How long until HVCC goes away best case scenario?

[Michigan CG]

Do you have any more recipes for disaster?

Is there anyone here who REALLY believes that the former relationship between appraisers and MBs was anything less than a disaster as to the effect upon the credibility of appraisals??!?!

You aren't on the forum much anymore are you Lee.....these people are everywhere lately. Of course they all are the ones who only worked with the good MBs.

 

[Mr Rex]

http://www.youtube.com/watch?v=-NiE1p0h7HM

 

[Tim Hicks (Texas)]

I can hear appraisers rubbing their hands together in glee as we speak. They may have skin left on their bones by the time anything is resolved.

 

[John Hassler]

Do you have any more recipes for disaster?

Is there anyone here who REALLY believes that the former relationship between appraisers and MBs was anything less than a disaster as to the effect upon the credibility of appraisals??!?!

I think you need to qualify disaster. The old system wasn't a disaster for senior executives for many lenders as well as Fannie and Freddie. Management received huge bonuses and stock options for many years until the wheels came off the train. Had the IndyMacs, WaMus, CountryWides, and GSEs taken their lending responsibilities seriously these entities may well still exist or at least have not needed taxpayer money. However in this scenario, even though the same management may still have been employed today these individuals would have been far worse off financially. These managers chose to enrich themselves at the expense of their company.


The same lenders who were gaming the system under the broker-select model will do so, or have done so already, under the HVCC. The HVCC is nothing more than a mere road block easily side stepped. The current problems are of a managerial and regulatory oversight nature. Solve that problem and the "who picks the appraiser" issue becomes a non-issue.


BTW I just bid on two assignment for a local lender, both sent by the in-house loan officer. I also just completed two assignments for two different MBs who ran the loans through another local lender. Both of these local lenders are doing well financially and are in the black (neither sell to F/F). I chalk that up to responsible management and prudent oversight of the loan process. Maybe some of the larger institutions and the GSEs should try that.

(Edit: Apology to Lee, you did qualify disaster in your second line.)

 

[LI-Appr]

Tim get a Grip!

You really think the big boxes and !st American are any better than MBs? How about the AMCs they own? Do you consider that the lenders don't really care what they write because Frick and Frack can back up those loans with 1.4 trillion of tax dollars? I would tell a MB were to put it in a heart beat. Allways did and you know what? I lost them. So I say next and deal with it. Now the lenders are doing the same thing as the MBs did and you can't buck them. MBs did not get a bailout. The big banks did. Maybe just maybe to big to fail is to big to exist.

 

[The Warrior Monk]

The difference between a MB and an AMC is the difference between getting run over by a truck or jumping off a cliff.

 

[LI-Appr]

The difference between a MB and an AMC is like getting Screwed by someone with no power to bending over to someone with all the power. Follow the money.

 

[Doug Smith SRA]

The Last War

HVCC was built to fight the last war. Against a frontal assault, Marshal Cuomo erected the Maginot Line, the HVCC bulwark against the MB invaders.

In the new war, the Huns are flanking through Belgium and no one is noticing.

The Huns are on our door step, a rag-tag mercenary army but never-the-less intent on the prize, the closed deal.

It doesn't really matter whether HVCC stands or disintegrates into dust as was the fate of the Maginot Line, there is new war out there. The MB model is mostly obsolete. Consumers have wised up and banks have gotten smarter about competing. Why not sell direct? There were other changes in the market and it is for these changes that MB's would have been gone by now anyway. In January, loan folks have to be licensed by each state. Imagine the chaos that is going to cause.

Unless there is some solid strategy to deal with the reality of the new war and the rag-tag AMC mercenary army, we will not stay ahead in the battle.

Doug

 

[Lee Lansford]

You aren't on the forum much anymore are you Lee.....these people are everywhere lately. Of course they all are the ones who only worked with the good MBs.

I weaned myself of MB clients by the late 1990s...had one or two MB clients during this decade that were "OK", but they knew that I was not their "go-to" guy.

The VAST MAJORITY of "bad" appraisals that I've seen where I have good reason to conclude that the "errors & deficiencies" in the appraisal were not by "accident", had two things in common: an appraiser and a MB.

Now, do I believe that ALL MBs and appraisers who work (or, worked) for them are "bad"?

No.

Do I want a return to the "good old days"? Again, no.

 

[Lee Lansford]

I think you need to qualify disaster. The old system wasn't a disaster for senior executives for many lenders as well as Fannie and Freddie. Management received huge bonuses and stock options for many years until the wheels came off the train. Had the IndyMacs, WaMus, CountryWides, and GSEs taken their lending responsibilities seriously these entities may well still exist or at least have not needed taxpayer money. However in this scenario, even though the same management may still have been employed today these individuals would have been far worse off financially. These managers chose to enrich themselves at the expense of their company.


The same lenders who were gaming the system under the broker-select model will do so, or have done so already, under the HVCC. The HVCC is nothing more than a mere road block easily side stepped. The current problems are of a managerial and regulatory oversight nature. Solve that problem and the "who picks the appraiser" issue becomes a non-issue.


BTW I just bid on two assignment for a local lender, both sent by the in-house loan officer. I also just completed two assignments for two different MBs who ran the loans through another local lender. Both of these local lenders are doing well financially and are in the black (neither sell to F/F). I chalk that up to responsible management and prudent oversight of the loan process. Maybe some of the larger institutions and the GSEs should try that.

(Edit: Apology to Lee, you did qualify disaster in your second line.)

I have stated for a very long time now that "lenders" (not the QC-folks) would rather make a loan that they REALLY want to make based upon a "so-so" appraisal than have to deny that same loan based upon a solid good appraisal.

I know that this is a very broad generalization that does not apply to all...but it does apply to too many.