What if.

[Tony V]

I would love to see the foreclosure #'s tied to the lenders, u/w's and LO's...that would be a more telling number as these folks are the ones responsible for these loans....and making sure that the borrowers are not overextended..

 

[ZZGAMAZZ]

Tony: Is it true that the originating broker must buy back all loans that failed to perform during the first 12 months? I've heard that issue discussed dozens of times but don't know if it's true or not.

 

[Tony V]

Tony: Is it true that the originating broker must buy back all loans that failed to perform during the first 12 months? I've heard that issue discussed dozens of times but don't know if it's true or not.

I'm not sure how that works, However take a look at when the Loans were made on your local forclosures...around here it appears that most are 2 -3 years in...

 

[Terrel L. Shields]

a benchmark could possibly be established based on volume, total dollars appraised, etc?

Any thoughts?

what it would actually do is make the better appraisers avoid most lenders making all but the primest of prime loans.....leaving the lesser ones to the skippies who are coming and going like mad. And it would also reflect against those appraisers who are the most competent to appraise problem loan properties.

At least you would need to post the FICO score of the borrower against the results

the originating broker must buy back all loans that failed to perform during the first 12 months

depends on who and how. If the MB is gone, he cannot. If the bank is gone (like IndyMac) they cannot. So the security holder gets stuck with it.

 

[Riick]

Makes exactly as much sense as FNMA rating my REO estimated values on how well the Broker promotes the property (as opposed to selling it to a buddy at a sweetheart price) and pushes for a good -rather than a fast- deal for the Seller.

 

[Mystery man3]

Foreclosure statistics

Keeping foreclosure statistics on appraiser would not work. One of the counties I work in has a 28.8% decline in value year over year. Bet my foreclosure rate is very high through no fault of my own.

Plus the crappier the area you appraise in the higher the chances of a foreclosure. Am I not supposed to appraise there because it will hurt my statistics.

Very dumb idea in my opinion.

 

[Terrel L. Shields]

I work in has a 28.8% decline in value year over year. Bet my foreclosure rate is very high through no fault of my own.

I am unawares of a single property I have appraised going in default where the loan to value was 80% or less. In fact, probably none under 90%.

 

[timd354]

......................................

 

[timd354]

If this ever came to pass, my new fee schedule would look something likethis:

Appraisal Fee* .............LTV........................ Credit Score...................... Debt to Income Ratio

$400 .........................<75%........................ >720.................................. <36%
$450 .........................<80%........................ >700................................. <38%
$600 .........................<90%........................ >680................................. <40%
$1,000...................... <95%.........................>660................................. <45%
$5,000 ......................>95%........................ <660................................. >45%
$10,000.................... >97%........................ <640................................. >50%

* ADD $10,000 for non owner occupied properties.
* To qualify for fee listed, loan must meet all parameters for the listed fee, otherwise go to higher fee below until all fee parameters are met
* $1,000 SURCHARGE for all FHA appraisals
* $10,000 surcharge for all 2-4 unit properties

 

[ghrousseau]

Tony: Is it true that the originating broker must buy back all loans that failed to perform during the first 12 months? I've heard that issue discussed dozens of times but don't know if it's true or not.

It depends on the broker agreement. Most times, unless there is fraud by the borrower or broker, the lender only goes after the fees the broker made. Our agreement only requires buybacks for fraud or occupancy issues. If it just pays off early or defaults we get any fees the broker made back to offset the costs.