ASA fired off quite the letter

[glenn walker]

What would a petition even say ? We dont like waivers and hybrids ? Fine someone reads it and it goes in the basket marked read.

 

[Dale Floyd]

Sorry guys the ASA guy fired off a letter that never asked for petitions and in fact the letter said nothing new except how he feels about the changes. Thats fine but ASA abandoned the Residential Appraisers years ago and its membership is in a rapid decline. This Subject is not new and it’s sorta late and frankly nobody is going to pay any attention to it. Now I am just a messenger but Petitions simply do not work in appraisal issues. The Powers to be already made the decisions that will and are being implemented. This letter was 10 years too late and just a last gasp of air for ASA.

The NAIFA merge with the ASA is still rather fresh and the full integration was just within the past few years. The vote was overwhelming in approval, not because the ASA was irrelevant.

But we do need more people. Organizations like the ASA are needed to give the appraiser a louder voice. Let’s hope that gets louder.

 

[glenn walker]

The NAIFA merge with the ASA is still rather fresh and the full integration was just within the past few years. The vote was overwhelming in approval, not because the ASA was irrelevant.

But we do need more people. Organizations like the ASA are needed to give the appraiser a louder voice. Let’s hope that gets louder.

Thats fine I am not Anti-ASA but I also know neither them or the AI have the power on the residential side to fight any battles with the GSEs and the Powers in Control.

 

[RCA]

My take on this is that the GSE's are smart enough to know, ABSOLUTELY AND WITHOUT ANY DOUBT - that change is coming. They are just too dumb to figure out what the change should be and how to manage it. So, essentially, they are to a certain extent blindly making changes for the sake of making changes when they really don't know the **** what they are doing!!!

Or in other words: They know they should do something - but they are not up to the task.

So, it looks like they are on the verge of making a really big mess.

 

[RCA]

My solution is to design and make a residential appraisal system good enough for an engineer, to engineering standards with AI. I can't worry about idiots. Maybe they will catch up someday.

 

[Dale Floyd]

Thats fine I am not Anti-ASA but I also know neither them or the AI have the power on the residential side to fight any battles with the GSEs and the Powers in Control.

Oh, I know Glenn and it’s a tough road we have to maneuver just as you point out. But the GSEs aren’t known for making the best moves historically. And congress is just now reacting to problems revealed by Covid issues years ago.

Let’s all hope those who speak on our behalf do a better job ahead.

 

[ddnma]

I agree with your post except for this point:
All of the reasonable and credible appraisal reports in the world did virtually nothing to mitigate the last real estate crash. No reason to think they would prevent the next one.

The problem was the LACK of reasonable and credible appraisal reports pre-crash, because the mortgage brokers got to pick number hitters. What we had, was a bunch of number hit /inflated crappy appraisals, picked by mortgage brokers and a lesser number of credible appraisals..

And we appraisers, at least a number of us, wrote a petition sent to regulators about that very problem some years prior to the housing bubble at that time, there were letters written about it, etc, AND WE WERE IGNORED, had they listened to us and had round robbin ordering or some other solution to protect appraiser independence, there should have been a majority of reasonable and credible appraisals performed and it could have better mitigated the effects of the crash. We asked for a simple cheap hotline to report lender pressure abuse and they could not even do that. I agree with you the power players do not want the appraiser to have their intended role because it might put a speed bump in the profit chain. Thus, waivers and marginalize the appraiser's role ..

A valuation/computer product can replace an appraisal, but nothing can replace the human role of an appraiser that as supposed to offer the one and only disinterested party into the process, but that role is only effective if conditions and regulations protect and allow for true independence. That idea must threaten the agenda of those in charge since they have done so much to diminish the possibility.

Please provide proof of your statement:

The problem was the LACK of reasonable and credible appraisal reports pre-crash, because the mortgage brokers got to pick number hitters. What we had, was a bunch of number hit /inflated crappy appraisals, picked by mortgage brokers and a lesser number of credible appraisals..

What percentage of the appraisals were not credible and how many of the reports from that time period did you review?

 

[glenn walker]

Please provide proof of your statement:


What percentage of the appraisals were not credible and how many of the reports from that time period did you review?

There is no proof LMAO

 

[J Grant]

Please provide proof of your statement:


What percentage of the appraisals were not credible and how many of the reports from that time period did you review?

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.

 

[djd09]

Please provide proof of your statement:


What percentage of the appraisals were not credible and how many of the reports from that time period did you review?

it is better now...the scum bag mortgage broker estimates value via waiver...good thing they cut them out of the loop