OPEIU meets with Fannie Mae

[Stephen J. Vertin MAI]

Steve:

Curious as to your math. Could you please show it. Are you saying it would cost $800,000,000.00 just to move the funds? I am simply backing into it. There are about 80,000 appraisers. $10,000.00 per appraiser indicates $800,000,000.00. If you do believe this, why? I mean do you have some insight into to this process I might not have?

I do not know if an action delayed is necessarily an action that will not occur. Good negotiations are always a process of give and take with lots of say this and that. I do not see the union threatening to pull funds out over a time line and it not occurring as conclusive proof nothing is being done. Negotiations are simply dynamic.

I have to believe the AFL-CIO is in serious talks with the Maes. Why else would they publish it in their national news magazine? I guess you could say its a ruses and let the conspiracies theorist in all of us come out, but why? I mean why create creditability issues over a handful of appraisers?

Steve Vertin

 

[David C. Johnson]

Well,

Giving everything a good bit of thought, I'd sure rather have both Steven Santora and Don Clark on our side...

But trying real hard to find the bright side, it sure sounds like we don't have to worry about the AGA ever going bad on us -- and us not knowing about it real quick!

dcj

 

[Residential Appraisal Ser]

Steve & Forum: Steve you have hit the nail on the head. We have had several meetings with Fannie and will have another one this week. Attending the meetings other then myself is the Att for AFL-CIO that is in Charge of Investments, the Att for our Investment Trust, The Att for OPEIU, Our OPEIU Pres and our General VP Dom Pompao.

We have certain goals that we want to accomplish not only to protect the appraiser and his work, but to protect our 3/4 Trillion in MBS.

End result we will do what we have to do. If in the end we have to utitlize our funds in a different area we will.

I have found out that Rome is not built in a day and education of Congress, Senate, AFL-CIO, the Steve Santors of the world plus the public takes time.

If you have been following happenings you will note that a number of laws have been introduced and a struggle is takeing place in the Halls of Congress. Prior to our becoming active 3 years ago, not a wimper was heard and the lending industry had there way in every case. Now they may have their way in some cases, but we are winning a few, at the federal and state level. The Guild with AFL-CIOs help is opening doors at both Federal and State levels. We are able to talk to the people that matter in getting laws introduced and pasted.

While we are interested and welcome membership as anyone else, this doesn't detemine what we can do and wheather AFL-CIO will take part. We don't get into membership numbers as I have explained to Steve on several occasions. Appraisers have so few numbers, it is not a factor in getting to be heard. The only importance in how many apprasiers we have on the rolls is braging rights, and we are not interested in that as it only defuses the real issue, which is stopping the appraiser from becoming extinct as we know it.

Make no mistake if the lending industry breaks the back of the residential apprasier which comprises of 70% of all apprasiers, they win.

We welcome your support, help and membership. Thank you to those who have written in defense of what the Guild is about., To those detractors, I ask that you put your anti unionism aside and take advantage of our strenghts.

William Sentner
President
American Guild of Appraisers OPEIU AFL-CIO
RESASINC@aol.com

 

[Bob Ipock]

Freddie and Fannie must really be worried about appraisers ans appraisals. Perhaps they forgot to consult Appraisers Guild when they came up with this lasted great new for appraisers.


APPRAISAL ISSUES

Modifiable Mortgage Program
Freddie Mac has recently implemented a modifiable mortgages program. The program
allows lenders, that have sold their mortgages to Freddie Mac, to lower the rates on those
loans with no additional title documentation, appraisals, or settlement process of any
kind. The purpose of the program is to keep the lenders? customers from fleeing to
another refinancing lender. This move potentially threatens the loss of rate rewrite
business which will impact many appraisers, but also threatens consumers who look to the
appraisal as an independent confirmation of the value set by the seller. NAR will
continue to monitor this issue.


http://www.realtor.org/rodesign.nsf/pages/...tr?OpenDocument



Bob

 

[Don Clark]

8)

Bob,

"And the truth shall set you free".

This is a great example of how the AGA has had no effect on the Maes.

The reason an organization will not disclose their numbers is one of several possibilities:

1. They don't know themselves
2. They have so few it would be laughable to print it
3. They would lose credibility if either 1 or 2 were correct

Want to really make a difference, save your dues money, and accomplish something :?:

Start a monthly campaign of calling, writing, or visiting your state and national politicians. Also, get a carload of your peers to go with you to a state regulatory boards next meeting and ask questions.

I helped change my states law by putting 2 additional appraisers on our states Appraisal Board(we removed 2 members of financial instutions), and, removal of the requirement to put a seal on an appraisal report.(Communicator Magazine, December 2000 issue "How One Appraiser Changed the System"). This was done by contacting my local state delegate. He then visited the department that oversees the board, wrote letters, and then affiliated with another delegate who was approached by the State realtor Association on this same issue. They then secured state senators who would support the change, and then, walla :!: It was done.

Gee, that's strange :? I don't remember the AGA being involved at all :wink:

Don Clark, IFA

 

[Jim McGrath]

Well,

Giving everything a good bit of thought, I'd sure rather have both Steven Santora and Don Clark on our side...

But trying real hard to find the bright side, it sure sounds like we don't have to worry about the AGA ever going bad on us -- and us not knowing about it real quick!

dcj

David, how many members of Congress can Steve and Don call, and get an immediate call back from the elected official, not a member of their staff, if they get a call at all. None, I would suspect, but I will bet money that the AFL-CIO, can call anybody in Washington including the President, and get a quick return call, if not immediate connection.

I may not agree with the union on many things, but if you want to change the laws pushed by the bankers, Mortgage Brokers Association, etc you will have to have someone who can match their contributions and influence. And the only one I see anywhere on the horizon that seems willing to even look at the appraisers problem is the union.

If you would rather see Steve and Don instead of that, I guess I am too amazed to even be able to answer it.

Jim McGrath

 

[Stephen J. Vertin MAI]

Don and Bob:

There is know doubt the article Bob presented is bad news on the demand side for appraisal services. It reinforces the fact appraisers need to get involved with the political aspects of what is occurring. Whether that be in the form of time or money. IMHO the union needs support now more than ever. Just because you loss a battle does not mean the war is over. That is unless we all roll over and surrender.

Did you know Germany's fascist economic system, pre WWII, was government supported industry? Yes, just as the Maes are set-up. It brought Germany out of a great depression after WWI. The country set-up huge government supported oligopolies. When things were good the capitalist who ran the system prospered. When not so good the people suffered in the form of loss in tax dollars. When taking on the Maes, it is not as if the union is taking on the jewel of capitalism. Far from it.

Non union supporter, and this is not specific to any individual, typically cite unions as Marxist. However, they rarely cite the systems appraisers are up against which is fascist. I believe we are entering the beginning of desperate times. This of course requires desperate measures.

Steve Vertin

 

[Fred]

Steve Vertin,
Thank you for addressing a fact-based issue in a technical way. Usually, all that comes back from the AGA folks is personal innuendo. Find a flaw in their argument and you must be evil. Very tedious.

Don’t take my rough calculations as definitive. However, there are some reasonable inferences when the “going-in GRM” is somewhere around 57.

Pension Fund Dollara in GSE's	$750,000,000,000

Transaction Cost @ 0.01%	$750,000,000

Transaction Cost per Appraiser	$10,000

Recapture Period @ $175/yr dues	57.1

Steve, the larger issue is that the notion of the AFL-CIO throwing around $750 Billion dollars in order to be an uncompensated rainmaker is a Santa Claus type myth. There is no upside to this from an investment point-of-view and one does not need a PhD in Finance to debunk it. The most likely explanation is that the portfolio managers have decided to reduce their position in GSE’s and the AGA section is going to piggy-back on the move and claim it was on behalf of appraisers.

 

[Fred]

David,
“Giving everything a good bit of thought, I'd sure rather have both Steven Santora and Don Clark on our side...”
What is so anti-appraiser in employing a little due diligence and skepticism to the idea that the AFL-CIO, dressed as Santa, is going to come down from the North Pole to stuff our stockings with appraisal assignments because they “care” about appraisers. There has been no shortage of threads on this forum critical of the AI and other organizations (many posted on behalf of the Union). So why can’t we clinically dissect the Union proposals without being on someone else’s “side?”

Just tell me how this will work David. That’s all I ask. Think things through. Let’s say the ploy works. Freddie/Fannie throw their AVM software in the garbage and start increasing orders. Is the Union NOT going to take no steps to see that this work is routed to union appraisers or find some other method of getting their cut? Just what we need, another AMC.

Please tell me why the union would continue to work on behalf of the 90-95% (?) of appraisers who do not belong? Because in all the world they could not find a more worthy object of their charity than appraisers? Since when did step one in due diligence cease being the question, “And what’s in this for you?”

 

[Fred]

To Bill Sentner:

“AFL-CIO has about 3/4 Trillion in pension funds in the Maes. They are now worried about the effect that poor lending habits without appraisals will have on the pension funds. You will see the results of the meetings over the next 6 to 8 months.”
Bill Sentner in the Appraisal Buzz, 11/19/01

"I have found out that Rome is not built in a day and education of Congress, Senate, AFL-CIO, the Steve Santors of the world plus the public takes time."
Bill Sentner, on the Appraisers Forum, 7/11/02
(one week before the deadline given in the previous quote is to expire explaining why the first meeting with Fannie Mae has not yet occurred)

You are the one who promised “results;” that “Rome” would be built by May 19 and (July 19, the latest). Tick tock! Tick tock!

Just remember, it was the “Steve Santors” who said your promise to make the GSE’s reverse policy was the front end of a bait and switch. The preceding 11/19/01 quote is the “bait” and the 7/11 quote is the “switch.”