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

[djd09]

You don't need a pen. You can write your new/improved version of it and post it right here. For free.

i could rewrite the definition of woke...any suggestions...lets ask relman

 

[DWiley]

It is amazing much faith and trust some will put into a story that self identifies as unsubstantiated rumor - a little thing you some seem to pass right over without a second thought.

If the GSEs' goal is to eliminate appraisers, they certainly aren't doing a very good job of working toward that goal. The overwhelming majority of loans they purchase are supported by appraisals. But hey - don't let facts get in the way

 

[Tiffany Gibbons]

Care

This is my kid right now....

And that's how I became a secretary in an appraisal office, part time, then full time, then, you know the rest. Don't let this happen to someone you love, lol. Kid should get a state or county job that only requires a degree, once you're there, you can apply for other things. One of my friends just retired after 27 years at the Assessor's Office, she started right after college. full pension, health, etc. and she's 55.

 

[Dublin ohio]

I believe it was an Appraisal Institute conference, so maybe another "hat" was being worn at the time.

Or maybe an alcohol induced personal rant

 

[OSU Beavers]

It is amazing much faith and trust some will put into a story that self identifies as unsubstantiated rumor - a little thing you some seem to pass right over without a second thought.

If the GSEs' goal is to eliminate appraisers, they certainly aren't doing a very good job of working toward that goal. The overwhelming majority of loans they purchase are supported by appraisals. But hey - don't let facts get in the way

Freddie Mac wants to by Second Mortgages, but I do not seen any requirements for an appraisal.

Freddie Mac Proposed Purchase of Single-Family Closed-End Second Mortgages​

Federal Register :: Request Access

 

[Terrel L. Shields]

The lenders are using taxpayer backing and other people's money,

JG said... Exactly...
Wiley says

how exactly, does one remove folks from that list?

If push came to shove, don't you think they could make good that threat?

TR says

As early as 2014, I heard GSEs (both) claiming that a huge percentage of the appraisals reaching their systems, and being analyzed by CU, did not meet their appraisal requirements. Why wasn't anything done during the past 10 years? Very likely because they did not want to chance affecting their cash flow, bonuses, and perks with any bottlenecks.

No small chance that is the truth...

Apparently, there cannot be any veracity whatsoever to the story as the supposed drunk didn't speak in precisely FreddieMac/FNMA approved terminology.

As typical, I've been trying to "reply" for 3 pages... this website is gunched. I'm copy pasting to reply to anyone. I'm about to go to FB and leave this one. We get little more than political anti-Maga drivel from you know who to bizarre cases of how business is run ....

So, on that note, the purpose of the appraisal was never to stop fraud committed by the BORROWER, nor to prevent them from borrowing too much...and defaulting is, fraud, at least to a point, as it indicates the BORROWER bit off more than they could chew, for whatever reason. The purpose of the appraisal was to prevent the LENDER from loaning more than the property was worth...nothing more. Jim McDougal lent lawyers and the politically connected of Little Rock hundreds of thousands of dollars on sketchy deals, originated from a bank far far away from Little Rock. Typical fraud that innocent Jim said was only because he was a neophyte banker, not because he was rewarding political friends (all Democrats I might add) with brokered funds that many never intended to pay back. Same with Lincoln Savings, and the gang of Keating 5 (senators both Rep and Dem) who fought the FDIC upon behalf of Lincoln's president. They were bought and paid for by Keating for the grand sum of $300,000. LICENSING was supposed to shift responsibility to the appraiser to prevent the LENDERS from lending more than a property was worth.

It is clear that the GSEs, bankers, et al want to shift the blame onto the appraiser for failure of the BORROWER to perform to prove that the APPRAISERS are worthless. That, in turn, would take the blame from LENDERS lending too much. There is only one permanent solution beside that of the Chinese model- which is simply public execution and death. But a more benign but perhaps as effective way is the economic death penalty. If FNMA or Freddy fails, or bankers are committing fraud, then the principals of the company - CEO and every member of the board, COO and every officer of the company - should have every dime of their family's assets seized. Their retirements should be stripped from them, and each should serve a mandatory 10 years in jail. They need to come out penniless and without pension or even Social Security checks. No home, no car, no nothing.

 

[TerryRohrer]

It is amazing much faith and trust some will put into a story that self identifies as unsubstantiated rumor - a little thing you some seem to pass right over without a second thought.

If the GSEs' goal is to eliminate appraisers, they certainly aren't doing a very good job of working toward that goal. The overwhelming majority of loans they purchase are supported by appraisals. But hey - don't let facts get in the way

I have been waiting anxiously for the facts that support "This is a persistent problem that disproportionately impacts hundreds of thousands of Black and Latino applicants" for nearly three years now. I suspect that I won't live long enough to see those. Consequently, there is little reason to put much faith and trust in entities that are clearly purveyors of political positions as "science". Nor have I ever suggested that the GSE's goal is to eliminate appraisers. I'm just reporting the pieces I see. I have been arguing that the GSEs, while yammering about all the appraisals they accept and rely on that don't meet their guidelines, are every bit as much a part of the problem as the sh*tty appraisers authoring those reports because they accept them without raising a finger. Why would they...they are the world's biggest casino gambling other's money. And the only defense I get of that lack of action is that "GSE's don't have approved appraiser lists." Yet, there is clearly a mechanism to deal with sh*tty appraisers and appraisals. So, I say, quit crapping on every appraiser and deal with the bad apples instead of being one.

Competent and objective analysis of the Freddie Mac hit piece suggested that:

"...it was premature to publish a note based only on “exploratory research” limited to a single race-based correlation, with no attempt to present a rigorous analysis regarding other potential explanations. Merely stating that low appraisals resulted in “substantial appraisal valuations gaps” for minority versus White tracts provides an ominous sounding headline, but sheds little light on whether the gaps support a claim of systemic racism. Even worse, Freddie Mac’s research note was quickly seized by policymakers and the media as evidence of systemic racism.2 Rather than being due to racial discrimination by appraisers, we found Freddie’s claim of an “appraisal gap” is much more likely the result of would-be first-time buyer inexperience, socio-economic status (SES), or government actions (in particular a concentration of FHA lending in certain census tracts) with a disparate impact on protected classes. Our analysis, which goes well beyond Freddie Mac’s “exploratory research”, can explain around 85% for Black tracts and 29% for Latino tracts of the gap through differences in socio-economic status (SES), leverage, and borrower characteristics. With the full set of controls, the Black gap disappears entirely, while the Latino gap falls by almost half."
chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.aei.org/wp-content/uploads/2022/01/Freddie-Mac-note-on-Racial-and-Ethnic-Valuations-Gap-Housing-Center-Critique-Jan-2022-final.pdf?x85095#:~:text=From%20these%20data%2C%20Freddie%20Mac,correlation%20was%20inappropriate%20and%20premature.

 

[George Hatch]

The GSEs are not appraisal entities and the people actually calling the shots on their official commentary are not necessarily the appraisers. The GSEs are not our friends and they have no reason to provide cover for us or for any appraiser misconduct . So if the allegation is that there are political overtones in play then the how and the why for that would be perfectly understandable. Not to mention the point that whatever the data is saying is what it is. Even if someone wants to spin it some other way that spin doesn't change whatever the facts are on the ground.

As an appraiser I want to believe we are being falsely accused. I want to believe in the zero defect performance insofar as personal biases issues are concerned. We already know that we don't have a zero defect performance for other forms of ethical misconduct, we're just hoping that doesn't extend to treating people differently based on their superficials.

But if the data is actually saying there's something significant there then it doesn't serve our long term interests to gaslight or deny those conclusions. Better to address a known problem directly than to outright deny on the fact-free basis its existence.

 

[djd09]

oh boy they are not trying to eliminate the independent appraiser...and CU is just a risk review tool...and they will just waive a few refinances...and then just a few purchases...and then 50% of all appraisals...and they let the scum bag mortgage broker estimate value...hey DW, how many appraisal did you help waive today?

 

[Non Sequitur]

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.

That's not a fair question in a public forum.

As far as getting rid of appraisers, depopulating, etc., and the general sentiment that "It ain't lookin' good for GSE work" after listening to GSE muckety-mucks......I'm not calling you a liar, but several mutual friends have communicated various versions of doom coming from our GSE overlords. I have no reason to doubt their versions or interpretations of what was communicated to them. Add to that, nearly every podcast (I recommend PahRooZings on Spotify) with chief appraisers, tech developers, etc. in our space, paints a picture of less appraisers chasing a shrinking number of desktops for less money (they don't mention less money but anyone in this space knows what the going fees are).

Edit: I'm not implying that you have anything to do with what's in the pipe, in all fairness there's trillions of dollars and national politics involved, that's way bigger than any of us.