Close. No cigar. The model you describe almost exactly matches the new hybrid report remote inspection approach. No adjustments, and in only some cases, no value, but normally there is value which the appraiser supposedly deflects liability based on extra ordinary assumptions, etc. Just one problem, it’s all attached to the appraisers individual EO insurance. On the other side of the coin, the appraiser is an essential check to balance because when given the leeway, as we observed in the massive market melt down circa 2006-2012, employees seeking commissions and other financial gains, or being subjected to pressures to produce, can and will take advantage then duck out on individual culpability. So yeah, the appraisal remains as a necessary and worthwhile independent check to balance. Those seeking to diminish this important safeguard are running a fools errand. The plain fact is if the lender wants, there are already a thousand and one ways to circumvent the appraisal requirement. We don’t need hybrids and they solve absolutely none of the real world problems we all deal with regarding mortgage lending. Abandoning the perceptual need for the independent appraisers service is even worse.

Then the bank recalls the note and owns the property at the first moment of owner financial distress. They write off losses on both sides, recall and resale. The net result is profit.

Mission accomplished.

Things were not supposed to end this way, not again. So many of us worked diligently for the past decades to promote better more responsible lender and consumer engagement. Appraisers around this country made untold personal sacrifices in an effort to correct what was clearly runaway lending, which sadly is simply re emerging. All the while appraisers continued to be victims of predatory engagements for the past decade with no end in sight.

Now lenders and special interest partners are back with another iteration of the predatory approach, fleecing American consumers, boldly promoting dangerous and irrational lending practices. Backed by new players, with the same old predatory intentions and misguided principals.
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Rosalinda Williams. Whom proposed the ‘restorative appraisals’ concept.
https://patch.com/missouri/stlouis/conflicts-raised-compromise-reached-tense-council-meeting
Any Missouri appraisers whom could provide meaningful commentary on these matters?
______________________
https://creativeexchangelab.com/mentors/rosalind-williams/
Rosy’s quite impressive and lengthy list of professional activities. She knows about urban renewal and TIF programs so why would she propose such destructive policy concepts as ‘restorative appraisals’?

Appraisers are a check to the balance and are not a tool which can be used for special interest purposes. Think of us as independent market valuation auditors because if you perceived our position as anything else, that is mistaken.

Appraisers too find deep appreciation for when urban renewal projects are successful. It makes our jobs easier and we rejoice in seeing people doing better and able to successfully achieve better long term financial stability on the path to complete home ownership. The appraisal valuation tool must be a measurement of success or failure from others. Appraisers read the market we do not set the market.

The honest unbiased appraisal market valuation measurement and subsequent value position reporting can not and should not be manipulated or used as a short cut to improving residents chances of success or improving their personal positions. The appraisal community and the valuation measurement mechanism is not a potential innovative funding resource or way to bypass red tape. It would be no different than financial accounting fraud to show a corporations growth to mislead investors. Appraisers must adhere to strictly localized property valuation analysis. Please, thank you.

Indeed Mr Gilbert, an accurate and simple summary of the matter. These people are clearly incompetent. It is the mechanism of funding and fund raising which is at the root of the particular problem of influence which leads to counter productive legislation, aka; poisonous protectionism. These special interest groups fund a cause, promote the cause through their corporate media outlets, drum up public support, drum up grant monies, unlimited no cap tax subsidies, and the broken record skips on with an apparent never ending stream of public support. They write off their expenses and profit a kings share at the expense of everyone else. Corporations using government mechanisms to tax the people directly with no actual public benefit in the long run.

Which is why we have studiously adopted a new way of thinking and seek to educate others on these matters. Economic and governmental management principals which are actually quite old fashioned but still relevant today. aka; recognizing austrian economics and the true purpose of government being limited to protecting liberties. Regardless if it’s war around the world, government over reach, lending issues, flailing property rights, liberty issues, everything traces back to an improperly managed failed implementation of central planning and fiat monetary management. If these people did not have their hands in the taxpayers pockets, the ability to expand the money supply itself with quantitative easing programs which are merely another more nefarious form of taxation, none of this would be possible in the first place. There could be no incentives, no market manipulation, nor the long train of abuses which inevitably follow. Thank you.
https://www.youtube.com/c/ronpaullibertyreport
https://mises.org/
http://ronpaulinstitute.org/archives/featured-articles/

Mr New Level. Great post. Be sure to read this important report, and save the document for your records.
https://appraisersblogs.com/refuting-the-negative-race-bated-accusations
AEI American Enterprise Institute, Tobias Peter report; Faulty evidence and misdiagnosed solutions.
https://appraisersblogs.com/aei-research-critique-of-freddie-mac-misleading-appraisal-gap-report
This report was also related from the same group.

Regarding the amc reference; “We warned you these were possibilities, if the amc industry was allowed to represent the valuation industry.” Amc’s are not value specialists, they are document mules and unnecessary third party data relay intermediaries. These companies should absolutely never be on state boards, never be allowed to represent guide or steer the valuation industries, amc’s should absolutely never be considered trusted entities to advise or consult for the financial services committee or anyone else. Shame belongs with every appraiser, appraisal organization, and lender which continues to promote, support, and work for these amc companies, unnecessarily perpetuating their existence, and their predatory influence.

Where did the money go? A noble cause but at a scale this large, an impossible task. Which is why I constantly promote a better alternative to blighted area restoration which actually is good for residents, not harmful to residents, is low priced, and does not enrich global corporations or these race baiting hucksters like Andre Perry and the Brookings institute. OMG, posting this again, but I suppose it’s worthwhile because for real, these programs work, are effective, can be implemented locally, and truly do help people in these areas. I live near where they implemented these programs and it’s a night a day difference. The programs work, bring legitimate value gains, legitimate amenity help, legitimate reductions in blight factors which lead to lower property valuations. Keyword; Urban Renewal Programs. Will everyone please take the time to watch this video at least once. Thank you.
https://www.c3gov.com/government/urban-renewal

HUD Secretary Marcia Fudge was appointed and is following his expectations, along with Maxine Waters, chair of House Finance Committee.

Their expert advisors include Dr Andre Perry, Brookings Institution and others with similar unfounded Biases against appraisers.

Following the 2008 financial meltdown, appraisers were accused of over-appraising properties in minority neighborhoods.

Now, appraisers are accused of under-appraising properties in minority neighborhoods. So, there’s a push to over-appraise properties – this will actually strip away equity, using false valuations, and will again lead to an increase in foreclosures

Right on! Cannot have it both ways. I love the tax appeal analogy! Any way you look at it we will be the fall guy. If lenders want valuation restoration then they need to sign a hold harmless agreement for every Appraiser. No way I am doing anything like this restoration idea. It is fraud!

Amen have been saying this is quite simple. Ask buyers and their Realtors WHY are they paying less in certain neighborhoods. Fix those issues And values will rise period!

Instead of looking at the big picture of infrastructures, the neighborhoods, the cities and more to determine what sort of things that can help these areas, they want to blame the appraisers.

Here is a thought… how about you investigate where those tax dollars are going and what’s being done to make these areas better compared to other areas? Maybe investigate and really do a study on the effects of past redlining initiatives by the government, states, lenders and how their actions in the past have have caused this issue today. How about you investigate and do a study on WHY these areas are of lesser value than an area further away? Oh my bad. That would be too much hassle and expose the Real truths that may go against the political system.

Shame that these organizations are more focused on reputation than actually explaining the facts and educating others. What’s next?? These organizations sell more courses on restoration values? Maybe a new USPAP section on how to be compliant in restoration values? Fannie Mae gets in on it and creates a new restoration value section?

I can see the AMC BIDS NOW.. We need an as is, as repaired and a restoration value for $350.00

How about this… how about you RESTORE the appraisal profession back to what it was prior to the crash and allow appraisers to do what they do best without more laws, regulations and 3rd parties. Oh and an added note.. here is one last suggestion … instead of talking to organizations that only care about themselves and saving face… maybe just maybe you start including the actual independent appraisers that serve these areas on a daily basis.

Just do away with the appraisers already, let the property owner pick a number, the lenders can do the loan and the taxpayers can cover it when the market crashes. Just like the last two time.

And that my friend is the whole idea behind the madness. In todays society we are viewed as an evil necessity. Everything else has not been successful to date and given time they have figured out how to get appraisers to leave…voluntarily…attack their integrity and call them racist.

Instead of “Restore Value” it should be called “Create Equity”
so the home owners can take out 2nd mortgages & HELOC loans. When the money is gone it’s gone, then what ?

I know that case well and believe it or not the judge wanted to move this forward because the first appraiser used comps in the same development, further depressing the already depressed area, therefore applying bias. If this case is not won by the Appraiser, we all may as well move on to another profession.

Unreal. LOCATION, LOCATION, LOCATION; I guess is no longer the gold standard. We cannot hold the minority areas under water any longer. We must restore value to those areas by means of FRAUD! No thanks. I just talked about this very thing on a Radio show this past weekend and the host said” ” You mean compare a home in an area with inferior schools, transportions, streets, condition of the neighborhood, with superior location homes and make them all equal in value in essence?” I said yes, that is about the size of it. He said that is the craziest thing he had ever heard and the Host is A Realtor. I said THANK YOU, It surely is crazy!

Great article Mr. Baggott