Yesterday's NCAB meeting (09/17/2002)

[Bob Ipock]

I drove up for the monthly NCAB meeting. There were 5-6 appraisers there for all or part of the pre-lunch session. Two fine fellows from my hometown drove up and attened as well as Tom Hildebrandt and a few others.

Three hearings were scheduled. All concerned wannabe appraisers who had been denied a trainees certificate and had appealed for a hearing. Two of the the three did not even show up. Needless to say, they were denied a trainees certificate.

The other fellow was there and was also denied his certificate. ALL THREE of the cases involved stuff that was found during the NCAB criminal background check and was NOT LISTED on the application. This is a no-brainer folks, when you fill out an application...fess up and tell the truth because the criminal background check will tell it all anyway.

The two NCAB board members who took the USPAP Instructor class and exam....both failed. So there is not anyone on the NCAB who is a Certified USPAP Instructor.

A ruling came back from a Superior Court appeal on a complaint case that has been going on for two years. The court denied the appeal and the appraiser will now lose his liscense for two years. He had three complaints against him (this time), one of which I had filed myself.

The court ruled that prior disciplinary action MAY BE CONSIDERED when the NCAB decides on the punishment after a conviction. The same court also ruled that a Standard 3 Review was not a requirement of the NCAB during the investigation of THIS case.

It was mentioned that the catagory of the HIGHEST NUMBER OF COMPLAINTS last month was those filed by FANNIE MAE! Folks, it looks like Fannie Mae is going to go after some appraisers.

It was also mentioned tht there have been more and more complaints filed by homeowners over LOW VALUES!. Most of these complaints have no basis and are being dismissed.

 

[Terrel L. Shields]

Fannie Mae is going to go after some appraisers.

First they dumb down the profession with drive bys, then fry someone for cutting corners.

 

[graindart]

It was mentioned that the catagory of the HIGHEST NUMBER OF COMPLAINTS last month was those filed by FANNIE MAE! Folks, it looks like Fannie Mae is going to go after some appraisers.

I don't think that Fannie Mae is trying to weed out the bad appraisers. What I think they're trying to do is weed out APPRAISERS in general. The scenerio I've heard and tend to believe is that Fannie Mae will flood the state boards with complaints and when Fannie starts getting high default rates, they'll just blame the whole appraisal system. Bad appraisers for the high default rates, and state boards for not ridding the system of these bad appraisers. I know up here in Montana if Fannie dumped 50-100 complaints on our state board all at once, that would double the workload which is already backed up years. By the time Fannie started having problems in another year or two, the state board probably wouldn't have even got to the first complaint yet, thereby giving Fannie ammunition to try to get rid of the ineffective state boards.

 

[Bob Ipock]

Let us not confuse Fannie Mae with HUD and FHA. Fannie Mae is BUYING these loans, based upon an appraisal (among other things).

If the appraisals are inflated and the loans go into foreclosure and in fact the homes are worth much less than the appraisal indicated....someone will have to answer.

Appraisers as well as lenders are going to have to explain some appraisals.
Most of us will not have any problem with this at all. Our appraisals will be honest, accurate and doccumented.

Fannie Mae is going to file complaints based on their belief that appraisals have been made which inflated the homes actual value. If the complaints are upheld at the state boards, they will have a damn good case to go after leners and brokers in court for damages.

Every appraisal we perform should be done with the understanding that it may be reviewd and we may be asked to explain and/or defend it. We all should understand that upfront when we sign our name.

The HUD "default rate program" is a whole different issue. The default rate is for loans. In many cases the appraisal may well be perfect and yet the loan will be in default. Apples and oranges.

 

[Pamela Crowley (Florida)]

We do need to admit that there are too many appraisers are not good, not ethical, don't know what they are doing or do know and don't care.

The REASONS for this situation were set up a long time ago and the blame falls first on the big banks that control the money. Most Appraisers that work for lenders have become exactly what the lenders intended/wanted us to be. Lap dogs waiting to be kicked with most not even aware that it's coming.

And it is coming. Fannie is already in trouble and the stage is set. Am I a doomsayer? Maybe, but maybe not. I believe that few will escape at least some of the backlash. It's very unfortunate, but there really are way too many appraisers out there that have no idea how bad they are because they were trained by some of the worst and didn't bother to find out the truth.

Too many years of no ethics from the top down. When crooks are glorified, promoted and rewarded...... sounds like the rise and fall of the Roman Empire or the 1920s.

OK, go ahead and call me 'chicken little'. Appraisers will be blamed, again, especially if we don't stand up and fight back. We must turn in the bad ones (police our own) and do everything we can to inform the media, the legislators and the general public. Those that don't really have nothing to complain about when it hits.

Nope, I don't have a crystal ball and I might be wrong.

 

[Jo Ann Meyer Stratton]

Fannie Mae's Announcement 02-02 and their new guidelines that went into effect 06/30/02 said they were going to start turning in appraisers to state boards and that lenders will have to buy back longs that Fannie Mae discovers as fraud and based on created sales. The paragraphs are buried in the information on manufactured homes, but does apply to all loans that Fannie Mae purchases. So actually I am glad to hear that they are doing what they said they would. Now how do we find out if they have started making lenders buy back their predatory lending packages?? That is what will really help matters. And start to get attention that might filter down to those loan officers and their bosses that have been encouraging the number of loans instead of the quality of the loans.