The Winds They Are A Changin

[Elliott]

Rates are down, activity is up....lots more of
those 2055 drive-bys. Today it was two 1004s
and two 2055's, but what was really scary was....

A loan processor called up and said to cancel
that appraisal (fortunately I had just completed it)
because the property qualified for FNMA's new
NO appraisal program (they were only borrowing
$50K on a $200K house).

elliott

 

[Eric Boggs]

ElliottReed,

The times are definitely changing. I have been appraising since 1983 and have seen a lot of change. All I need is one more year to finish an additional degree and I am 'outa this field. The future for appraising will be a challenge at the very least. And, the fees will probably keep dropping as we compete with BPO's and "no appraisal" loans. I am so tired of 12 and 14 hour days while my income keeps dropping. Not to mention, the "I need $X value," or "we have a target value of $X," or best of all "the owner thinks it is worth $X." It will be so nice to be in a profession where my services will actually be needed.

Eric

 

[Elliott]

Eric,
I've been a fee almost as long...and I'm thinking
5 years to retirement. As with all markets, real
estate will go through an adjustment and Congress
will have to reign in FannieMae when their losses
hit billions and billions of $. I talked to a loan officier
(ex-appraiser) in southern California and he was
scared the way prices were zooming, cause he'd
seen it all before and knows what will come sooner
rather than later.

elliott

 

[CindieWilloughby]

I have an acquaintance who works with FNMA and is constantly sending me e mails describing new occurrances of appraisal fraud. Methinks she is trying to remind me how 'bad' we are - the profession that is. However, she did send me an article concerning the AFL-CIO and their recent recognition of the fact that the mortgage paper in which they invest their "billions" is now being offered without an appraisal of value of the collateral. They are not happy, according to this article, has ANYONE seen this??? I tried AFL-CIO on line and can not find anything. Three cheers for the union powers that be. What in the would would happen to FNMA's funding sources if these guys pull out?

Well my opinion is, yes there are some bad appraisers out there, but does FNMA think it is better to leave the valuation determination up to commissioned driven realtors or loan officers??? I am not condemning those guys but there needs to be an impartial 3rd party. And how many of you have had disgruntled buyers who pay for this 2075 and later find out there is no appraised value - we had a case in which one buyer DEMANDED a value!! Smart guy!

 

[Larry Lyke]

Cindie --

The one big hurdle that the appraisers cannot get over regarding 3rd party appraiser selection is that all appraisers would be treated equally. It may be in the Constitution, but it ain't in our collective interest.

The good appraisers simply do not want to be treated equally. They want to be treated like the professionals they are.

3rd party selection means that the bad appraiser gets the same amount of work as the good appraiser.

That's not equal -- that's downright unfair.

 

[Ben Vukicevich SRA]

Cindie,

Wait until you get one of those 2075 "buyers" that wants an update when they refi later, only to find out they paid for a full appraisal and they received a 2075.

They become quite irate because there's nothing to update.

Ben

 

[Blue1]

Yeah, now they're asking for 2055's for purchases. I don't do 2055's for purchases. Seems they actually think that it will take less time with a shorter form.....how wrong they are.....

 

[Ben Vukicevich SRA]

Blue,

I always like the 2055 exteriors when it's an inside row townhouse. Just how deep is that thing? I a'int measuring around the whole building to find out-they're supposed to be less work, right?.

Ben

 

[Paulette in Texas]

Okay, where you gonna put your money? Give it a good long thought. Where you know the "computer" generated the value and all that investment house retirement money and the rest...No. I think after a couple of serious glitches where the value just wasn't there, the nationals will decide what's another $150-$350 to make sure that the paper is worth what they are picking up. God knows, enough big names have warned them NOT to sign on to FNMA and Freddie's latest scam. Let's see, retirement just around the corner and I want to beg the Enron Giants to please do me over with their $50 crapola. I don't think so. Have a feeling alot of other PRUDENT investors will also expect the portfolios to have more of a backing than what is currently being offerred.

I further expect FNMA to start going after those crapola appraisers and their garbage reports. We have nothing to fear except those number making lazy guys who just can't churn it out fast enough or cheap enough or with limited info in it. After all, according to them...if you don't give them but a limited amount of info, they can't come after you for mistakes. What a sorry excuse for doing little. I say, if it takes a narrative and you accepted the order then give them a dad-blasted narrative and then some. What ever happened to "pride in workmanship?" The idea is to make that distant twit underwriter able to know what they are lending on and what their risk is based on the comps provided...I believe that's known as an appraisal. Enough said. Paulette in Tx
go w...
Rotts rule and Shih tzu is fine too.

 

[Elliott]

Paulette, et al,
Maybe we need a term to refer to 'less than full appraisals',
like "Junk Appraisals" so the investment community will
think of them in the same manner as "Junk Bonds."

I did a quick calculation, 1/3 of my reports are now
2055's.

elliott