A Completely New System For Home Financing

[RCA]

LOL What have you changed so far? You are running out of time bro.

It's a dumb question. It wouldn't solve any problem to yell you. It would just create more problems.

 

[Joe Flacco]

Yes, it is pretty easy to change the world one way or another if you have purpose and a philosophy., It's like voting, What is one vote? I would guess you are not the sort of person who puts much stock in voting.

It's a dumb question.

Oh really? You were one of the 33% in California that voted for Trump and now you think you changed the world? LOL GTFOH

 

[George Hatch]

I think it's a great plan if what you're trying to do is kill the profession off for good. To well and truly ensure that our services will be entirely unmarketable.

I think it's a huge mistake to believe that the primary thing we sell is URARs with a signature at the bottom. The only reason our valuation work is marketable - the only attribute we offer that is significantly different from the value opinions of the buyer or seller or loan originator or underwriter - is our role as the disinterested 3rd party who truly DOES NOT CARE how this deal turns out.

There's nothing special about having an opinion of value. Everyone and their dog has an opinion of value and some of those are well informed opinions of value. So that's not it. We're here only to tell the truth without regard for how it turns out. That is Johnny Appraiser's "Special Purpose" (and yes, that is a nod to the birds/bees discussion). That's why engaging in scope creep by adding the responsibility for managing any aspect of the transaction or management of the property - aka those present or prospective interests that we certify we don't have - is only going to add conflicts to our special purpose.

IMO, the appropriate response is not just "no", it's "H*LL NO".

 

[Joe Flacco]

LOL Be sure to come back here and let us know when you have changed the world.

 

[RCA]

100% agree

But then as with any loan, is that "thing" really "yours" while you're making payments? No ... until you pay it off

Welcome to the past 50+ years (FWIW, personally, my wife and I try to stay as debt free as possible)

I beg to differ because the bank/lender wants to make their % (interest) ... they don't really want the "collateral"

Well, to tell the truth, yea, as long as there is a low risk of default, all is sweet and cherry. What is it? 50% +/- of the loans get sold to some GSE, most likely the loans that are the most at risk for default - and now we might understand why the GSEs are concerned about the quality of appraisals. So, the GSEs must or at least should be concerned about the quality of the collateral.

 

[djd09]

i like out of the box thinking.

disinterested third party. now that is funny. more like bank puppets.

 

[RCA]

I I think it's a huge mistake to believe that the primary thing we sell is URARs with a signature at the bottom.

I've come across comments from collateral underwriters who review thousands of residential appraisals and consider them nothing more than a heap of crap. [ OK, maybe they are exaggerating.]

Although, certainly many appraisers are good at what they do. It's a question of percentages. A collateral underwriter - that's the person whose opinion counts. And for some strange reason, they prefer AVMs [..... well it must be only some AVMs].

What I really think happens , is that they review certain areas that are difficult to appraise, sort the appraisals by address, then compare cases where they find multiple appraisals for the same address within a relatively short time frame - and observe greatly varying value opinions and conclusions. And, it doesn't take much observation to bring them to THAT conclusion.

 

[DTB]

Well, to tell the truth, yea, as long as there is a low risk of default, all is sweet and cherry. What is it? 50% +/- of the loans get sold to some GSE, most likely the loans that are the most at risk for default - and now we might understand why the GSEs are concerned about the quality of appraisals. So, the GSEs must or at least should be concerned about the quality of the collateral.

Your timing is impeccable.

https://www.corelogic.com/blog/2018...delinquency-rate-drops-to-an-11-year-low.aspx

 

[George Hatch]

There's nothing wrong with the idea of appraisers diversifying their activities and leveraging their skills in other activities - which I suspect may be the primary underlying theme of this suggestion. And who knows,, maybe a market for such services can be built.

The problem with adding an "appraiser" tag onto these non-appraisal activities is that they fall well outside the definition of "appraisal practice". It's like saying you are a USPAP-compliant Remodeler or a USPAP-compliant Architect. And that's a problem that goes far beyond the mere semantic argument and straight into the heart of who is doing what and how it's being used.

If you want to build an inspection/management business and develop a high standard of practice for it then there's nothing wrong with that. But don't conflate those other services which include activities that non-appraisers perform and which fall under the definition of "valuation services" with the much narrower subset of services that only appraisers do and which fall under the definition of "appraisal practice".

 

[Tim The Enchanter]

Your timing is impeccable.

https://www.corelogic.com/blog/2018...delinquency-rate-drops-to-an-11-year-low.aspx

Where has the economic pendulum gone since March 2018?