• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Reinvented Appraiser Watch a reality

Status
Not open for further replies.

BigBlueGA

Junior Member
Joined
Mar 13, 2002
Professional Status
Certified General Appraiser
State
Georgia
“Faulty appraisals, whether intentional or not, contribute to the inability of homebuyers to make monthly mortgage payments and to the instability of neighborhoods,” said HUD Secretary Mel Martinez. “The measure that we will be proposing is part of the Administration’s on-going commitment to protect unsuspecting victims, who are often first-time homebuyers and minorities, from poor appraisals and unscrupulous appraisers.”

Dern, now I regret all those times I did an appraisal with the intention of keeping the borrowers from making their house payments.. damn me! I never should have said in the appraisal that they could afford the payments!

Can I get a "Huh?!?!?!?"
 

BigBlueGA

Junior Member
Joined
Mar 13, 2002
Professional Status
Certified General Appraiser
State
Georgia
Under the terms of the new proposal, FHA will notify appraisers before removing them from its roster of approved appraisers. Any appraiser who receives such notice may meet with HUD officials to present evidence that factors beyond his or her control contributed to the excessive rates.

Or even better, how about HUD presenting evidence that the appraisals contributed to the default rates? That would be interesting...
 

aprazer

Junior Member
Joined
Feb 27, 2002
Professional Status
Certified Residential Appraiser
State
New York
How completely misguided. The group that needs more oversight is the mortgage originators with a high default rate. Isn't that a much better indication of where the problem lies? There are shady mortgage lenders who put people in houses they cannot afford. And there is no risk for the lender on these loans as we foot the bill when they go under. I have done many HUD REO appraisals, some of them more than once on the same property. It is very common to see a sale within the last year or two, which is well below the current value, in an escalating market. It seems to me that would be an excellent starting place to "place the blame".

However, you cannot discount the fact that inflated appraisals do contribute to the whole problem. I went to the HUD site which lists the default rate, and if you look up the well known number hitters, the default rate is definitely higher. Some are outrageously high. But the two items(default rate, appraisal values) should be analyzed separately.
 

larryhaskell

Senior Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Nevada
Aprazer:

Can you give us the site so we can take a look?
 

Alan Simmons

Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Alabama
Make lenders responsible for their loans and I guarantee you an end to bad appraisals overnight. Funny how it seems we thought of this before anyone in the Government did (or is it have). Hey HUD!!! There is an elephant in the room. I know you like to act as if it does not exist. However it would be nice if you stopped solely blaming us for trashing the room because we have to keep stepping in the mess.

I must admit to being a little touchy. I have worked on 4 assignments this week for which I will not be paid (80% chance). In every case the lender called to let me know that they could not use the appraisal because it did not cover their butts (paraphrasing). Not one recognized that they could use the appraisal to make the business decision to not make the loan. I will still send them invoices but I do not expect anything except static (SSDD). The only business decision they recognized and conveyed to me was that they would have to find another appraisal.

Hey HUD. How about at least a thank you because (for free) I kept four families form foreclosure this week. Where is the page I can keep score on the number of foreclosures I prevent (loans I "kill").
 

aprazer

Junior Member
Joined
Feb 27, 2002
Professional Status
Certified Residential Appraiser
State
New York
Larry-
Go to appraiser links at top of this web site. Go to HUD/FHA links, and it is listed under documents. I think I found it by entering "appraiser default rates" on a search engine. However, it does not appear to be working right now. They have removed it several times and put it back. Keep trying. Typical of HUD.
 

Larry Lyke

Senior Member
Joined
Feb 2, 2002
I'm thinking about my comments when this is published for comments;

"I recommend that the loan originator be required to buy back any loan that goes into default before reaching the 24th payment."

Default is defined as any loan that has not as of the 26th payment due date had 24 payments made on it.

The quality of FHA appraisals would rise instantly!

[Tongue in cheek stuck between 3 missing teeth!!!]
 

BarbaraNJ

Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
New Jersey
HUD WANTS to make these loans. It has a "ton" of money to GIVE to persons who otherwise could never get a loan.

I wonder what they will say when----using the Honest appraisers they so Crave------no home appraises at Value.

Will they go back to those "bad" appraisers?? Will they stop loaning money and go out of business ??? Will they admit that they have been doing things wrong all this time???

It helps to still believe in the Tooth Fairy if you thing that they Really want a good job done.


BarbaraNJ
____________________________

The Harder I Work, The Luckier I Get
 

larryhaskell

Senior Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Nevada
Barbara:

HUD doesn't loan money, they just insure the loan.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks