A Completely New System For Home Financing

[Restrain]

That already exists, but driven by the insurance companies. After the last hurricane, the insurance companies were out in force to inspect homes for damages to protect their interests. Lenders couldn’t care less so long as the payments are made. If they aren’t made, loss is taken care of through PMI

 

[James Micozzi]

Well, you have things mixed up; I am certainly not for socialism, "Medicare for All " or any such thing.

However, be realistic, the GSEs are essentially socialism. They, the lenders, and a large part of the rest of the associated industry, beat appraisers into a pulp, and appraisers just keep bowing down to them, without shame. And then pretend they are anti-socialist freedom fighters of some type. Oh, good grief, anti-socialist freedom fighters bowing down for whoever comes along willing to pay them a few bucks. What do you call that?

Appraisers haven't got the backbone to do anything close to fight. They suck up to those that f___ them over. It has always been that way. And, to a bystander, it is totally weird. Am I being too harsh? I'm not the only one to think so. Appraisers say the same on this forum, then they turn their back and bow down to the lender Always been like that.

Appraisers pretend to be bad asses on the forum. But that is the limit, They have no clout. They are weak. They feed on each others weaknesses. They destroy themselves ... by and large, I could go on an on. But that is really not the point, as far as I am concerned.

There are some good points about the US housing market for sure. In many ways it is not that bad. But at this point, after the 2007/8 crisis, and the way things tend now to be heading into the same direction again. It is time to seriously question the ethics and intentions of the mortgage industry. They are simply not responsible to anyone but themselves. The governance, the influence that they have had, needs to be shifted to the appraiser community. And there is nothing socialist about that, at least not when you look at the broader picture. YES, what I am talking about requires homeowners WHO OWE MONEY on their home via loans backed by the US government to abide by new regulations that will require them to act responsibly with respect to maintenance and upgrades. That should improve the quality of the housing system, physically and financially.

OR, to put this another way, there is a Yin and a Yang to the world, the books have to balance, someone always has to pay.

You appraisers who are always decrying "government control" are in the very same breath robbing the American taxpayer by asking them to fund the deficits created by a reckless mortgage industry being continually bailed out the government, or i.e. me, I, you and everyone else who pays taxes and social security.

Yin and Yang, everything has to balance, someone has to pay for the sleazy good-for-nothing bums in the world, one way or another, sooner or later.

So, to reiterate, kill several birds with one stone: (1) Improve housing by making housing sustainable (https://www.thenbs.com/knowledge/sustainable-housing), (2) Improve the financial health of the US GSEs by, at the very same time, improving the quality of the collateral, (3) Reduce costs and improve the quality of life and finances of homeowners by making homes more energy efficient, healthier, easier to maintain through periodic and intelligent upgrades financed through reserves and low interest loan packages that are part of the original financing package.

The responsible actions needed are far more than the mortgage and lending industry are capable of, and are in fact more suitable to much different kind of organization.

I would have to say, that the UK RICS organization, is pretty much the right direction to go. Look at their certifications and educational courses which are much broader and more common sense than those of the Appraisal Institute. In other words, appraisal here in the US needs to be broadened to cover inspection, housing management, as well as valuation. You need the housing industry managed by people with much broader perspectives than those of lenders and banks - who are nothing more than tools to get only one of many tasks done.

RICS is probably the future. I would bet on it.

BTW, a move like this, would have some broad ripple effects of interest. You might speculate, what would the world be like if appraisals were initiated by GSEs via AMCs rather than lenders. What if the lenders answered to the GSEs, with respect to home loans? Or, perhaps AMCs would become coordinators linking lenders to approved GSE loan packages. And we might assume the GSEs answered to even higher level government organizations... The AMCs would answer to the GSEs, but in a very beautiful sense, would be the ones who could make a transition like this possible. Where would this leave companies like CoreLogic and HouseCanary? Their tenuous linkages to lenders would become nearly worthless. CoreLogic I am sure would survive, because of its sheer size and broad application base. But, other companies would likely crumble.

Oh Please. no way will this happen. you want appraisers to do all this extraneous work. Who will pay for it? Appraisers have a hard enough time earning a decent fee, especially in the lending world. I think you definitely have been hitting the bong a little too much! LOL

 

[J Grant]

Considering Fannie waivers and that appraiser will be marginalized by not inspecting and doing only a fast desktop "analysis" for the bifurcated reports stakeholders drool over - bifurcated means more money to them faster! little chance a desperate appraiser churning from desk will kill a deal !

The Stakeholders don't want to elevate the appraisers education, skills, or role, they want to diminish it, thus the college and AA degree dropped from residential and shorter training time for license.

This is not capitalism tempered with long term prudence or consideration of ethics, this is unfettered capitalism geared toward divesting people of property and economic stability in a series of by now predictable boom and bust cycles.

Nice try though..PS Trump did support,all age medicare and it should be done with people paying for it as they go...having a social program that serves citizens is not the same animal as pure "socialism"

 

[RCA]

Oh Please. no way will this happen. you want appraisers to do all this extraneous work. Who will pay for it? Appraisers have a hard enough time earning a decent fee, especially in the lending world. I think you definitely have been hitting the bong a little too much! LOL

I see it as a problem, actually several problems rolled up into one bundle. The appraisers like you cry and cry about this without offering a hint of a solution, - I guess in your case you would just as soon trip out.

As far as who will pay for it? You haven't really given any thought, have you? There are many ways to pay for it.

So, in other words, what ideas are you providing as a solution? You are off in a far distant world, where problems don't get solved, you wander off into a sea of quicksand and slowly disappear. But what more can we expect from a liberal New York head?

 

[J Grant]

I see it as a problem, actually several problem rolled up into one bundle. The appraisers like you cry and cry about this without offering a hint of a solution, - I guess in your case you would just as soon trip out.

So, in other words, what ideas are you providing as a solution? You are off in a far distant world, where problems don't get solved, you wander off into a sea of quicksand and slowly disappear. But what more can we expect from a liberal New York head?

As if your twilight zone type "solutions" have a chance of ever being adopted. Since the RW voted in G Bush who left office leaving our nation on the brink of collapse and took us to war on false information in the wrong country /Iraq to enrich Haliburtn ,now this dumpf whose "policies " represent the worst of 1950, you might want to dial back attacking liberals.

 

[DTB]

I see it as a problem, actually several problem rolled up into one bundle. The appraisers like you cry and cry about this without offering a hint of a solution, -

So, in other words, what ideas are you providing as a solution? You are off in a far distant world, where problems don't get solved, you wander off into a sea of quicksand and slowly disappear. But what more can we expect from a liberal New York head?

I appreciate your earnest effort that you put into this thread. What you offer is not a solution but a dream, a pipe dream at that. No offense intended but this will get no traction.

 

[RCA]

As if your twilight zone type "solutions" have a chance of ever being adopted. Since the RW voted in G Bush who left this nation on the brink of collapse and in debt to the Chinese, and took us to war on false information in the wrong country /Iraq to enrich Haliburtn at the price of indebt us to the Chinese, now this dumpf whose "policies " represent the worst of 1950, you might want to keep a low profile about liberals- if you had any self perspective which you don/'t.

To be honest, I voted for Bush with trepidation. I always thought he lacked intelligence for a president. But in the end, I somehow figured if he was a marathon runner, he couldn't be that bad, - my bad I suppose, I'm biased towards marathon runners. Of course, Bush wasn't really the problem. It was the system. And, in any case, the WORST actors in the mortgage industry had actually gotten their shotgun start under Clinton and Gore. I remember my wife and I checking out a loan from Countrywide Financial around 1996 - I couldn't believe it, - they kept coming back with docs to sign that were worded much differently than their verbal promises. They were crooks back then - and that was a time when they flourished - under the Clinton administration.,

So, many of us, after 2008, were dismayed at both parties and viewed them as in fact one and the same. Trump was always the one we really wanted. He is here now. And I stand behind him with respect to his trade policies. - Although I have to say I disagree with him on many other issues. But, we don't live in a perfect world.

The best citizens are moderates who most likely have a mixture of views that people classify as liberal, moderate, conservative or other. But we, the superior, are simply issue oriented, problem/solution oriented. And, if we use terms like "liberal" or "far-left", it is mostly because it communicates some idea in a superior way or maybe because we are just being lazy. Or maybe being direct and detailed about why you think other people have the views they have, is socially unacceptable.

 

[bnmappraisal]

1. Homes owners with less than a certain percentage equity in the home, say less than 60% will be required to maintain the home in good condition. That will be part of the financing package.

(My response is NOT aimed at you personally Bert) If the above was the case, I'd have a big GFY reaction ... no one should be able to tell me/my family the "condition" to keep my house

2. Loans will be packaged with maintenance schedules and associated financing options. Instead of completely refinancing a home to upgrade the windows or add an addition, there will be options in place to add additional financing with the same lending company.

(FWIW I am NOT an expert on the lending side - that being said) Isn't this already available? HELOC's ... FHA 203k .... just to name a couple ... I see ads on TV and receive emails about other types of similar loans ...

 

[J Grant]

Well Bert you showed some self awareness in the last post. But Bush and Cheney both should have been charged as war criminals and the fact that thousands of American troops died because of their idiotic ( on Bush side the wrong intelligence ) and venality on Cheny side ( enriched by billions Haliburton firm was the only "winner" in the Iraq debacle. )

Trump - I lived in NYC in Manhattan during his rise and likely know more about him than many of his supporters. I will grudgingly admit he has a few good ideas but overall his policies long term are setting our nation back decades .

 

[RCA]

(My response is NOT aimed at you personally Bert) If the above was the case, I'd have a big GFY reaction ... no one should be able to tell me/my family the "condition" to keep my house

Well, to be frank, if you own money on it, is it really your house? OK, yea, well I guess the public decided many years ago to guarantee loans for citizens (i.e. themselves) and let them have full control as long as they kept up the payments. There was an assumption back in the 30's that homeowners would be proud of their homes and take very good care of them. It was also a simpler world. Things moved more slowly. You stayed with your job for life. Or you worked a farm for life. The world changes. We need to revisit these implicit assumptions. People are not as responsible in today's world, things change at a very fast rate and mobility is required. Owning a home is effectively more like renting a home. Plenty of people rent and live with the constraints.

Clearly, if you outright own a home, you can do what you want with it; and no one is suggesting otherwise. Well assuming you are not in an HOA. Assuming you don't live in a zoned area with restrictions. Let's also assume you don't have any neighbors who can sue you for some reason. ....

Maybe you are just barking up a tree.

(FWIW I am NOT an expert on the lending side - that being said) Isn't this already available? HELOC's ... FHA 203k .... just to name a couple ... I see ads on TV and receive emails about other types of similar loans ...[/QUOTE]

Not the same thing. When you buy a house , it is important that you not only are capable of making the payments on the base mortgage - but that you also have enough dough to keep the property in good condition. And if you upgrade, you shouldn't have to get another loan, you should be able to just go back to the original loan and get a modification to make an update. But the lender or backer (i.e. GSE) should have some certainty that their collateral is not compromised through the update. Thus you need a good appraiser to assess the market and potential updates for ROI.