The New Con: Hybrids, Waivers & AMCs Threaten Public Trust
Last month marked the 7-year anniversary of Appraiser Fest. The conference was truly like nothing that had been done before. It was organized by appraisers for appraisers. The agenda was more about bringing the profession together and protecting the public trust. Appraiser Fest was not about promoting the profit of others at the expense of appraisers; nor was it about hiding the unchecked facts of fraud and ill doings against consumers. It was about public awareness and trust. It all started with a renewed sense of energy with appraisers at Appraiser Fest.
The excitement and energy from Appraiser Fest did not stop at those attending the conference, this renewed energy spread throughout the appraisal community. Appraisers were talking to each other, holding lunch an learns with Realtor sales offices, writing blogs, posting podcasts and spreading the word about the shenanigans that had and continued to occur. Warnings to all were now part of appraiser’s everyday communication.
The impact of the Dodd Frank Legislation and lack of enforcement was in full swing. States allowed Appraisal Management Companies to go unchecked and the blow back to the states that attempted to enforce the law were shot down with FTC complaints and expensive lawsuits. Louisiana fought long and hard against the status quo. The end result was the very law that was designed to protect the consumer ending up costing the citizens of Louisiana millions of dollars and they received no protection. Consumers across the country are still unprotected from the lack of enforcement.
This begs the question, is the system corrupt? We all know the answer, so there is no need to expand the discussion.
In 2020 a documentary directed by Patrick Lovell was released called The Con. The 5-part series was a story about the housing market and the fraud that occurred. The appraisers who attended Appraiser Fest know first hand why this documentary was part of the renewed energy among appraisers. Many of those that attended were interviewed and shared their stories of what was going on. Many shared how appraisers warned for years of what was going to happen and no one listened. Profit above public trust.
You are probably asking why is this being brought up again, this is old news. Well let me tell you, this is not old news it is current news. Hybrid Appraisals, Appraisal Waivers and Appraisal Management Companies are the new Con.
Public protection is being dismissed for profit; consumers are being misled; warnings on what will occur are being ignored. Homeowners who purchased their home with an appraisal waiver or hybrid appraisal are finding out they over paid and are now upside down on their home. This is the absolute worst position; short sales and foreclosures have already started in some areas, unless something changes, this will only continue and lead to another financial crash.
Now this is not being pointed out to spread doom and gloom, but for all of us to pull out the energy we had in 2018. Let’s get vocal! Tell everyone what is happening, when you talk with an Realtor agent, share what the appraisal management company is charging their client, inform them of the consequences of hybrid appraisals and appraisal waivers. Remind them of their duty to inform their buyers and sellers.; Remind them if the market crashes, so does their income. Buyer and seller lawsuits against the agent who did not advise their client can and will happen. Fannie and Freddie have already come after appraisers. What is stopping them from going after sales agents?
We all need to watch The Con again to remind us of what happened. Then let’s get out there and tell everyone of the new Con!
- The New Con: Hybrids, Waivers & AMCs Threaten Public Trust - December 16, 2024
- VaCAP Supports Shane Lanham’s Legal Fight - September 10, 2024
- It’s Just Responsible Journalism! - February 21, 2024
See the harm to the public here
https://appraisersblogs.com/uncovering-flaws-in-fha-appraisal-n-loan-review-process/#google_vignette
I’ve always thought mortgage purposed appraisals were to mitigate collateral and valuation risk for the lender and associated investor – not for consumer use. The consumer should retain an appraiser and pay for an appraisal service for their use if they are concerned about the value of a property. The consumer is not first or last with the lender-client appraisal process…
Same story, different day. Hybrid appraisals and waivers are just shortcuts that put profits first and consumers last. It’s frustrating to see public trust getting tossed aside again. If we don’t keep speaking up, we’ll see history repeat itself with more homeowners upside down and another mess on our hands.
I’ve always thought mortgage purposed appraisals were to mitigate collateral and valuation risk for the lender and associated investor – not for consumer use. The consumer should retain an appraiser and pay for an appraisal service for their use if they are concerned about the value of a property. The consumer is not first or last with the lender-client appraisal process…
Although not the client, it’s typically the consumer who pays the client for the appraisal in a mortgage procurement process. While the lender wants to assess risk and the value of the collateral in its fiduciary concern, the consumer benefits and is protected by the same. One is the byproduct of the other.
One of the reasons the appraisal requirement was included as mandatory for GSE backed mortgage lending activity was to protect the American mortgage consumer. No longer necessary. Internally controlled proprietary third and fourth party AI assisted avm value output software which is not subject to independent scrutiny or meaningful oversight will now replace the independent human appraiser. The pertinent question; Protect the American consumer from what, and who?
Houdini; enter stage left. On stage is a large sign; Racist appraisers. Houdini pulls the curtain in dramatic fashion. Flashing lights and images of police oppression, attention and emotional redirection. A new sign appears; AVM final rule approved!
As a Real Estate Professional since 1980 and an Appraiser since 1986 before licensing, we have had 3 or 4 economic melt downs in property values due to high interest rates and terrible loans terms. Loans with 1st, 2nds and 3rd Mortgages to Purchase or the 125% loans with no equity in the mid 1990’s. The one common denominator has been it was always the appraisers fault when lenders and the public blamed the appraiser for the mess. That’s the history that I have lived through and now I am taking a MLO course to change my financial position in 2025.
Hopefully the new administration will see the importance of an actual appraisal instead of a hybrid, waiver or a PDC doing half the work of an appraiser.
Has anyone come across any official policy statements by the income admin? I’d be curious to see if they or any of their appointees have a position on this.
Edit, will repost later. Meant to comment on the other page.
Haha! Trump has engineered appraised values for his entire career – obtaining high values for lending and financial statement purposes, and low values for property taxes. The idea that he would care about the integrity of the valuation process is laughable.
Musk wants to do away with the CFPB
I’ve always thought mortgage purposed appraisals were to mitigate collateral and valuation risk for the lender and associated investor – not for consumer use. The consumer should retain an appraiser and pay for an appraisal service for their use if they are concerned about the value of a property. The consumer is not the client and is not the first or last with the lender-client appraisal process…
‘greed is good…greed is right…greed works..’.gordon gecko
97% of all purchase appraisals hit the number anyway. So why is an appraisal necessary?
That percentage figure you’re referring to is not as straight forward or simplistic indicator as people think. They use figures like this as justification to remove appraisers from the process. There is far less consistency on the initial price formation side. Price is not the same thing as value. Every factor along the way has real world implications for how much people pay, how much they earn or take a loss on, when conveying real property.
When the appraisal requirement is no longer present, what the people end up with is a system where the most powerful or influential person in the process, the people whom stand to gain the most, they set the final price and that’s what the consumer is subjected to. Over time as the vested sellers interests have no opposing force, you end up with overpriced unaffordable housing markets and rental markets. Exactly what people are complaining about today with the supposed affordability crisis. 97% is the loan capture rate, not a true expression of honest dealings.
amc’s are the biggest con jobs…pushed through by crooked coumo and fannie after they got duped by the no doc loans
Review the definition of market value… explains the ~97% of market defined transactions are supported as market defined value.
The fact that agents and lenders know there is an appraisal helps curtail fraud. So it is not surprising that most appraisals are at or above the contract price. Remove the appraiser and the appraisal and all hell will break loose.
We never learn from history. The tightening and loosening of regulations is the cyclical reaction to catastrophic events. We had the Savings & Loan Crisis then the Great Recession because of loose regulations. The result was the tightening of regulations. The government gets lobbied by housing and loan industry to loosen the regulations over time. They lie and state it’s to help the consumer when it’s really so industry can make more money at the expense of the consumer. Consumers ask for the regulations to be loosened because they think it will help them buy a home and make a ton of money. Instead consumers get burdened with large payments on homes which may not be worth as much as they thought or hoped. Today we have appraisal waivers, hybrids, higher LTV loans, low down payments, down payment grants, down payment loans, higher concessions… In the end appraisers get blamed when it all comes crashing down. Then they tighten regulations again.
Any way the State can make money by creating one or more useless agencies that can punish people for doing their jobs and collect ridiculous fines, they’re going to do it. We have no political power and we don’t make enough money to donate to politicians to gain any. Why would any lender, AMC or GSE care when they’re extremely rarely prosecuted and the taxpayer always bails them out? We all know that the AMC’s were nothing but a scam to begin with. I’m all for things getting better, but it seems like it’s always going to be one step forward, two steps back. The people at the AMC’s are marginally literate anyway. I’m lucky to get the correct address in a bid, they’re withholding sale prices, if I ask them a question the bid disappears, etc. I’m near Dallas and they send me bids in Laredo! Hey, Texas is Texas, huh?!
This is all well and good but a continuation of talking. I would hope if this is the message taken from appraiser interaction at a national convention, someone, with a enough clout to get the ear of someone in a position of influence can bring this to someone in the new administration. From all outward appearance the newly created DOGE would be a great start given the complexity of what is in process of taking place within HUD, FNMA and Freddie. As aptly pointed out, the current plan will benefit big banking and investors who will be insulated from any loss since the US tax payer will be on the hook for the next bailout while all the bad players will be sipping margaritas on the beach in Rio. How can this be so obvious yet so aloof to all oversight? Something makes no sense in terms of common sense.
DOGE has not been “created” yet.
To end this year and prepare for 2025, I am taking a 20 Hour MLO Mortrgage Loan Originator Course for the next 2 weeks. Having this additional license will allow an additional unrestricted income and a new adventure. Take a look on line and see what’s involved for your state. I am a Broker Owner/ Certified Res Appraiser and one of 4,372 Certified Residential Appraisers left in California. Out of the 8,078 Total Licenses total for California only 2,584 General Certified Appraisers are left as of BREA State 11/01/24. The mortgage rates have no where to go but down unless the USA is in an another War Conflict. Lenders are all ready tooling up for office staff again for 2025. So I will cheerfully focus my energy in 2025 on making mortgage loans as I have no plans on filing out appraisals that include the new 26 page form in the near future. I really think again, we as appraisers are in the right place at the right time to see what other ways of income can we create from our talents. If you can’t beat, join them. Check out how simple it is to get a MLO endorsement and be making money in 60 days or less.
Guess what they’ll be finding a lot of … Yep, appraisal bias, you know, for “profet”. LMAO emoji.
https://www.valuationreview.com/vr/articlesvr/r3-amc-chooses-profet-edge-review-for-appraisal-bi-93145.aspx
Great post! The Gramm Leach Bliley act just jumped out of the grave, and promptly jumped directly into an incinerator.
https://www.ftc.gov/business-guidance/privacy-security/gramm-leach-bliley-act
https://www.capterra.com/p/232247/Profet-AI/reviews/
Nothing says respecting mortgage borrowers privacy, like subjecting their appraisals and likely associated loan data, to an AI database that services manufacturing, pharmasuetical, medical, computer engineering, legal, realty sales, hardware and software for computers, etc.
https://www.profet.ai/profet-review-platform / A product of; Propmix.
https://propmix.io/about
ACI, Clearbox, among others. / Since 2003 we have been collecting, curating, and distributing real estate data to the industry as Software Incubator, Inc. / There is your Indian outsourcing tie in. Otherwise known as unrestricted data mining for future data brokerage and unsuspecting customer exploitation. They’re going up against Corelogic, so they’re naturally following a similar model. Pure unadulterated data exploitation using advanced AI systems. Brilliant. Privacy and data confidentiality be damned, investors demand returns.
Rocket Mortgage Turns the Table on HUD
As Rocket Mortgage observes in its compliant, the competing factors put “Rocket Mortgage between the proverbial “rock and a hard place.” If it takes action with an appraiser regarding an allegedly discriminatory appraisal, then it faces the prospect of a government enforcement action or private lawsuit alleging violations of statutory appraiser independence requirements. But if it complies with those independence requirements by not taking action to “directly or indirectly” attempt to influence the “independent judgment” of a third-party appraiser, then it faces the prospect of government enforcement actions and private lawsuits for alleged violations of the FHA. This reality of the government’s inconsistent and conflicting approach requires judicial intervention.”
https://www.consumerfinancemonitor.com/2024/12/17/rocket-mortgage-turns-the-table-on-hud/
rocket should just hire relman…
‘Rocket Mortgage requests that the court issue an order vacating HUD’s policy of holding mortgage lenders responsible for failing to correct or remediate perceived or alleged appraiser bias or discrimination in an appraisal.’
Absolutely incredible. All over a fictitious non existent premise of ‘appraisal bias’. Andre Perry from Brookings will be remembered as being one of the most destructive forces the American housing market has ever seen, claiming fame among the most incompetent data analysts of all time.
Quick industry recap summary, if any serious researchers are interested.
https://appraisersblogs.com/lack-of-evidence-appraiser-challenges-discrimination-claims/#comment-43935
Perry, Fudge, Harris, Bunton, and Relman should obtain appraisal licenses and they could appraise the undervalued houses all they want…
That Julia Howell lady who’s dissecting Shane L’s appraisal workfiles, her website is something else. Her proposed valuation methods would result in immediate underwriting rejection, and also require any appraisal using those methods be submitted to her respective state licensing agency for additional review and possible penalty actions. She’d be on the FNMA probationary list after the very first appraisal.
https://twitter.com/i/status/1869071018545029367
they are delusional…
“Racial inequality in home values directly contributes to the persistent racial wealth gaps and residential segregation, which in turn influences racial inequalities in health, income and educational outcomes,” Howell added.
As the newly release data shows, racial inequality in home values not only exists, but is worse today than it was 40 years ago. Overhauling appraisal practices will be an important first step, but Howell and Korver-Glenn also argue that it is time to have a serious conversation about reparations.
“Given the cumulative harm caused by these federally sanctioned practices, we believe reparations are necessary to rectify past and present injustices,” Korver-Glenn said.
Howell and Korver-Glenn’s report was supported by WashU’s Weidenbaum Center on the Economy, Government and Public Policy and eruka, a nonprofit housing and finance organization. The full report can be downloaded here.
https://source.washu.edu/2022/11/worsening-racial-inequality-in-home-appraisals-detailed-in-new-report/
fannie guidelines, fannie forms, fannie rating system, fannie jargon, fannie review, fannie waivers…but they never blame them
Sure, that’s happening. There are wealth gaps from one socio economic group to another. The wealth gap can also be described as being reflected in many different metrics from income to education, crime rates, to home values and a thousand other measurements.
But who drives home values? It’s not the appraiser. The appraiser merely reports on home values which other market participants have established. They establish area wide home values with their purchasing power and agreed upon buying and selling price points. The appraiser is like a journalist, reporting on other peoples activities.
This is the measurement of these peoples cognitive understanding of the issue. They think shooting the messenger and forcing the journalist to report something which is not factual, will magically correct inequalities.
The largest body of impoverished people in the USA are whites, most in rural locations. The largest body of impoverished people by capita and not by populace total, is american indians, followed closely by blacks.
These statistics have been relatively static and consistent for some time, long before the government ever required an appraisal, long before the GSE’s were even formed. All they’ll accomplish by forcing a parity to artificially inflate housing prices will to further impoverish those already ailed.
What exactly is wrong with lower housing prices? I thought in times of economic prosperity goods and services cost effectively less, not more.
Attempting to install a centrally controlled dictatorship which censors voices and replaces qualified licensed individuals with menial wage day labor ought to help. Appraisal modernization.
“What exactly is wrong with lower housing prices? I thought in times of economic prosperity goods and services cost effectively less, not more.”
they never heard of Addie Polk.
Ohio Postcard
Eviction
By Peter J. Boyer
November 16, 2008
The circumstances of Addie Polk’s debt do seem curious. Summit County property records show that Addie and Robert Polk bought their home in 1970, for ten thousand dollars, and that when Robert died and Addie became the sole owner, in 1995, the house was fully paid for. Then, in 1997, Addie was offered a new mortgage on the place, which she accepted, for twenty-one thousand dollars. Four years later, after interest rates declined and real-estate values increased, an independent mortgage broker sold Addie a new loan, for $46,400, and peddled it to America’s Wholesale Lender, a division of Countrywide. Then, in 2004, after interest rates dropped further and housing prices increased even more, she took out yet another loan from Countrywide. That loan, in the amount of $45,620, was paired with a line of credit for $11,380. Addie was eighty-six. The mortgage was scheduled to be paid off on May 1, 2034.
https://www.newyorker.com/magazine/2008/11/24/eviction-ohio-postcard-peter-j-boyer
Luke 12:2-3
King James Version
2 For there is nothing covered, that shall not be revealed; neither hid, that shall not be known.
3 Therefore whatsoever ye have spoken in darkness shall be heard in the light; and that which ye have spoken in the ear in closets shall be proclaimed upon the housetops.
Housing Bubble & Bust #1 and #2 as Seen through Employment in Mortgage Lending
by Wolf Richter • Dec 16, 2024 • 36 Comments
Employment at nonbank mortgage lenders collapsed by 37% this time around, to the lowest level since 1997.
Mortgage applications to purchase a home are down by 40% from the same period in 2019, and by 48% from the same week in 2021, according to the weekly Purchase Index by the MBA. This is a stunning collapse of activity.
By comparison, sales of existing homes dropped by 35% in 2024 from 2021, to about 4 million homes, the lowest since 1995.
Housing bubbles are just so much fun, and everyone in the industry makes money, but the inevitable housing busts are a mess.
https://wolfstreet.com/2024/12/16/housing-bubble-and-bust-1-and-2-as-seen-through-employment-in-mortgage-lending/
what you are witnessing is the largest frozen bubble in the history of the world..
The hits keep on coming. Current status of the GSE managers; tap dancing on a bubble, cigar and whiskey in hand.
Central planning never works.
the current home prices makes the 2009 financial crisis prices the floor…
If appraisers only had Veronica’s guts:
https://youtube.com/shorts/TrnI2oOthZU?si=ljgtwFT9IujOIFmn
Fed Cuts Interest Rates By 25 Basis Points as Dow Tanks by More Than 1,100 Points – Longest Losing Streak Since 1974!
https://www.thegatewaypundit.com/2024/12/fed-cuts-interest-rates-25-basis-points-as/
wait until they figure out how bloated the real estate market really is…waive them all i say
Here We Go: California Gov. Gavin Newsom Declares State of Emergency After First ‘Severe’ Human Bird Flu Case Hits US
https://www.thegatewaypundit.com/2024/12/here-we-go-california-gov-gavin-newsom-declares/
for appraiser safety they will send out unlicensed home inspectors to collect relevant physical characteristics…
when you trade freedom for safety you will end up with neither…b franklin
https://appraisersblogs.com/why-is-only-one-side-of-the-racism-claim-appraisal-story-being-reported/comment-page-2/#comment-43993
The appraisal gap explained.
yes..it seems to be a massive opportunity for the delusional to buy low and sell high
Rocket’s counterpunch: Calling Out HUD and the DOJ
Rocket Mortgage’s legal response highlights the clash between compliance, accountability, and regulatory overreach
December 23, 2024, 11:31 am By Chuck Meyer
In October, the Department of Justice (DOJ) made headlines when they sued Rocket Mortgage for housing discrimination in the form of exhibiting alleged appraisal bias. Linking the nation’s largest home lender to the actions of an independent appraiser may have been an effective way to garner national attention, but it raises many concerns.
Broader questions have now been raised about potential new legal liabilities that businesses in the mortgage industry may be subjected to merely for following the letter of the law. By including Rocket in the lawsuit, the Biden Administration’s DOJ is in many ways also minimizing the real problem of appraisal bias, as missing from all of the headlines and even in the DOJ’s press release was a focus on those actually responsible for the al
https://www.housingwire.com/articles/rockets-counterpunch-calling-out-hud-and-the-doj/
“the real problem of appraisal bias”…what a joke…buy the book take the class snake oil salesmen
People pay less for real property when there is substantial differences in amenity and safety, crime related issues, school performance measurements, employment opportunities, etc. The race baiters call that disparate valuation outcomes, blaming the appraiser for reporting on factual pricing variances which the respective communities and market participants create for themselves.
who’s selling this…TAF, AI, CRN, REVAA, AARO, fannie, freddie, and the corner drug dealer…
They’re the pawns on the board whom were moved in a precise manner to checkmate the American people and dismantle accountability and oversight systems. Read the first page of the avm final rule linked below for more influential identification references.
First there is 10% or more for the big guy. Then the quest continues for more answers from each of these entities.
https://www.freetonyviola.com/
they hate whistleblowers…
https://www.cleveland.com/metro/2011/06/former_employees_of_subprime_m.html
https://www.freetonyviola.com/file-library/evidence-locker?path=Evidence%20Locker
I read the facts don’t matter transcript start to finish. Who’s the law firm representing him pro bono, because that’s who the entire appraisal industry needs right now. Reminds me of Shane’s case, non stop conflict of interests. The ‘evidence locker’, wow, what a read.
https://www.freetonyviola.com/file-library/1/download/15
pdf pg 6 / What used to be indications of proof of fraud are now baked in processes. Closing loans without appraisals. Not personal review. High debt to income ratios. Personal income statements. Approving loans over 100% LTV.
All standard process these days. Independent appraisers, who needs em? The entire country will simply have to trust lenders internally controlled avm’s, which only that specific lender is in control of and nobody else gets to know anything about. The room for abuse with the avm final rule is incredible.
https://files.consumerfinance.gov/f/documents/cfpb_automated-valuation-models_final-rule_2024-06.pdf
Pg 46-49 / 76-82 / 110 is rich; 6. As noted, the final rule implements a statutory mandate, thereby limiting the ability of covered agencies to consider alternatives. That said, agencies did exercise authority provided by section 1125 to include the nondiscrimination quality-control factor (given continued evidence of disparities in residential property lending terms along racial and ethnic lines) / 114 the illusion of oversight with a dysfunctional government / 116 on lax self certification requirements /
Ready for the punchline? The lenders black box internally controlled self certified avm’s which will be mandatory use, will also provide the review services for what few human sourced appraisers they still source. Then the utility will be repackaged and replace appraisers elsewhere.
the evidence locker is unbelievable…hollywood could not make up a script like that
The criminals who brought you Northeast Ohio’s housing crisis: Where are they 10 years later?
Lavon Ruderson
Ruderson appraised properties beyond their real market value. This allowed Wilson and straw buyers to get the extra money from the loans for their own use.
Ruderson appraised several homes on Cleveland’s East Side for $80,000 to $95,000, though the homes were worth half that amount. The scheme involved 28 properties, and loan companies lost nearly $2 million.
A federal judge sentenced Ruderson, 47, to more than five years in prison after a jury found her guilty. She is set to be released next year.
https://www.cleveland.com/metro/2017/06/the_criminals_who_brought_you.html
where are the criminals now….let’s ask the banksters
Merry christmas.
(for subscribers only, lol)
Such borrowers MAY have predatory lending claims against their lenders; and potential fiduciary related claims against their loan officer and or broker.
Reach out and see if they need a retro appraisal for possible litigation purposes. Charge enough to do a textbook quality appraisal.
Which financial collapse was directly attributed to inflated or no appraisals?
ASC Public Hearing on Appraisal Bias Brings Together Key Stakeholders
1/26/2023
Public Hearing on Appraisal Bias Brings Together Key Stakeholders
Public comments on appraisal bias accepted until February 8
Washington, DC – The Appraisal Subcommittee (ASC) hosted its first ever public Hearing on Appraisal Bias this week, bringing together Federal agencies, experts from across the mortgage lending and appraisal industries, researchers, and consumers to work toward the fair and accurate valuation of homes for all Americans.
“As the Federal agency charged with oversight of the appraisal regulatory system, we have grown increasingly concerned about the stories of bias that have circulated in the national media in the past several years, as well as recent studies on the topic. The ASC is also very concerned about the lack of diversity among appraisers and the excessive barriers to entry that likely deter entry into the profession, particularly for people of color.” ASC’s Executive Director Jim Park said at the Hearing.
“The ASC has made these issues a cornerstone of its work. We are using the authority we have at our disposal to highlight appraisal bias and address the lack of diversity in the profession.”
U.S. Department of Housing and Urban Development (HUD) Secretary Marcia L. Fudge delivered opening remarks. Secretary Fudge noted that the overarching goal of the continued work on appraisal bias remains establishing the kind of change that can help “all families, in all neighborhoods, have a better chance at building generational wealth.”
The Hearing featured witness testimony from Dr. Junia Howell of the University of Illinois Chicago, homeowners Tenisha Tate-Austin and Paul Austin, Michael Fratantoni, Chief Economist, Senior Vice President, Research and Industry Technology of the Mortgage Bankers Association, and Craig Steinley, President of the Appraisal Institute. Witnesses reflected on their professional and personal experiences with appraisal bias and provided suggestions to the assembled panel on how to best address this complex and multifaceted issue.
Representatives from all seven agencies comprising the ASC Board asked questions of the witnesses with a focus on the consumer experience, the barriers to entry in the appraisal profession, and the impact on the market.
“It won’t be easy – and nothing worthwhile ever is – but by working together, I’m hopeful we’ll find solutions to these longstanding problems,” Park said. “No one should have to hide who they are to obtain a credible appraisal that is independent, non-bias and performed in a competent manner.”
https://aaro.net/News/ASC-Public-Hearing-on-Appraisal-Bias-Brings-Togeth
cant you see…oh cant you see…what the regulators have done to me
https://brownstone.org/articles/every-bureaucrat-destroys-138-jobs/
Every federal regulator stifles or compromises on average 138 American jobs, every single year. / Peter St Onge.
How many people work at FHFA whom have purposefully destroyed the residential appraisal industry which focused on mortgage lending? As they’ve destroyed 40,000 jobs, I suspect the ratio is much higher for appraisers.
I’m saving paper and have been re using old workfiles instead of using new paper for a few years now. How remarkable the diversity of clients we used to work with, before amc’s. And how many more lenders and small scale outfits there used to be. The ordering people were human, they cared, said thank you, asked appraisers valid questions that had nothing to do with fee and turn times. Then every now and then I go through an old amc order. On top of the multi page scope of work, always there were two bold statements in every amc order; DO NOT PROCEED if the appraiser believes value can not be met (or variants of that language), and DO NOT INCLUDE YOUR INVOICE in the appraisal report, no exceptions.
In retrospect seems obvious that the amc’s were a tool for some of the largest lenders to strangle or consolidate their competition. I used to simply print out lengthy lists of lenders approved in my state, send them a fax and a flyer or email in the later years, and had unlimited working opportunity. My sales pitch would be quality over quantity, that sort of thing, and I’d always make the sale. There was also more careful handling of consumers when generating loans, many of the direct communications with mortgage brokers or staff whom would order the appraisals often included emphasis on consumer safety and sound valuation service with appropriate two way communication, rather than the now dominating amc model of preference for efficiency and profit above all else, prohibitions on being honest with the consumers and lenders the appraiser was providing services to.
Pulling out an old meme for this one.
do not include an invoice or do not proceed if value…shows you what kind of criminals the independent appraiser has to deal with…and well anyways do not low ball
Just drew this up today for another post. People and companies whom repeat this fictitious ‘appraisal bias’ line are evil villains whom would sell honest people out to rake an extra dollar for themselves. They know the premise of racist appraisers is patently false but they play along anyways. Image.
https://www.youtube.com/watch?v=eJ3RzGoQC4s
cigar sent me that.
Summary; https://en.wikipedia.org/wiki/The_Century_of_the_Self
Sure. Directed consumerism… The medium of the message is more influential than the message itself. All wars are bankers wars. Planned obsolescence, the light bulb conspiracy.
Check this out. FHFA among highest paid federal agencies. Automating away 40,000 mortgage lending appraisers. Your tax dollars, hard at work.
https://www.zerohedge.com/personal-finance/these-are-us-government-agencies-highest-paid-employees
https://appraisersblogs.com/government-sponsored-mortgage-giant-fannie-mae-believes-it-is-above-the-law/#comment-44036
The hits keep on coming. An appraiser just asked for help in an older thread. FNMA forcing a repurchase and subsequent state complaint because appraiser cross comped across a school district boundary a half mile away.
Enjoy certainty on appraised value with freedom from representations and warranties (reps & warrants) on property value for eligible appraisals with CU risk scores of 2.5 or lower as part of Day 1 Certainty®.
Using CU’s advanced search capability to segment appraisals by risk may lead to more efficient reviews, reduced loan cycle times, and enhanced QC processes to improve overall appraisal quality.
Leveraging CU to address appraisal deficiencies may reduce repurchase risk and enable lenders to attain rep & warrant relief on appraisals with elevated risk scores.
Unparalleled data and analytics provide market-specific analysis for relevant, meaningful results
https://singlefamily.fanniemae.com/applications-technology/collateral-underwriter
what was the CU score?
The International Union For The Conservation Of Nature may be able to assist appraisers. They maintain the most comprehensive list of endangered spies and raise awareness to the plight of these animals. Oh wait…its a union., appraisers would rather die than seek a union’s assistance.
Appraisal Waivers Explained – Tips On How to Get One
Appraisal Waivers Explained An appraisal waiver is like manna from heaven, finding money in your coat pocket, and winning the lottery – all combined. But you need to know what you’re doing to get them. I’m going to give you the inside scoop on appraisal waivers, so stay tuned.
https://jesserivera.com/appraisal-waivers-explained/
the broker will estimate the value…what could go wrong…you may never see home prices so low again…i cant stop laughing
Purchase share jumps in GSEs’ appraisal waivers
By Bonnie Sinnock
January 03, 2025, 2:49 p.m. EST
1 Min Read
The share of homebuyer mortgages with appraisal waivers sold to the government-sponsored enterprises rose to a high for the year as 2024 came to a close, and further acceleration is likely.
https://www.nationalmortgagenews.com/news/purchase-share-jumps-in-gses-appraisal-waivers
better make that time adjustment…
I believe that appraisal waivers will be the standard until the next mortgage meltdown; look at it this way, the 2 unregulated mortgage giants make the mortgage rules, if they don’t write a mortgage they don’t make any money, the real estate agent sets the price of the home, if it doesn’t close they don’t make any money, no one makes money if the lowly appraiser “kills” the deal with a realistic value…bingo…AIW to the rescue, now the 2 parties who are chomping at the bit of this deal make money, oh, don’t forget the seller who is in “money ecstasy” over the amount they sold their home for, AND the buyer who just overpaid for the house of their dreams because there wasn’t any other houses to choose from. Oh well, I’ll just keep plugging along until I retire, 5 years from now, in the meantime appraisers are a dying (literally) breed.