S. 2452, the Homeownership Preservation and Protection Act

[PropertyEconomics]

Let's say for round numbers it is $3,000 a month (remember, I think this thing has no chance of passing).

I would add $750 per commercial report and $150 per residential. This would assume a volume of 10 residentials a month and two commercials per month. If the commercial was not typical I would have to add $1500 to the report for the bond. Considering the typical commercial fee is $1500-$3000 that is a 25-100% additional charge to the client.

How many appraisers would be out of business in the first month?

I already carry a $1 million E&O Policy which would equate to a $100,000,000 bond. I think Im adequately covered . of course my E&O company might fight some for me .. guess they dont want anyone fighting the homeowner over silly suits.
I too think this will never pass.

 

[Ajax in CA]

Breakfast at Deny's?

This is insanity! m2:

And here I thought things couldn't get any worse.

Guess I better pick up an application at Denny's while I'm there for breakfast this morning. Would you like a refill on your coffee sir?

Wow Deb, you can afford to go out for breakfast? I'm jealous!

On a personal note, your prayers paid off. No threat of the fire reaching our house... Ajax in Corralitos

Oops! Spelled Denny's wrong. Sorry

 

[Flygirl 152]

Wow Deb, you can afford to go out for breakfast? I'm jealous!

On a personal note, your prayers paid off. No threat of the fire reaching our house... Ajax in Corralitos

Oops! Spelled Denny's wrong. Sorry

Your post gave me the giggle I needed today.

I'm so glad to hear you and your home are safe! I was getting ready to pitch a tent in the backyard and adopt you!
On a serious note it is so sad that many lost their homes and land in the fire, and very sad to see all that forest burned, and the pets and animals lost.

 

[Deleted member 80407]

This bond makes no sense what so ever. Why come after the appraiser? Why not go after the money? Maybe the morgage LO, mortgage house or bank? A good number of LO's make from $1,500 to $2,500 per loan (honest ones) with some without "hearts" making up to $5,000 to $8,000 or more on a loan. Most all live in big expensive houses. What does a funder make over the period of the loan? Considering the appraiser has no say if the loan is to be granted, why should we have to be bonded? I believe that if a bond is needed, the funder should have the insurance rather than the appraiser because they are making the decession on whether or not to make the loan. If the lender wants, they can then pass the cost of the bond to closing statement. If a bond was placed on each and every loan made by the lender (lender paid), I believe the pressure on the appraiser to make value will go away.

What does an appraiser really make in todays money? Gas in Illinois is now about $4.30 a gallon. Tax in Cook Couny Illinios is over 10%. We are being taxed on our phone, electric and water bills. We are being taxed when the money is made and also went the money is spent. Wondering how much the dollar is worth today? Maybe $.25 to $.30 after all taxes are paid? The appraisal industry is just like the housing industry. To many appraisers (supply) and not enough work (demand). Appraisal fees are decreasing because there are to many appraiser's accepting work for the low fee's. AMC's only want to pay from $165 to $225 per appraisal, expcept for a few AMC's which pay reasonable fees. Wondering why the people who make the least amount of money (appraiser's) have to assume all of the liability of a transaction.

 

[c w d]

Why come after the appraiser?

Obviously, they are blaming the problems in the market on us....again.

 

[Bama Bayou]

Wow!.The would put independent appraisers out of business.Who determines this mythical 10% value inflation ?.Probably a board of lawyers with millions of home debtors suing every appraisal they can get their hands on.Why not sue when every appraisal could be 10% inflated if you get enough so called "Reviewers" to say so.Since an appraisal is no longer an opinion I suggest that just use AVM'S or maybe BPO'S for all mortgage transactions.I will go th Beach and dig clams , gotta eat..Welcome to the new Communist block country , the new Bolsheviks have taken control.Vote Libertarian..

Many studies have shown that SFR prices have about 5% of value that can't be proven by any means. Real Estate is not a perfect market, and we cannot say that every buyer and seller has the exact same motivation or negotiating skills. What about 10% deflation? If there is no penalty for that get ready for things to get real interesting. I personally think that deflating appraisals is just as wrong as inflating them.

 

[Lobo Fan]

What I foresee with an appraiser bond is every borrower that thinks yyou undervalued the property will be coming after damages against the bond. The lenders might be pushing for an easy pool of money to tap to help recover losses.

 

[Kevin Mc]

Hell, that might be low. What about appraisers in an area like New York? How many dollars in value do they estimate every year?

I'm a NY metro appraiser. The average home in my area is $500-600K.Last week I did double that(1 million in loan amounts) and it was slow.

 

[RSW]

Have everyone call their Rep. in Congress.