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First draft

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Edward OConor

Thread Starter
Member
Joined
Apr 27, 2006
Professional Status
Certified Residential Appraiser
State
New York
Englesh was never my strong smoot. :rof:

I have done a first draft of a letter to my State Senator. I would greatly appreciated your input, corrections, changes etc.


Dear State Senator:

I am a Real Estate Appraiser. I am concerned with the Attorney General’s agreement with Fannie Mae and Freddie Mac.

While I think that his agreement is a reasonable idea, I do not think that it goes far enough to protect Real Estate Appraisers.

At the present time I receive most of my work from a third party that utilizes a system similar to what the AG proposes

The third party that orders the appraisals is a for profit organization. What this means is that a lender or broker will place an appraisal order and pay the company a full fee. The company will then take out their profit and costs. The result is (I) the appraiser receives a reduced fee.

At the present time, the normal fee paid to an appraiser that is hired directly by a lender is $350.00 for a appraisal of a single family dwelling. The fee paid by the third party is $165.00.

This fee is $15.00 higher than it was in 1992.

My concern is that without any fee protection the fees will be further reduced. This will certainly reduce the amount of time that an appraiser will be able to spend in developing an accurate and meaningful appraisal The appraisers will need to be more concerned with volume than quality to be able to put food on the table for their families.

It seems that the appraiser the scape goat for all the mortgage industry problems since the US Savings and Loan crisis of the 1980s and 1990s was the primary force behind the licensing of Real Estate Appraisers. While this was considered by most appraisers (at the time) to be a good thing by opening the mortgage market all licensed appraisers, we were the main target and we were assigned most of the blame for the problem.

It is my opinion, and that of many other appraisers that this agreement without financial protection for Appraisers will only cause further degradation the mortgage industry.

It will be reduced to a simple “you get what you pay for”.

Sincerely.

(your name)


I know that some will think that this is PI***** into the wind, but something is better than nothing.

PLEASE ONLY CONSTRUCTIVE COMMENTS ONLY!!!

Thanks to all.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
Using "I can't do it for the fee" is not going to fly. If you want to attack the settlement, do it under the guise of the AMC in the pockets of the lenders and will not change the lending environment. JMHO
 

Bigrock

Member
Joined
Jun 6, 2007
Professional Status
Certified Residential Appraiser
State
Georgia
for profit AMCs will still control the appraisal selection and process. BAD

Also add barrier to entry into the field,,should be harder....

Etc...
 

panappr

Elite Member
Joined
Dec 5, 2007
Professional Status
Certified Residential Appraiser
State
California
You forgot to mention due diligence, which is my main concern with the AMC's. Preparing a USPAP compliant report with time constraints, reduces the quality of the report, forget the fees for now (although that is a huge issue). The whole idea of the agreement is to make the world safe for real estate again (according to Cuomo). In my humble opinion it has done just the opposite. It has created a competition for the fastest and cheapest appraisal available.
 

Caterina Platt

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
New Mexico
Roger is right. (as usual :new_smile-l: )

The senator probably has less than 1% of his constituency as appraisers. Protecting our fees is not his interest, nor should it be, really. I far prefer the open market method to price controls in any product, my own fees included. Government involvement in price supports and controls only fouls the issue.

If you approach the issue on the basis of protecting the consumer, the stock market (mortgage backed securities), millions of people's retirement accounts, solvency of our banking industry, etc., you'll get far better reception.

Now, if you approach the issue of the lender and AMC passing the cost of doing business onto the vendors, and as a result, diluting quality, you may have a good argument. We all know how to connect the dots on that issue, but how does it work for or against the consumer? There's your best approach in my opinion.

Keep writing. I'm interested and will offer any help I can. My comments are not meant to discourage. I'm very glad you are taking the time and interest to do so.

Have you contacted Pam at all? She may have something of her own cooking, and it might be worth a quick PM to find out.
 

Ross (CO)

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Your remarks about a for-profit organization and the residual fee they pay you could likely fall upon deaf ears. Your Senator might simply suggest that you try to up-sell your services and re-negotiate for a better fee payment. They may not see their role as stepping into the boxing ring to score YOU a higher fee split ! How does this client reply when you have mentioned that $165 is not fair and representative for the reports you provide ?

Do you consider comments regarding spelling, grammar of context as being constructive ? I am sure you want to leave a positive impact upon the Senator. A good first impression is just that sort of effect that might get his attention.

P.S.- -Your footnote line is missing a "t" in one word.
 

Roscoeman

Member
Joined
Aug 18, 2005
Professional Status
Certified Residential Appraiser
State
Oregon
Roger is right. (as usual :new_smile-l: )


If you approach the issue on the basis of protecting the consumer, the stock market (mortgage backed securities), millions of people's retirement accounts, solvency of our banking industry, etc., you'll get far better reception.

Maybe something like this:

The solution to the current mortgage meltdown, the housing crisis, the economy and the American dream could be further demolished, if the current AMCs are the source for or “clearinghouse” for mortgage appraisals. The majority of the current players that are/were involved in financing bad loans, qualifying buyers incorrectly and unlocking secured documents, helped create this mess and could make it worse if you put them in charge. Please research who is actually doing what regarding the whole appraisal process for mortgages before you make a final decision on what you are going to do!


The last of the competent, honest, and self-respecting appraisers left after these companies took over these past few years will not deal with the vast majority of these entities for very good reasons. These companies base the valuations on whoever or whatever is the cheapest and fastest. For the most part, they also actively avoiding the high quality appraisers that refuse to bow to those pressures. These practices are already proven to cause disasters. The remaining appraisers that care about the safety and security of the real estate markets along with the health and wealth of our economy and our society want to let you know before you finalize this decision.

Pam did most of this! Of Course!!!
 

Workbox

Elite Member
Joined
Mar 2, 2005
Professional Status
Certified Residential Appraiser
State
Colorado
This is not about the fees, but the protection of the public and allowing us to do our jobs correctly. Of course we must be compenstated based on the current market conditions and the rising cost of to be of service.
 

Roy Courtney

Senior Member
Joined
Dec 8, 2006
Professional Status
Certified General Appraiser
State
Texas
We can boo hoo all we want about the crap that the AMC's will call appraisals in the future. It will be the same crap as before just faster and cheaper. Or as a group we could somehow inform the typical investor how this process puts HIS MONEY at risk! If your momma had left you 30 million and now in this market it has been reduced to 3 million you may listen up. What was your WaMu, BAC, or CFC stock worth 1 year ago? I believe that the time is right for the major lenders to do whatever is necessary to insure trust by the investors. Maybe fast and cheap will not work right now!
 
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