Deal Nears to Curb Home-Appraisal Abuse, Coumo, Freddie Mac and Fannie Mae

[Brad Ellis]

Rock,

Brad:

No hard feelings here but can you explain how this would hurt Indy Mac?

Well since I have not offered much of an opinion on this at all, I am not sure why you would assume it would hurt Indymac?

However, to answer that question, I am not sure it would hurt Indymac at all. Nor am I sure it will hurt any of the banks. Remember that whatever ends up happening will apply to everyone equally- at least within the regulated community.

But, while I am not yet finished analyzing the things I know about it, I will tell you that there are parts I like and parts I do not like (as it now stands).

Among them- I like the idea of not allowing the mortgage broker to order the appraisal (been trying to figure out how to incent them to allow us to do it for them for a few years now- but had no good way). Now that is moot since I believe this part will ultimately survive.

I do not like much or even believe much that there is more risk in using a staff appraiser. Like Serena who posted on that, I've seen some pretty good work come out of the staff folks- including for my own mortgages- and I'd sure love to see what evidence they might have that staff appraisers are the ones doing the dirty deeds. I'd question the liklihood of that provision surviving.

Now from what I have seen so far, I'll tell you that the ones who may be hurt the most are you independent appraisers who choose to not work for AMCs. From what I have seen and heard, it will be the AMCs who end up truly benefitting- and that pretty much always happens on your guys' backs.

Brad

 

[Workbox]

Brad, is that only for FHA assignments?

 

[Mr Rex]

Love him or hate him, he speaks the truth. Nothing wrong with the AMC model until appraisers give in to fee pressure and subsequent quality issues. Blame who you want, appraisal fees on HUD 1s are up since the advent of AMCs. Dumb *** appraisers working for less are the devil in the details, not the AMCs. The AMCs just outsmarted a whole bunch of folks that thought themselves smarter than the average bear.

 

[Ms. Janet]

Well, now that was a very nice post Brad, by that I mean the overall tone. I might even put you back on my buddy list...:Emoticon_hug:

 

[Roy Courtney]

An AMC is caught participating in inflating appraisals, so let's make sure all appraisals go through AMCs ...Posted By Couch Potato VERY TRUE!!!

There are areas where no loans will be made because the appraisers in that area WILL NOT work with AMC's. There really are some areas where that will happen. (Other types of appraisal business besides mortgage lending) Who will suffer then?

 

[Workbox]

An AMC is caught participating in inflating appraisals, so let's make sure all appraisals go through AMCs ...Posted By Couch Potato VERY TRUE!!!

There are areas where no loans will be made because the appraisers in that area WILL NOT work with AMC's. There really are some areas where that will happen. (Other types of appraisal business besides mortgage lending) Who will suffer then?

I think a per county rotation will work for many areas. I'm sure a formula can be conceived for fairness.

 

[Alison Swain]

Legislative action in PA...fattest house and senate in the land...

What does your statement about the AMCs mean? I know there are a lot of small-time operators near or in Pittsburgh.

With Fast Eddie as governor? We better take up a collection to pay him off. Seems that's how he likes to do business.

 

[Joyce Potts]

Maybe they'll catagorize the appraisers. You know, those who do foreclosures vs. conventional loans vs. relocation, since the intended use and market value is different.

 

[Bearslide]

Joyce.Joyce.

Did you get into the funny white powder instead of the sugar????

They will categorize all right.......Category A: works cheapest. Category B: makes the number and the house is ALWAYS in good condition Category C: stupid enough to blindly accept all assignments, regardless of how much they violate USPAP Category D: (to be used once in a blue moon) knowledgeable appraisers who know how to write a report, analyze a market and arrive at a value without being told what it will be.

As far as brokers ordering their own appraisals, that solutin is very simple. Lender: submit your loans, WE will order the appraisals from our rotating approved list. Broker: But oh wait - that would cost loans......what the heck, it's all a numbers game anyway, what's a few losses here and there.

A few (too few - if more had we wouldn't be in this mess) lenders insist on ordering from their own approved list - and guess what? They aren't eating foreclosures and bad loans. HMMMMMMMMMMMMMMMM

 

[Joyce Potts]

Chill and insert the sarcasm to my previous post.