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Inflated appraisals NOW important in AZ .

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Ultraviolet

Thread Starter
Senior Member
Joined
Dec 31, 2002
Professional Status
Retired Appraiser
State
Arizona
I didn't see this posted elsewhere so I thought some might be interested.

http://www.azcentral.com/realestate/articles/0106appraiser1230.html

Bad appraisals contribute to housing mess

As the housing market corrects and prices return to normal levels, it's becoming apparent that inflated appraisals are behind many problems plaguing the Valley, say regulators, market watchers and many appraisers.
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
The problem of blaming inflated appraisals - NOW - for the fall in market value, where were these lenders and concerns - THEN - on the way up?

No one in the industry looked at the ratios for the historical norms. Now they are. Looks like more falling values for some time to come.
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Is there anybody with even a partially functioning brain that doesn't understand what happens when the unethical number hitter appraisers are the ones being rewarded with orders and payments?????

The LENDERS and the GSEs are responsible for the quality of the appraisers/appraisals they accept.
They accepted exactly what they wanted and sold off the mortgages.
 

Ultraviolet

Thread Starter
Senior Member
Joined
Dec 31, 2002
Professional Status
Retired Appraiser
State
Arizona
The LENDERS and the GSEs are responsible for the quality of the appraisers/appraisals they accept.
They accepted exactly what they wanted and sold off the mortgages.

And some are learning the hard way that there is no recourse when properties are in the portfolio ... reviewed by staff ... and turn time was criteria #1 ... :sad: Second payment default is a real shocker!

Read the 20 pages of comments following the article to see what the general public REALLY thinks of appraisers. :Eyecrazy:

AND the nice little sidebar ...



What you can do


If a homeowner or home buyer is concerned about an appraisal:


• First ask for a full copy of the valuation report. Is everything accurate? Check the square-footage figure. Are improvements on the home included along with neighborhood information? Little discrepancies can make a difference.


• Compare the appraiser's value of your home to other comps in the neighborhood. Make sure the properties you are comparing are similar. Take into account not only size and whether the home has a corner lot but also what work has been done on the house.


• To file a complaint with the Arizona Board of Appraisal, go to www.appraisal.state.az.us or call (602) 542-1539.
 
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Marcia Langley

Senior Member
Joined
Aug 26, 2005
Professional Status
Certified Residential Appraiser
State
Missouri
Is there anybody with even a partially functioning brain that doesn't understand what happens when the unethical number hitter appraisers are the ones being rewarded with orders and payments?????

The LENDERS and the GSEs are responsible for the quality of the appraisers/appraisals they accept.
They accepted exactly what they wanted and sold off the mortgages.

(my highlight)

Ditto!

And is there anybody with even a partially functioning brain that doesn't know it is still the most common practice out there and has even gotten worse since the bust and none of the bills in congress are addressing it?
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
One thing to keep in mind, although an inflated appraisal is very much a problem, it is not the cause of a default. Second payment default has nothing to do with the appraisal.

Defaults are a symptom of lender's loan programs. There is a very high correlation to LTV, not so much the FICO score, and the probability of default in this cycle.
 

Ultraviolet

Thread Starter
Senior Member
Joined
Dec 31, 2002
Professional Status
Retired Appraiser
State
Arizona
One thing to keep in mind, although an inflated appraisal is very much a problem, it is not the cause of a default. Second payment default has nothing to do with the appraisal.

Defaults are a symptom of lender's loan programs. There is a very high correlation to LTV, not so much the FICO score, and the probability of default in this cycle.


True, but if the appraisal had been good the loan would've never been made ... :)
 

Fred

Elite Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Virgin Islands
The effect of supposedly "inflated" appraisals was minimal. Most of the same deals would have just occured two or three months later when the same value was no longer inflated.

Real estate unique or different when compared to other types of assets. For example, there is no short-selling mechanism in real estate markets and thus no defense against the damaging effects of falling prices.

I know retrospectively finding blame is a great pasttime, but blaming losses from falling real estae prices on appraisers is probably as much of a stretch than any of the actual appraisal stretches that occured (and are still occuring).
 

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
Is there anybody with even a partially functioning brain that doesn't understand what happens when the unethical number hitter appraisers are the ones being rewarded with orders and payments?????

The LENDERS and the GSEs are responsible for the quality of the appraisers/appraisals they accept.
They accepted exactly what they wanted and sold off the mortgages.


And were allowed to supply the $$$$$$$ Bullseyes
 

Karl

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Arizona
Nothing more I can add except TOLD YOU SO.

OH & those that got their licensesd recently & those that are still Trainees & are doing Land Appraisals for M I You better get to phoenix You can go to the Appraisal Board & DFI at the same time they are within walking distance of each other, Me I'd go DFI first, Remember the AZ Board has been repermanded by the FBI & IRS in past two months so they may not be the same toucy feely board that they were in the past. Crying may not help now. I suggest you get there right away cause I'm sure time is running out (cause after this article MORE is going to hit the fan).

& say "I had no idea how badly trained I was & I want to explain that I had no idea what I was doing was wrong. How can I help"??

Yes you can say Karl suggested I come here.

AZ hang on, we're getting very close

Appraisers you'd better realize all those @$$e$ you kissed to get work are now turning around You still wanta do the kissing??
 
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