Give me a break

[djd09]

Redirect Notice

The man behind the AVM? No wonder the secrecy.

think we can foia the data?

 

[George Hatch]

Maybe one day AVN can be incorporated into an appraisal too , idk. but substituting an AVM for an appraisal is problematic unless there is a slew of regulations about how they are ordered, who gets to review them if anyone, , who picks the value from their result etc, and that combined with the inspection requirement makes them almost as expensive as an appraisal ..... just saying.​

I doubt you can load enough additional steps for a lender to use an AVM that would even come within 1/3 the total cost of their use of an appraisal. Appraisals get handled and read by users, too.

There are assignments out there where getting an appraisal is money well spent, including some that reveal facts about the subject that will kill the deal regardless of what the value is. But there are also assignments out there where getting an appraisal adds zero utility to the user.

Who can even know how many appraisals assignments we've all done (myself included) where the additional effort involved in the appraisal added no utility to the user's usage when compared to if they had used one of these alternatives? The appraisal didn't reduce their effective risk one little bit because "the value" was never critical due to the low LTV.

 

[Terrel L. Shields]

their regulators are allowing them to use those alternatives

Ultimately to the detriment of the taxpayer. That's why they had regulations. But since no one has needed a new bailout, let's throw all those safeguards out. Anything goes. The S & L Crisis showed us the incompetence that was allowed to operate banks. Famously Jim McDougall- Friend of Bill- testified that he honestly didn't know what he was doing when lending huge sums of money out of a tiny S & L and bank up in the Ozarks as if he couldn't see any risk to lending that money to Little Rock speculators. And when the Great Recession hit, Alan Greenspan was shocked, yes shocked, that banks didn't look out for their own interests by clamping down on risk. And once again, the next crisis, someone will act as if they cannot imagine how this could happen...completely surprised in one hand and the other out for Fed money, and once again the taxpayer bites the big enchilada.

 

[George Hatch]

That's always what it comes down to, offloading the risks to the public whilst retaining the profits. When the govt allows this it amounts to one of the most significant moral hazards imaginable.

 

[Mark K]

That's always what it comes down to, offloading the risks to the public whilst retaining the profits. When the govt allows this it amounts to one of the most significant moral hazards imaginable.

Another good reason that F/F should be abolished. The lenders should carry the risk on their books, at their expense and peril, and not at the taxpayer's peril.

 

[Mejappz]

Another good reason that F/F should be abolished. The lenders should carry the risk on their books, at their expense and peril, and not at the taxpayer's peril.

Bingo!

 

[Mark K]

It's not about what those doing the grunt work earn. It is about the profits and compensation to the CEO's top management/share holders - in a capitalist's system they are allowed to earn obscener profits, but when it is earned at my expense due to a govt entitlement to them via a split of the bundled appraisal fee, I have a problem with that.

Your anti-capitalist agenda is showing thru again.

If you think that the obscener profits would lessen if lenders required full appraisals, think again. They would simply pass the expense along to the borrower; their profits wouldn't be affected by a penny and the evil CEO's would continue to make a lot of $$ along with the stock holders.

BTW, I doubt seriously that Bank of America's mission statement includes anything about guaranteeing full employment for real estate appraisers.

 

[Mejappz]

think we can foia the data?

Maybe if all on the forum got together we could.

FOIA.gov - Freedom of Information Act: Create an Annual Report

www.foia.gov

 

[Mejappz]

Judicial watch loves applying for FOIAs. And they usually win.

Judicial Watch - Judicial Watch

Judicial Watch, a conservative foundation, fights for accountability and integrity in law, politics and government. Because no one is above the law!Happy Thanksgiving!

www.judicialwatch.org

 

[djd09]

it is interesting to have witness the outrage of mortgage brokers ordering system vs fortifying of the mortgage broker appraiser system. duly noted.

happy days are here again