We the People…
We the people need to redirect the mortgage lending direction… The time for every appraiser and consumer to step up is now. This country was founded on the principle of “We the people”. Please sign this petition and share it everywhere.
Appraisers have been the target for blame for everything gone wrong in the mortgage lending world. We were blamed for the Savings and Loan collapse, the financial crisis of 2008, and appraisal bias and racial discrimination. Appraisers have even been the target on loans gone bad after several years on payments. Yep, we have been the target and have remained the target. So, when is it enough?
Fannie Mae has recently announced that appraisals are no longer the default option for mortgages. Now every appraiser understands why this is a very poor move in protecting the consumer, but Fannie Mae does not care about the consumer. They only care about risk; their risk.
Appraiser licensing was put into place to protect the public trust. This was a good thing and still is a good thing. Oversight of bad actors was and is needed. The current system has its flaws and even has a few bad actors in it, but overall, the system has worked well. Is there a better way? Or maybe some tweaking of the current system is needed? That is a discussion for another day.
Responding to the 2008 Financial Crisis, Appraisal Management Companies were put in place to protect the consumer. This system clearly has not worked as most appraisal management companies are bad actors, but the intent was to further protect the consumer.
Over the years public trust has eroded, not because of bad actor in the appraisal profession, but because of greed by Fannie, Freddie and the lenders. Mortgage loans are underwritten to investor guidelines. Fannie, Freddie, FHA, VA, and USDA are all investors backed by the American Taxpayer. Right or wrong their guidelines are the norm in today’s mortgage world. The lender and investor have very little risk when loans are sold and off their books. This is even more true when the investors like Fannie and Freddie give the lender a guarantee pass on a loan buy back when loans meet certain criteria. After all, if the loan goes bad, regardless of the reason, appraisers are the targets.
Now Fannie and Freddie, with the green light from FHFA have completely ignored the consumer in what is the largest financial purchase of someone’s lifetime by bypassing the independent appraiser. The appraiser is the only participant in a mortgage transaction that is not compensated based on the loan closing. Even home inspectors know if they find too many issues with a property, they loose referrals from the sales agents.
VaCAP and other appraiser organizations throughout the country have sat down with Fannie, Freddie, FHA, VA and USDA, even the FHFA and discussed our concerns. We have lobbied on the State and Federal levels to protect the consumer. Consumer groups, both private and government agencies are now paying attention to what the GSEs are now doing. They are meeting with appraisers and some representatives are also now listening in disbelief of how far off-track Fannie and Freddie have gone. Common sense and sound judgement are not being utilized by Fannie and Freddie, again with the green light from the FHFA.
When is it enough? The time for every appraiser and consumer to step up is now. This country was founded on the principle of “We the people”. The United States is a democracy and lead by the people, not the government agencies. Watch this short video from a previous era as a reminder of how far “We the people” have gone.
VaCAP supports consumer protection and the appraisal profession. Enough is enough and we the people need to redirect the mortgage lending direction. A Change.org petition was started by Hamp Thomas. VaCAP encourages each of you not only to sign the petition, but to share it everywhere.
- 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
Signed!
Signed though I’m not sure what good it’ll do. I appreciate the effort though.
What happened to getting a lobbyist to help out?
The excuses bad appraisers make for their failure and the excuses the Freddie Mac makes for its failure, is answered in my opinion by one word only —- GREED.
Whether the purchaser gets a quality appraisal performed, or whether Freddie Mac bothers to perform quality pre-sale eligibility work (that is required by law and guidelines) becomes nothing more than a crapshoot — roll the dice and see if the appraiser is in the pocket of the money changers or if you managed to obtain an honest (rare) appraiser.
This new desktop appraiser stuff is going to allow quality is nose-dive, especially with the poor-quality appraisers who didn’t bother to do quality when personal on-site appraisals were required.
How much less work will they do if they don’t have to leave their personal computer?
Signed, but will it really make a difference?
Signed. It’s a Hail Mary but it’s worth a shot!
Thank you for the post! Will it make a difference? I am not sure, but if we reach on person who can help us make a difference then it’s worth the effort. If we do nothing, nothing will happen and we will continue to be controlled by greed.
Hamp
May I call you or you call me
I’d like to chat
Pat
Turner
804-873-4968
Hi Pat, if it’s okay I’ll call you after one tomorrow. Let me know a good time after that if later works better, but I’ll be finished and home by 1:15. Thanks.
After about 4
We’re flying to Florida bu will be settled by then
Thank you
Pat
So a buyer paying $50k-100k more for a house than market value established by an appraiser is not the real risk in the mortgage. I guess that is what Fannie Mae is really saying.
Signed, do everything you can because it’s all we can do. You never know when someone in DC may actually realize what’s happening and take a stand. What happened to the lobbyist you ask? Did we ALL join any State or National Coalitions when asked? Nope. Have you joined the AGA or been to any state board meetings? Nope. For those that have I thank you and you have been very lonely. For all the rest, you get what you pay for. Good luck to us all.
There are numerous states still active in coalitions!
Join yours!
Pat
FNMA /FHLMC care only to extent that borrowers qualify for the Mortgage they want. FHFA wants every buyer to get in a home- value is not in their vocabulary its just easier to shift the blame when the shit hits. Now they put all their trust in the years of Data Mining using AVMs to support their lending decision along with a PDR & Hybrid signed by a licensed Appraiser they can go after your E&O FOR ANY REASON they will make up – No default even required. If there’s a default they are taking the property back & selling it to Reits Investors, or selling it as an REO and they lost nothing. The lenders on AVM loans are covered- Held Harmless *?Cool?* Of course!
GSEs wont care until their portfolios are toxic to their investors. The American Taxpayer thru Gov bail outs are their safe haven. Nothing to worry about – that’s why nobody in Gov cares either. If the consumer has no say in the financial transaction about justifying a contract/value where they can save $600-1000 dollars and predatory lenders can quickly make loans and after 2 months of payments sell it to GSEs then its NOBODYS BUSINESS but theirs. This is the mentality. Problem is when that same property is still over mortgaged – was over valued by an AVM and now buyer cant hold on anymore wants to refi out of that toxic situ or sell it vs. Lose it to foreclosure- they Wont be able to get back what they owe in a market which doesn’t support their previous irrationality, lack of value verification and desire to overpay. Now every new buyer who comes in will not be guaranteed a no- appraisal LTV Deal. It will end up destroying public Trust in the financial process and Every sane appraiser will need to thoroughly evaluate what has previously transpired asking when was your last appraisal & not get involved in a Train Wreck bullshit bias case like we saw in Austin vs. Miller. No appraiser should ever want to be blamed for others Horrible Over-valuations and get sued for doing a right job in a wrong deal. The damage done to the public (All for Greed) and the lies being told to borrowers to go along trusting AVMs to get what they want should fall squarely on the Gov FHFA & consumer protection agencies for Not putting a informed consent disclosure as a mandatory requirement for Lending like ECOA + Fair Lending Disclosures to protect the consumers from predatory financial loans and predatory infinity schemes to get their money. Time to raise your lowly voice people. You were always going to be blamed for financial failures it was organized by the regulators that way. TAF & ASC should be supporting Appraisers, But Not This bypass of Value!
Please mail this to your Congressional Reps
That’s good. Someone is listening. In a nutshell; The ‘equity with held from the public’ is simply redirected by the trillions to hedge funds and investment firms via repossession activities, as GSE’s give sweetheart first in line purchase opportunity for investment firms to purchase repossessed units and hold them as investment properties (reits) in perpetuity. They’re all in on it, trying to shift public blame to the appraisers, over something we have absolutely no control of. By redirecting defaulted properties to investment firms, the government lending institutions like FNMA and HUD are able to artificially prop up market values for a longer period, by not allowing the cost savings of a deflating housing market to be recaptured and realized by regular citizens. Instead the big firms get first purchase opportunities and hold the units as rentals, also with an ensuing artificially high propped up rental income, as regular market values did not incrementally decrease with each repossessed property sent back to market at what is likely liquidation value.
Excellent post!
Worst case for appraisers: Weaver Leather Inc. is hiring. Demand for their buggy whips has been on the upswing lately due to the increase in vehicle repos. Weaver is willing to put appraisers at the top of their hiring list due to their incomparable faith in zombie industries.
Cars work… AVM’s and Zillow do not. Also, when people buy cars they know what they are buying. Borrowers paying $800 for Appraisals through lenders do NOT know what they are buying nor are they told.
Well that’s interesting. Everyone knows bluebook values are on the low side and you don’t expect to get those price points when you buy at a dealer. Presumably due to the dealers ability to assure minor issues are corrected, give the car a tune up, etc. Avm’s will play out just like bluebook for housing, the numbers will be either artificially low or artificially high comparative to their condition. As if an avm will have every reference for all the permitted and non permitted improvement. These FNMA people are being so foolish, presuming some perfect world scenario that everyone is on permit, and that the $15 per inspection goon the corrupt amc companies will give a damn, and not be susceptible to pressure of home owners themselves.
I’ve had people try to give me old cars, an old boat, a big deal 80’s era worldwide connectable satellite dish and equipment, ask me if I wanted better compensation when I was complaining about appraisal management companies unfair compensation practices. I even had a super fine lady come on to me once and I straight up had to bounce and say I’ll have the report in soon, subbed out what I missed during the brief inspection with other research. The things people do to try and influence appraisers.
You can only speculate what sort of special favors and underhanded deals have occurred, for FNMA to provide such special privileges to just a select few appraisal management companies now tasked with being the pioneers of this absurd ‘appraisal modernization’ efforts. Bribery, it’s how things get done. How else can people explain their obvious ignorance, their inability to take in simple data the majority of appraisers are proclaiming, to boldly tell lies and stick to those lies despite all evidence to the contrary? The FNMA peoples minds were made up before they even asked for any feedback. Someone got paid. Clearly, someone got bribed or was offered a posh revolving door sort of position or something to that regard. Sold tens and tens of thousands of appraisers down the river in the process. These government people running the GSE’s are not trying to eliminate bias, they are more biased and cause more detrimental effects with their from on high policy decisions than any appraiser ever could, even if we tried. They are racist bigots and their target is the American appraiser because we tend to hold onto traditional values and traditional ideas of independence alongside sound checks and balances systems.
Nothing is more offensive to corrupt bureaucrats than accountability and transparency. Retired, you’re not helping, go haunt the retiree lounge with your favorite elvis glasses or something, play some golf. Don’t forget, extra fiber.
Love the Babylon Bee – San Fran Starter Tent 😉
Snipping tool + random twitter surfing = great memes. Thanks.
I seem to have misplaced my Elvis glasses Baggins; be a pal and loan me a pair of your Jackie O glasses. As for fiber? I predict that Prune Cola will be the next billion dollar industry. The marketing department simply needs to copy the old Ricola commercial to advertise their concoction. “PruuuuuneCoooola”. I appreciate you staying up late worrying about my colon.
Bottoms Up!
Click on the pic it enlarges.
Whoa! Put down the bud light. Nobody is that interested in your innerds. lol.
JFK reference? If it’s Trump vs RFK Jr, that’s one hell of a tough decision, a win win, one of those situations where one could simply skip the vote without a worry. RFK Jr is right up there with Ron Paul, like a true national hero, fighting the good fight.
Contact me to discuss! I have talked to NCAB and since 2020 FNMA has turned in 300% more appraisals than in previous years. They have bypassed their own Appraiser Quality Managment division where appraisers could respond to the complaints first, and instead just simply turned the complaints in stating that there “might” be something in the report that the State Board should address. No due diligence, no proof, they are allowed to send in an EMAIL complaint, with no documentation. Why should the NCAB have to do all their work? The Appraiser Act rules need to be updated to reflect that each complaint must have documentation or explanation of merit or the complaint should be returned to the sender. The NCAB should also be required to maintain a copy of Alamode software. We are required to maintain digital workfiles, but the NCAB does not have the means to open the workfile because they don’t have a copy of Alamode. This is against the OMB electronic files act that states we can not be punished for maintaining a file electronically and that state and federal agencies should maintain the means to allow electronic submissions where they are required and permitted by law. Amanda Rivera 919-656-7446
All you have to do is ask where is their proof?
Who signed a so called complaint
Where’s the data
LOCKED UP!!!
Your board needs to get educated about this!!
It is unsupported BS