NY, FirstAM & WaMu article

[Renee Healion]

Greg you're going over to the dark side with this corporate spook stuff. But I like your new AMC model.

 

[Hamlet]

You can do that now with http://www.readnotify.com

 

[Tony in Ohio]

I think most lenders would be very interested in an AMC that went to great lengths to make sure that the best appraiser gets matched up with each and every property they are considering making a loan on.

There has been no incentive for that as there has been no enforcement and no market pain. Corporate employees only get judged on their recent numbers and they are not rewarded for looking long term unless the upper management takes that view.

That lack of pain looks like it is going to change soon, because I agree with several earlier posters. Wall street and the big class action lawyers have got to be salivating and sharpening their knives.

 

[Michael Chu]

For those who think the emails and other information came from unhappy employees, the AG issued subpoenas for them.

http://www.nytimes.com/2007/11/02/business/02appraise.html?ex=1351742400&en=1bace8f5436fd074&ei=5124&partner=permalink&exprod=permalink

New York Times, 11/2/07: "Mr. Cuomo’s case is built on e-mail messages obtained through a subpoena to First American."

and in an interview,

"Mr. Cuomo said investigators had spent nine months interviewing hundreds of mortgage industry executives and poring over millions of documents obtained through subpoenas."

That's a lot of work. Wonder what's next on Wednesday.

I think, based on reading Mr. Cuomo's recent bio and previous campaign promises, he may have stumbled on something he can ride on for a long time to come and "wake up those asleep at the wheel".

I am hoping all this to lead to a good Thanksgiving Story... Dear God, this year, I am thankful for Mr. Cuomo, for waking up all those (Feds) "asleep at the wheel".

.

 

[Smokey Bear]

I live on a unique island where the locals know it best. I could never get on Wamu's list. The realtors here decided not to recommend Wamu, or do deals involving them, because they'd send an appraiser from 1 hour away who didn't know diddly about the island and the neighborhoods and why you can't use a Gold Coast comp for a Shoreline property, even though they're both on the lagoon.

Wamu DIDN'T get the best appraiser for the job, they got the one they're used to working with. There's a different.

 

[Julio E. Sune Jr. (FL)]

http://realtytimes.com/rtcpages/20071105_appraisalscheme.htm

[SOURCE:___realtytimes.com]

 

[Dale Smalley]

WAMU sent their work to two companies but only e-appraiseit is getting sued???? The other company was way worse and tried to inflate value with their ROV request from some jackass trainee pulling comps.

 

[Queen City Gurl]

Nancy, I agree with you. I did work for WAMU for years, they were one of my biggest clients. And not once, in 5-6 years, did they ever pressure me for a value. Their reviewers were ethical, professional, and wanted a supported market value. AND, they paid a real fee, to obtain an honest, ethical appraisal. They were by far, one of my favorite clients. I was hit hard, when they went to the AMC's last year.

But, since I won't work for those rediculous fees, I did not even try to get on their list with either F.A or LSI. So, have not done work for them since. But based on my history with them, I am surprised that THEY are involved here. I guess things changed once their internal appraisal dept dissolved, allowing for the opportunity here, because back then, their reviewers did their jobs !

But, now that the spotlight is on !!! Lets take the opportunity to right all of the wrongs !! This lawsuits targets inflated values and collusion...... but what about the opening of reports.... the refusal to pay typical fees, taking half of our fees or more, and yet stating it as an appraisal fee on the HUD. Lenders, owning their own "independent" AMC... while the public is unaware that it is a subsidiary of the bank....... the list goes on.... we all need to send in letters and emails... putting it all on the table, this is our chance.

 

[Moon Pie]

Missing Addendum's

Nancy, I agree with you. I did work for WAMU for years, they were one of my biggest clients. And not once, in 5-6 years, did they ever pressure me for a value. Their reviewers were ethical, professional, and wanted a supported market value. AND, they paid a real fee, to obtain an honest, ethical appraisal. They were by far, one of my favorite clients. I was hit hard, when they went to the AMC's last year.

Yes... this was the case in Florida. I worked for WaMu with never a problem. They never pushed values at all. They wanted accurate values and not those that matched the contract or needed loan values.

But, now that the spotlight is on !!! Lets take the opportunity to right all of the wrongs !! This lawsuits targets inflated values and collusion...... but what about the opening of reports.... the refusal to pay typical fees, taking half of our fees or more, and yet stating it as an appraisal fee on the HUD. Lenders, owning their own "independent" AMC... while the public is unaware that it is a subsidiary of the bank....... the list goes on.... we all need to send in letters and emails... putting it all on the table, this is our chance.

I was kicked off WaMu's "approved list" after I started submitting supported value cuts. (Nothing different than before other than the AMC was now in charge). I contacted WaMu and they told me because they order through LZI I would have to talk to "their" QA Department for any rebuttal process. Found out FAST... There is really NO ONE in the minimally paid staff who even knows the people in charge. AMC (LZI) has no such thing as a rebuttal process. I was the reviewer and not even the original appraiser! It was not a value issue... it was the fact that the "Risk Mitigater" at WaMu WAS NOT PROVIDED WITH ALL THE ADDENDUM'S! and stated that I did not address the prior sales history of the subject. I DID... it was a paragraph long in the addendum which was not provided!!! I was unable to ever get ANYONE to respond to a certified letter, emails, at either WaMu or LZI!!

It was a lost case... the product submitted has been altered, maybe not all the time, maybe not on purpose, but it is... the underwriter, risk mitigaters, reviewers are provided with a product missing most of the vital info THE ADDENDUM, the verb-age that won't fit in the small box of a pre made form.

 

[Oregon Doug]

It was a lost case... the product submitted has been altered, maybe not all the time, maybe not on purpose, but it is... the underwriter, risk mitigaters, reviewers are provided with a product missing most of the vital info THE ADDENDUM, the verb-age that won't fit in the small box of a pre made form.

It is a lost cause - for shure! I don't like to use the term "altered" because it implys that someone has made an effort to change your work - I don't think that's the case. However EVERY report that flows through this process is in fact changed because of the very process itself. Your narrative addendums are truncated and/or simply left off. No person has altered your report but it has been chopped up by the mechanics of the system.

It's sort of like buying steak from the butcher - if he puts it through the meat grinder, it's no longer steak, it's hamburger - but it's still beef.

The only real answer I can see that appraisers have is to absolutely refuse to do business through the AMCs. Period.

Oregon Doug