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

[William K]

Just don't understand why appraiser's think "This will get us our just fees"
or "This will take care of the SKIPPY's" or "This is a step in the right direction"

THE PROBLEM IS WE DON'T NEED A SIDE STEP, BUT A STEP FOWARD!

 

[William K]

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:

No! Fannie and Freddie will claim intended user just as HUD does for FHA appraisals.

 

[Tudor]

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.

I like it.

 

[Lloyd Bonafide]

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.

Ordinarily, I'm for less government instead of more, but your idea may have some merit. The State of California, and maybe other states, require that all pest control reports be submitted to the state. That way, in a home sale, the real estate agent can't order a pest control report from their friend Skippy, if the agent doesn't like the first report done.

 

[TJSum]

Rex for President! Not only could they keep an eye on appraisers with this system, at the same time they would be also watching the lenders and brokers. It could also help stop identity theft of an appraiser or anyone making changes to the report. They also could have a universial order form!

 

[PLCG]

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.

That sounds good to me. We already have laws in place; they should be enforced. The state boards are in place and they should do the job. The other sounds a little too much like "big brother". The larger the solution the larger the possiblilty it will turn into a mess. After all, the original idea was that AMCs would remove pressure or favoritism from the client. That worked great!

 

[Kevin Mc]

Good stuff 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.

Like I said "think globally,act locally". This should be dealt with on a state level. A national system has FUBAR written all over it.

 

[hovious]

I guess appraisers, who have had outstanding relationships with brokers for decades, can kiss those relationships goodbye. There are SO many appraisal companies that have solid, ethical relationships with solid, ethical brokers (I know there are not many but they are out there).

I have numerous relationships with brokers that go back to the mid 1980's. Honest, straight-up brokers with no pressure or influence upon how I do my job. I guess those days, and those relationships, will be terminated.

I can understand and appreciate the main purpose of this proposal but this will REALLY hurt thousands of appraiser's who have ethical relationships with brokers.

I am sure that the MBA will chime in on this sooner or later and voice their displeasure. If this proposal turns into reality then all that will be left, basically, will be the Appraisal Management Companies. God help us all.

In my opinion, this is a horrible proposal.

 

[Kevin Mc]

Hmmm.

If this proposal turns into reality then all that will be left, basically, will be the Appraisal Management Companies. God help us all.

and their crackerjack appraiser lists bidding for pennies. Who was the Einstein behind this grand plan?

 

[hovious]

I agree Kevin. I had thought that Cuomo was blowing the whistle with how AMC's operate. Now, it looks like from this proposal released today, he has played right back into the hands of AMC's.

I have received calls from all of my broker clients (the ethical and honest ones). They are VERY upset with this! How will my broker clients know, if this proposal goes into effect, that their clients' properties are being appraised via a competent and ethical appraiser?

Once again, I understand the foundation of this proposal but this is playing right into the hands of the people who have had the power and have abused that power. Instead of taking a solid step forward, in my opinion, a MAJOR step backward can be the result of this.