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Chicken Little on Steroids

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Dee Dee

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Jan 16, 2002
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Certified Residential Appraiser
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Colorado
Wow!
Anyone want to counter this guy's opinion?

http://www.sfgate.com/cgi-bin/artic....DTL&hw=interest+rate+'freeze'&sn=001&sc=1000

The sole goal of the freeze is to prevent owners of mortgage-backed securities, many of them foreigners, from suing U.S. banks and forcing them to buy back worthless mortgage securities at face value - right now almost 10 times their market worth.

The ticking time bomb in the U.S. banking system is not resetting subprime mortgage rates. The real problem is the contractual ability of investors in mortgage bonds to require banks to buy back the loans at face value if there was fraud in the origination process.

And, to be sure, fraud is everywhere. It's in the loan application documents, and it's in the appraisals. There are e-mails and memos floating around showing that many people in banks, investment banks and appraisal companies - all the way up to senior management - knew about it.

I can hear the hum of shredders working overtime, and maybe that is the new "hot" industry to invest in. There are lots of people who would like to muzzle subpoena-happy New York Attorney General Andrew Cuomo to buy time and make this all go away. Cuomo is just inches from getting what he needs to start putting a lot of people in prison. I bet some people are trying right now to make him an offer "he can't refuse."
 

Mike Kennedy

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Professional Status
Certified Residential Appraiser
State
New York
Nope. It's a Bullseye.
 

Terrel L. Shields

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May 2, 2002
Professional Status
Certified General Appraiser
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Arkansas
Cuomo is just inches from getting what he needs to start putting a lot of people in prison.
If you appraised a property and did so in good faith to the best of your ability but in the process you accepted an email from a client who basically told you it needed to come in at a certain value and please notify them if it doesn't...etc. I do not see how you could argue before a judge that you were uninfluenced by the email especially if some lowballing forensic appraisers (say a fannie mae shill) said your valuation was too high. You are toast in that instance.
 

Randolph Kinney

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Retired Appraiser
State
North Carolina
Sounds like the bigger and better conspiracy theory.

It also sounds like all the boobs in play can't get it altogether to make it happen.
 

hastalavista

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May 16, 2005
Professional Status
Certified General Appraiser
State
California
The sole goal of the freeze is to prevent owners of mortgage-backed securities, many of them foreigners, from suing U.S. banks and forcing them to buy back worthless mortgage securities at face value - right now almost 10 times their market worth.

I'd like to see how this estimate was calculated.
The statement implies MBSs would trade at 10-13 cents for each dollar face-value. The last market trade I'm aware of was E*trade's purchase, and their MBSs were valued at +/-27-cents: significantly low, but thought to be so for reasons other than just the underlying value of the security.

And no mortgage plan is going to give the originators/servicers "safe harbor" against fraud.
 

Ross (CO)

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Jan 17, 2002
Professional Status
Certified Residential Appraiser
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Colorado
Terr,......what about those who submitted reports for "it is what it is" values, perhaps thus clearly NOT hitting a "needed" value......and with the technological magic of unlocking a report, changing a few digits, re-signing and puttings stamps-of-approval on the final out-the-door reports.....it becomes THOSE reports that now reside in the loan files of defaulted obligations that see foreclosure looming on the horizon ?

I don't think we have seen the report altering-and-changing schemes rise to the surface yet, nor even those early misdemeanor offenses of un-locking the sanctity of apparently "secured" reports ! Examples of discrepancy between portfolio file appr. reports.....and those originals archived in the workfile of the appraiser.....are going to put a certain odor upon the whole mess, and might reduce this broad-brush conclusion that ALL appraisers have been equal participants in the total mess.
 

Workbox

Elite Member
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Mar 2, 2005
Professional Status
Certified Residential Appraiser
State
Colorado
Just read it, some scary stuff, not a bit surprised, but this type of dynamic event can have significant global implications to where it can cause extreme radical action to the point of defensive and offensive actions.

A couple of years back we were talking about foreclosures do to the eventful evidence. So here we are now. Now there is talk about depression. Next, God forbid, Global conflict because of these actions. Too many events.

After all, the thread starts with "Chicken Little"
 

Stephen J. Vertin MAI

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Jan 17, 2002
Professional Status
Certified General Appraiser
State
Illinois
San Francisco Chronicle? The most die hard liberal news paper in the world. Gee what a surprise:clapping: They are about as fair and balanced as Bill O'Reilly.
 

Workbox

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Joined
Mar 2, 2005
Professional Status
Certified Residential Appraiser
State
Colorado
San Francisco Chronicle? The most die hard liberal news paper in the world. Gee what a surprise:clapping: They are about as fair and balanced as Bill O'Reilly.
I was just waiting for that. This is not about politics!! When ever I see, read or hear about others stating political affiliation and their views and can not be trusted because of it, SORRY, as a person who has traveled, their are to many dynamics to ignore.

There are some that can gather the evidence and forecast. And then there are those that are trying to forecast of what happened.

So is Pam's, an those that submitted the evidence liberal?
 
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