S. 2452, the Homeownership Preservation and Protection Act

[RSW]

One from my state is also on that committee. I have already called and left a message for him. I'll call again tomorrow and the day after and the day after that too.

 

[The Warrior Monk]

It will be very interesting to see where the residential-lending segment is in several years. Imposing huge costs on a market segment that has seen significant volume decrease and overall fee decrease (to the appraiser) will show many the way to the exit. Anyone with a diversified client base will simply dump that part of the business due to excessive costs, unless the fees can be ramped up to be competitive in that segment.

 

[c w d]

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.

The bond isn't a guarantee of value. It's a means to mitigate the liability that the lending industry incurs when their criteria for loaning money is whether a person can walk and breath at the same time. The regulators are going to insure that a bail out in the future will not come from the government but on our backs.

 

[xmrevned]

Vote Them Out

It is time to actively campaign against the idiot Senators that sponsored or co-sponsored S.2452, The Homeownership Preservation and Protection Act, A.K.A. The Appraiser Irradication & Destruction Act. Call, email, visit or write your Senators and let them know that supporting this bill is a major mistake. Contact your state appraisal board, make them aware of the situation and encourage them to oppose this legislation.

If your Senator doesn't want to listen, let them know you will actively work to elect someone else. Help them to remember that they are supposed to do what is right for the people that elected them instead of lobbyists from the banking industry

This clearly another example of how Congress can make a situation much
worse by trying to fix something that they don't understand.

Why not vote these career criminals out of office and give someone else
a chance.

 

[Mike Garrett RAA]

Why should it cost appraisers more to be in business than most doctors? Insane POS bill!

 

[Steer]

So what's to stop a similar bill for doctors, lawyers, contractors, or anyone else that provides assitance to anyone for any reason?

How about we start a grass roots effort to disband the democratic party?

 

[Michigan CG]

This has no chance at passing. 80% of appraisers would be out of business from day 1. The cost of an appraisal would skyrocket.

This is one bill that the banking industry will be lobbying for appraisers. Otherwise their costs for securing a loan would rise dramatically.

 

[Doug Smith SRA]

Which bonding company?

We may be insane times but what bonding company would write such a bond?
When did an opinion become a fact? Every case will fall into litigation with a jury asked to convert an opinion into a fact. This stupid plan will not survive the first lawsuit.

Does the bond apply to the retrospective appraisal? Does the bond apply to the appraiser who does a review of the retrospective appraisal?

Why not bond everyone? Why should the lender escape or the real estate agent or the home inspector or the loan/mortage broker.

Please note that it is the AI Washington office that is leading the charge against this absurdity.

 

[panappr]

This means that an appraisal is a guarantee within 10% and no longer a trusted opinion of value, and that's for now. A bill can be amended as time goes on, so I expect that number to change in the future to more like 5% or maybe even 3%, because someone will make the argument that 10% is just too low. I'm sure we'll be fighting to keep it at 10% someday. Surely with all of the lawsuits that arise from this, the cost of the bonds will increase like everything else, but what will the appraisal fee be then? Still $165 - $200, I think not. If this passes the cost of an appraisal will increase dramatically, and the need for an appraisal will decrease dramatically. I'm sure the AVM world is watching this closely. Shouldn't they be bonded as well??? No, because there will be a waver provided and signed by the buyer and lender to exclude these products from any liability.

In a conversation with a friend (attorney) on this issue, the liability associated with being an appraiser would be almost prohibitive. The cost of the average appraisal would have to be more like $1,500.00 - $2,000.00 minimum in order to justify. And who will pay for this? The public, as another layer of protection, a guarantee that the house they've been sold or appraisal they have received is actually worth every penny or within 10% for now. That's what they want a guarantee. In addition, every appraiser will need to have an attorney on retainer and incorporate, crazy not too.

I don't want to be an independent appraiser anymore. I'm gonna go throw-up.

 

[panappr]

Why not bond everyone? Why should the lender escape or the real estate agent or the home inspector or the loan/mortage broker.

They actually have a lobby in Washington that protects them from the government.