Because you are not over “there”. That is what the market says, not us

You ain’t wrong

Yeah. The situation is just alarming and confusing. The illusion of fair markets all the while investor classes have a totally different approach, a more sensible real world approach, to measuring risk factors.

What is the DOJ going to do with all those appraisal records?
How is it that now HUD has access to every appraisal for fannie since the CU data base started recording appraisals? They’re not the intended client. Certainly the DOJ is not. This is their idea of data security with CU appraisal data?

https://appraisersblogs.com/majority-of-reviewers-had-very-limited-field-experience/#comment-39237

Previously I wrote about the CU system, dangers of using typist services, and how this tool has been misused since it’s inception. And now they’ve given the entire body of appraisal records to the DOJ? What about our promises of confidential data to all the home owners? How do lenders feel about this unauthorized data sharing?

This defies belief and I’m still trying to digest this information. FHFA appears negligent here and perhaps someone should get the SEC involved. Clearly a bridge too far. Now requiring complaints be pressed against appraisers and state boards are overwhelmed nationally. Are these bonafide violations of appraisers and consumers constitutional rights? Does Brookings Institute have a copy of the CU system data too? The gravity of this is simply incredible.

I think the industry, and the world for that matter, would benefit greatly if youth education began with common sense rather than political correctness. When in Rome, do as the Romans do, is an age old, very logical, common sense application of humanity. Without describing my own sex, religion, weight, political correctness, or bias of any kind for any reason, if I am in your neighborhood, state, country, organization, church, or whatever……. then I approach the assignment, job interview, guideline compliance, whatever, with the Golden Rule as my engagement letter. If I am a lender, I want to know if the security for my money is in a blighted or crime ridden area, headed in the wrong direction, or prone to foreclosure, I DO want to know that, and I DO want that information well supported. I DO NOT care what the color, sex, religion, ethnicity of the borrower is/are, but I DO CARE about the payment/credit history of the prospective borrower. Now then, if my only choice is to retain a licensed appraiser to get that information, and that licensed appraiser is wearing handcuffs and a blindfold regarding what I need and want to know, working instead in favor of industry standard political correctness and legislated rulings that they CANNOT offend anyone, especially the borrower, then my money comes out of the loop. Quite simple, actually, and just wait until the federal census rules are changed. Imagine what happens to the national and global economic planning when all the information now reported (sex, race, national origin, age, etc), that appraisers are prohibited from mentioning under threat of cancellation, becomes extinct. Just imagine. Then remember this old whining fart that said “I told you so”.

https://www.fhfa.gov/blog/insights/reducing-valuation-bias-by-addressing-appraiser-and-property-valuation-commentary
They looked at millions of appraisals and this nonsense was all they found.

https://www.usmi.org/policy_priorities/guardrails-for-appraisal-modernization/
Related.
Industry related, not everyone is cool with such broad use of waiver programs.

https://web.archive.org/web/20240227183408/https://www.fhfa.gov/AboutUs/Reports/ReportDocuments/FHFA-2023-PAR.pdf
Control+F to bring up keyword search tool, enter; appraisal

Another challenge for FHFA is providing sufficient oversight of the Enterprises’ use of appraisals to ensure those appraisals do not improperly consider bases that are prohibited by federal fair lending law. FHFA’s independent review of a sample of appraisal reports concluded that valuation bias persists in housing finance in America. In its review, the Agency identified several overt references to race, color, and other prohibited bases in appraisals. During our evaluation, FHFA told us they made 17 referrals to the U.S. Department of Housing and Urban Development and made appraisal information available to the U.S. Department of Justice. The Agency also told us it shared information with the Consumer Financial Protection Bureau. Although the Agency had not taken the additional step of filing complaints with the state licensing authorities responsible for investigating complaints against appraisers, in April 2023 it required the Enterprises to submit complaints to those authorities. Working to identify and address appraisal bias will continue to be an important challenge facing FHFA and the Enterprises.

Which takes us to a report specifically about this filing complaints endeavor.
https://www.fhfaoig.gov/sites/default/files/EVL-2023-001.pdf
Here is a gem;
FHFA also reported that it has made approximately 25.6 million active appraisal records available to DOJ; FHFA has not made any specific referrals to DOJ Anyone care to calculate this ratio of investigations to actually finding something? What’s the technical percentage or odds on 17 in 25.6 million?

FHFA told us that it made 17 referrals and provided approximately 25.6 million active appraisal records to HUD, the agency with lead responsibility for enforcing the Fair Housing Act.

And somewhere in the past several months posts, I had posted the FHFA conservators monthly proposals or guidance points for Fannie and Freddie, and one of their constant points which the GSE’s are required to accomplish, in order to stay compliant with conservatorship rules, is to ‘increase the amount of automation used to eliminate human appraisal bias’. Basically forcing all of us out of a job based on an assumption their avm systems will be more reliable, and an assumption because there are so many white appraisers, none of us can be trusted. (but magically we’d be trustworthy again if totaly unrelated people whom were not white, were also part of the industry.) Perhaps if they did not allow legalized theft and embezzlement by way of sanctioning the AMC appraisal management industry, the appraisal industry would not have shed well over 100,000 licensed persons, and we could have kept up with the times and trained more people, to better represent current social relations and conditions. FHFA totally does not understand the issues revolving around the appraisal industry.

Dare to look. I’m getting pretty tired of even looking at this, but per your comment Mr Kues; they probably believe these decisions are made using those criteria and common sense, but it’s pretty obvious to actual working appraisers they have swung for the fences and struck out repeatedly, so far off base, these decisions defy logic. Yet, per other industry stakeholders perspectives such as USMI United States Mortgage Insurers Group, as posted above, some are drawing more rational logical conclusions and urging caution rather than abandoning the merits of using human appraisers. Although I’m sure most of us would agree; more desktops and remote inspectors is not the right answer. Isn’t it nice to know the entire CU repository is now in the hands of HUD and the DOJ? Brilliant. I wonder if they’re even aware of the AEI report from Tobias…

https://www.aei.org/research-products/report/how-common-is-appraiser-racial-bias-an-update/
AEI report related. I mean for real, 99.99999% of the feds discoveries on the matter are clearly on the side of incompetence, and not bias. Seventeen idiot appraisers out there making comments like ‘the neighborhood got spicy’ and such, ruined it for everyone else. Good thing the government does not hold itself, and it’s own employees to a similar standard of total and complete one size fit’s all and if anything goes wrong it’s everyone’s fault sort of accountability. Today’s research reveals fresh data, relating to the pattern of increased state agency complaint referrals regarding appraisers. Dare to look. As far as comments disappearing, refresh the page, that’s most likely something technical related, happens to me now and then too.

Not sure why my previous post disappeared, but just be reminded that changes is guidelines & standards should take intelligence, ethics, and common sense as well, not just with specific intent to make the lowest paid spoke in the wheel the biggest scapegoat.

Can we flip the argument? Where I could get an ‘equitable appraisal’, which values the home as if it’s somewhere else, so I pay less instead? The homes over there sell for less, so why should I have to pay more?

Sorry to say, and, I tried to bite my tongue, but Biden is a joke. He has no clue what he is talking about less an authority on appraisal or how the appraiser does his job. He just needs to shut his pie hole. My comment is also is inclusive of female appraisers.

Sadly, all those making these comments and decisions in our industry are completely ignorant to our process. All of the sudden, Location, Location, Location doesn’t matter ?? Who should the focus be on ?

Lower taxes by the black dude. Why? Cannot say this in the appraisal: Higher crime area. Statistics: Blacks comprise 13% of the overall population. Yet commit 65% of all crime. 50% of all homicides. FBI statistics NOT mine. But we are not allowed to point out this FACT. Politicians indicate that black neighborhoods are “undervalued” by racist appraisers? Or is the value of the homes less in a (non-identified) higher crime area. Ignoring facts can be dangerous, this is a double edged sword. Damned if you do, and damned if you don’t.

This is EXACTLY what I keep harping on. We are our own worst enemies. We’re in a “cut-throat industry” where we’re all cutting our own throats.

Well Real Estate is the last and final tangible item that Americans own. If all safeguards are removed; the grand theft “real estate game” can begin.

So the black dude pays lower taxes? Sounds like fiscal responsibility to me.

“Yes I’m sure on the appraisal form used by lenders, there’s a big box that says CHECK THIS IF OWNER IS BLACK. Yeah. That’s totally how it works.”

https://x.com/townhallcom/status/1744420973321859115

Biden: “A home owned by a black family on one side of a highway, built by the same builder on the other side of the highway, and a white guy living in it, the white guy's home is valued more than the black guy's.” pic.twitter.com/Vinn5ei7Co— Greg Price (@greg_price11) January 8, 2024

Building skills and in turn an online community whom constantly contributes incrementally to better total picture awareness and education. I’ve learned a lot through these forums, having researched so many specific points, all the links. One step at a time. The long standing position is that people will care about this research and content, when shtf. Which many believe is already airborne and heading for the blade. Every contribution matters, in it’s own interesting and often unique ways. I wrote a letter to judicial watch just recently. And the mayor, and the governor. Was thinking of forwarding some of it to the pro bono law firm Mr Bagott referenced in one of his latest articles, the one with the engineer. Most realty sales agents stand in stark disagreement to FHFA’s goal on automating humans out of the process, especially appraisers. Most people literally laugh when I tell them the appraisers are all racist story, as if I’m making up a joke or something, the concept is that absurd and typically only accepted by those already deeply immersed in state propaganda. I like independent appraisal and it’s unfair for them to shut this industry down to accommodate a big short or the next socialist program. So we keep fighting. Retiring, leaving, or abandoning all the citizens to GSE’s modernization programs solves nothing, everyone in this country will be effected by these policies eventually. Everyone’s’ contributions do matter and are important. Write a new article. Unique honest journalism is so difficult to come by lately. Keep looking up.

Oh come on guys. Pepe the frog is just another meme string which organically originated from various online forums and peoples imaginations as they debated online. It’s funny, because of the ameture qualities and the million cheap photoshop alterations out there. A frog eating popcorn, now a symbol of white nationalism? This defies logic and is simply not a rational conclusion. Pepe’s fun, he’s your online pal. Before that was the ‘bait’, also quite entertaining and images worthy of a click and save. It’s the slander crew whom decided to slap a label on this, as if to shame everyone whom disagreed with others points of view. Everything wiki is fluid, online content able to be changed by basically anyone with a login. One day it says this, the other day those pages say something entirely different. We try to stay fluid to sidestep the constant propaganda which saturates syndicated media and online spaces these days. Let the people troll, not that big of a deal. I like Henry, regardless. We should bring back the enough downvotes makes posts invisible feature. Anyways, it’s free day at the stock show, talk to you soon. Thanks.

henry jung,

You’re constantly acting like you’re on some moral high ground, yet you clearly aren’t. You harass, mock and insult other appraisers. We have yet to see a comment of yours that isn’t dripping with negativity, or an attempt to bait a response from someone. You are nothing but a troll, and a bad one at that. Since you have nothing more up your sleeve than cheap attacks, we’ve decided to:

1- Unsubscribe you

2- Not allow you to post comments. Going forward your comments will automatically be deleted.

Please stay away from this blog!