The Last Line of Defense
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As I wrote recently, we learned a lot about both our industry and ourselves in 2018. We do provide an invaluable service to the lending community even though most of the mortgage industrial complex doesn’t appreciate or want it, largely because of the moral hazard generated by the taxpayer bailouts of 2008. Our expertise will be shifting to the consumer in the near term with some snapback to mortgage work after this all ends badly in the not so distant future. We just can’t sit around and wait for it. As was said in the movie “The Shawshank Redemption” we need to:
I prefer the former, after all, we appraisers are the last line of defense for fraud.
In the current edition of mortgage fraud 2019, the regulators are leading the charge for removal of underwriting guardrails rather than the banks themselves. This is being done in the name of generating more mortgage volume to enjoy more fees. Falling mortgage rates over the decade resulted in falling loan volume because low mortgage rates were not the solution. Banks don’t trust the economy and the government any more than appraisers do.
This reckless behavior being pursued by regulators is all out in front of us to see and we as an industry need to point it out.
Appraisers are essential to help maintain the public trust, especially in the banking system, even as the regulators move away from safe practices. Exposure to consumers/taxpayers is expanding.
I am looking towards 2019 as a period of real opportunity from consumers for appraisers who seek it out, despite the repetitive mantra from large comprised institutions.