NY, FirstAM & WaMu article

[Scott Kibler]

The idea that the bankers should order the appraisals is because the bankers were the ones at risk. Secondary markets took that risk away from the bankers.

 

[Fred]

All true, Steve, but can it get any worse?

You miss the point. Now, is the time to put forward suggestions, before the issue loses its 15 minutes of fame.

As they say in AG land, "the evidence shows" that AMC's do not create independence, but rather give the large banks plausible deniability while they place wagers with taxpayer guaranteed deposits.

 

[Shelley Anderson]

I was employed at eA during this time. To the best of my knowledge these "preferred" appraisers were appraisers they had been using before they hooked up with eA. I was taken off the WAMU preferred list a few months after they came to eA, much to my relief!!!! I couldn't tell you the number of ROV's I had. Can't say as I too surprised over these new events!!!

I was told every cloud has a silver lining!

 

[Mike Phillips]

One of the issues this suit brings to light is that at the time of FIRREA, the decision was that allowing the borrower to hire the appraiser compromised independence. That's how it got to be the exclusive domain of the banks.

What will the fallout be? Who will hire the appraisers? Who will decide which appraisers are "good," and what will the criteria be?

You are exactly right and hopefully more appraisers are going to finally hear the wakeup call. Appraisers, in general, supported that decision on the grounds that allowing anyone other than the bank to order the appraisal would lead to abuse. But someone forgot to consider the possibility that the banks themselves would abuse their privilege. They were allowed to delegate their due diligence and guess what happened?

Also, let’s acknowledge the fact that the ASB has ignored anyone other than the client. Is the term “public” defined – not to my knowledge? To the ASB “public” = client. That is all they know. And we need not even bother to discuss the definition of the term trust.

Anyone should be able to order an appraisal and present it to banks at will. The banks should be held responsible for REVIEWING appraisals, NOT engaging appraisers. This reason behind NOT allowing this at the present has more to do with preventing borrowers from shopping lenders more than it has to do with insuring quality reporting. The mortgage industry seeks to CONTROL appraisers, including when appraisals are required and the values appraisers deliver - to hell with the needs of the borrower.

Put appraisers in charge of reviewing other appraisers and the problem will be solved. The one thing EVERY appraiser fears is a random review of their work (I say 30%) completed by a geo-competent, well-qualified review appraiser.

Let every appraiser profit on the basis of his/her competence as judged his/her peers. And force appraisers to acknowledge that the borrower may rely on an appraisal report.

 

[Nancy in Friday Harbor]

Now that it has been brought public that this was taking place, we got to start the clean up of our profession some where. If the appraisers who are on the approved lists did good work, did not inflate value, then they should not have a worry about the work being reviewed.

Those that did poor work or inflated value could come clean or wait to have an audit done of the appraisals that they sent in.

Why should e or Wa take the full wrap, the appraiser also worked at getting it done or it would not have happen.

Don't you feel the clean up has to start some where? The list are there.

Ray,

I wholeheartedly agree that clean-up has to take place. But given your recent experience(s), I am surprised at your faith in the ability of the state reviewers and the state boards to be open minded, accurate and appropriate in the reviewing of appraisals and workfiles from appraisers who have worked for WM/EA.

Like Don, I haven't "hit numbers", have received full fee, and would put my work up against any appraiser's......but I shudder to think of the state board going though all my appraisals and workfiles just because of who a client was. In that situation, any appraiser on that list is already guilty to the state board. If you doubt that, re-read some of the comments that have been made in this thread.

In addition, it could give the state board license to go on a fishing expedition......and I don't know ANYONE who produces 100% perfect appraisals 100% of the time. And with blood in the water, the state sharks are going to be on a feeding frenzy.

So, yes. I'm really surprised at your support of this.

Nancy

 

[JoTetherow]

Don,

They have there place in the scheme of things. Many times appraisers look upon them as the source or the word of god so to speak. In fact appraiser should pay more attention to there State appraisal board formal writings and other guidance.

that would work if they live in a state where the board actually does that...

 

[Joyce Potts]

You miss the point. Now, is the time to put forward suggestions, before the issue loses its 15 minutes of fame.

As they say in AG land, "the evidence shows" that AMC's do not create independence, but rather give the large banks plausible deniability while they place wagers with taxpayer guaranteed deposits.

How does one legislate ethics and morality?

The current system gave the states the responsibility, but not the funds for enforcement. Despite some headway, overall--it's failed miserably IMO.

I'm not sure moving oversight to the federal level is the answer either. So I'm not sure what the BETTER answer is.

What are you thoughts, Mr. H?

 

[444nutman]

Well perhaps Bill McCollum will initiate something now that someone else has started with it, because his office has sure been unresponsive up until now.

Don't get me started on Billy.(oops too late) He is a career politician who only follows the money. Their are women on OBT who have higher standards than Mr. McCollum. He has not met a lobbyist that he did not like. I think I saw him wearing a hat made out of feathers of a Scrub Jay. His mentality is let me run for an office; any office as long as I can work the system. I have emailed him at least 3 times a week to help out appraisers.(I have been courteous just asking for help to do my JOB) He does not have enough time to answer his emails because then he would have to pull his mouth off of the corporate teet. He is the perfect example of what is wrong with politicians.

 

[Tony in Ohio]

People have been writing on this forum for years that the lenders only wanted our appraisal for the E&O insurance. That's true in some small cases but that is small potatoes for the big players who are starting to roll.

Why sue 10,000 appraisers and their probably underfunded E & 0 carrier when you can take down couple multi-national companies?

Interesting how things work. The lawsuit against Pam likely supplied info for this suit, this suit will likely supply info for wall streets suit against WAMU.

This will only encourage more DA's to open more cans and wall street or class action suits will put on even more hurting. I think the bigger banks will survive, but they will lose enough that they might want honest and quality appraisals again. For the ones they don't risk low enough to value by AVM. :new_all_coholic:

 

[Joyce Potts]

Don't get me started on Billy.(oops too late) He is a career politician who only follows the money. Their are women on OBT who have higher standards than Mr. McCollum. He has not met a lobbyist that he did not like. I think I saw him wearing a hat made out of feathers of a Scrub Jay. His mentality is let me run for an office; any office as long as I can work the system. I have emailed him at least 3 times a week to help out appraisers.(I have been courteous just asking for help to do my JOB) He does not have enough time to answer his emails because then he would have to pull his mouth off of the corporate teet. He is the perfect example of what is wrong with politicians.

I agree 500%. He's a sorry disappointment. You'd think after he failed to win his last re-election to the big house, he'd have gone home, but NO--alas, he's a career pubic servant.