No Appraisal Needed

[Michigan CG]

America is becoming one of the least trusted nations for corrupt business practices, Enron, Madoff, the bad loans in housing market collapse...why stop there let the tradition continue...........)

America is becoming one of the least trusted nations? Do you have a source for that or is it personal opinion? Madoff and Enron, you had to back 20 years for that.

............ Becoming a nation of the homeless , transient renters and a small elite class who own a larger and larger share of the properties.

Each year more USA residential housing is no longer owner occupant but flip sale bait or bought for rental income, result priced out of reach for avg Americans as well as cities and prime areas many foreign investors purchasing...............

Um, sources for any that above drivel? The home ownership rate in the country was 63%-66% from 1965-1997. It dropped to its lowest rate of 63% in 2015 after the recession and has been increasing since.

Nothing you stated above has any factual support.

https://fred.stlouisfed.org/series/RHORUSQ156N

boo hoo the truth hurts...

You will get used to the truth once you pursue it.

 

[gregb]

You will get used to the truth once you pursue it.

Thought the quote was "the truth will set you free"?

 

[Tom4value]

They raised the deminimus 6 months after I got into the profession. Appraisers went to the window sills, knowing there wouldn’t be anything left to live for in the appraisal world. That was 26 years ago. Still have my little dog and pony show.

Both Fannie and Freddie have underwriting programs that underwriters have to run a loan through. It spits out the appraisal requirements, not greedy bankers. Less than 5% of all first loans qualify for a no appraisal option. The key word is option. Just because they qualify, does not mean they have to take it (no appraisal). Indeed, of those that qualify, less than 50% actually take the option, especially for purchases. Why? Buyers are willing to pay a relatively small price to make sure their most significant purchase is a good one.

 

[Phil McDonald]

We are appraisers, not lenders. The appraiser outrage on this topic is motivated by self interest and disquised as protecting the public. Just like the teacher unions lobbying self interest and stating it is in the interest of the kids.

It is disingenuous, and feels horrible to me and I would never be a part of that.

I just closed a $600,000 residential deal which received an appraisal waiver. The buyer probably had great credit, good assetts and they made a sizeable down payment. It sounds like appraisers are going to protest how that has harmed the public good. It is comical, all they care about is that an appraisal assignment was not generated.

My client who was the seller of that property then purchased a new home for $600,000 and paid cash. Should we also circulate a perition requiring all cash buyers must have an appraisal completed so that we can have more assignments?

We are appraisers and need to focus on being of value in this industry. Let lenders make lending decisions. Trying to protect this industry through regulation is likely to destroy it.

 

[gregb]

My client who was the seller of that property then purchased a new home for $600,000 and paid cash. Should we also circulate a perition requiring all cash buyers must have an appraisal completed so that we can have more assignments?

Did you suggest or recommend that your buyer/client get an appraisal prior to the purchase of the home for $600,000 cash?

 

[J Grant]

above drivel?

You call anything you disagree with drivel.

 

[J Grant]

We are appraisers, not lenders. The appraiser outrage on this topic is motivated by self interest and disquised as protecting the public. Just like the teacher unions lobbying self interest and stating it is in the interest of the kids.It is disingenuous, and feels horrible to me and I would never be a part of that.I just closed a $600,000 residential deal which received an appraisal waiver. The buyer probably had great credit, good assetts and they made a sizeable down payment. It sounds like appraisers are going to protest how that has harmed the public good. It is comical, all they care about is that an appraisal assignment was not generated.
My client who was the seller of that property then purchased a new home for $600,000 and paid cash. Should we also circulate a perition requiring all cash buyers must have an appraisal completed so that we can have more assignments?
We are appraisers and need to focus on being of value in this industry. Let lenders make lending decisions. Trying to protect this industry through regulation is likely to destroy it.

Are you a RE agent or broker ? A strange take on things . Indeed we should not petition to require appraisals on a cash buy basis...it;s the borrower's own money they are risking, not tax payer backed mortgage money. Though many astute cash buyers do opt to get an appraisal, and many "cash" contracts see the buyer taking out financing ( and getting an appraisal ). The so called cash contract really means no financing contingency, but the buyer can get financing if they choose.

As far as fannie appraisal waiver, fannie is not doing them any favors. Fannie is exposing these borrowers to more risk when they have a higher down payment coupled with good credit/income. Will see down the road how those loans and purchases work out. If a buyer over pays for a property in appraisal waiver purchase, the borrower will feel the pain when they go to sell and have little equity or even are under water. The ironic thing is that fannie's data base is good enough for their valuation proprietary model because they have a data bank f appraisals on the properties they lend on , including properties they grant waivers on.

Any profession that is not populated by morons will have a degree of self interest. Or are appraisals supposed to be the exception somehow...which does not negate the genuine interest on behalf of the public or borrowers. Appraisers spoke out for years against lender pressure and inflating values pre boom, which had n tie in to appraiser's self interest or generating assignments.

 

[Overimprovement]

We are appraisers, not lenders. The appraiser outrage on this topic is motivated by self interest and disquised as protecting the public. Just like the teacher unions lobbying self interest and stating it is in the interest of the kids.

It is disingenuous, and feels horrible to me and I would never be a part of that.

I just closed a $600,000 residential deal which received an appraisal waiver. The buyer probably had great credit, good assetts and they made a sizeable down payment. It sounds like appraisers are going to protest how that has harmed the public good. It is comical, all they care about is that an appraisal assignment was not generated.

My client who was the seller of that property then purchased a new home for $600,000 and paid cash. Should we also circulate a perition requiring all cash buyers must have an appraisal completed so that we can have more assignments?

We are appraisers and need to focus on being of value in this industry. Let lenders make lending decisions. Trying to protect this industry through regulation is likely to destroy it.

While I would agree that many of those who post on here possibly are more concerned about protecting the profession itself than the public interest, I do have to ask--and what exactly is wrong with that? No one else out there seems to give one rat's *** about appraisers. Never have. We have always been left to fight all our own battles, and that does not appear to be changing any time soon. Should we instead just roll over and say whatever--we can always do these hybrid inspections for $50?

And I do think it just possible that there are some, if not many, appraisers who truly DO believe they not only are earning a paycheck for their families, but also doing something positive for someone. I personally am concerned about me being able to continue doing a job I really enjoy for another 10-15 years, and I also wonder if the plans I have for my children to take over my business will be a train wreck by the time they are old enough to actually do it.

I also believe there are a few of us still sick that the same lenders and GSEs OUR tax dollars had to bail out just 10 years ago are now again seemingly hell-bent on going down a road to repeat this history. I've personally witnessed enough mortgage fraud in my life to know the true value we can provide, and that this service should not be discounted in the name of saving a few dollars (out of hundreds of thousands) or a week of time (when the average person lives in a home 5-10 years).

I also feel good at the end of the day thinking I have provided a real service to my clients by providing an honest, well-supported market value for the collateral they are loaning on, or whatever other intended use the report has.

Let all the fancy acronym-toting government and quasi-government agencies worry about the public trust. Its enough work for me to worry about the future of my profession.

 

[Overimprovement]

Indeed we should not petition to require appraisals on a cash buy basis...it;s the borrower's own money they are risking, not tax payer backed mortgage money.

A very important distinction!

 

[J Grant]

The appraiser is the only one who has no vested interest in the outcome of a loan or transaction. Of course that can get compromised by client pressure, but the better appraisers won't let that dictate the outcome ( even if it means losing a client ...against the appraiser;s own economic self interest)

When was the last time a RE agent recommended a buyer not purchase the home they can barely afford or not make that high offer, when was the last time a lender recommended an owner not eat up their equity with loan fees / a cash out refinance ? Rarely happens. While there are some agents and loan officers who advise prudence over their own profit, they are a minority.