NAIFA - Open Letter May 15th

[JSmith43]

GREED rules the system.

Follow the money trail.

If the lending industry REALLY wanted reform as it pertains to the valuation of the real property interests that securitze their loans, such reform would already be in place.

"See no evil...hear no evil..."

While I agree with your statement, I sure don't want to let the government solutions proponents off the hook. Whenever we vote for these government opportunists that created the precursor conditions for many of the problems by promoting poorly thought out housing initiatives, etc, as do good legislation and purposefully ineffective regulation, we shoot ourselves in the foot.

 

[Kevin Mc]

As the author trashes Brokers and loan originators for the woes of the lending industry, just whom do they think dreamed up the option arm/pick your payment negative amortization teaser rate stuff? And, whose wholesale reps constantly came to the MB doors with the marketing materials, incentive programs and Sell, Sell, Sell cheerleaders? It wasn't the loan originators or the Mortgage Brokers.

You don't have to take it any further. Give an uneducated hack the ability to sell your snake oil and it won't take long for them to figure out a way to do it.

GREED rules the system.

Follow the money trail.

As true a statement has not been posted on this board in months. There is NO ONE involved in the whole process that didn't know what was going on. It was all about the short money. It still is. Honest and decent lending? I've been around long enough to remember when it was the norm. It has been a long time.

 

[Kali the Boston Terrier]

Guys, we are missing the point. Who's wrong is not the point, who's got all the liability is all this is, someone has to be the sacrificial lamb in the 80's and again now. Its not by accident they keep us around for every mortgage crisis...if we were truly the problem they would have eliminated us eons ago.

Yet we make good sacrifices to the bloated banking God, out off alll the players in this debacle we have...
1) The least amount of representation (i.e. lobbying, National branding, etc.)
2) Make the least out of the transaction
3) Are all insured to cover mistakes of mis-valuation.

SO the bank takes back the house, gets a little (emphasis on little for Detroit) money, sues the appraiser, makes a little from E&O, gets a Gov't bail out...jacks up the interest rates for risk, increases downpayments...and ends up making more money in the end. We on the other hand, are blamed and left around to be kicked for the next few years...

 

[JSmith43]

Guys, we are missing the point. Who's wrong is not the point, who's got all the liability is all this is, someone has to be the sacrificial lamb in the 80's and again now. Its not by accident they keep us around for every mortgage crisis...if we were truly the problem they would have eliminated us eons ago.

Yet we make good sacrifices to the bloated banking God, out off alll the players in this debacle we have...
1) The least amount of representation (i.e. lobbying, National branding, etc.)
2) Make the least out of the transaction
3) Are all insured to cover mistakes of mis-valuation.

SO the bank takes back the house, gets a little (emphasis on little for Detroit) money, sues the appraiser, makes a little from E&O, gets a Gov't bail out...jacks up the interest rates for risk, increases downpayments...and ends up making more money in the end. We on the other hand, are blamed and left around to be kicked for the next few years...

Follow the money is the right point. It doesn't lead to appraisers, that's for sure. Trouble is, this is not being articulated to the general public. The main punching bag is the appraisal profession, because the truthful story is harder to articulate in a sound bite and those with the microphones and cameras need to get a clue. Maybe, hopefully, they are reading this thread.

 

[Ross (CO)]

Astute comments, Brian.
Excellent reply, Roger.

Correct, most of the general public doesn't know the half of it !....and will be comfortable jumping on any bandwagon which labels all appraisers as being both evil and stupid.

 

[Michael Tipton]

Follow the money is the right point. It doesn't lead to appraisers, that's for sure. Trouble is, this is not being articulated to the general public. The main punching bag is the appraisal profession, because the truthful story is harder to articulate in a sound bite and those with the microphones and cameras need to get a clue. Maybe, hopefully, they are reading this thread.

It will never stop. Who pays for the media and provides campaign contributions? (Definitely not the appraisal industry) The advertising dollars generated by the financial industry will have a significant influence over any "investigation" ran in the media or print. m2:

 

[rcsone]

....the current plunder of the public's pocket will begin to be universally recognized as pension plans and government entities, like cities and school districts continue to consider losses on their CBO, CDI, CRUD, and etc......the foreign fooled investors who are necessary for funding balance of trade deficits will re-enter with assurances of collateral/credit......part of this assurances will be correctly evaluated loan processes/products which will include appraisals from recognized, qualified participants whose proof of future performance will include: resume, insurance and bonding and not just a copy of the license........the appraiser will predicate the paper marketability vs. the paper preceding the appraiser selection........without financial liability the AMC's will offer service with no guarantee that can only be delivered by the signing appraiser due to license responsibilty individually.........so I see the future differently due to the insisting of "foreign" investors for legitimacy reflecting to and through the national Loan Arrangers and our locals will, to the majority, follow suit.........in this part of the world cattle rustling was part of the culture for the minority and to this day the cattle, trucks and the markets have not disappeared......but enforcement causes the game to be too dangerous for and to ALL the particpants, and not just to the begining "free"loader in the pasture.........best to all............rs

 

[Carnivore]

I do find it interesting that the proposed fixes donot include scrutiny of all the state appraisal boards. Where were they? Where are they now?

IMO, that guy "Studeman"(of florida infamy) should be cited by the appraisal community as a "poster child " for increased appraisal board enforcement because his indifference to the state laws about Trainee supervisors and USPAP in general made him appear irredeemably "Vic the Appraiser"(Sopranos). He is exactly what an appraiser should not be.

 

[Kevin Mc]

It will never stop.

My bold......

Right on target, case in point, WAMU just signed on with LandAM. Fast and cheap continues. Immediate bottom line (no benefits for in house staff folks like the old days when quality counted) gratification. I guess bleeding millions upon millions isn't a lesson learned.

 

[Frederick]

What I find most profound about this letter is the fact that to my recollection this is the first time any of the major professional associations has come out with an opinion about the conduct of Appraisal Management Companies.

I am curious to see where this goes.