps and offering no protection against the AMC form of value pressure ( just stop sending orders if an appraiser comes in low on more than rare occasions ) is a disgrace. It makes the antics in the movie The Big Short look benign by comparison. This is the housing market where many Americans have the only savings they might ever see in the equity of their homes. We've seen were prices get ifnalted into the hemisphere with waivers used for purchases, as just one eamp.e

We have seen corporate buyers purchasing swatches of houses intended for individual owners turned into rentals, and when corporations control bigger blocks of houses and condos, they can control the market in prices of sales and in rentals.