Concessions field being eliminated from MLS!

[Proactive]

You are all welcome. It sounds like you have a "proactive" group of appraisers willing to invest a little time and make a difference. I am confident that your meeting with the MLS Board tomorrow will be successful.

Please keep us posted!

 

[imjiminnh]

It is with regret that I must inform you all that the Board has decided to remove the concessions field from their database. The speakers that came were eloquent and learned, their points were well made and succinct. I can only assume that the board has decided that artificially inflating values and adding another layer of secrecy to the lending process is a good thing to do with the economy and public sentiment what it is today. I find their actions reprehensible.

Please keep in mind that once the concessions field is no longer available all a party involved in the sale must be contacted to determine if concessions existed, if not a disclaimer to the treport must be added stating that its reliability is in question due to NNERENs decision to withhold the information (in violation of the first paragraph of their rules and regulations).

It is my intention to include the phone number of NNEREN as well as every agent that refuses to disclose the information. Additionally a 3-5% adjustment to any or all comps can be made as long as you disclose that it is based on your analysis of sales contracts in the area. Legal per a conversation with a USPAP standards member.

By noting that concessions were not disclosed the report is no longer FNMA compliant with the implimentation of the 1004MC. My feeling is that the lenders will soon have something to say about their actions.

I have been asked by cooler heads to hold off issuing a press release outlining the effects of artificially inflating values and altering the appraisal process, but I have a feeling that this will be brought into higher circles. Geez, lender pressure to make value wasnt enough, now the MLS system is trying to force us to "make value".

It was made clear that concessions are most common in entry level properies and that these borrowers are the most vulnerable. These borrowers will inevitably be upside down in their mortgages the day they close because lenders will be basing their decisions on appraisals rendered useless by their removal of needed data.

It is my opinion that there are those on the board that intend to do this regardless of consequence in an effort to raise prices/commissions, and it maddens me as much as the "retention bonuses" at AIG.

Today I looked into the faces of some of the people behind the demise of the American economy and foreclosure crisis sweeping the country. They looked back at me and said "I'll take more".

 

[JennC]

So lovely! Well written.

 

[Proactive]

Today I looked into the faces of some of the people behind the demise of the American economy and foreclosure crisis sweeping the country. They looked back at me and said "I'll take more".

A stark, albeit accurate observation. Thanks to all for your efforts.

 

[Kate]

Although I was only able to hear from the hallway b/c there wasn't enough room for us all in the room. I thought that everyone who spoke yesterday was brilliant in their words. I can't think of a single thing that could have been said that wasn't. NH has some great minds indeed when it comes to appraisers anyway.

As we left I was under the assumption that they wanted a definitive answer from the AG before deciding but I guess not.

Looks like fees in NH need to go up due to the fact that we will be spending that much more time answering and making a million more phone calls about concessions on every property.

I wish we could start our own data base just for appraisers so we can add the concessions and any other useful information that may have been left out on the MLS or not available through the towns?

 

[Kate]

Oh I guess it is in effect right now. Just logged in to MLS and got this note. So nice that they will require the appraiser's name however couldn't they at least give this some time so that the sales we look at today at least have that info?? Below is the note from MLS.

As previously announced, due to concerns about potentially inappropriate display of confidential information, the “Concession” field has been removed from all InnoVia listing input sheets and displays.

However, the “Appraiser Name” and Appraiser Phone” fields now require input. Accurate completion of these fields is mandatory, and will facilitate the appropriate communication of property details which is a key component of the appraisal process.

NNEREN Staff

 

[JennC]

Very nice...now we will all be calling each other. At least we will be getting to know our fellow appraisers better.

 

[Kathleen Hayes]

Braught to you by the same idiots doing BPO's for $25 and coming in low hoping by chance they get the listing so it requires no salespersonship. BPO's have set the bar lower for listings, appraisal standards, and market values overall; now they have an excuse for the market imploding on them....privacy issues....must have been made-up over few cocktails or the 12th cup of coffee. There are no REAL professionals in Real Estate...people just end up here, we never set out originally to be here.

 

[imjiminnh]

I know how disheartening this all is, and I am as angry as all of you folks. Keep in mind that Kristen (our appraiser board president and a heck of a nice person) has a few cards to play as well. The BOD may think that its over and that they've just secured the equivalent of a retention bonus in increased commissions and fewer failed deals because of artificially inflated vales, but it ain't over yet.

I encourage all of you to add disclaimers regarding your inability to procure the concessions info due to NNERENs actions on every report (I'm assuming that the agents won' be forthcoming) and that its reliability can not be assured as a result, include NNERENs phone #! They've taken the stance that they are doing this to preclude potential litigation from buyers as the info is confidential, but it became clear at the meeting that this is greed driven.

How do you suppose the general public will respond to a press release revealing realtors intent to reach into the pocket of the homeowner with the economy in its current state? I have been asked to hold off writing that letter, and I will honor that request, but as I'm driving down the muddy backroads of NH in my old truck, wishing I could afford a Mercedes like a Realtor, the letter is forming in my head, and it isn't pretty!

Keep in mind that if sales info is published on a public website, what reason do you have to remain a member of your local board of realtors or NNEREN? How would 1000 appraisers cancelling their subscription affect the NNEREN budget?

The battle was lost, the war begins.

 

[imjiminnh]

And so it begins..


The same sales agent responsible for 2 comps in my report, says that yes there were concessions, but she can't recall what or how much and is not going to be bothered to get the information from her files. I thanked her and mentioned that I'd be adding this to the report along with her name and phone #, lender'll probably kill the deal, don't know how the agents involved in the sale will feel about that, but have a nice day. Silence at the other end.

Heres the wording that I put in the 1004MC
Based on review of purchase and sales agreements, seller concessions and closing cost contributions are becoming more common in this market area and especially in entry level properties such as the subject as competition increases with bank owned properties. NH's MLS system, NNEREN (603 228 9733) has removed sales concessions information from their database, as a result sales agents have been called to acquire this information. The same agent was involved in the sale of comps 1and 3, N***** D******** 603 *** ****, and noted that sales concessions were involved but would not disclose the amount. As a result this report is lacking required information and may be unreliable, see addendum.


Lets see how the lender feels about this.

Word is that NNERENs phones are ringing off the hook from teed off appraisers. If I wasn't so busy I'd just start calling every agent listed on any sale to bug them for concessions data, get them to start calling and complaining as well