NY, FirstAM & WaMu article

[Workbox]

Of what the ABM'er are doing, can that bleed into AVM's which it might explain some unusual numbers from AVM data when compared to actual sale data? Also, what other AMC's have in house ABM's?

 

[Michael Tipton]

Renee-


As bad as EappraiseIT looks in this complaint (and they look bad), Wamu looks worse. Wamu failed to ensure the separation between loan production and appraisal production. That wasn't EappraiseIT's responsibility, but Wamu's. EappraiseIT's responsibility was not to "roll over"; in that they failed.

I couldn't agree more with your comment. The way I read banking regulations, the financial institution(s) are ultimately responsible for loans originated. Due Diligence cannot be contracted out to a third party.

Hopefully Congress will update Title XI to reflect the current mortgage environment. Wall Street replaced FNMA/FHLMC as funding sources. Unfortunately, the federal government has not updated regulations to reflect the market.

I am waiting for Wednesday's press conference for additional information per Mike's earlier post.

When I entered the mortgage lending field in the early 70's, I was working for a local S&L. We were lending depositors funds on long term obligations. The residential mortgage industry then is not the industry now.

 

[Carnivore]

WAMU is not the problem for the NY AG. He has a corporation that has been given the priveledge to operate in the state of NY. That is eappraiseit and they are not obeying the laws of NY! The WAMU thing is a federal case.

Besides, when NY gets done with eappraiseit, Wall street will jump in and take care of WAMU! For that matter they may start as early as tomrrow!

 

[CANative]

I still feel I have to take a contrarian view just to make sure there is some balance.

I really think that WaMu just didn't trust the appraisal reports they were receiving. I've got two dozen WaMu/eAp assignments in my files, 8 of which are reviews. Almost all of the reports I reviewed had problems. Usually a complex property with little or no proper due diligence and obvious lack of local experience with the area and the property type. Not too many were overvalued and some were undervalued. But there was no telling that from the reports.

eAppraiseIT never (ever) put any estimate of value in the engagement letter (on any of my assignments at least). I have been contacted directly by WaMu loan reps who wanted to discuss value but it sounded to me like a side issue. Mostly they wanted to verify I was familiar with the area and the property type. They told me (two ocassions) that there have been too many instances of inexperienced appraisers or non-local appraisers completing their work.

My "impression" of the WaMu position is that they could live with a property not being appropriate collater but the problem is they didn't want to lose loans based on faulty appraisals completed by inexperienced appraisers, trainees with correspondent supervisors, or appraisers who may be taking an overly "conservative" approach and thus not providing credible property valuations.

That is/was eAp's fault because their business model doesn't match up with level of responsibility required and expected in the industry. It's irresponsible to gain such a large market share of appraisal assignments and using this position to engage appraisrs for their clients where the only qualification is the lowest fee and turn times which do not allow proper practice for the intended use of the appraisal.

I've told anyone who would listen at eAp (both on the phone and through emails) that this situation would eventually result in major problems for them.

 

[Carnivore]

I still feel I have to take a contrarian view just to make sure there is some balance.

I dont ever recall an AMC person at this forum taking a contrarian view in support of appraisers. Why do you feel compelled to do that for an AMC, especially this one? There big boys let them defend themselves.

FTR, They offered an 80/20 split to appraisers who played along. Thats called Bribery in my neck of the woods. Thats also classified as a conspiracy to defraud. I would not want to beto close to that crowdnor would I want someone to think I was symphetic to them.

 

[CANative]

LOL.. Like First American and WaMu need a dippy residential appraiser to defend them.

I'm not defending anyone. There are problems on both sides, apparently. But I'm not sure Cuomo is on solid ground in alleging that there was a conspiracy for the purpose of inflating propety values. It seems more like WaMu was righteously frustrated over a lack of quality appraisals and sent some email correpondence with ill chosen words which have now become high profile buzz words. eAp didn't like the idea of being bossed around and having their cut-rate appraiser model monkeyed with so they thought they might play some hardball using FRI compliance issues as spitballs.

 

[Jonsey]

Ya think maybe, just maybe... a few (or quite a few) X and current employees might be ready and willing to tell all?

"The independence of the appraiser is essential to maintaining the integrity of the mortgage industry," Cuomo said, citing several e-mails between the companies' executives.

Pam, ya think that EA and FA CEO's and legal counsels sent Cumomo copies of the emails by accident or intentionally? Yes, lets be sure to copy Mr. Cuomo. Someone, inside, with either a conscience or vendetta had to turn those puppies over as evidence.

 

[Carnivore]

I suggest you read the complaint. If your intellectually honest you will retract your statement. It was all about value. It was nothing about quality of reports. Unless hitting value is the sign of a high quality appraisal report in your book.

They are co-conspirators to defraud GSE's, Wall Street porfolio investors and there own stock holders.

 

[Workbox]

Remember the thread about the WaMU VP complaining about the AMC and how he wanted for his appraisers to get on board, because many of them said Heck No, and were now seeing the crap they were getting from these AMC's. As Greg put, "ill chosen words", but I think WaMu panicked after they were sold a lemon as with many others.

 

[CANative]

Andy... Why would you suggest I retract my statement? It was just a thought.