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

[Otis Key]

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.

Say what???????????????? You mean you actually do marketMort value estimates different? Now, I do understand that it depend upon the SOW but to make such a blanket statement without clarification - I'm surprised.

Relo appraisals do not provide market value - they provide "ANTICIPATED SALES PRICE"
REO appraisals typically require two opinions of value-give you that one
Mortgage finance transactions - DUH - market value
Short sale - DUH - what can we dumb it for and still face!

I agree - wrong bowl - sugar would have been better..............

Have a good evening. "Catch ya on the flip side" -as the saying goes.

 

[Bearslide]

Chill and insert the sarcasm to my previous post.

I caught the sarcasm and found it rather amusing.............just adding a little of my own. No offense meant to anyone.

 

[George Hatch]

Just daydreaming here.....

Let's say the mortgage brokers are cut out of the engagement loop for appraisals that are used by these lenders.

Does that mean the wholesale mortgage business just evaporates overnight? Doubt it. They'll still want to develop packages and submit them to their lenders. Some of them may choose to do that without any idea of whether the property will appraise out, but they won't all be so anxious to roll that dice.

I can imagine (hallucinate) that some brokers, prior to spending all that time and money and energy to build a loan package and submit it for underwriting and appraisal, might consider ordering a BPO or an AVM or a Zaio 2055 or a desktop appraisal before they build their package. Kind of like getting a credit report, just so they can get a feel for what type of program they should shoot for.

Who knows? Maybe this would create a whole new category of assignments for appraisers.

It's not entirely crazy. I mean, a month ago who would have given serious consideration to the idea that mortgage brokers could really be cut out of that engagement loop before the end of the year?

 

[Fred]

Who knows? Maybe this would create a whole new category of assignments for appraisers.

I would have to argue that type of assignment is prevalent now. Many call them comp checks.

 

[Alison Swain]

I would have to argue that type of assignment is prevalent now. Many call them comp checks.

Bingo! But this will be the time for appraisers to turn the tables. The question is......will we?

 

[Marcia Langley]

I would have to argue that type of assignment is prevalent now. Many call them comp checks.

But if MBs are no longer able to be a paying client for the appraisal the loan is based on, why would appraisers contiue to give them free comp check appraisals?

The incentive to promise a pre-determined value would seem to disappear. Come to think of it, the MB might lose their incentive to press for higher values. Now their concern is to get a more realistic picture of what the eventual appraiser is likely to provide.

Appraisers may get back to getting paid for ethical work.

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However, some of the language I read in the media seemed to be saying that the GSEs would not accept any loan package that originated at a MB, not just the appraisal.

 

[Lloyd Bonafide]

I would have to argue that type of assignment is prevalent now. Many call them comp checks.

That's true - but what good will a comp check be, when the appraiser giving the comp check is not the one that will be completing the report?

From the mortgage brokers' standpont, this is probably bad news, because often, when they take a loan application now, they are not sure what investor or investors they will be sending the loan package to. If they are going to be charged by the bank for the appraisal, it makes it hard to shop loan rates during the loan process.

 

[Fred]

Bingo! But this will be the time for appraisers to turn the tables. The question is......will we?

IMO, no.

Appraisers may get back to getting paid for ethical work.

Perhpas you wax romantically of a past that never existed.

But if MBs are no longer able to be a paying client for the appraisal the loan is based on, why would appraisers contiue to give them free comp check appraisals?

In the words of the Who: "Meet the new boss, same as the old boss." If not mortgage brokers, then someone else will.

The incentive to promise a pre-determined value would seem to disappear. Come to think of it, the MB might lose their incentive to press for higher values. Now their concern is to get a more realistic picture of what the eventual appraiser is likely to provide.

The incentive for knowing the outcome and to "press" for higher or lower "indepdent" third-party appraisals will never disappear.

 

[jnordquist]

National Appraisal Clearinghouse

Got this email this morning, I see good and bad

http://appraisalnewsonline.typepad.com/appraisal_news_for_real_e/2008/02/fannie-proposes.html

This could be a good thing relieving value pressure, or a bad thing if FNMA drives the fees to $100 each.

I feel this will level the playing field for receiving work without pressure, but eliminate the reward of return buisness to the appraiser that takes the time and knowledge to write a quality appraisal report.

This will kill the AMCs like Landsafe, but may make LSI, Valocity, etc. 100 times bigger.

 

[Fred]

Got this email this morning, I see good and bad

http://appraisalnewsonline.typepad.com/appraisal_news_for_real_e/2008/02/fannie-proposes.html

This could be a good thing relieving value pressure, or a bad thing if FNMA drives the fees to $100 each.

I feel this will level the playing field for receiving work without pressure, but eliminate the reward of return buisness to the appraiser that takes the time and knowledge to write a quality appraisal report.

This will kill the AMCs like Landsafe, but may make LSI, Valocity, etc. 100 times bigger.

Oh boy, another thread on this subject.

Like the AMC's won't end up as the national clearinghouse, still getting 50%+ of the appraisal fees.