What amazes me small potatoe consumers such as Molly Katchpole can grab onto a piddly issue like a $5 monthly bank fee increase and wrestle the beast to the ground like a pit bull within months. These same people could care less however that homeowners are being raped on a daily basis through what Ken describes in this article. I have forwarded numerous articles on this to the Wall Street Movement and Molly Katchpole with no response. That leads me to believe that the following is taking place. Both Molly and the Wall Street Movement guys are smart enough to figure out that $5 service fee increases are not a good thing but they could care less about what Ken is describing since they live in tents rather than houses. Homeowners on the other hand are so busy working three jobs to save their mortgage that they never bother to dig out the few articles that have been written on the subject by Ken. Other than Ken’s once a year article the national media refuses to cover the issue. Why? Because media outlets are losing their assets (hand over fist) and depend upon the very banks they would be condemning to stay afloat.

End the rape. Visit BankRape.com

You are right on both counts.

There will indeed be an appraisal shortage in the near future. A shortage of experienced apparisers already exists. The continuing downward spiral in housing prices and upward spiral of inventory are the direct result of handing the keys to the industry to inexperienced appraisers. We have no way of knowing exactly how many appraisers have left the industry because states offer no incentive (discounts) for placing your license into escrow; therefore appraisers are renewing their license but refusing to use them. I’ve read that 30% have left the business in 3 years. I suspect that the reality of the number is closer to 50% with 80% of that that number being appraisers with 10 or more years of experience.

No intelligent human being will enter the profession in the future either (much less a college grad). This however plays into the hand of those who planned the gutting of the industry in 2008.

THE PLAN

*Purge experienced appaisers and you ruin the quality

*Capture the profit but leave enough fee on the table to deceive the inexperienced. It will take this group months (or years) to figure out they cannot earn a decent living at it even by cutting corners.

*When the downward spiral occurs in home pricing and inventory increases lay the blame on ineffective appraisers.

*Now that 90% of the appraisal market has been forced to go through AMCs; use the new UAD platform to scrape the remaining data from appraisals which go through the system. [Before the UAD was implemented the system was incapable of handling the amount of data].

*Slowly begin a discrete campaign which promotes the use of AVMs rather than using actual appraisals. With advent of the UAD AVM quality will increase considerably. On the flip side, fee capture has already assured complete destruction of quality reports from appraisers.

Now you have it appraisers. The complete plan. Rob appraisers of their profits, insure that quality continues to erode, and then rid yourself of those pesky appraisers once and for all with higher quality AVMs.

Enough said?