Low-Cost E&O Insurance from OREP Working RE Home Library/Previous Editions
Rise and Fall of Real Estate
Values
-
read
story
> The article is
short and gives an explanation that is not full of BS language. The only input
that I would like to give in support of solutions is that the those that are
trying to pass out more BS be not allowed to get away with their obvious control
of the appraisal industry, (Cuomo etc). Public Trust. Some of us still have
the belief that the purpose of our Government is to protect the citizens of this
nation. Cuomo etc. have self, short term interests, till the next scandal.
Interesting to note that the appraisal schools, teachers etc. call appraisers
professionals but go along with the mortgage industry in labeling us TRAINEES
and maybe call us apprentices but in fact there is not a trainee program nor is
there an apprentice program. At best in some states we are Registered Real
Estate Appraisers and still, with great luck we may find a supervisory signature
employer that might mentor and share, teach etc. how, what , why to be an
Appraiser. Mostly we are on our own.
Thanks for a good article. - Leo Gallegos-Rex, Registered NM Real Estate
Appraiser, AAA APPRAISALS
>
You
hit the nail squarely on the head John with your comments about honest
appraisers sitting at home. The ordering of the appraisal is the single worst
enemy to an honest appraisal, as the lenders lose interest in you if don’t “hit
the number” and/or do your market research. I know, I haven’t worked much since
I started checking the “Declining Market” box about a year or so ago. The other
dozen or so appraisers that work for this same institution are getting my share
of work now since they will do whatever they are told by the powers that be. I
feel that if this problem isn’t solved while the iron is hot it never will be.
I am a proponent of the I.V.P.I. or any reasonable third party (not appraisal
management companies) ordering system. Please HELP me and the other 10% of
(honest) appraisers get this industry turned around, by putting your
considerable influence behind this project or the one of your choice to effect
change. If you feel the urge contact Pam Crowley @
www.appraisersforum.com. The thread is
Independent Appraisers GSE/Cuomo Proposal 3/19/08. Pam can also be reached at
www.mortgagefraudwatchlist.org.
Thanks again for your insight. -
Carl Anderson
> I would
like to thank you for your well-written article. I started appraising in 1980
and suffered through the collapse of the S & Ls and remorse over the 1990s as I
saw the recovery dissolve into the mess we are now in. Unfortunately, it is
really appraisers that must bear most of the responsibility. We can argue that
we have been subject to unbearable pressure "to make the value," but in the end,
we are the ones that caved. While the Appraisal Foundation was basically a good
idea and certification was a step in the right direction, until the lender is
taken out of the position of picking the appraiser, things will never change.
Only truly independent appraisers will solve the mortgage problems. -
pbowen@earthlink.net
> Good day. Great article. The main problem as I see it is plain old greed. When I started in the real estate business everyone was independent. Now every mortgage company, real estate company, and title company are one company. There are no checks and balances. - Edward Hadnott
> In our local county, it is currently very common for banks to buy properties at Sheriff's sales, then market these properties who are in turn purchased by individuals (often landlord investors). As an example: ABC Bank purchases property at Sheriff's sale for $30,000; then places the property on the market for much less, possibly selling for $15,000. I am seeing this type of scenario over and over. My question is...what is the logic, or reasoning for the inflated price that the bank pays vs. the much lower amount that they market the property for? - Berkley Rose
>
Thanks for spelling it out to the general
public. I (we) have been crying the "sky is falling" for mortgage practices for
many, many years. Now I read they want to use the "middle man" to send us
work???? Talk about pressure, be good and on time (theirs) or get put on the
blacklist.
1. Send orders without influence or "estimated" value. Just let us appraise it
and THEN figure out how much they can borrow.
2. Allow people with adjustable or bad subprime mortgages refi at today's rate,
with the current payment they are affording and adjust the length of the loan.
Why does it have to be 15 or 30 years?. If they can afford $1,200 a month at 6%
fixed rate, (due the math backwards) and so what if it comes out to a 38.2 year
loan. Beats foreclosure or the lenders writing off part of the loan!
3. Make lenders adhere to the same or similar USPAP we do and get as much
regulation on them as we have (or more). We are talking about giant sums of $$
in the hands of ah, of, ah, who knows what they are?
4. So sorry to the speculators.
5. Pay me when I deliver a report, not IF or WHEN it closes. Jeeze, tell your
doctor you'll pay if and only if your cured! Good luck.
6. The feds are currently killing the dollar with all this fake support. What ever happened to market driven forces? Econ 101?
My .02 cents. Sorry, ranting over. Thanks again for the commentary. - Scott K. Neuman
> Excellent article,
"Rise and Fall of Real Estate Values"! I have forwarded this on to everyone I
know in the business, including the few clients I have left that actually want a
legitimate appraisal, all two of them. Isn't that sad? - Steve Tessmann,
Certified Residential Real Property Appraiser, The Appraisal Shop, Inc.
> The Rise and Fall article is the best of the recent articles. Will anyone listen and understand what most appraisers saw happening even 5 years ago?? - Evelyn Simpson
>
Thank you for writing
this perceptive article, and especially for mentioning the custom of including
closing costs/rebates/decorating allowances/down payment allowances in contract
prices and expecting appraisers to cover them in the final opinion of value.
This is a dirty practice that benefits the lenders and real estate agents, since
they earn a percentage of every closing. Purchasers think they have gotten a
good deal, but end up taking a 30-year amortization for closing costs long
forgotten after closing takes place.
I would love to see the issue of lender sales addressed more thoroughly. When
lending practices switched from traditional conservative underwriting of actual
creditworthiness and property valuation to commission-based sales that benefited
a pyramid of lending "players", the system was corrupted and left open to
gamers. I truly believe the seeds of the current crisis were planted about 25
years ago when this practice started to become widespread, and educated honest
appraisers were slandered to their faces for trying to practice a profession
that used to be honorable. We spend thousands of dollars on licensing and
continuing education and have a big USPAP manual that we are supposed to adhere
to, and for what? Maybe the bonfire of license regulations will keep us warm
while the market idles along and Alan Greenspan works on "getting it". Again,
thank you. - Dana
Grimm, Cert. Res. Appraiser, Heritage Appraisal Services
>
Thank you for putting the basic problems all together in one succinct article. -
Jill Kinnaird
> Just read your article! How could
you be more clearer in explaining the mess we are now in? I have survived but at
a financial cost that is high. I am still called when someone really wants to
know but that is infrequent. Most of my residential work is VA and Fannie!
Luckily, we are involved in working for the GA DOT and have had some good years
as well. Thanks for putting to words what some of us feel in the gut as well as
in the pocketbook. -
Tom L. Davis
> Just wanted to thank you for your very
insightful and well written article. - Kevin J Ryan, MAI, SRA