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Fannie/Freddie NY Agreement

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Howard Bouchard

Thread Starter
Sophomore Member
Joined
Dec 16, 2004
Professional Status
Certified Residential Appraiser
State
Washington
I read quickly through the Fannie/Fred agreement and it sounds like a good start. It is accomodating of all sorts of valuation including AVMs.

If the banks shift all of there work to AMCs and fees are too low to run a real business model then who will be here to do all the appraising down the road? Paying the appraiser, regardless of appraisal results is mentioned however.

Since banks cannot use in-house/staff appraisers for the initial appraisal on a property that would probably cause them to cut loose most of their staff appraisers. There is talk of recourse to the banks on loans in this doc as well, so that should give the lenders incentives greater then they have now.

I've thought some of the shift to AMCs a thinly veiled attempt to circumvent the Scope of Work Rule and order lots of drivebys. Most drivebys are ordered to hide problems a full appraisal would uncover. Zaio's have to be even worst as the property was judged as "what compared to WHAT, When". But I see them blowing their horn too. Overall, I'm glad this is happening and I think it will be good if it proliferates to other states. Afterall it is really up to you and me to make sure it does turn out well. I just wish we had more input, some organization.

Most of the current problems are the result of bad lending practices, purchasing orchestrated mortgage loans from brokers by banks, Stated INcome, NO Docs, Interest only COME ON IN THE WATER IS WARM. Then packaged to Wall Street, where greedy guys rack up everything as AAA rated and the games begin. Next large domestic and international investors get burned by derivatives statistically imbued tranches of securitized garbage, but remember its the appraisers fault. So the danger I'm seeing today is the focus on a group of people who have no PAC, no Association and are tougher to herd then cats - that's real estate appraisers. No mention of the appraisal process was mentioned in the third quarter of 2007 when this all unfolded. I guess it takes time to deflect blame.
 

TXCBoy36

Junior Member
Joined
Oct 3, 2007
Professional Status
Certified Residential Appraiser
State
Colorado
I called FNMA today and spoke to their Public Relations department. Basically, this new agreement will directly effect in-house appraiser, appraisal management companies, etc. They are wanting to encourage Independent Appraisers...which is what I am. I own my own business....so I will wait and see how this all plays out.

John
 

moh malekpour

Elite Member
Joined
May 25, 2002
Professional Status
Certified Residential Appraiser
State
California
I called FNMA today and spoke to their Public Relations department. Basically, this new agreement will directly effect in-house appraiser, appraisal management companies, etc. They are wanting to encourage Independent Appraisers...which is what I am. I own my own business....so I will wait and see how this all plays out.

John
This is good news I like to hear. I hope they follow thru. I think they are going to get back to the traditional way of doing lending business. I am sure the loan origination is going to be more scrutinized and done the way that used to be done many years ago when they required real income with documents like tax return and they wanted 20 to 25% down payment. A real qualification on the borrower and a real appraisal on the property is the way to go. Corner cutting and false documentation got them nowhere but self-destruction. I think they are sobering up.
 

BOBBYGINE

Sophomore Member
Joined
Nov 26, 2007
Professional Status
Licensed Appraiser
State
California
What did they say about AMC's?

I wonder if their investors might like to know that in the future all appraisals will be done by unqualified dumb appraisers.(AMC appraisers). I can't see it lasting more than a few years, when the investors start to understand what this really does they will demand a change. Why would an investor want the opinion of a idiot(appraiser who works for 200$ per URAR) One day things will shake out, investors are greedy but not as stupid as the appraisers who think this is a great deal.

We have $___175.00_____ as the negotiated fee with

Completed report to be received within 24 hours of appointment

Contact if there are any value issues.

Yes, I am calling appraisers who this this deal is good, STUPID.
 

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
What did they say about AMC's?

Yes, I am calling appraisers who this this deal is good, STUPID.


Suggest actually reading it to answer that question. It helps.:icon_idea:
 

oscar55

Freshman Member
Joined
Aug 15, 2007
Professional Status
Certified Residential Appraiser
State
Florida
If there is something true about this business is "change". It happens more often that the adjustments we make...
 

BOBBYGINE

Sophomore Member
Joined
Nov 26, 2007
Professional Status
Licensed Appraiser
State
California
Suggest actually reading it to answer that question. It helps.:icon_idea:

Come on Mike, I was asking about what the Fannie rep said. Look at the post above

I've read it many times. Spoke to Bill Garber " director of government affairs" at AI which I suggest everyone do. I hate to say it but i think he likes AMC's.
Let him know what an AMC world will look like.

If AI had any balls they would call for an appraisal strike. Everyone that thinks its not needed is appraising for FUN. I won't be an appraiser for AMC pennies, and pretend its a good thing.

This is not change this is the destruction of the free market for appraisers.
 

BH91709

Freshman Member
Joined
Mar 6, 2008
Professional Status
Appraiser Trainee
State
California
This agreement stinks to the highest levels of government intervention. Section IV, in my interpretation, pretty much eliminates our abilities to market ourselves to the mortgage brokers and would now have to market to the AMC's, who will gladly take a nice cut of the fees. All this does is add another layer of BS to the system. It makes us all dependent, not independent, of the AMC's, who will basically be an intermediary between the lenders/brokers and the appraisers. Who's to say that the lenders will not have there "favorite" ACM, which have their "favorite" appraisers, doing the same o'l same o'l. The NY AG should of just minded his own business rather than sticking his nose into a profession which he probably has no real idea of just how it works. The poor Smiths and the Jones, atm'd their homes to the hilt with all the creative financing, and when the all those creative mortgages came time to have the interest rate reset and home prices dropped, this guy wants to come to the rescue. Whatever happened to taking personal responsibility for a poor decision? The bottom line here is, whether it's a direct or indirect pointing of the finger of blame, the appraisal profession will suffer the greatest of consequences. Yeah, the broker can't order their appraisal directly from an appraiser, right? Does that affect their commissions? NO. Does it affect our fee, YES. Does it make us independent, absolutely not.

Nothing like a first post rant...Bill.
 

Amy Perkins

Senior Member
Joined
Jul 20, 2003
Professional Status
Certified Residential Appraiser
State
Tennessee
It says that they have to change the way they order the appraisals, it does not mean they will be forced to use an AMC. If however, mortgage companies do not have person who is not on comission to do the ordering, they may end up using an AMC to ensure impartiality.
 
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