S. 2452, the Homeownership Preservation and Protection Act

[Roy Courtney]

There may be a bright side to all of this! I do not know about you but I am very sick and tired of the entire game. Let's wait until all of this foolishness becomes law. Then we simply look at the M.L.S. listings and pick out 8 to 10 houses that we KNOW are at least 10% overpriced. We contract to purchase these at the listed price with the seller paying every possible cost. We make the contract subject to the property appraisal and financing. Next we make loan application at our friendly mortgage broker. You know the one who always uses skippy and every loan is approved. We simply explain that we are going into the rental business. The mortgage broker will jump thru his *** to make sure skippy gets value because of the future potential. Next step is to employ our favorite attorney! I will see you on the beach!

 

[panappr]

At this point, there is not much left in the mortgage end of appraising for me anyway, I was hoping I could turn into a hobby and semi-retire someday, but this would nail the coffin shut. What's next??? My brain is fried just from the HVCC.

 

[VolcanoLvr]

S.2452, the Home Ownership Preservation and Protection Act of 2007

http://appraisalnewsonline.typepad.com/appraisal_news_for_real_e/files/s2452.pdf

Is more dangerous to us than I first understood. Senator Dodd, D-CT, the prime sponsor, has written a provision into the bill (Page 11, Section 129C, Duties of Appraisers (a)(2) – Qualifying Bond)…. that will require appraisers to pay for a bond with a value not less than 1% of the aggregate value of all homes appraised for mortgage loan purposes in the prior year.

So, that means you will have to resurrect all residential appraisals you have done in the prior year, total up the OMV you reported for all of them, then give that glorious figure to a bonding company in order for them to quote a fee to buy a bond. Millions of dollars in value….what do you suppose a bond will cost??? This ain’t no happy meal, folks!

The purpose of the bond is to ‘inure’ to the borrower who files a claim against an appraiser.

A commercial appraiser asked me today if this bill will affect comm’l appraisals. While it’s written specifically about residential appraisals (which some CG’s do), it could be amended to include comm’l assignments. Of if successfully passed, a new law could be proposed in the future with a similar provision.

So far, this bill has not been scheduled for committee consideration……….but don’t let that stop you from sending a note to each of the Banking committee members and the co-sponsors, hopefully expressing your concern(s) about this BOND provision in the bill. The rest of the bill appears to have some good points, but I’ll let you decide those.

 

[Caligirl]

http://www.consumerfed.org/pdfs/California_Subprime_press_release.pdf


According to the link above, 316,000 California buyers (including a high percentage of minority first-time homebuyers who were 3 times more likely to use subprime products) borrowed using subprime loans.

We have nothing to do with lending. It's time to speak up.

 

[RSW]

Hummm! All Democrats.

 

[Non Sequitur]

This has been in the works longer than the HVCC with little to no opposition and certainly no petitions or letter writing campaigns. Oh well, I guess this doesn't affect the personal relationships some appraisers are so afraid of losing or software sales.

And as far as the cost, it's a non issue. Given the current mortgage mess there isn't a bond company that would write one for any amount of money.

 

[VolcanoLvr]

RSW...........

Yep! Co-sponsors include two prominent D's running for Pres.

Apparently they didn't read the bill, or don't care one hill of beans about the effect the Bond provision in the bill will have on the appraisal industry.

 

[chad hampton]

i think too many people expect far too much out of appraisals to begin with. Last I checked, appraisals were just an OPINION of value, not a guarantee. A bond guarantees something, appraisals guarantee nothing.

too bad appraisers have no union.

 

[RSW]

i think too many people expect far too much out of appraisals to begin with. Last I checked, appraisals were just an OPINION of value, not a guarantee. A bond guarantees something, appraisals guarantee nothing.

too bad appraisers have no union.

How do you bond an opinion?

 

[DTB]

sure nuff both idiots from my state are on board plus the hippie chick born down the street.