Brainstorming and HVCC

[Diego Lopez]

By the way, all these new regs that are coming out about licensing the LO's and prohibing appraisal presure are not going to do anything to iliminate the pressure.

 

[Mike Kennedy]

"What if ....."


What if Lenders were FORCED, or voluntarily CHOSE to, recognize the errors of their failed business models for loan origination and appraiser selection and INSISTED on having all Loans generated by Employee LOs, all Appraiser Selection and Processing done by segregated Appraisal Management and Processing Departments which reported to the Chief Compliance and Divisional Chief Operating Officers and NOT the Loan Origination Officers.

What if all Lender Appraisal Quality Control Officers and Reviewers were mandatorily Certified Appraisers who reported ONLY to a Chief Appraiser who reported ONLY to the Chief Compliance Officer and Not Loan Origination senior management.

A few hundred million in Ops expense versus a few Billion in losses and being SHUT DOWN then facing Shareholder Lawsuits for Malfeasance with additional fines and possible jail time....... Simple Choice.

 

[ghrousseau]

By the way, all these new regs that are coming out about licensing the LO's and prohibing appraisal presure are not going to do anything to iliminate the pressure.

No, but hopefully it will create an apparatus where borrowers, Realtors, appraisers, and any other parties can lodge a complaint besides the local BBB.

 

[Caterina Platt]

Diego,

I agree, and have for years about taking the appraiser selection out of the hands of a commissioned sales person. This can be done without the HVCC, however.

 

[Diego Lopez]

Diego,

I agree, and have for years about taking the appraiser selection out of the hands of a commissioned sales person. This can be done without the HVCC, however.

We will see, Im seeing even the ethical MB and LO so desperate that they'll do anything to close a deal. I'm also seeing alot of really bad (inflated) appraisals, even more so than before.

 

[The Warrior Monk]

What if Lenders were FORCED, or voluntarily CHOSE to, recognize the errors of their failed business models for loan origination and appraiser selection and INSISTED on having all Loans generated by Employee LOs, all Appraiser Selection and Processing done by segregated Appraisal Management and Processing Departments which reported to the Chief Compliance and Divisional Chief Operating Officers and NOT the Loan Origination Officers.

What if all Lender Appraisal Quality Control Officers and Reviewers were mandatorily Certified Appraisers who reported ONLY to a Chief Appraiser who reported ONLY to the Chief Compliance Officer and Not Loan Origination senior management.

Better lenders do this...they're also the ones that have a much lower foreclosure rate.

It's the only way it will work, also. Any independent entity requires a fee cut, which limits its appeal to a large segment of appraisers.

 

[lm9900]

Hi, I never comment on these boards I usually just like to read to gather information. However on this topic I couldn't pass up. My husband was a L.O. a very honest one at that. In his office there were very underhanded people doing loans and making huge money on the yield spread. Actually a friend of ours did our loan before my husband went into the industry and after he learned the business we figured out that our "friend" made so much money on our loan on the prepayment penalty and the yield spread it would make you sick. My husband is no longer in the industry because he couldn't handle seeing this go on. Now on to my point. I'm an appraiser and I've acquired so many clients over the years, because of my honesty and solid appraisals. Why should I have to suffer and lose all of my business relationships because of dishonest people. That is punishing the honest hard working people. What kind of message does that send to the honest people that have been doing it right all along. These so called stretch appraisers from what I've seen are getting black listed one by one. Which again I don't see as such a bad thing either. Now that underwriters are really looking at appraisals ( a little late) I've had loan officers ask me to re-do appraisals because the bank will not accept appraisals from the other appraiser anymore. That makes me happy because when I look at the appraisals they should not only be black listed but arrested for fraud. Anyway, If all the people that stand to make thousands of dollars per loan were put on an hourly wage rather than collect per loan. Who would care what the value came in at. I feel that would solve the problem. However that will never happen to many people are in it for the quick cash.