Brad Ellis - Federal Guidelines / HVCC

[JSmith43]

Cleaning my office-I stumbled upon an article published in the Appraiser e-gram (NAIFA) by Brad Ellis on REO.

He mentions how busy it has been up to that point (January 2002) and says:

"Why would I be writing an article about how you can expand your business into the REO field?

Simple. It's the Principle of Change. It applies not only to property values but to our profession as well. What is true today may not be true tomorrow. Unless you are in a very unusual market or have some extraordinarily loyal clients, you are already seeing volume decrease. Unemployment is now about 5.7%, the highest level in a decade. It continues to increase.

At the same time, interest rates began to move upwards. In part, this was due to the system being jammed up with refi applications, but that has now begun to decrease as well. What does this mean to you?

It means that the overwhelming work loads are starting to disappear. The bubble has already burst. Sure, it is possible that it can inflate again, but when and for how long? If you really know the answer to that, call me and we can make some money trading bonds."

He goes on to offer up special insight on how lenders handle REO property and how to fulfill that need then and in the future.

Brad was not the Captain of the ship. Did the chief cook on the Exxon Valdez get part of the rap for the oil spill? Large corporations have multiple divisions with more distinct personalities than Sibyl. Why pretend to understand the specific situation from the outside? I'll go with his postings and written contributions, which I find quite helpful.

It was always entertaining to watch Brad E and Steve S "bracket" the range of views on certain choice topics! It is a shame we seem to have lost the contributions of both of them in the last year or two.

 

[Stone]

It was always entertaining to watch Brad E and Steve S "bracket" the range of views on certain choice topics! It is a shame we seem to have lost the contributions of both of them in the last year or two.

Yes, it is. Well said (written).

 

[Mike Garrett RAA]

I will be teaching a class on HVCC and 1004mc also. Does that mean I am in agreement with either?

We must adapt or die! HVCC certainly was not written to protect or provide additional work for appraisers. The 1004MC was not created to make things easier for appraisers.

In my not so humble opinion the reason for a decline in business for appraisers was caused by two things. Too many appraisers chasing too few assignments (been saying this for at least 5 years) and ... too many unqualified individuals in the business.

In my state, it takes approximately 90 hours of education to obtain a trainees license. To become a barber...1,000 hours! What is wrong with that picture?

In addition, the mortgage lending industry feasted on the real estate market. Unethical and unqualified mortgage brokers easily found appraisers who were willing to "play the game". Are you ready for this...."we brought this on ourselves!" I am speaking about the entire appraisal industry.

Too many appraisers saw the market as a vehicle to instant wealth. I personally know some who hired as many as 30 trainees at a time, signed off on reports without even reading them, and failed to train their trainees. Just look at the recent FBI case in San Diego. Did you see the part about "having an appraiser inflate appraisals"? Almost willing to bet this is someone who was in the business for a short time and possibly never got more than the appraisal fee.

On a more positive note...those of us willing to accept these changes, do honest work, and hold true to ethics will survive. It won't be quite as easy as it once was and we might have to accept a lesser fee but we will still be here for years to come.

 

[GordiaA]

Mike,

I agree with you, and I want to add a couple of things. Here in Georgia, it only takes a 40 hour course to become a Mortgage Broker. Our industry is changing, and I believe that the appraiser should be independent of outside influence. I believe that a fee panel system setup by FHFA & FHA should be done. This fee panel can hire review appraisers to review 10% of all appraisals. This review process will eliminate a lot of the poor appraiser that are out there. The fee panel can take a $75.00 to $100.00 charge (half from the appraiser/half from the lender) in order to pay for this system. FHFA is setting up a database that will monitor the lenders, mortgage brokers, loan officer, appraisers & the appraiser supervisor starting January 1, 2010 on all loans. This fee panel system can start in 2010 as well.

 

[Dutchman]

Mister BE had the excuse that He couldn't find competent appraisers to do his work and that's why he gravitated to BPOs and AVMs. He admitted he was getting junk but was only worried about getting a piece of paper in the file.
When offered competent help at reasonable fees, never heard from him again. Talk is cheap, the proof of the pudding etc.... IOW, Mister BE found it too difficult a job to find competent appraisers, so he stuck with the junk. It was an easy way out and an excuse not to do your job right.

 

[moh malekpour]

Here is Brad with Microphone
http://www.reaaca.org/nb/

 

[Smokey Bear]

It was a good turnout, and a good talk. Not much of a positive outlook for appraisers though, since the HVCC is just a smoke and mirrors nuisance without the IVPI. Seems like it was must me and John Hassler from the forum.

 

[Kevin Mc]

Mister BE had the excuse that He couldn't find competent appraisers to do his work and that's why he gravitated to BPOs and AVMs.

That always bothered me. I know two extremely competent appraisers who did a fair amount of work over the years for IMB. Several years ago the work disappeared overnight. Neither ever heard from them again. When the above statement was posted on this forum last year I asked Brad why the very experienced and very competent appraisers who serviced his institution for many years were tossed aside, I got no answer. I'd imagine there are more than enough competent appraisers who contribute regularly to this forum and I would bet most (unless it was through an AMC) were never contacted by IMB to do quality appraisal work and any solicitations for business went unanswered. The results speak for them self.

 

[Karl]

When you send them PROOF & nothing happens that is a pretty good indicator that they didn't care.

 

[Joyce Potts]

http://www.youtube.com/watch?v=m9HKKyNPe4k&feature=related

Indymac alone, ..“$80 billion”…….as much as the entire 1980’s S&L crisis”

With all due respect, it is, what it is.