ASA fired off quite the letter

[shrubberyvaluation]

I reviewed approximately several hundred appraisals after the housing crash - and the great majority of them were inflated by using various tricks - like 98% of them. However, the ones forwarded to me for review likely had already been flagged as problem reports. I can not tell how many total appraisals were inflated vs good reports out there. They forwarded it seems the identified problem child ones

I know there were also good appraisals done, however, the abuse of the mortgage broker select system (which we had warned about ) resulted in too many bad ones
These were all field reviews btw. I am not the only one to have done them, all over the country there were a lot of these reviews performed.

The most interesting form of the review was one lender would send me out on a retrospective appraisal on a property, then they would compare my appraisal to the one they had on file and if there was enough value difference or other issue, then they would forward me the appraisal they had on file for that same property and order a review of it.

With a waiver, there will not be a review because an appraisal was not done. No system of checks and balances on the value imo.

The issue is those not using the various tricks weren't getting the work, that is the issue imo. Yes the problem with waivers and AVMs is there is no check on it. I have seen awful AVMs that relatives have got, at least by the comp selection as there was nothing else to go off of since it didn't show adjustments or the rationale for the value conclusion or comp selection

 

[Zoe]

For this guy to be successful, he needs a special meeting before congress and/or the Federal Regulators and the signed petition from appraisers.

He could do it. They would listen. Have his lawyer with him.

He would do fine.

 

[Zoe]

Someone else brought up a point. He could get the signed petition, start in his own state and move forward. Don't look back.

 

[Zoe]

Get the petition signed nationally. Solicit all licensed appraisers. Start in one State and move forward. Get another petition if needed. Keep going.

He seems qualified for the job to me.

Get his own state to approve the petition first or another state.

Have all nationwide licensed appraiser signatures on any petition.

Just get 60% of licensed appraisers on the movement.

Roll with it. The percentage of licensed appraisers' signatures don't matter to me personally. I'll sign it.

 

[Zoe]

He could probably roll with 20% of licensed appraisers'signatures. Have to grab the bull by the horns sometimes.

Don't play. Go for the kill.

We want Fox, CNN, MSNBC. We want the kill.

 

[jay trotta]

The issue is those not using the various tricks weren't getting the work, that is the issue imo. Yes the problem with waivers and AVMs is there is no check on it. I have seen awful AVMs that relatives have got, at least by the comp selection as there was nothing else to go off of since it didn't show adjustments or the rationale for the value conclusion or comp selection

And that will be a problem in the future & now; Checks & Balances allows an opportunity. to challenge. As an example, you challenge a towns re-valuation, go before the BAA, (like insurance companies) they just denied any change and you are forced to take it to court. At least you have an option.

Waivers & AVM leaves no "option" for a challenge, therefore, the Largest Debt of your Life may offer only Bankruptcy as an escape route and the long-term challenge of "credit repair."

 

[Zoe]

Send me the petition sir. I will sign it.

You have to do the kill. I will be happy to help.

 

[DTB]

Work directly with buyers who still care to know what their home is worth,

This angle may work if someone could package it and market the idea properly.

Stress that THEIR $$ is at risk via the payments they make. Demonstrate how much overpaying actually costs them over the life of the loan. The appraisal fee is peanuts compared to $XX times 360 payments.

Appraisers need a Lerner & Rowe marketer who doles out the assignments.

 

[ucbruin]

This angle may work if someone could package it and market the idea properly.

Stress that THEIR $$ is at risk via the payments they make. Demonstrate how much overpaying actually costs them over the life of the loan. The appraisal fee is peanuts compared to $XX times 360 payments.

Appraisers need a Lerner & Rowe marketer who doles out the assignments.

Would you pay for this service....
Would you recommend to family and friends that they pay for this service....
It would be tough to advertise the service and tougher to sell it....

 

[J Grant]

This angle may work if someone could package it and market the idea properly.

Stress that THEIR $$ is at risk via the payments they make. Demonstrate how much overpaying actually costs them over the life of the loan. The appraisal fee is peanuts compared to $XX times 360 payments.

Appraisers need a Lerner & Rowe marketer who doles out the assignments.

Some borrowers refuse the Waiver offer for this very reason, the appraisal/finance contingency clause in the contract protects the borrower - fannie and freddie had to find a work around because that contract protection could means a lender might lose a deal or two. Imo a possible reason they are removing the word "waiver" and calling it "value acceptance" -the label WAIVER is more accurate and tells a borrower, hey buddy, you are saving an appraisal fee but you are waiving your protection against a price overpayment. A good trade? No biggie saved $500 on the appraisal,, underwater on your loan by 30k. Perfect.

A substitute label was the solution, to erase the more truthful Waiver label. What does "value acceptance" imply? As in, how kinda misleading but not enough to get sued for it. Link the word acceptance with value!!! If it is a value acceptance, it was an acceptable value, so there, dumbo borrower whom we are happy to fleece.