FOX BUZ NEWS VIDEO "Appraisers hurting the housing market"

[Mike Kennedy]

Both the Interviewer and the Interviewee............do a major disservice to American Consumers by "reporting" clearly erroneous "facts".

http://appraisalnewsonline.typepad.com/appraisal_news_for_real_e/2010/12/video-appraisers-hurting-housing-market-fox-business-news.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+typepad%2Fbjdavis%2Fappraisal_news_for_real_e+%28Appraisal+Scoop%29

Then again, since when does the Truth matter?


Just the facts -


SEC. 1472. APPRAISAL INDEPENDENCE REQUIREMENTS.
(a) IN GENERAL.—Chapter 2 of the Truth in Lending Act (15
U.S.C. 1631 et seq.) is amended by inserting after section 129D
(as added by section 1461(a)) the following new section:

‘‘§ 129E. Appraisal independence requirements
‘‘(a) IN GENERAL.—It shall be unlawful, in extending credit
or in providing any services for a consumer credit transaction
secured by the principal dwelling of the consumer, to engage in
any act or practice that violates appraisal independence as described
in or pursuant to regulations prescribed under this section.
‘‘(b) APPRAISAL INDEPENDENCE.—For purposes of subsection (a),
acts or practices that violate appraisal independence shall include—
‘‘(1) any appraisal of a property offered as security for
repayment of the consumer credit transaction that is conducted
in connection with such transaction in which a person with
an interest in the underlying transaction compensates, coerces,
extorts, colludes, instructs, induces, bribes, or intimidates a
person, appraisal management company, firm, or other entity
conducting or involved in an appraisal, or attempts, to compensate,
coerce, extort, collude, instruct, induce, bribe, or intimidate
such a person, for the purpose of causing the appraised
value assigned, under the appraisal, to the property to be
based on any factor other than the independent judgment of
the appraiser;
‘‘(2) mischaracterizing, or suborning any
mischaracterization of, the appraised value of the property
securing the extension of the credit;
‘‘(3) seeking to influence an appraiser or otherwise to
encourage a targeted value in order to facilitate the making
or pricing of the transaction; and
‘‘(4) withholding or threatening to withhold timely payment
for an appraisal report or for appraisal services rendered when
the appraisal report or services are provided for in accordance
with the contract between the parties.
‘‘(c) EXCEPTIONS.—The requirements of subsection (b) shall not
be construed as prohibiting a mortgage lender, mortgage broker,
mortgage banker, real estate broker, appraisal management company,
employee of an appraisal management company, consumer,
or any other person with an interest in a real estate transaction
from asking an appraiser to undertake 1 or more of the following:
‘‘(1) Consider additional, appropriate property information,
including the consideration of additional comparable properties
to make or support an appraisal.
‘‘(2) Provide further detail, substantiation, or explanation
for the appraiser’s value conclusion.
‘‘(3) Correct errors in the appraisal report.

 

[RSW]

There are soooooo many things said that are just not true.

 

[Kevin Mc]

There are soooooo many things said that are just not true.

There are also things said that are true. Lowballing is most certainly happening.

 

[Mike Kennedy]

The reality is all Competent, Ethical Appraisers are REQUIRED, pursuant to the USPAP, to perform Due Diligence and consider ALL available market data prior to completing an appraisal report. This includes soliciting any possible, truly competitive and comparable sales from any of the parties listed above with no guarantee that any sales provided will be considered directly competitive with the Subject and utilized. "But I've got a contract" is irrelevant. The Market determines Market Value which may be more than, less than, or approximately the same as a Contract which merely reflects the aspirations and motivations of the signatories and their brokers who have vested interests in the outcome of their negotiations. Market Value is what the Market dictates whether a Contract Exists or not.

 

[Kevin Mc]

The reality is all Competent, Ethical Appraisers are REQUIRED, pursuant to the USPAP, to perform Due Diligence and consider ALL available market data prior to completing an appraisal report.

Most of the reports I have been reviewing engage neither competent or ethical, just cheap.

 

[Mike Kennedy]

Most of the reports I have been reviewing engage neither competent or ethical, just cheap.

The responsibility for their existence rests squarely on the shoulders of Lenders and their Agents who continue to reward Incompetence in violation of State and Federal Laws.

 

[Mike Kennedy]

Suggest Interested Readers of this thread make their opinions count:

email David@foxbusiness.com re "FOX BUZ NEWS VIDEO "Appraisers hurting the housing market"

 

[SeventyNin9]

Yes, FOX is "fair and balanced". I noticed that the guest speaker was quick to point out appraisers as the source of the problem. What about all the agents out there creating the market that are pricing "too" low? What about all those buyers that are unwilling to pay too much? What of the buyer who is willing to pay significantly more for a property when the similar properties sold for so much less?

I remember when the local president of RE association called the market as "balanced" when housing supply was at all time high, marketing period was increasing, number of sales were declining and the sale prices were declining. Yes, agents are always right!

 

[Randolph Kinney]

The real problems are review appraisers. Many times in this era of caution reviews knock down the original appraised value.

As far as under value, when was the last time a review appraisal came back with a higher value than the orignal appraisal?

 

[panappr]

Yes, FOX is "fair and balanced". I noticed that the guest speaker was quick to point out appraisers as the source of the problem. What about all the agents out there creating the market that are pricing "too" low? What about all those buyers that are unwilling to pay too much? What of the buyer who is willing to pay significantly more for a property when the similar properties sold for so much less?

I remember when the local president of RE association called the market as "balanced" when housing supply was at all time high, marketing period was increasing, number of sales were declining and the sale prices were declining. Yes, agents are always right!

Good point..... I'd also like to further expound on the fact that the banks themselves also play a large roll in the market, by establishing sub-markets. REOs have a direct impact on marketing standard sales..... and High Bank Inventories will definitely burn values, especially in urban areas.