Am I reading too much into this?

[Marcia Langley]

Mike,

Thanks for those links. Unless something has changed since those papers were written, it seems lenders are still not getting the fraud coverage they really want, only the E&O coverage (presumeably the appraisers') and even that is tempered by certain exclusions.

That explains why the lending lobby is still pushing for appraiser bonding.

The caveat you quoted speaks volumes. I wonder why they declined to actually use the word 'appraisal' after they acknowledged that some 'insured AVMs' were "not AVMs at all."

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You know, I think most of the appraisal related dialogue at the level of congressional lawmakers really only addresses the AMC and AVM "appraisal companies". I really think independent fee appraisers are completely off the radar for them.

 

[Mike Kennedy]

Marcia- i agree. If the appraiser bonding you referred to is 3915... interesting side note..... the language places the responsibility for obtaining a bond on the MB shoulders......NOT the Appraiser. A bond covering the TOTAL loan volume from the preceding year which were BROKERED that required an appraisal performed by a Licensed Appraiser.......with each new loan supported by an attached appraisal.


Interesting follow-up #2....... when 3915 was first announced.... I spoke with Chuck Schumers legistlative aid three times...... discussing the specific language as published - the first time he said HE was personally involved in drafting the language and my reading appeared to be accurate. When queried about the AI reps posting stating that their interpretation was the responsibility was the Appraisers' ...... he told me on the phone he had no idea where they got that notion from and he would get back to me.

i let a month go by - no contact. I called again ....rehashed the same points......same agreement...... said "still checking on it" ......

another month ........... no contact....... I called again ......ditto the above.

As of this writing .......still no confirmation. And review of the current 3915 still includes the original language (above, paraphrased).

No news is good news I presume. IF, ever, I hear from Schumers people.... I will certainly POST.

 

[Terrel L. Shields]

but I find some of it ironic:

I find it ironic that the same people who wanted speed at the expense of security are now aghast to find that they got poor quality.

It includes a warranty backed by an Errors & Omissions insurance policy that manages the lender's risk

"Managing risk" should not be confused with dodging blame, clearly the intent may have been to 'manage risk' by making the AMC insure the appraisals they provided but the real impact was to let the AMC's push for faster paper, higher margins and the client (CW in this case) to lay blame on someone else...(the debil made me do it.)

I really think independent fee appraisers are completely off the radar for them.

I think you are correct.

 

[Webbed Feet]

If they had any sense, they would fire their entire fee panel, and make everyone reapply for approval, after providing 3 new RECENT samples showing they can correctly address a declining market, rather than just hitting numbers.

Mr. Woolford,

Honestly, they really don't have to do that. About all they have to do is fire their entire fee panel, and then contract any appraiser they have not seen used by any independent mortgage brokers for any of their loans in two to five years.

Webbed.