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

[Sandra Koutsopoulos]

"...the actual cost of doing an appraisal in compliance with USPAP in California has skyrocketed."
Well said panappr. I've had a bad case of depression headache since I read about this Fanny/Freddy debacle. To do a thorough quality appraisal, I cannot work for AMCs and spit them out in 48 hours at cut-rate fees, and still earn a decent professional living. If I wanted to have a boss looking over my shoulder, telling me what to do, and deciding how much I'd be paid, I wouldn't have become an Independent Fee Appraiser in the first place. For sure, the law of unintended consequences is at work here, creating pressure for poorer quality appraisals with lower fees to the appraisers and higher costs to consumers, and as small business owners, a lot of us will quit the business.

 

[Deuce of Spades]

It is my thought that the buyers and sellers of these loans need to take responsibility for their actions which will include a trickle down effect on the brokers and the appraisers that did wrong. I am totally against removing staff appraisers from the lenders. Holding lenders responsible for their actions and having to buy back these bad loans will make them require better appraisals whether it be from their staff or fee appraisers. Once the requirment of responsibility hits their P&L, the bean counters will quickly change their tune from quick and cheap AMCs to quality. Quality typically equals a higher cost.

This weekend I was watching a UF Surveying video class with my husband (he is in his final semster - YEAH!) on Negotiation and Ethics. The class was originally taped in the late 80's early 90's. When the tape started, it discussed that in the early days, (60-71's), it was against Surveyor ethics to negotiate on price - qualifications and experience were the only methods allowed. Times have changed, but this profession has tightened the reigns and requirements to become licensed and the fruits of their labor are starting to show.

 

[Mike Kennedy]

So, why didn't lenders demand that they order the appraisal?

Pretty simple, actually- the brokers did not want to give up their control over the loan, be unable to pressure appraisers, etc. Brad

No Buyers for trash - no Trash. Pretty Simple.

 

[Lloyd Bonafide]

Agreement signed

http://www.ofheo.gov/newsroom.aspx?ID=417&q1=0&q2=0

OFHEO, NY ATTORNEY GENERAL, FANNIE MAE AND FREDDIE MAC SIGN AGREEMENTS TO COMBAT APPRAISAL FRAUD

 

[Riick]

DEAL is ON: Fannie Mae, Freddie Mac to Overhaul Appraisals in Cuomo Deal

Details to be announced this Afternoon LINK
General Link to NEWS

Fannie Mae, Freddie Mac to Overhaul Appraisals in Cuomo Deal

By Karen Freifeld and Sharon L. Lynch

March 3 (Bloomberg) -- Fannie Mae and Freddie Mac, the biggest sources of financing for U.S. home loans, agreed to overhaul the way property appraisals are conducted under an accord with New York Attorney General Andrew Cuomo, according to a person familiar with the negotiations.

<<< snipped>>>

Fannie Mae and Freddie Mac agreed they will no longer purchase loans from mortgage originators who use their own in- house appraisers, according to the person, who spoke on condition of anonymity because the agreement is supposed to be made public at a press conference later today. Cuomo scheduled an 11 a.m. press conference today about his investigation.

 

[Queen City Gurl]

Having an approved appraiser panel, based on competency... yes, you have to demonstrate competency.... AND, then appraisal ordering is done on an automated system model!

There has to be no human hands, on deciding which appraiser will receive that order. An automated rotation model for approved appraisers.

Their greatest protection would be to emphasize appraisal ordering based on merit and competency, and not on saving $100 bucks per.... that doesn't come from their pocket anyway. How come noone but us sees the strength in that !!!! You get what you pay for mostly !

 

[Riick]

Hot off the press more DETAILS from OFHEO

"CODE" -- in PDF format attached uploaded from OFHEO

 

[Zapper7246]

So how is this all supposed to work in the future? Are our appraisals fee's going to be cut drastically and what about volume? I've worked very hard to build a large client base, so is this all in vein now?

 

[Kevin Mc]

I've worked very hard to build a large client base, so is this all in vein now?

certainly looks that way. The fact that you have long standing established relationships with legitimate people and have always played by the rules doesn't seem to matter anymore.

 

[BOBBYGINE]

An thus the fee appraiser is destroyed. I see very, very low fees in the future, this profession just became impossible to be competitive without violating USPAP. Maybe we should all start a movement to get rid of USPAP, that way we can just do a Fannie Mae's new low fee fast turn-time requirement. First, my business and then the country, total destruction to follow, from this great piece of americana. So an AMC is sued and then everyone must use AMC's, this is obvious collusion between the money that put ****momo in office and his phoney lawsuit, this was nothing more than a backroom deal.