Pushing Automation to Replace Appraisers
Regulators today are often removing barriers to responsible behavior with the hope of expanding lending activity since falling mortgage rates aren’t the answer. Banks are pushing back and it is instructive to see the way FDIC thought back in 2006.
FDIC and the U.S. Treasury have turned out to be very anti-appraiser and are championing ways to automate as a way to replace us. Think about wildly inaccurate Zestimate-like AVMs on first mortgages. Economist, real estate agent and good follow John Wake shares this:
I LOVE this graphic from FDIC in 2006 bragging about the growth of interest-only, neg-am and non-prime mortgages to “Help Homebuyers Bridge the Affordability Gap." They also emphasized that 40-year mortgages "reduces monthly mortgage payments."https://t.co/ShspglIB6v pic.twitter.com/pGmUHT8duw
— John Wake (@JohnWake) July 12, 2019
- Valuation Connect Demands Licenses, Denies Fair Pay - April 9, 2024
- Appraisal Reviews for $3 – The Devaluation of Appraisers - January 16, 2024
- FNMA Continued Effort to Get Rid of Appraisers - September 29, 2023
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this is where the FUTURE of our industry is heading folks.
pretty scary how fast everything is accelerating……
Moore’s Law I’m glad I’m nearing the end of a great career but feel sorry for the new. Better have a backup plan.
No worries. Wait until the next market crash or recession…which is on the way…they’ll go the other direction…. constant teeter totter…
This is not new Jonathan. I’ve previously posted and written about the influence and written objectives of MISMO to replace BOTH residential and commercial appraisers in their specifically stated objective of achieving full automated processing of mortgage loans.
The prior published FHFA White Paper also pointed out the intent to ALL federal agencies to move toward that objective as well. It truly is a case of “their minds are already made up-don’t confuse them with facts!”
What WE have to do is come together (all peer groups, professional associations and coalitions) with an analysis of actual risks to consumers and taxpayers, and then take that to Congress.
The pathway is the House Finance Committee under Congress Member Waters. The varied views we all have on partisan politics need to be put aside for the moment. That committee is the only government agency that has shown any inkling of interest in the issues affecting (appraiser’s) consumer-related services to date.
Maxine Waters is a COMPLETE DISASTER Mike…
Might be the pathway to hell.
This says it all..
We’re screwed for sure as long as Maxine Waters chairs the committee. Remember how the last hearing went?
Knew that was coming
What could possibly go wrong?
Now where is that sarcasm emoji…
Anti Appaiser?
Interesting twitter feed. A 15 year home loan does not save on monthly payments. It does however save people total cash out of pocket payments, helping consumers free up funds, to then spend more money in more diverse places, better fueling the general economy rather than just the lenders economy 15’s also promote thrift and financial responsibility, rather than growing credit extension. Lower housing prices is a good thing, as long as rate manipulation and term extension are not the primary vehicles to get there. Big tech is not flawless. We still don’t know what parameters these tech companies use, as they refuse to share and call that proprietary data. Perhaps stop using the term, replace appraisers, and swap that with, eliminating long standing checks and balances systems. Like minds think alike and the combination of monolithic lenders and big tech will certainly wield an economic power over American consumers never seen before.
SB, I don’t understand the relevance of posting that It’s important to understand the Federal Reserve is a private consortium of international lenders, operating under the guise of promoting stable access to lending for American citizens. The video is merely another in a long line of examples of fed manipulation of monetary policy, and the inevitable unintended consequences of not allowing ‘the invisible hand’ to work as intended, misplaced trust. Nobody grilled the chairman quite like Ron Paul. Patriot Trading Group daily podcast and The Liberty Report ytb channel are some great resources for better understanding how the fed works. The fed seeks prosperity through growth of debt, seeking to devalue our currency 2%, year over year. Housing price increase is necessary to mask runaway inflation Swapping to automation helps keep up the pace.
One topic of the article, helping buyers bridge the affordability gap. If that’s truly the goal someone will need to put the brakes on and argue against advocating for vested interests of sellers. If there is one thing we can count on in regulated lending with taxpayer backing, self asking regulation will continue to have its day. Buyers, rather than sellers, will be the ones to make the sacrifices. Avm’s, evals, waivers, rising deminis, all tools to assist lenders in structuring easier access to keep this monstrously oversized lending economy moving along for one more beat.
They’ve got their priorities mixed up because until we put liberty first, rather than lenders first, regulation will accomplish the opposite of whatever good intention was brought forward. You can’t stop this but as Ron says, ideas have their day and because liberty is truly the only thing too big to fail, the message of liberty will eventually come forward again. If there are enough people well educated on the merits of financial liberty, this will determine if eventual economic restructuring will make things better or worse. One thing is for certain, things will get worse before they get better.
Please remember folks – IGNORE the intent of the author’s post and turn this into partisan political bickering. THAT is most certainly the best way to protect our profession! IGNORE the political realities of the environment we operate in.
Let’s all just throw our hands in the air and say the heck with it whenever the party we don’t like in our personal politics is in charge.
At times I wonder why people like Mr. Miller, Pat Turner, Joe Mier etc. as well as myself even bother. Appraisers are absolutely our own worst enemies.
FDIC is only required to have something like 1.6% of their insured amounts on hand in actual cash. Basically FDIC insured is synonymous with taxpayer insured.
In matters pertaining to taxpayer funded bailouts, there is always bi-partisan support. Standing by one side or the other will not move the needle of financial responsibility.
You know what they say, you can’t regulate honesty into government. That’s the citizens jobs, accomplished only through the power of the purse, and in a former life before career politicians became a thing, the power of the vote. How can we correct this problem by taking money from one group, and assigning it to another group instead? Taxation is theft, extended terms is usury.
Why do we need to expand government insured lending activity in the first place? A more pertinent question. If you catch me screeching red blue red blue, throw a cracker at me.