Wisconsin Assembly Bill AB 472

[Eastman]

I sent a letter to the senators that were going to hear AB 472 in committee on Wed Mar 10th and asked them to postpone the hearing because of the appraiser meeting in the Dells. They postponed the meeting. I will post the meeting date when I hear when it is. This BPO thing is really getting out of hand. These lenders are now have real estate people do BPO's and having licensed appraiser review the BPO and co-sign it. If you do this it becomes an appraisal and you are violating USPAP, don't do it. Here is an interesting scenario for you to consider: a person buys a house and gets a mortgage from a bank. The bank sells the mortgage on the secondary market to an investor who insures the mortgage against defalt with AIG or some other insurance company. The loan goes into default and the bank who is only servicing the loan forecloses on the property. The bank hires a real estate person to do a BPO. The real estate person wants to buy the property from the bank and gives a low value. The real estate person buys the property from the bank. The bank doesn't care what they got for the property from the real estate person because the balance of the mortgage owed comes from AIG or some other insurance company. The taxpayers then bail out AIG. Does this sound familiar? There were approx 14,000,000 (with six zeros) BPO's ordered fron lenders in the last six months.