I've been impressed enough with what I've read about the NAIFA that I might become a member. I just wish someone would ask Cuomo or his people how they cannot see the irony in reaching an agreement that puts the ordering of appraisals in the hands of the same types of companies he was investigating in the first place.
That's what drive me nuts about this whole damn thing, and makes me question Cuomo's motivation. Even though it was AMCO, who I did a lot of relo work for through the years, (and they treated me well aside from the slow pay), I can't get the fact he was on an AMC board of directors out of my mind.
I think that's the rub, Kevin. The HVCC all but forced lenders into using AMCs. I've been a huge fan of the NAIFA for 20 years but had to withdraw my good opinion for a while due to their initial support of Cuomo's deal.
It was just so weird to me they would support something so devastating to my business model without asking what I thought about it first. The NAIFA (in fairness, so did the AI's) statement came out so quickly it seemed they knew it was coming. That wouldn't have bothered me a bit if they had have said then what they're saying now.
"Gueron led the discussion and was frankly curious, after their research, why we would come out against the ban on mortgage brokers ordering appraisals. " Obviously did not read or comprehend the response provided by the various appraisal organizations.
"Gueron and her staff listened very carefully, were very candid and took plenty of notes. They were asked if they were open to changing the agreement, but replied that they were not yet ready to answer." "Not yet ready to answer" translated---NO.
Once the AMCs have the keys to the castle we are all doomed.
The thing is the NYAG's office did read the response by the various appraisal organizations. What they're "frankly curious" about is why they did a 180 degree turn two moths later. I bet they're not ready to answer because they just lost their biggest supporters: appraisers themselves. Must be a pretty uncomfortable position to be in.
"NAIFA applauds the attempt to secure appraiser independence in the real estate financing process in the proposed agreement," says Michael T. Orman, IFAS, National President, NAIFA. "But despite its laudable intent, we find that the current structure of the agreement may lead to unanticipated and potentially damaging results for borrowers, the public, real property appraisers, and users of real property appraisals."
"While we support the efforts of the broader appraisal community to address the shortcomings of the agreement," Orman continues, "we believe the agreement is attempting to solve a problem for which a solution already exits. Should the agreement move forward, however, NAIFA, along with many other related appraisal and financial organizations, believe significant changes to the agreement as written are necessary."
One of those solutions includes banking regulations set forth by the Federal Financial Institutions Examination Council (FFIEC) and its member regulatory agencies, the Office of Comptroller of the Currency and the Office of Thrift Supervision. "Regrettably, these regulations are not flowing through the proper channels, to the end user and the loan originators, nor have the users been trained to implement the regulations," states Orman.
Clearly, the "solution" above - worked very well. NOT.
Protecting the Status Quo .......is NOT the solution.