July 2008 ASC Q&a- Wink Wink Comp Comp

[Bill_FL]

Can USPAP be changed to get rid of "bad" comp checks only? I don't see how. Does value shopping by MBs make loan portfolios risky? Yes. Would getting MB's out of selecting appraisers make a sounder loan market ? Yes. Is there anything further in this topic worth discussing? I don't think so.

60 some pages wrapped up in a couple of lines. Great post Steven.

 

[PL1957]

Of course the omission in this statement might be that you guys most likely haven't done a residential report in years....ever...?

Which just serves to illustrate the fact that changes/proposals can have very far reaching, unintended consequences. As an example, many life insurance companies lend on deals that are brought to them by their "correspondents", i.e., mortgage brokers.

On the commercial end of things, mortgage brokers are more valuable to borrowers in today's market than they ever have been before. Lenders appetites for larger deals have gone away and a "good" transaction that would have been a no-brainer 12 months ago now requires a cobbled together syndicate of 3-4-5 participating banks. Much of that work is done by the much-abused (on this board) MB, who is working harder than ever. These aren't the used car salesmen who participate on Brokers Outpost - these are professionals who probably know more about real estate and values than 99% of posters on this board. Yet, people have no hesitation whatsoever to make suggestions that would put them out of business.

 

[Workbox]

Which just serves to illustrate the fact that changes/proposals can have very far reaching, unintended consequences. As an example, many life insurance companies lend on deals that are brought to them by their "correspondents", i.e., mortgage brokers.

On the commercial end of things, mortgage brokers are more valuable to borrowers in today's market than they ever have been before. Lenders appetites for larger deals have gone away and a "good" transaction that would have been a no-brainer 12 months ago now requires a cobbled together syndicate of 3-4-5 participating banks. Much of that work is done by the much-abused (on this board) MB, who is working harder than ever. These aren't the used car salesmen who participate on Brokers Outpost - these are professionals who probably know more about real estate and values than 99% of posters on this board. Yet, people have no hesitation whatsoever to make suggestions that would put them out of business.

I have sent work to one MB because he is a professional and admits it is extra work for them now, but he is not a part timer. I think he does well with his network. But at the same time I am also one of his appraiser for my area of town. Even I like him, he still tries the, "let me know before you go". Ain't going to happen, just a few days ago I give him very good reasons why. But he still has his other main appraiser, which assume plays ball. I did tell him that we can do a desktop with limitations at a fee, but said he would think about it.

Yes, there are some "somewhat" OK MB's but many got accustom to certain habits, some are breaking them others are having a hard time.

 

[PL1957]

Yes, there are some "somewhat" OK MB's but many got accustom to certain habits, some are breaking them others are having a hard time.

Mortgage brokers, realtors, etc. only get compensated for their work if a deal closes. Their role in the transaction is as an advocate and they get paid for successful advocacy. We are the only unbiased component of the entire process, something we should never, ever lose sight of. Just because someone else is filling their role with vigor doesn't mean that we shouldn't be just as strong holding up our end of the responsibilities.

 

[The Warrior Monk]

Which just serves to illustrate the fact that changes/proposals can have very far reaching, unintended consequences. As an example, many life insurance companies lend on deals that are brought to them by their "correspondents", i.e., mortgage brokers.

On the commercial end of things, mortgage brokers are more valuable to borrowers in today's market than they ever have been before. Lenders appetites for larger deals have gone away and a "good" transaction that would have been a no-brainer 12 months ago now requires a cobbled together syndicate of 3-4-5 participating banks. Much of that work is done by the much-abused (on this board) MB, who is working harder than ever. These aren't the used car salesmen who participate on Brokers Outpost - these are professionals who probably know more about real estate and values than 99% of posters on this board. Yet, people have no hesitation whatsoever to make suggestions that would put them out of business.

Excellent post, with a underlying philosophy that goes far beyond what was stated.

Many people's entire existence is based on their experience within their own box. Their thought processes, and actions, are dictated by this. The problem is that once they step outside of their box, they suddenly realize their box is a subset of reality, upon which not all of reality is based.

This is why you get the "you've got to be kidding me" attitude from a large set of appraisers that are located outside of the box, and see reality from a different perspective.

If your in the box, you don't see the consequences of your actions, if you are, you do.

Mortgage brokers, realtors, etc. only get compensated for their work if a deal closes. Their role in the transaction is as an advocate and they get paid for successful advocacy. We are the only unbiased component of the entire process, something we should never, ever lose sight of. Just because someone else is filling their role with vigor doesn't mean that we shouldn't be just as strong holding up our end of the responsibilities.

The best professionals understand the role of the other players in "the deal." I am fortunate to work with some of the best known RE brokers in the business. These individuals actually understand the role of the appraiser in the process. They are courteous, helpful, and don't pressure the appraiser in any way. Professionalism wins over unprofessionalism every day of the week.

It has been my experience that a large majority of residential MBs (and commercial wannabes...the clueless res broker who thinks he knows about commercial) are the complete opposite. However, there is one notable exception, and it just so happens he's probably the wealthiest of the bunch.

 

[Mike Kennedy]

for those with short memories........


http://appraisersforum.com/showthread.php?t=79464

 

[Workbox]

for those with short memories........


http://appraisersforum.com/showthread.php?t=79464

Wow, 4 years ago! maybe it is time to get the 2008 poll version. :laugh:

 

[PropertyEconomics]

Polls are starting to get like comp checks in my opinion .... IF I participate, I would want to be paid to do so.
If a new poll is started, Id like to be paid on taking (POT).
Intersting how that works out, comp checks are like drugs, JUST SAY NO.

 

[Offshore]

Mr. Raney why would I apologize to you? You stated I was unethical for finishing reports if I knew I couldn’t “get value” after inspecting a property. I’ve yet to see the term “get value in any version of USPAP. Maybe there is an MB version yet to be published. Knock yourself out with the new and enhanced comp check thread. You’ll certainly have a few vocal followers, possibly even an endorsement by Wells.

 

[Lee Lansford]

Does anyone really think the lending industry is genuinely concerned about cleaning up anything?

Just like 18 years ago, they're going to put on the dog and pony show of concern and outrage and promote the appearance of change, when all they're really doing is setting themselves up again for future booms.

You are more correct than not.

As long as there is a big disconnect between those who are financially responsible for the dollars that are being lent and the appraiser, problems will continue.

As long as short-term profits trump a longer-term view of things, problems will continue.

As long as many participants in the mortgage lending stream perceive the appraisal as something to be overcome rather than an important component of the lending decision, problems will continue.