Newspaper Article--Good work forumites!

[David C. Johnson]

<span style='color:darkblue'>Yep, good article. Thanks, J.

Frank,

On the NAR article by Kenneth Harney you hyperlinked titled:

"Realtors Back Federal Penalties For Appraisal Tampering"

Sam Blackburn is identified as being the President of AARO, where I believe it is currently Mel Black, Executive Director of the North Carolina Appraisal Board (NCAB). This has been my understanding and it is also indicated that way on AARO's website. I bring this up for the purposes of helping to avoid confusion to those here on AppraisersForum, and also for the possibility that I may have missed something. I believe Sam Blackburn is a past president. Would you post to verify that this is correct?

Thanks.

Regards,

David C. Johnson</span>

 

[Blue1]

Richard,

An appraiser I know thinks that all appraisal assignments should be given to appraisers by the state boards. And, all appraisals should go to the state boards.............Don't think I'm for that because it lays all the blame on appraisers........How about forcing the lenders (don't know how) to order an appraisal up front instead of being the last link in the chain. That would mean they'd have to tell the borrowers that they have to come up with a (non-refundable) appraisal fee before even talking about doing a loan. Make it an enforceable law. Can this be done? Or am I dreaming? (probably)

 

[Francois K. Gregoire]

<span style='color:darkblue'>Frank,

On the NAR article by Kenneth Harney you hyperlinked titled:

"Realtors Back Federal Penalties For Appraisal Tampering"

Sam Blackburn is identified as being the President of AARO, where I believe it is currently Mel Black, Executive Director of the North Carolina Appraisal Board (NCAB). This has been my understanding and it is also indicated that way on AARO's website. I bring this up for the purposes of helping to avoid confusion to those here on AppraisersForum, and also for the possibility that I may have missed something. I believe Sam Blackburn is a past president. Would you post to verify that this is correct?

Thanks.

Regards,

David C. Johnson</span>

David,

You are correct. Mel Black is the current President of AARO. Sam Blackburn is the immediate Past President. The article cited was dated August 13, 2001. It was correct when written.

Although NAR has not been on board with this issue as long as this Forum and the Appraiser's Petition, their support of the Appraiser's position is not brand new either.

 

[Richard Carlsen]

Blue

You are dreaming again. You have to stop chewing those funny looking weeds you find growing along side the road.

Actually, I use that sales date on the p.a. and the date that I receive the order to my advantage. When I start getting pressure to turn something around quickly, I simply ask what was happening between the May 1 date of contract and May 23rd when the order was faxed to me? This is usually in response to a comment that goes like this, "We have a closing scheduled for May 30th and if they don't make it, they will loose their rate lock." OK, so why wait 22 days to order the appraisal?

I don't think that appraisals should go through any bureaucracy. I'm tired of everyone sticking his or her hands in the pot. It will lead to fixed prices (ever hear of rent controls?) and unbelievable SNAFU's. I can handle my AMC's and L/O.

State agencies assigning appraisals? I think not.

 

[xmrdfghap]

Richard, I agree that LO's should be out of the loop when it comes to ordering an appraisal, but I am equally hesitant to turn it over to a bureaucrat.......regardless of the situation, someone will find a way to hit the numbers. My ideal resolution would be to rely on the marketplace.

There should be buyers appraisals and sellers appraisals (after all, in any given transaction they are the ones who initially need to know a value). Both appraisals should be presented to the LO for review. Review appraising should be a separate license where a review appraiser cannot be an active buyer/seller appraiser (prevents an appraiser shredding an appraisal just to het the guy out of the business).

In a typical scenario, a guy gets an appraisal before listing his property. The appraisal costs $300. 60 days later an offer is tendered contingent on the buyer getting an acceptable appraisal. The buyer pays another $300.......if the two appraisals are close, they take them to the LO who does the loan. If they are not close, the LO hires a reviewer to review BOTH appraisals. Cost for a review should be closer to $500. If there is gross negligence on the part of either appraisal, the appraisal is sent to the state for remedial action (requiring other courses, termination of the license, etc).

Result? LO gets a bankable product, buyer and seller get reliable information concerning the transaction, two to three appraisers get a fee from every transactrion. AMC's disappear )how can they market to individuals?). Appraisers market in their area directly to the consumer. The marketplace becomes the final arbiter of the work. LO's don't order the appraisal, individuals do......no chance of a brother-in-law situation because regardless of a bias, every property would be appraised twice by independent appraisers and then REVIEWED by a trained appraiser who is not part of the marketing system. It reduces government involvement in the process.

 

[Verne Hebert]

It is fantastic that the two articles shown have made it onto the shoulder of the information highway, appraisersforum appears to be the springboard. Any support by NAR is essential to change. Ya gotta know it is only PR and they are not at all in support.

NAR will never look as good as Martha Stewart but they must continue to try.

I do a lot of repo's (res and comm). A lot of people here are upside down also. The unfortunate thing is they are often unaware of it.

I appraised a complex acreage SFR recently for refi, later received a call from the borrower who asked how the market had declined so heavily. I responded "it had'nt". He is upside down in the property and can't sell and net. I see alot of these.

 

[Dee Dee]

In my market area, average wages aren't keeping up with the pace of housing prices, and the job layoffs continue. I've got a front row seat to a bubble market.

Over the last 8 years or so it's been VERY common for homeowners to refi on an annual basis, cashing out their equity in order to pay off debts they had accumulated over the year. Typically homes were going up in value on average of 15% per year....until (GULP!) this past year. MANY homeowners have gotten a wakeup call. Considering that the average home is now priced around $250,000, to most people this means they're not going to be able to snag that $25,000 or so in equity that they were counting on to get them out of debt this year. Hardest hit appear to be the 'under 35' crowd, who have never seen a lousy economy in their adult lifetime and have the added responsibility of being parents of younger children. They're in complete shock. Many are packing it up and moving out of state (if they can), along with many of our senior citizens who can get far more bang out of their retirement bucks in other areas of the country.

The gravy train has hit the skids. Investors appear to be getting tighter about lending to those who have few assets other than their home (which is already mortgaged to the hilt), and most of the ethical appraisers are reluctant to stretch even a little bit on value because defaults appear to be reaching record numbers. We all know who gets blamed when that happens. :evil:

Available inventory of homes for sale, days on the market, seller concessions and the number of price reductions ALL continue to rise. We haven't even gotten into the traditionally slow time of the year for home sales in this area (October thru April), and I don't see anything happening in the local or national economy that would indicate a change for the better. In fact, it appears that we may be seeing the exact opposite.

In spite of what is obvious to every lender, realtor and appraiser in this area, the drums keep pounding that it's just a temporary 'glitch' in the market and most certainly will recover soon.

Yeah....right.... :roll:

 

[Joe Birrell (NY)]

Talk to reporters, GET INVOLVED, this sewer we work in isn't going to change by itself ! Even if your timid about speaking to reporters (which is understandable) - there are ways to get the story out.

 

[Steve Owen]

Several of you have discussed the possiblity of turning over the issuing of assignments to boards and the feeling for this seems to be generally negative. I agree with that feeling - I don't like the idea of boards handing out assignments and would prefer to let the market work.

However, here's a another idea. Influence Congress to get a law at the federal level to make it illegal to attempt to get an appraiser to "bring in value" so that the rules would affect the loan officers the same way they affect appraisers.

Hey, I know it's not a cure-all, but surely it would help.