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

[Lobo Fan]

FNMA Clearinghouse?

How is this going to work? No more in house appraisals and appraisals ordered by mortgage brokers could be a good thing. Is this going to be like MARI where one dubious strike and you're out? Are the major lenders going to be ordering all the appraisals? More business for AMC's?

I don't know enough about all of this to fully understand the repercussions and unitended consequesnces of such actions. No more staff appraisers and no more MB syncophants sounds pretty good.

What say you?

 

[Fred]

By no means interpret my last post as a Zaio endorsement,

Yeah, but it uses Obama logic. Someone who has done nothing yet, has "clean hands."

 

[robert higgins]

Now if they go in the way of a national AMC or a limited number of 3rd party AMC’s will we still get those “how you should be doing your appraisal report” letters we get now?

Will we be still getting those “we will only pay the appraiser this fee” letters we get now?

Will we still have to sign a contract that increases our liabilities with hold harmless clauses?

Sense we know Fannie and Freddie data mines our reports, will we have to sign a contract that gives away our intellectual property rights?

What will be the policies of an appraiser who does not meet the requirements of our trade?

What will happen if the appraiser hands in a poor appraisal, will it be reviewed by an AMC appraiser or sent to a state board for review?

Will the appraiser be black listed or put on a do not use list with out recourse as it is now?

Whom will we have to answer to, the Client, AMC, or Fannie/Freddie, who will be our client?

If the new AMC model goes into place and the new AMC model runs like the old (current) model, will we not be independent appraiser any more, or will we be employee appraisers of the AMC? If not will these policies be restricting our trade as independent appraiser?

 

[Bigrock]

Rock,



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

Brad:

Thanks, I was only wondering if it would hurd yall or not..... I agree that some of these proposals appear to be ableto harm the local Fee Appraiser and shoo everyone into working for AMC's,,,

I think you will see a ton of AMCs hit the market and that will drive down quality of not only the report but of the person doing the report.not to mention fees..

The clearing house is another matter..

I think it is really time for us to take our business retail and work with borrowers who have gotton screwed by the skippie appraisers, the 6% club folks and the lenders all these years,,

Maybe its time for the lenders to pay for useing the least qualified amoung us....

That is one thing that will NOT change in this industry,,,,GREED...

Thanks again Brad

Rock

 

[Fred]

The law of unintended consequences is never far away.

Some of us might de-euphemize that into the law of inevitable consequences.

 

[PropertyEconomics]

Some of us might de-euphemize that into the law of inevitable consequences.

And some of us may open our eyes and see that it is truly the law of Intended Consequences.

 

[Marcia Langley]

Or the law of plausibly deniable intended consequenses.

 

[Riick]

"And some of us may open our eyes and see that it is truly the law of Intended Consequences."
"Or the law of plausibly deniable intended consequences."

"Plus ça change, plus c'est la même chose"
--- -- The more it changes, the more it stays the same.
I'll be waiting to see what the outcome looks like, and who knows, maybe I'll be doing appraising this time next year.
But I'm looking hard at some sort of business in the next boom - All things GREEN.

 

[Fred]

Aye, there's the rube.

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?

You might be right. I haven't seen the final blueprints for Rube Goldberg Cuomo's better-mousetrap-meets-Rubik's-Cube guide to ordering an appraisal. It may well be - one borrower, one shot an appraisal - and if you miss it's good-bye to the American Dream. Then again, it might be three-strikes-yer-out if the first appraiser called is on vacation and the second is sick. So, who reviews, and how do "defects" get corrected? Thousands of appraisals then get sent backward with review reports through the clearinghouse to the source, and then back through clearinghuse again with rebuttals and new values.

There is just no way that one or five can sit around in a room and design a system that tens of thousands of motivated people working 24/7 for years can't get arouind.

Maybe the unified appraisal organiztions should be the clearinghouse, and you can only do appraisals if you're designagnated.

 

[Edward OConor]

Which AMC's are not owned by a lender?