RIP AQB and ASC, to be replaced with "Federal Valuation Agency"

[Sadie]

Here is a solution. The lenders can go back to their 120% LTV loans so that way it puts the risk where it belongs. "Low" appraisal? No problem we can get you the money you want/need!

 

[Elliott]

The last time the Government stuck their nose in lending programs they ended up losing billions through the HARP program, but they don't remember how easily the fraudster figured out how to game the system.

 

[Terrel L. Shields]

How would you know. You can't read peoples minds.

A review appraiser likely sees more appraisals than the average bear and there is also the case that just because someone is either a different race, creed or color, or religion or politic...doesn't mean, by default they are going to act upon that prejudice. We are all prejudiced.

My grandad never 'liked' the Catholic Church but some of his best friends were Catholic. He never voted for a Republican in his life but his own children were often voting opposite him. He was a good old fashion pro-segregation Southern Democrat but he had the fondest memories of his childhood neighbor, "Uncle Aaron" and "Aunt Mandy" who were their "colored" neighbors. My other grandfather was no fan of Roosevelt and voted Republican. But when my grandfathers were together, they were fast friends. Both had 2 older and 1 younger sister and a younger brother. Both lost their father when they were barely in first grade. Neither went past 3rd grade. Those were common bonds, so they could overlook the differences.

 

[DWiley]

His linked in page says he is an umpire and insurance adjuster.

https://www.linkedin.com/in/james-park-3337b04/

Jim was at The Appraisal Foundation when I was on the ASB. He has a deep knowledge of the residential appraisal process.

 

[Sadie]

https://www.linkedin.com/in/james-park-3337b04/

Jim was at The Appraisal Foundation when I was on the ASB. He has a deep knowledge of the residential appraisal process.

Just because he has knowledge does not make him an expert. Do you agree with his statement? ""There is a lot of discretion in how appraisers make their adjustments, how they choose comparable sales, and how they ultimately reconcile to the final value conclusion. We need to find ways to remove as much of that discretion as possible." - James Park, Executive Director of ASC.

Is this not a USPAP violation?

 

[Elliott]

"We need to find ways to remove as much of that discretion as possible." - James Park, Executive Director of ASC.

So if we look at sales and the market seems to make a distinction because of neighborhood, or view, or adverse influences, or those influences on values, we should try to 'remove' them? That will make our job more difficult and how are we suppose to know which ones to remove? I'm guessing were suppose to find the simplest indicator, like SP/SF and leave it at that, the way Zillow or Realtors do it. If you don't get the right number then you can add some other influences back in?

 

[TerryRohrer]

Just because he has knowledge does not make him an expert. Do you agree with his statement? ""There is a lot of discretion in how appraisers make their adjustments, how they choose comparable sales, and how they ultimately reconcile to the final value conclusion. We need to find ways to remove as much of that discretion as possible." - James Park, Executive Director of ASC.

Is this not a USPAP violation?

He is simply a bureaucrat reading what he was told to read. He offers nothing to the discussion and is a part of the problem. He is in a position where telling the truth would serve all parties well, but is more concerned with keeping his bureaucratic position than being truthful. His background is irrelevant except that it gives him credibility where none is warranted. He is simply a mouthpiece for the Congressional committee he is fronting for.

 

[Sadie]

As to "racist" appraisals. After the mortgage crisis, there were changes to the way lenders qualify applicants and underwriting was tightened. But no real changes to the appraisal process itself.
Minorities had disproportionally more foreclosures than whites.
https://www.responsiblelending.org/...nalysis/foreclosures-by-race-presentation.pdf
An article in Mother Jones points to a study that states the higher rate of distressed sales is behind much of the wealth gap caused by real estate. Take away these distressed sales and the differences in the rate of return just about vanished. Much of the reason for distressed sale are caused by predatory lending practices.
https://www.motherjones.com/politic...black-latino-kermani-wong-brookings-research/
My point is, its not the appraisals or the appraisal process.

 

[DWiley]

Is this not a USPAP violation?

How is calling for more objectivity and less subjectivity (discretion) contrary to USPAP? My copy of USPAP defines an appraiser as someone expected to be independent, OBJECTIVE, and impartial. More data driven analysis and less seat of the pants is a pretty good goal, IMO.

 

[CGinMN]

Discretion: the freedom or power to decide what should be done in a particular situation.

Should appraisers have the power to decide (discretion) things like comp selection, adjustments, and reconciliation?