Bank Of America Is Raising Its Minimum Wage For Employees To $20 An Hour

[Deleted member 126639]

The biggest obstacle/Fly in the ointment for Regression models is the lack of complete data for all residential houses in a particular area/market.

For example in my County on a yearly basis only about 30-40% of the Residential Sale went through MLS.. Our GIS is not the best on the planet. Its improving but that takes time and money. When you consider what a County tax assessor mission is then you understand that perfection is not necessary.

Multiply that one county Gaston x 99 other counties in NC and you begin to see the problem even for regression. Add in the other 49 States and it gets worse not better.

Not saying regression wont be useful, but its never going to be perfect nor IMO even close to being good, let alone Great. It will likely improve as more counties across the nation improve there syystems

40% of all sales is more than sufficient to produce a relevant dataset.

It doesn't need to be 100% accurate. 90% is sufficient, particularly when the credit worthiness of the borrower is orders of magnitude more important than the sale price when predicting defaults.

We as appraisers must remember that the #1 reason banks are trying to diminish our profession is large sampling of reports post-2008 effectively proved that the quality of the appraisal and most importantly the appraisal fee had no relevance in predicting default.

In any event, I only make this point to counter the historically strong libertarian presence here. Automation is affecting many jobs, but residential appraisers will be hit quite hard. Knocking on Starbucks workers for making half the average income of residential appraisers is not the solution to this intractable problem. The problem, ultimately, is the bourgeoisie is taking all of the country's wealth in any way that they can. We should be cheering the success of Starbucks workers and BoA employees. The reality is we as appraisers need similar reforms, although the solutions are a bit more complicated.

 

[Carnivore]

40% of all sales is more than sufficient to produce a relevant dataset.

"It doesn't need to be 100% accurate. 90% is sufficient, particularly when the credit worthiness of the borrower is orders of magnitude more important than the sale price when predicting defaults".

Maybe so, but I would say that it depends on just what the 30-40% is in regards to any defined Market Segment. Some other missing data is all the Residential Properties in a defined market segment that have not been sold/transfer in quite a while.

The underlying point is that many residential appraisers most likely IMO DONOT consider sale that are non-MLS. That is a Flaw in the Individual Appraisers development process. I am nothing special but I do use GIS on EVERY assignment to review all non-MLS sale. The retired CG that provides us that data is invaluable at times. He does the legwork, so we don't have too(for a fee of course).

"We as appraisers must remember that the #1 reason banks are trying to diminish our profession is large sampling of reports post-2008 effectively proved that the quality of the appraisal and most importantly the appraisal fee had no relevance in predicting default".

I don't entirely agree with you on that year 2008 point. Some how your attempting to place all the blame on RE Appraisers. Your Point of Credit is King Collateral is 2nd Fiddle is valid. The weakness in that position is Credit can disappear literally within minutes. REASON: and this is rather crude of me, all it takes is your size 10 wife to find a pair of size two ladies panties in your Car Glove Box. But to be more accurate the fragility of credit is effected most by failing personal life; job loss, drug/alcohol problems and back then Fast and Loose Lending Practices, i.e Liar Loans, Politics, 2nd mtg's based on tax values, etc but the most important reason was the a failing(retraction) overall economy. The Proletariat is always the most vulnerable.

"In any event, I only make this point to counter the historically strong libertarian presence here. Automation is affecting many jobs, but residential appraisers will be hit quite hard. Knocking on Starbucks workers for making half the average income of residential appraisers is not the solution to this intractable problem. The problem, ultimately, is the bourgeoisie is taking all of the country's wealth in any way that they can. We should be cheering the success of Starbucks workers and BoA employees. The reality is we as appraisers need similar reforms, although the solutions are a bit more complicated".

Finally, I agree with your basic premise above with an exception. Starbucks CEO pays what he does out of Altruism, although he hedges that by locating his product/services within areas where the Bourgeois and above people live that are least effected by a failing/down turning economy. BOA OTOH, has no choice but to respond to the burgeoning economy and must compete for the semi-skilled labor. To easiest way to counter the current issue of unskilled/semi-skilled labor shortage is to open the US Borders as a wide as possible. Turn a shortage into an excess and the price of Labor will decline. This is definitely a recipe for disaster.

Here is a truism: as I stated above The Proletariat is always the most vulnerable.

I just winged it above as a quick response to your post. I hope i made some sense. I am sun setting. I have no regrets because I am exactly where I told my feet to take me in life. Even though my feet told me in 1987-89 to continue on the path I was on, I made the conscious decision not to, simply because I wanted to do something different. The result of that is I am not financially better off than I could have been, but I believe I am happier.

FTR I am a Civil Libertarian and and follow Professor Dershowitz