If you're sending this call out far and wide, might as well send it to someone who could probably do you just as much good, Neil Boortz, right in good ole Atlanta. Great person to get your message out loud and clear.
I hate to tell you guys this, but my wife is a VP for a large community bank, and for about 15 years we have been attending state banker’s association meetings. I have played golf with half of the CEO’s in the state. For the last 15 years at least, the topic of conservation has been getting into the stock brokerage business, real estate brokerage business, and insurance business. This ain’t nothing new. The only thing standing in their way is the legal authority to proceed. It all boils down to this question: Who owns the most politicians, the bankers, or Realtors, or Insurance agents?” Think about it! I think the Realtors have it hands down because if the bankers try and lose they could have hell to pay. Realtors control a lot of bucks in the way of mortgage loans. Can’t say the same for insurance agents and stockbrokers. These two groups are not popular right now.
I'm very afraid that the Realtors will likely loose this battle this time. Reason: There are way tooo many Realtors that are also Mortgage Brokers and Real Estate Companies that offer their own mortgages.
Pam: Voters, voters, voters! There are a lot of licensed real estate agents out there that VOTE! It's a pocket book issue. Agents will be out in droves with pitch forks in hand and no politician will stand up to that. Soft money will flow like the Mississippi River. That is why appraisers have no influence, no numbers, no money. The AI is using every trick in the book to get number$. Remember, we have the best political leadership money can buy. If you don't believe me, ax the trial lawyers.
Austin, you hit the nail on the head. The Realtors have a massive lobby effort. BIG group, lots of $$. One of the mottos is real estate is your job, but politics is your career. Boy howdy, do they know to play the game.
It isn't that long ago that the banks were buying up the real esate companies because they saw how much money they made and the banks were going to use those real estate companies to feed themselves loans.
Well, you need cooperative Realtors to do that. Those incestuous banks weren't offering competitive products, so that Realtors were still taking their loans outside and doing business with their old friends.
Then the banks disgorged themselves of their real estate companies.
Merrill Lynch is a good example. Realty World was another example.
All of you appraisers and Realtors practice saying this line: "Good morning and welcome to Wal-Mart. How about a big smile and a hug." You guys will love being part of the Wal-Mart Family. The pay is low but they let you work all of the hours you want to balance out the low pay.
Austin has this right. Nothng new here- it has been going on for decades.
What will be very interesting is how the lobbying efforts are done. Here we have two of the biggest and most powerful groups spending millions to get their way.
With whom should we ally ourselves? This is a BIG deal for both interests.
On one hand, many of the banks are our clients, yet they routinely stall or block legislation that would help us on the state level AND they are part of the process that seeks to do away with the need for appraisals altogether.
NAR (and I am a member) has been helpful in some states but not in others. I still have not seen them make a pronouncement that appraisals are a necessary part of the mortgage lending process.
Perhaps NAR would want to think this over. Only half of us belong. There are over 40,000 who do not, but who may well support their position if they gave us something- even in a policy position- that would make us feel all warm and fuzzy.