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Fed Throws Appraisers Same Old Crumbs

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Riick

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Ssdd

"Clearly this is closing the barn door after the fact," said Susan Wachter, a professor of real estate and finance at the University of Pennsylvania's Wharton School of Business.
Yet, she said, "this is a very important move. It absolutely will make a difference going forward."
:rof:

m2:"Much will hinge on effective enforcement." m2:
 

Kevin Mc

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"Shady Mortgage Practices"? The fed got stuck with very little of the real subprime garbage so they can stop the posturing. How about banning products like Neg Am loans, I/O loans, 80/20 purchase programs etc....oh yeah, those programs are already gone. FEW DAYS LATE, FEW BILLION SHORT.WAY TO GO
 

dobie

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"Shady Mortgage Practices"? The fed got stuck with very little of the real subprime garbage so they can stop the posturing. How about banning products like Neg Am loans, I/O loans, 80/20 purchase programs etc....oh yeah, those programs are already gone. FEW DAYS LATE, FEW BILLION SHORT.WAY TO GO


Also, how about an acknowledgment that maybe AVM's, desktop appraisals, etc. are not all they are cracked up to be
 

The Warrior Monk

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"Shady Mortgage Practices"? The fed got stuck with very little of the real subprime garbage so they can stop the posturing. How about banning products like Neg Am loans, I/O loans, 80/20 purchase programs etc....oh yeah, those programs are already gone. FEW DAYS LATE, FEW BILLION SHORT.WAY TO GO

The problem isn't the the loan product, but rather mismatching the product with the applicant.

For instance, back in the day when I learned about neg am, it was used in very specific circumstances. An example of a person getting an neg am loan would be a doctor straight out of med school, whose income is likely to increase significantly. That seems like a reasonable use. It's not for the average Joe on the straight. Same deal with interest-only loans with a balloon...it works for well when purchasing certain commercial properties.

Over the last couple years these simple, common-sense rules were simply thrown out. Common sense is starting to come back. Unfortunately, it's going to take the biggest bailout in human history to make people aware of it.
 

Lost Cause

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Same Old Lip Service

"Much will hinge on effective enforcement."
Which is why this will make NO difference...
 

panappr

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The problem isn't the the loan product, but rather mismatching the product with the applicant.

For instance, back in the day when I learned about neg am, it was used in very specific circumstances. An example of a person getting an neg am loan would be a doctor straight out of med school, whose income is likely to increase significantly. That seems like a reasonable use. It's not for the average Joe on the straight. Same deal with interest-only loans with a balloon...it works for well when purchasing certain commercial properties.

Over the last couple years these simple, common-sense rules were simply thrown out. Common sense is starting to come back. Unfortunately, it's going to take the biggest bailout in human history to make people aware of it.
I will not disagree with you here David, makes perfect sense on the lending issue, however, if as you say "common sense" is returning to the playing field, then why is there so much opposition for the use of seasoned qualified appraisers performing valuations at a decent fee. Not trying to change the course of the thread, but it does seem that good quality appraisals are being taken out of the equation and replaced with AVMs, BPOs, and AMC quality valuations to save a few bucks or increase speed.
 

Riick

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Delaware
"... "common sense" is returning to the playing field...."

Common sense only comes around and plays with us for a short while .....enjoy it while you can, he never stays.

As Voltaire said: ~"Common Sense is not common"

and to quote Albert Einstein: ~"Two things are infinite: the universe and human stupidity"
 

Mike Boyd

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If you think about it, I think we have been reasonably successful in getting some laws passed that forbid lender pressure, pre-determined values and maybe even comp checks. While REAL success is still inconconclusive, it might be time to start pushing our congressmen and women to see the folly of insuring and/or guaranteeing loans where anything less than a full summary appraisal report is used to provide an opinion of value, also, to eliminate the $250,000 deminimus. AND, maybe more importantly, to establish a nationwide minimum fee for a 1004 report. Frankly, I think the recognition of AMCs as a viable source for ordering appraisals should be questioned, investigated and ultimately eliminate those carpetbaggers.
 
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