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

[George Hatch]

The article above clearly notes the point that the govt has been actively using the GSEs to promulgate political and social goals. Which that was part of the rationale for setting the GSEs up in the first place. They aren't *allowed* to function like a regular lender by putting their own bottom line ahead of all other concerns.

IMO the GSEs are a camel, not a horse; their role is far more closely related to that of FHA/VA than to BofA. If this is how govt is going to use the GSEs then perhaps they should never be cut loose to operate on a no-strings-attached basis. Or expected to operate without any extra undue losses during the bear market conditions.

 

[Non Sequitur]

AQB's webinar disusing the concept paper on the college degree requirement:

 

[CGinMN]

The article above clearly notes the point that the govt has been actively using the GSEs to promulgate political and social goals. Which that was part of the rationale for setting the GSEs up in the first place. They aren't *allowed* to function like a regular lender by putting their own bottom line ahead of all other concerns.

IMO the GSEs are a camel, not a horse; their role is far more closely related to that of FHA/VA than to BofA. If this is how govt is going to use the GSEs then perhaps they should never be cut loose to operate on a no-strings-attached basis. Or expected to operate without any extra undue losses during the bear market conditions.

You can correct me if I’m wrong but the GSEs weren’t set up to promote social goals. They were set up to provide liquidity to the housing and mortgage markets. The social goals, such as supporting affordable housing, were added to the charter during the Clinton administration. They have since evolved to more closely resemble FHA, but that’s not their original intent.

 

[Sadie]

You can correct me if I’m wrong but the GSEs weren’t set up to promote social goals. They were set up to provide liquidity to the housing and mortgage markets. The social goals, such as supporting affordable housing, were added to the charter during the Clinton administration. They have since evolved to more closely resemble FHA, but that’s not their original intent.

If you back far enough, the formation of the GSE was to facilitate bank mortgage lending, like you said. Pre Fannie, a back had to hold the loan. The result was a cash transaction or a large down payment with a short term loan were the only options available for home purchases.

 

[George Hatch]

My interpretation of it was that providing more liquidity to the local lenders opened up more access and more competition in the market. Especially as the redlining prohibitions came into play. But even if we want to say the push for higher rates of homeownship for the poor didn't become a political football until the Clinton Admin, that was still 30 years ago.

 

[Tiffany Gibbons]

I read the "research" and the paper. They continued to leave assessors of real estate in the mix while acknowledging most assessor employees are not licensed. This is only being used in the narrative to say the predominant count of older white men in the appraisal profession. The Assessors themselves are elected or appointed, and the employees are mostly civil service and some have been employees for 40 years. There is lots of nepotism in public severitude as well. I commented on that. As they are so worried about Lenders not using Licensed Appraisers, which there were only 7188 of them, and the college degree is not required with 5 years of experience as a LR to upgrade to CR, (only 50 more hours of QE, 20 of which is electives), why not encourage those experienced LRs to upgrade or pressure the Lenders and GSEs to use Licensed Appraisers? I mean, if they just want to dumb CR and CG down to have more "diversity", (it mentions PAVE, etc.), why not get to the real problem of the "stakeholders" including FHA not accepting appraisals from Licensed Appraisers? Isn't that "discriminatory" on their part? And the research paper compared appraisal to dental hygienists, cosmetologist, home inspectors, etc. but not Certified Public Accountants, for example. I didn't watch the webinar yet. I never understood why Licensed Appraisers didn't eventually earn CR. My boss required his trainees to earn their CR. And I can't believe William Fall is on this board. Unbelievable.

 

[Terrel L. Shields]

the local lenders opened up more access and more competition in the market

They have evaluators - which are anything from the village idiot to Realtor to college student - for properties under what? $400k? I mean in most of flyover America that takes up about 90% of property. One local bank switched to an evaluator system and has virtually no appraisals in file according to one of their employees. And as she said, "I take 'em with a grain of salt."

 

[Mejappz]

They have evaluators - which are anything from the village idiot to Realtor to a college student - for properties under what? $400k? I mean in most of flyover America that takes up about 90% of property. One local bank switched to an evaluator system and has virtually no appraisals in file according to one of their employees. And as she said, "I take 'em with a grain of salt."

TAF has been trying to wrap the USPAP noose around appraiser's neck for quite some time when it comes to evaluations. The problem for them is that States continue to override their pleas. It's over for TAF.

 

[Mejappz]

I read the "research" and the paper. They continued to leave assessors of real estate in the mix while acknowledging most assessor employees are not licensed. This is only being used in the narrative to say the predominant count of older white men in the appraisal profession. The Assessors themselves are elected or appointed, and the employees are mostly civil service and some have been employees for 40 years. There is lots of nepotism in public severitude as well. I commented on that. As they are so worried about Lenders not using Licensed Appraisers, which there were only 7188 of them, and the college degree is not required with 5 years of experience as a LR to upgrade to CR, (only 50 more hours of QE, 20 of which is electives), why not encourage those experienced LRs to upgrade or pressure the Lenders and GSEs to use Licensed Appraisers? I mean, if they just want to dumb CR and CG down to have more "diversity", (it mentions PAVE, etc.), why not get to the real problem of the "stakeholders" including FHA not accepting appraisals from Licensed Appraisers? Isn't that "discriminatory" on their part? And the research paper compared appraisal to dental hygienists, cosmetologist, home inspectors, etc. but not Certified Public Accountants, for example. I didn't watch the webinar yet. I never understood why Licensed Appraisers didn't eventually earn CR. My boss required his trainees to earn their CR. And I can't believe William Fall is on this board. Unbelievable.

Like I've said in the past TAF is entirely political. Their goal is to keep the status quo so that their little boat of bureaucrats can continue to make a financial killing with zero oversight. The GSEs and FHA you can't fix stupid. The only reason they continue to function is because they can play in the Casino with taxpayer money.

 

[Zoe]

I have offered a common sense solution. Let appraisers run for office in some of these appointed positions. Licensed appraisers are easy to contact when running for the office.

Let appraisers vote people to these positions.

It would be easy to contact licensed appraisers in order to vote for potential candidates.

Each candidate could say this is why you should vote for me.