• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Nobody’s Unhappy Except The Appraisers

Status
Not open for further replies.

djd09

Elite Member
Joined
May 20, 2009
Professional Status
Licensed Appraiser
State
Ohio
My two cents. Fannie and Freddie are not appraisers friends. Never have and never will be. Appraisers will learn the hard way. Why are users of the reports (profit) making regs for appraisers. Think about it.

But look at the bank employees going through the circular doors of the gses. Wonder how that is working out for them.
 

Adios

Senior Member
Joined
Jan 20, 2002
Professional Status
General Public
State
Maryland

sandpiperapp

Senior Member
Joined
Apr 5, 2011
Professional Status
Certified Residential Appraiser
State
New York
This will go down as the biggest blunder in risk management.

Especially now.

It seems that in past, when I could not support the sales contract price, the difference was several thousand dollars typically. In the past two weeks, I had three that there was a ten to twenty percent difference between what the market data could support, and the sales contract price. In the metropolitan NY market, those were sizable differences. One at 60 grand, one at 80 grand and the third at 95 grand. It is getting crazy out there.
 

Riick

Elite Member
Joined
Aug 14, 2007
Professional Status
Certified Residential Appraiser
State
Delaware
One at 60 grand, one at 80 grand and the third at 95 grand. It is getting crazy out there.
What we have to remember is that it's not "really crazy" as in bubble, until "everybody" is talking Real Estate, and the wild profits they made. The signal for the 1929 crash was elevator operators playing the market and giving out tips. In the late 1970's real estate was cocktail-party conversation, ditto in 2007.
In other words: You ain't seen nuttin' yet.

.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
it's not "really crazy" as in bubble, until "everybody" is talking Real Estate
In Oil Bust 1981, every dentist in Midland invested in oil. Lawyers owned drill rigs in Tulsa. And the oil geologists were selling out...they made out like bandits buying back in at 10 cents on the dollar. In 2007 I saw secretaries invest in duplexes, mortgage brokers become builders, carpenters become developers and backhoe operators building $500,000 homes.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
In the 1980's Western Oil was running commercials in Texas going 'Dont have a oil well? Get one. You'll love doing business with Western.' Tey went bust, their campus (and it was big ) sold off.

Looking at Florida, the prices they were getting before the bust were absolutely stupid compared to reality. Te market has pretty much recovered now, but not seeing the 25-40% annual increases we saw in Nevada, California and Florida in the 'boom' period.

What worries me is that condition is the factor in this market. What has been upgraded and what is still 1980's with no upgrades. Big difference in values. Desktops and AVMs cannot take that into comparison. Also what is a canal lot vs a retention canal vs a drainage canal. Huge differences which, again, desktops and AVMs cannot take into consideration. I really think that the GSEs are taking the same approach that they cited prior to 2008. They literally said that their loss level was under 1% which was acceptable. Then the bottom fell out in CA, FL, NV, etc, sending financials into a spiral. A long as the GSEs are under govts control and there is zero reason to be fiscally cautious, they will make riskier and riskier lending decisions.
 

Elliott

Elite Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
Mr. Layton said, " FHFA has total power and authority over all that stuff. We do not have to show everybody our underwear because someone says, "Well, you might have a little dirt on it." That is not the way the world works."

Mr. Layton strikes me as an arrogant smuck. I would hope that FHFA continues to realize that they have a duty to borrowers and tax payers to develop a fair and equitable home ownership program. If the government is going to be on the line for the default, it isn't just that Freddie can make a group of high profit loans to Freddie's jumbo friends and not use appraisals, in the name of saving the consumer a dime.
 

Rick Stillman

Senior Member
Joined
Jan 19, 2014
Professional Status
Certified Residential Appraiser
State
Colorado
This will go down as the biggest blunder in risk management.

And who facilitates this? Appraisers.

First, we don't need no stinkin interior inspection - just throw together a 2055. Okay boss.

Then, we don't need no stinkin 2055 - throw together a desktop appraisal. Okay boss.

Then, we don't need no stinkin appraiser. WHAT? But. But. But...
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks