Modernization Petition

[shrubberyvaluation]

For those who say, "Well appraisals did not prevent the last market crash/never prevents it"

1) The mortgage brokers selector method, which appraisers tried to warn about, reduced the efficacy appraisals could have had

2) Appraisals are designed to be an effective as-of-date value. They are not designed as life of the loan/ future mitigation value. If "they" want to prevent market crashes or mitigate market price volatility with appraisals, then they should ask for a different, and specific for that purpose type of valuation to address it.

for example, a value opinion, as an average over a decade,(with no recent market conditions adjustments) or an opinion HC on a future interest rate rise or economic downturn. They could also order the effective date market value option appraisal, and compare them. It could be whatever they want it to be for whatever purpose they want...

But they don't ask for the type of valuation, which might help prevent a crash. And yet we see them blame the Market value appraisal for not solving a problem, that it is not designed to solve.

It is like saying it is my lawn mower's fault because it does not run as fast as my car and I can't drive it to work. That is because a lawn mower was not designed to run like a car. Buy a car if that is what you want or need. Though you can't mow your lawn with a car either.
Products are designed for a certain purpose and if you expect them to perform for a purpose they were not designed for, whose fault is that? MV appraisals are a specific date and purpose product, and not designed for the other purposes folks try to overlay on them. The same will apply to appraisal waivers. They sure as heck won't prevent a market crash either.

1. Agree if they are giving the lions share of the work to "appraisers" that play ball instead of do appraisals its an issue.

2. I agree. I would say there are plenty of times lender clients want something different than market value (or at least some of their employees in the process). It is either due to lack of knowledge or GSE requirements.

Waivers won't prevent a crash and I haven't heard anyone saying they will. I think the mindset is being put into people that the GSEs and government entities will not have restraint and the market will crash regardless costing the taxpayers so why bother.

 

[J Grant]

We can't be and are not responsible for Future Events. That's why we have a Effective date.

However, they ( the stakeholders ) rationalize that since we did not prevent a future event ( a housing market crash ), the product is a fail

How many times have we seen appraisers, perhaps, wanting to kill off their own, or what their motivation is, how many posts have we seen over the years here writing, "Well appraisals didn't prevent the crash or won't prevent a crash so who needs them"???

This meant they are holding us responsible for not forecasting, or somehow failing to swoop down and like a superpower. action figure, heroically preventing a crash.

 

[J Grant]

1. Agree if they are giving the lions share of the work to "appraisers" that play ball instead of do appraisals its an issue.

2. I agree. I would say there are plenty of times lender clients want something different than market value (or at least some of their employees in the process). It is either due to lack of knowledge or GSE requirements.

Waivers won't prevent a crash and I haven't heard anyone saying they will. I think the mindset is being put into people that the GSEs and government entities will not have restraint and the market will crash regardless costing the taxpayers so why bother.

My point is that if they want a different kind of value that could reduce the effect of price volatility, appraisals can fulfill that,, but it would not be the MV opinion product they use now. Yet they dont' want to develop a price mitigation product, and they don't want to ensure the firewall against the pressure that would see MV appraisals be more effective. It is going in the opposite direction, of punishment or a so-called "low " value ( Low being a well-supported MV opinion vs hitting a target )

Idk what you mean when you say clients want something different than market value ( if you mean lender clients) Virtually every order I have ever gotten for lender use has market value as the purpose.

 

[Carnivore]

I forget what major lender it was, but during the 2008 crash a major Lender showed up at my State Appraisal Board with a Dump Truck full of Appraisal. They demanded the NC Appraisal Board to Investigate all the Appraisals. The Lender was not even going to go thru the Complaint Process. These National big Shots thought they could muscle a measly little State Government. The Board ask them nicely to leave the Office, and don't come back.

 

[RCA]

The question is whether there is really any difference between the above "modernization" and

https://www.foxnews.com/video/6325270756112

??

I mean, it is not just that this recklessness and lawlessness is becoming widespread. More than that, it is being integrated into the fabric of what currently passes as law and order. So, many changes!!

And I concur with Musk - woke politics is being integrated into AI in the persona of ChatGPT. Talk Woke Politics with it - and you will meet a wall of indoctrination that is wiley, nearly deaf and infinitely persistent.

 

[glenn walker]

The question is whether there is really any difference between the above "modernization" and

https://www.foxnews.com/video/6325270756112

??

I mean, it is not just that this recklessness and lawlessness is becoming widespread. More than that, it is being integrated into the fabric of what currently passes as law and order. So, many changes!!

And I concur with Musk - woke politics is being integrated into AI in the persona of ChatGPT. Talk Woke Politics with it - and you will meet a wall of indoctrination that is wiley, nearly deaf and infinitely persistent.

Just another bad night in CPT

 

[Surf Cat]

I forget what major lender it was, but during the 2008 crash a major Lender showed up at my State Appraisal Board with a Dump Truck full of Appraisal. They demanded the NC Appraisal Board to Investigate all the Appraisals. The Lender was not even going to go thru the Complaint Process. These National big Shots thought they could muscle a measly little State Government. The Board ask them nicely to leave the Office, and don't come back.

Had to be WaMu.....or Countrywide...

 

[George Hatch]

I thought it was Wells

 

[shrubberyvaluation]

Idk what you mean when you say clients want something different than market value ( if you mean lender clients) Virtually every order I have ever gotten for lender use has market value as the purpose.

But when market value isn't at least the contract price you find out they really didn't want market value, but they want the report to claim its market value.

 

[shrubberyvaluation]

I forget what major lender it was, but during the 2008 crash a major Lender showed up at my State Appraisal Board with a Dump Truck full of Appraisal. They demanded the NC Appraisal Board to Investigate all the Appraisals. The Lender was not even going to go thru the Complaint Process. These National big Shots thought they could muscle a measly little State Government. The Board ask them nicely to leave the Office, and don't come back.

Chase or Wells I'd imagine.