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Your Appraisal Business and Congress-2008

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rcsone

Senior Member
Joined
May 26, 2007
Professional Status
Certified Residential Appraiser
State
Oklahoma
Why has there been so little discussions about what is going on in Washington and its effects on appraisers?:shrug:Pistol packing, dog barkings, ladder selections and concrete blocks have generated more response......m2:.........best to all................rs
 

c w d

Senior Member
Joined
Oct 2, 2006
Professional Status
General Public
State
Florida
Um, I dunno. Maybe because not too many appraisers can afford to donate to their congressman in order to get him/her to listen to them over the lobbyists? *shrugs*

Perhaps most appraisers don't understand or know whats going on?

Maybe they think (and they'd probably be right) that it doesn't matter what we say, the lender interests are always going to win out and anything we get out of legislation will be second to their interests?
 

Workbox

Elite Member
Joined
Mar 2, 2005
Professional Status
Certified Residential Appraiser
State
Colorado
Some one is listening to us, look at what happened on Wednesday.
It took these many years to get into this mess, it will take just as long.
 

rcsone

Senior Member
Joined
May 26, 2007
Professional Status
Certified Residential Appraiser
State
Oklahoma
....I guess the fault of attention is mine, but my readings see it as a great postiive....could it be I am going blind in understandings?.....I was looking for something in support of my positive attitude about this legislation. It has been suggested this places us in the hands of AMC's, but it does not to me. The total plus new "guidelines" from the coming Czar should promulgate enforcement and work criteria that will encourage the capable and responsible. Anyways the determinates of passage have already cleared both houses of Congess by large margins. Plus over 75% has already been past by both houses. An attempt at reconsider was destroyed by a 90% vote in the Senate. The President's veto threat, which can be overturned easily based on the margin of the prior votes on the parts, was based on some sections of lender/speculator default recoveries thru the public's purse. This was removed by the leaders of both parties before it was submitted for a final vote. I would suggest this will have a longer effect on the appraisal profession than the unenforced dictates of anything, like USPAP or whatever. AND I THINK THE GAME IS BEING CHANGED TO OUR ADVANTAGE, but I have found no confirmation here on the Forum....best to all....rs
 

Mystery man3

Junior Member
Joined
Jul 26, 2005
Professional Status
Certified Residential Appraiser
Send this to congressman

Dear US Reprensentative,

My name is (your name) and I am a FHA appraiser and wanted to alert you to the fact I have seen an increase FHA fraud recently as FHA loans become prominent. I believe this may turn into a significant loss for the United States government.

The fraud occurs as follows loan officers who have a vested interest in seeing a loan go through select the FHA appraiser who they know will bring in the value the highest and ignore problems (like a leaky roof. etc.) with the house. Although this is illegal sometimes loan officers are as flagrant as calling or emailing different appraisers until they find one that will bring in the house at the "right" value. Hence the way the system is set up right now those appraisers who cheat will receive the most work and honest appraisers will not be reused as loan officers will use the appraiser that makes their loan work.

Why this should concern you is that as the FHA makes loans, it is using the appraisals to determine how much money to loan the borrower.

For example, if a house is really worth $250,000 and cheating appraisers appraises the property for $350,000 the FHA will loan up to 97% of the appraised value which is $339,500. If the homeowner never makes a payment the loss to the United States government would be $89,500 which is the difference between what was loaned $339,500 and what the house would sell for $250,000.

Although $89,500 may not sound for a lot of money think of how many houses are out there and how many times this scam could be repeated.

The way to stop this is an appraiser selection process like what the Department of Veterans affairs has in which appraisers are randomly selected by the VA office and not the lender. In this way appraiser independence is restored.

In addition more resources should be devoted to taking unethical appraisers out of the system. Appraisal fraud I believe to be rampant and the source of being of the problems in the banking system.

If these steps are not taken I fear the United States Government may take a significant loss on these loans like many of the banks in our country are suffering at this time.

Thanks for you time,

(Your Name)
 

rcsone

Senior Member
Joined
May 26, 2007
Professional Status
Certified Residential Appraiser
State
Oklahoma
....if you would read the appraiser parts of the Federal Housing Finance Regulatory Reform Act of 2008, I would hope that you, Jeff, and I could and would agree that these "errors" of process are in punishable remission......rs
 
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