Sales Grid Adjustment Comments

[djd09]

Fannie forms, fannie guidelines, fannie rating system, fannie uad, fannie CU.

Just remember to sign the certification claiming independence.

If we only knew what the government wants us to know then we wouldn't know anything.

 

[timd354]

we wouldn't know anything.

That does not seem to be an issue in your case

 

[djd09]

Fannie and the secondary market have nothing to worry about. 8 years of ultra low interest rates , increasing values, and affordable housing laws will never catch up to them.

 

[djd09]

All is good. Look at the job market, participation rate, and stagnant wages. The fannie bubble must be cozy.

 

[Terrel L. Shields]

My point is that anybody that thinks appraisers did not have a hand any mortgage mess over the years, then they have their heads buried in the sand.

When you are valuing property with a Positive Economic Model then it cannot predict a future value-it is here, now, today and thus myopic; and, since a bubble has a life of its own, property did not have to be over-valued (pushed by the appraiser) to support high valuations when you had Realtors pushing value, bankers pressuring for value, sales concealing concessions, etc., and therefore, I would say the appraiser was the least of the problem. When the sale price includes a Hummer or world cruise, or the builder paying the first six months of your mortgage, and none of that shows up on the MLS...it's hard to find negatives.

We still have that system. We as appraisers cannot see the forest for all the trees. We will follow the market over the cliff edge because we are not applying the Normative Economic Model... and won't ever be applying it. All appraiser ever said was that this house would bring this much on this day and most times they were right. None of us said this house SHOULD bring this amount and anything more is above the trend line therefore, we are in a bubble until the market decides to revert to the mean. And the bigger the bubble, the reaction is to over-compensate and thus we should then say the value has fell below its mean and is unnecessarily low. That's why with "markets" going up at 5% annually, some REO sales jumped by 40% instead. The REO was undervalued.

 

[djd09]

Fannie and the AMCs are good at long division. They should stick to that.

 

[J Grant]

"Terrel L. Shields, post: 2745185, member: 67077"]When you are valuing property with a Positive Economic Model ?/

Where is a positive economic model an assignment condition? We opine market value per the definition of value (most probable price, not highest most probable price)

then it cannot predict a future value-it is here,

Nothing, I repeat Nothing says we are predicting a future value (unless assignment states such on future X date value will be Y$)

now, today and thus myopic; and, since a bubble has a life of its own, property did not have to be over-valued (pushed by the appraiser)

There is a difference between a high value (CREDIBLY supported as oft eff date ) and a PUSHED value/over value appraisal that is not credibly supported as of eff date..whether prevailing prices are high or low on an eff date.

Most of us who did not push value, still opined a high value during the bubble, because the entire market after a certain point in many areas became "over valued", but that is different than even within the time frame during bubble, certain appraisers pushed/inflated value over what was credibly supported even back then. The tricks used by an appraiser to inflate/push values are the SAME in any market, ( can be used to deflate value if that is the goal). I've reviewed in all market cycles and the SAME tricks to push value/hit a target are present in various market cycles, whether bubble, stable, declining or appreciating.

to support high valuations when you had Realtors pushing value, bankers pressuring for value, sales concealing concessions, etc., and therefore, I would say the appraiser was the least of the problem.

You and others like you show a maddening ignorance of the problem. First off, this deflecting of blame for APPRAISER's actions ( segment of appraisers that pushed value), by pointing out the bad actions of bankers, RE agnets, etc is sick...all an appraiser had to say was NO to a banker pressuring , or RE agent pushing. Some appraisers during the boom said NOT, others said YES to pressure...the main problem was, lenders at that time were free to cherry pick appraisers, and tended to give bulk of assignments , or at least purchase assignments, to appraisers who said YES to pressure. The over correction for that came from HVCC and third party firewall ordering.

When the sale price includes a Hummer or world cruise, or the builder paying the first six months of your mortgage, and none of that shows up on the MLS...it's hard to find negatives.

how hard is the above to find out....the appraisers job, the $ inflation wasn't even usually due to that in the boom

We still have that system. We as appraisers cannot see the forest for all the trees. We will follow the market over the cliff edge because we are not applying the Normative Economic Model... and won't ever be applying it. All appraiser ever said was that this house would bring this much on this day and most times they were right. None of us said this house SHOULD bring this amount and anything more is above the trend line therefore, we are in a bubble until the market decides to revert to the mean. And the bigger the bubble, the reaction is to over-compensate and thus we should then say the value has fell below its mean and is unnecessarily low. That's why with "markets" going up at 5% annually, some REO sales jumped by 40% instead. The REO was undervalued

I am not even going to respond to the last paragraph as would take all day..See Tim Hicks post 159

 

[djd09]

I'm sure post 159 includes everyone except TimD, JG, and Tim Hicks.

 

[J Grant]

It's not about how were appraisers supposed to predict the future crash of values in the high bubble cycle (though anyone with a brain could foresee it), but a case of as of an effective date during the boom, did an appraiser inflate/push value of a property beyond what was credibly supported , given that even "regular" transactions were high priced at the time .

"honest" appraisals as of an eff date during the boom may have appraised at a high value ,relative to the decline afterward. But that is a different issue than a pushed value appraisal as of an eff during the boom. If 6 similar recent property sales were available, and 3 sold sky high as investor multiple flips, and 3 sold high but within prevailing range as owner occupant transactions, which 3 of those sales might an appraiser use as comps, and how would that choice affect their market value opinion...whether during the boom, or today.

 

[Artemis Fowl]

"Terrel L. Shields, post: 2745185, member: 67077"]1...Where is a positive economic model an assignment condition?
2...Most of us who did not push value, still opined a high value during the bubble, because the entire market after a certain point in many areas became "over valued",

1. I do not think those words mean what you think they mean.
2. I dunno. I thought I was opining Market Value at the time. No one told me I was supposed to appraise The Market too.