Appraisers the Convenient Scapegoats
Anytime the real estate market takes a hit, 99% of the time it is because of banking and lending practices. The appraisers are the convenient scapegoats every time.
During the 1980s it was the commercial side, yet residential appraisers received both barrels of double-odd buck. Then in 2008 again: stated income, 40 year loans, predatory lending (REFINANCING), NO money down (no skin in the game); people used their homes as a slot machine that paid out every time; that is as long as the market values continued to rise. Predatory lenders had a field day. Until the market topped out and prices became linear and started to fall. People who had a $500 a month mortgage which they barely could afford, suddenly found themselves with a $1,350 per month loan. So they walked away. Others lost their jobs and had paid 22 years for their 30 year mortgage to have it foreclosed upon.
So here we are again, this time it’s “racial discrimination – red lining”. NO appraiser compares a modest home or a shack to a mansion outside the general market area and calls them “comparable sales”. I know that read absurdly stupid, but this is EXACTLY the perceived discrimination. NO ONE is ever satisfied. NO ONE.
Census tract(s) are used by “banks” not appraisers. I have never researched sales by census tracts. Why do you suppose they are in your reporting requirements? This is a banker/credit union item. So exactly who would be doing the actual discriminating?
Now we find ourselves with yet another bullseye on our backs. So glad I’m nearing retirement age. Bankers want to do away with appraisers, yet they won’t lend without assurances/insurance i.e. an appraisal for their risk. What a conundrum we find ourselves in. People who have expressed interest in becoming an appraiser: I tell them to FLEE!