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

[Bigrock]

Maybe they will put us on the BID system,,

We have a order in your area,,,we need a three hour turn time and our fee is 125.00

You must also have 2,500,000 in E & O. LMAO..Thanks Homo,,I mean Cuemo

 

[Carnivore]

[/B]


the same way FHA now accepts so-called "appraisal reports" from people who cannot appraise their left shoe ??????? :mellow:

Doubtful at best Carn.

I understand your point. My point is that once it is assigned to one appraiser thats is it!!! No more Skippy shopping.

Now this wont stop it dead, but it will make it more difficult. Especially if Fannie and Freddi incorporate some type of exclusion list. If there skippy gets stuck on exclusion then they have to look for another skippy. That would be much tougher.

 

[Pamela Crowley (Florida)]

Either approved panel via multiple field reviews and regular reviews to stay on the approved panel

or

blacklist only after peer review panel with full field review and complaint filed with all states that appraiser is licensed in.

 

[Financially Feasible]

I doubt highly that all the big boy lenders are going to shut down their wholesale divisions. Also, lest we forget, some lenders do not sell to FNMA and FREDDY. I can't help thinking that all this legislation is going to benefit AMCs and lenders in the long run and screw us along the way.

I agree with you wholeheartedly there, Kevin. However, since FNMA/FHLMC dominate what... 60...70...80% of the mortgage market then wouldn't that make things a little bit tougher on all lenders? What it might do is force more lenders to keep these loans in-house which will, in turn, make them scrutinize the appraisals more which would make it easier to weed out Skippy. I see this as a positive step in the right direction (that's a double-positive for you english-conscious folks out there :icon_mrgreen: ).

 

[Financially Feasible]

Either approved panel via multiple field reviews and regular reviews to stay on the approved panel

or

blacklist only after peer review panel with full field review and complaint filed with all states that appraiser is licensed in.

Pam, this is a quote directly from the article:

"Under it, Fannie said it would create a National Appraisal Clearinghouse, to which all lenders would be required to provide post-purchase copies of appraisal documents. The Clearinghouse, which would be run as an independent entity with an executive and board of directors, would staff a hotline for consumer complaints and do annual public reporting."

I think we all need to get together and throw our support behind the Paminator to have her elected as the executive of this new "independent entity".

 

[Brad Ellis]

Interesting thread.

Seems you are all quite skeptical. That is good.

This reminds me of the scene in the 2nd Star Wars film where Luke, just before going into the cave. turns to Yoda and says, "I am not afraid", whereupon Yoda replies, "You should be."

May I suggest that you wait until you can read the actual document?

Brad

 

[William K]

Pam, this is a quote directly from the article:

"Under it, Fannie said it would create a National Appraisal Clearinghouse, to which all lenders would be required to provide post-purchase copies of appraisal documents. The Clearinghouse, which would be run as an independent entity with an executive and board of directors, would staff a hotline for consumer complaints and do annual public reporting."

I think we all need to get together and throw our support behind the Paminator to have her elected as the executive of this new "independent entity".

Again here is the problem! (MY BOLD).
So a loan is denied because the property doesn't appraise for what they need, are they going to send those in?
what if the borrower cancels the loan and the appraisal was done , are they going to send in those copies?

It must be an APPRAISER driven Clearinghouse, not lender. The appraiser needs to be the one to submit the report via email and the lender can then send in a list once a month of appraisals they ordered that way a lender can't say "well if we don't send this in they will never know!" or the SKIPPY appraiser won't be able to not send in their fraud appraisal because it will be crossed with the lenders list of appraisals ordered.

You must have checks and balances!
Giving control to the enitity that has the reason to pressure for a higher value is just like the FOX GUARDING THE HENHOUSE :new_2gunsfiring_v1:

 

[Joker]

Is the devil you know better than the devil you don't know?

It makes me wonder...

 

[Financially Feasible]

Again here is the problem! (MY BOLD).
So a loan is denied because the property doesn't appraise for what they need, are they going to send those in?
what if the borrower cancels the loan and the appraisal was done , are they going to send in those copies?

It must be an APPRAISER driven Clearinghouse, not lender. The appraiser needs to be the one to submit the report via email and the lender can then send in a list once a month of appraisals they ordered that way a lender can't say "well if we don't send this in they will never know!" or the SKIPPY appraiser won't be able to not send in their fraud appraisal because it will be crossed with the lenders list of appraisals ordered.

You must have checks and balances!
Giving control to the enitity that has the reason to pressure for a higher value is just like the FOX GUARDING THE HENHOUSE :new_2gunsfiring_v1:

Would this be a violation of the confidentiality rule of USPAP if we did this or would that rule be circumvented because the purpose of submitting our appraisals to this committee would be for governmental review? The lenders could do it all day long since they are the intended user(s) but if we as the appraisers did it then that might involve some unclear legal issues. Just a thought. I agree with you conceptually, William. All-in-all, there's nothing to get excited about (good or bad) until there's something to get excited about. :icon_mrgreen:

 

[Mr Rex]

One of the things I have suggested more than once is to require all appraisals to be submitted to the individual(s) state. Let them (the State Appraisal board) become the "vault system" for retaining records. Maybe make lenders register a request for an appraisal with the state, thus no comp checks, an appraisal must be produced. If the lender orders more than one appraisal, the state knows and reviews commence and are required (as they are now by charter, but are being rubber stamped due to fees etc) It would give the enforcement agencies a current count of the number of appraisals produced by each appraiser and/or trainee, and would give the enforcement agencies including the FBI etc immediate access to reports when any impropriety is suspected. If every Skip, Dick and Tom out here knew that the state had a copy of every appraisal they spit out at their fingertips, the world would be a much better place. MHO.

BTW, all HUD 1s should be publicly recorded (with personal data redacted) and reporting false info should be a felony.

Any more questions? I'll slow the bus down for the slow ones.