Bagott explains why GSE Appraisals are not needed, they just write off foreclosures

[Elliott]

10/18/24 Jeremy Bagott newsletter:

"In its National Delinquency Survey, the Mortgage Bankers Association reported in the first quarter of 2024 that almost 11% of FHA-insured loans were delinquent (along with nearly 5% of all VA loans). This should be shocking to all Americans.

Since 2020, the FHA has insured $1.18 trillion in new mortgage originations. The FHA’s average loan amount for forward mortgages in fiscal year 2023 was around $265,000 per mortgage. That’s about 4.45 million individual mortgages if you do the math. If 11% of its loans are nonperforming, it implies the owners of 489,500 individual homes are on a clandestine federal welfare program in which each household is receiving an average of over $21,000 annually in free housing. By not allowing homes back into the market to reprice, the FHA is helping jack up home prices for everyone in the process."
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IS A HORDE OF DEADBEAT BORROWERS AGAIN WALKING AMONG US?

VENTURA, Calif. (October 18, 2024) – In 2022, a San Ramon, California, couple who hadn’t made a mortgage payment since 2009 was finally evicted. Anita and Mahesh Khurana had put on a masterclass in the use of the courts to keep foreclosure at bay. The holdouts had lived in their home payment-free for 13 years. A state court finally ruled they had exhausted all appeals, and they were ejected.

In 2021, Congress and the Biden administration began creating programs to win over allies in the housing sector, letting future leaders deal with the clean-up. A new wave of deadbeat borrowers – some having learned from the Khuranas’ maneuvering – are walking among us. You can see them catching flights at airports worldwide, checking into luxury hotels and taking Ubers to cruise ship embarkation terminals.

Experts who looked at the Khuranas court filings told Kate Berry with the publication American Banker that the holdouts were extremely innovative in avoiding foreclosure on their $1.7 million home. They had made six payments on their mortgage in 2009 and then stopped cold.
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After flooding borrowers with new lending, the administration now looks to be extending payment deadlines, providing forbearance and instructing mortgage giants to quietly sell properties with nonperforming loans at $0.35 to $0.50 on the dollar to private investment companies and nonprofits willing to play along politically. These homes are not repricing in the marketplace as they should. They’re being rented, taken out of circulation.

It's hard to cut through the misleading jargon and omitted information by Freddie and Fannie to know what’s happening with nonperforming and so-called “reperforming” loans, but the Federal Housing Administration, which also guarantees mortgages, is a government agency, so there’s more transparency. It offers clues."
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Me: Its the socialization of mortgages, or the student loan version of for forbearance. So market value appraisals aren't part of the process. The inside companies get to buy and rent houses for 40 cents on the dollar and it will all be put on financially dead GSEs balance sheets.

 

[J Grant]

If you have a mortgage loan that the Federal Housing Administration (FHA) insures and you're delinquent in payments or about to fall behind, you're entitled to a particular loss mitigation process to help you avoid a foreclosure. The U.S. Department of Housing and Urban Development (HUD) requires loan servicers to attempt to prevent foreclosures on FHA-backed home loans using the process described briefly below.

In fact, servicers must proactively solicit borrowers for loss mitigation and make affirmative efforts to cure a loan default. But if you can't work out a solution to your mortgage delinquency, the foreclosure will go forward under state law—the same as any other foreclosure.

However, if the servicer failed to comply with HUD's loss mitigation guidelines, you might have a defense to the foreclosure.

 

[J Grant]

Prior to December 1994, houses that were being appraised for FHA-insuredhome loans were appraised by FHA fee panel appraisers who were assignedon a rotational basis to lenders, and, in turn, lenders paid the fee panelappraisers for their services.2 HUD’s field offices had approximately 6,000FHA fee panel appraisers to conduct the appraisals. Legislation wasenacted in 1990 that allowed FHA’s single-family lenders rather than FHA tochoose the appraisers of properties whose loans were to be insured byFHA.3 HUD implemented the legislation in December 1994. According to itshistory, this legislation was enacted to (1) improve the efficiency of FHAlenders who would no longer have to rely on HUD’s field office staff toassign appraisers and (2) improve the quality and reliability of appraisalservices for HUD’s mortgage assistance and other housing programs bypromoting uniform eligibility standards for those performing federalappraisals. In January 1996, FHA informed its lenders that effectiveMarch 1, 1996, they had to select appraisers from FHA’s roster of about31,000 state-licensed or -certified appraisers. HUD also allowed lenders touse their in-house appraisers if they were on the roster and assigned by thelender.We found opinions in both opposition and support of allowing FHA lendersto select appraisers. Those most directly affected by the change, such asthe 12 former FHA fee panel appraisers, were particularly opposed to thechange, charging that the appraisals now being performed wereinaccurate, incomplete, or favorable to lenders. HUD’s Office of theInspector General is reviewing the information provided by the former FHAfee panel appraisers to determine if an investigation is warranted. FHA’sappraisal manager and four FHA lenders cited, among other things,improved timeliness and quality of appraisals and a decrease in thenumber of HUD field office staff needed to administer the appraisal processas the reasons they support allowing lenders to select appraisers.4 Theappraisal manager also said that factors such as unprofessional conduct bysome prior fee panel appraisers, fewer FHA properties needing appraisals,and an increase in the number of appraisers on FHA’s roster as the reasonsfor the decrease in lenders’ hiring of former fee panel appraisers.

The change from rotation FHA panel ( which used to function like the VA panel has more to do with it - AMC's, if they assign for FHA, still shop by low fee. How is the churn and burn crowd afraid to come in under the sales contract price out there?

Compared to the low default rate of VA where it is still a robbin rotation

How the OP concluded We don't need GSE appraisals from this makes no sense. The foreclosure process is stil going to happen if borrower defaults, but the lender tries to mitigate first. I believe that was in place pre Biden-

 

[TerryRohrer]

If you have a mortgage loan that the Federal Housing Administration (FHA) insures and you're delinquent in payments or about to fall behind, you're entitled to a particular loss mitigation process to help you avoid a foreclosure. The U.S. Department of Housing and Urban Development (HUD) requires loan servicers to attempt to prevent foreclosures on FHA-backed home loans using the process described briefly below.

In fact, servicers must proactively solicit borrowers for loss mitigation and make affirmative efforts to cure a loan default. But if you can't work out a solution to your mortgage delinquency, the foreclosure will go forward under state law—the same as any other foreclosure.

However, if the servicer failed to comply with HUD's loss mitigation guidelines, you might have a defense to the foreclosure.

"Plagiarism means using someone else’s work without giving them proper credit. In academic writing, plagiarizing involves using words, ideas, or information from a source without citing it correctly. In practice, this can mean a few different things."

What Is Plagiarism? | Definition & Examples

Plagiarism means taking credit for someone else's words or ideas, either on purpose or accidentally through failure to cite sources.

www.scribbr.com

 

[Carnivore]

Unrestricted Migration is putting a lot of pressure on our housing supply needs. It seems the us actual citizens are being pushed to the back of the line. Look at California or maybe it was another state about squatters rights. You can not leave town at the risk of a squatter breaking into your house and refuse to leave. I can imagine the gse's REO's are a problem for them.

I get calls every week corporate peeps calling asking if I want to sell. They say it is easy and are prepared to make an offer. I always say no and hang up and block their number. That doesn't work because their actual number is being masked.

venezuelan gang "tren de aragua" These are bad and very dangerous to our citizens. They are breaking into homes and apartments and throwing the legitimate owners and tenants to the street.

So what is going on?

 

[J Grant]

Unrestricted Migration is putting a lot of pressure on our housing supply needs. It seems the us actual citizens are being pushed to the back of the line. Look at California or maybe it was another state about squatters rights. You can not leave town at the risk of a squatter breaking into your house and refuse to leave. I can imagine the gse's REO's are a problem for them.

I get calls every week corporate peeps calling asking if I want to sell. They say it is easy and are prepared to make an offer. I always say no and hang up and block their number. That doesn't work because their actual number is being masked.

venezuelan gang "tren de aragua" These are bad and very dangerous to our citizens. They are breaking into homes and apartments and throwing the legitimate owners and tenants to the street.

So what is going on?

Where do you get that information from?

Migrants who are not here legally can rarely afford to buy a house. They would need to qualify for a mortgage, and an under-the-table job or low-paying seasonal vegetable picking won't cut it.

The MAGA talking points with no proof - ask loan officers if "illegal migrants " are buying houses and get back to me. Do you think an illegal working at a meat processing plant or off the books who is living with 10 others in a trailer can afford to buy a million-dollar house in California?

. The corporate peeps calling you every week and ask you if you want to sell is FACT. Corporations building up housing is putting pressure on supply.

Next craziness = Veneawualen gangs?? Have you ever seen one ? I haven't.

What is going on? You are being lied to and fed falsehoods from Trump and disinformation from FOX and whatever other sources MAGA relies on. Same as the lies about FEMA being only going to give Americans 750 - turn off FOX and listen and read and research and stop being a victim of these falsehoods. OR not. Your choice.

 

[TerryRohrer]

Where do you get that information from?

Migrants who are not here legally can rarely afford to buy a house. They would need to qualify for a mortgage, and an under-the-table job or low-paying seasonal vegetable picking won't cut it.

The MAGA talking points with no proof - ask loan officers if "illegal migrants " are buying houses and get back to me. Do you think an illegal working at a meat processing plant or off the books who is living with 10 others in a trailer can afford to buy a million-dollar house in California?

. The corporate peeps calling you every week and ask you if you want to sell is FACT. Corporations building up housing is putting pressure on supply.

Next craziness = Veneawualen gangs?? Have you ever seen one ? I haven't.

What is going on? You are being lied to and fed falsehoods from Trump and disinformation from FOX and whatever other sources MAGA relies on. Same as the lies about FEMA being only going to give Americans 750 - turn off FOX and listen and read and research and stop being a victim of these falsehoods. OR not. Your choice.

As always, making **** up while castigating others for not sourcing their assertions.

"More than 3.4 million undocumented immigrants are homeowners, according to the Migration Policy Institute analysis of the 2014 U.S. census data. That’s about 31 percent of the undocumented population.

While some undocumented immigrants pay for their homes in cash, others have been able to obtain little-known ITIN mortgages. ITIN stands for individual tax identification number. ITINs were created to enable tax payment by foreign nationals who are not eligible for a social security number but own businesses or assets in the U.S. But since its creation, the program has also been used by undocumented immigrants living in the U.S. Undocumented immigrants can use ITINs to open bank accounts and pay taxes on their U.S. income."

The American dream: How undocumented immigrants buy homes in the U.S.

It’s all thanks to ITINs — individual tax identification numbers.

www.marketplace.org

 

[Carnivore]

Colorado has a real problem with this gang

Who is Tren de Aragua? Vicious Venezuelan gang 'following in the path of MS-13' in America

The violent Venezuelan street gang Tren de Aragua has invaded the United States, committing a nationwide crime spree that has drawn national headlines and Donald Trump's attention.

www.foxnews.com

 

[J Grant]

Colorado has a real problem with this gang

Who is Tren de Aragua? Vicious Venezuelan gang 'following in the path of MS-13' in America

The violent Venezuelan street gang Tren de Aragua has invaded the United States, committing a nationwide crime spree that has drawn national headlines and Donald Trump's attention.

www.foxnews.com

What does that have to do with FHA foreclosures?

Then again, the OP's post was made to be political, as most of this post in appraisal topics are. I wish he would be honest and put them in the Water cooler where they belong

 

[Carnivore]

Squatter's Rights: Laws and Tips for all 50 States - eForms Learn

Squatter’s rights refer to the rights of a squatter, which is someone that is living on property that is not theirs. In some States, squatters ... Read more

learn.eforms.com