How do we find the default list. Not that we can do anything about it, but personally, I would like to know how many fanilies I've put out on the street. If I can find them, I will let all of them live in my house until they get back on their feet.
The link to the HUD/FHA Appraiser Claims and Defaults page is no longer working. It would not be a surprise if it makes a return, though. HUD has provided a notice of proposed rules for the Appraiser Watch Program.
Here are some interesting comments from the HUD Office of the Inspector General with respect to the proposed rules:
There is quite a bit of interesting information in the Full Report to Congress HERE
I've read about this several times. I am not FHA or VA appraiser, however, why doesn't FHA have a watch list for Loan Officers? Would this not really be better than an appraiser watch list? After all as some have posted before an appraiser does not have information to such things as ability to pay, Credit scores, income, debt to income ratio, and the loan docs to see if there is any funny business going on. Just thought I would ask.
All of this appraiser watch stuff happens much too late in the process to benefit the "program" in terms of preventing appraisers' actions from hurting "the program's intentions," i.e., to help put the lower classes or limited-funds lower-income people into a home.
Nor does the program take into consideration the neighborhood location of the house. So many of these FHA properties are in less than ideal locations, and those are the properties more easily matched to the type of people who buy them who are more likely to default.
It's no less a program designed to solve a problem for which the cause has not yet been carefully structured.
Final answer: It's targeted at the wrong end of the program. By time the defaults have occurred, it's several years down the road. One appraiser, if responsibile, could have triggered lots of defaults.
Nothing beats local/regional appraisal review -- preferrable before the loan closing!
Larry: To me it is a lot like "steering". A couple of days ago, I viewed a recent 02/02, FHA sale from street & alley and it's a piece of crap. It is a 2 family, a double (side by side 2 story living units). Sold for $5,000.00 over its list price of $25,000.00. I called Realtor and he said was in good condiiton when sold but new buyers must be tearing place up. First off, could not have been in good condt. when sold in Feb. and yes, new owners do appear to be trash too. This property should never have been approved for FHA but this sort of stuff is becoming more evident each day locally. The Realtors and scum bag mortgage brokers really know how to work the system. They own some of the "FHA APPROVED" appraisers. There ought to be a law...................