AI Connect

[Eli]

If you want to turn appraisal into a commodity, go to a highly regulated rotational panel. If you want to turn it back to a profession, get rid of a licensing system that makes everyone equal.

The government giving up control. Never. Now, more than ever, we can forget that. Are you a banker that is wishful thinking? LOL

 

[Terrel L. Shields]

Bankers are not the only ones that feel "licensing" is the way that the government makes sure you pay your alimony and your taxes. I am currently filing tax returns in 3 states - it is a nightmare. And it all ends up coming back here anyway. zero zero zero... And OK dunned me for my 2009 and 2010 tax returns (they have 11-14) before I can renew a license there. All the advocates of licensing said we would be more professional. We aren't. They said we could charge more. How has that worked out? Next question.

 

[Eli]

When did the AMC reg go into effect? Mark on your calendars 3 years from that date and things will be different. States are already moving and shaking. They have to be. I'm sure AMC's are too. It will be much better in some states than others and quicker in some states than others. Again, if states narrow the definition of an appraisal and who can do it, it would have enormous impact. Don't think that is impossible in an individual state.

 

[Meandering]

If you want to turn appraisal into a commodity, go to a highly regulated rotational panel. If you want to turn it back to a profession, get rid of a licensing system that makes everyone equal.

It's the system of bid and payment that makes us all equal. When there is no monetary incentive to "be better" the system collapses under the weight of incompetency.

See communism, no money in it because there was never any incentive to move to "better".

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[Eli]

It's the system of bid and payment that makes us all equal. When there is no monetary incentive to "be better" the system collapses under the weight of incompetency.

See communism, no money in it because there was never any incentive to move to "better".

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Think about that 30% or whatever cut of the borrowers fee that is being skimmed and how many appraisers had that 30% to do more along the line of bettering themselves before AMC's.

 

[Eli]

We better hope C&R is the answer because make no mistake about it that is where things are going.

 

[leasedfee]

I can see it, but you are wishful thinking based on where things are going.

Completely agreed; it's a pipe dream.

In some ways leased fee, your suggestion might not work due to market structure. If you only had one buyer, it could lead to more ruinous competition in the market.

Not one buyer, many many buyers. Every bank, from Wells Fargo to the little county bank, every lawyer, every investor, every transportation authority would log onto it to place their appraisal RFPs. The clearing house is just a middle man just like the Chicago Board of Trade doesn't take positions, only facilitates it.

If you want to turn it back to a profession, get rid of a licensing system that makes everyone equal.

And ultimately, I have no problems with this. Go back to a pre-1929 model and drop FDIC as it is a moral hazard to banks, but re-implement Glass-Steagall as it made sense and keep SEC 10-k filings etc, and just live with the crashes every now and then and let them burn themselves out.

 

[Eli]

There is no telling how many deals the regulators have seen or became aware of where the skim is way more than 30% and the borrower paying way more than C&R for the appraisal. We won't hear about that, but this new AMC reg takes that into consideration I am sure. I may be off. There may have been something preventing that, but I doubt it.

 

[Gobears81]

Holy smokes you guys type fast.

If you want to turn it back to a profession, get rid of a licensing system that makes everyone equal.

How do you feel that should be done? Maybe something akin to a bridge between trainee and CG licensing, or just doing away with the government regulations on licensing altogether and letting an entity like AI handle different levels?

 

[Eli]

Completely agreed; it's a pipe dream.

Not one buyer, many many buyers. Every bank, from Wells Fargo to the little county bank, every lawyer, every investor, every transportation authority would log onto it to place their appraisal RFPs. The clearing house is just a middle man just like the Chicago Board of Trade doesn't take positions, only facilitates it.

And ultimately, I have no problems with this. Go back to a pre-1929 model and drop FDIC as it is a moral hazard to banks, but re-implement Glass-Steagall as it made sense and keep SEC 10-k filings etc, and just live with the crashes every now and then and let them burn themselves out.

Still not like the old days when it was one appraiser calling on one lender and pricing accordingly. Ruinous competition would exist on the seller side. Same way with doctors now vs then. Health insurance companies are just a middle man there and they set prices based on surveys to some extent.