Appraisal Reform Accord Reached By NY Attorney General and GSEs

RE:Appraisal Reform Accord Reached By NY Attorney General and GSEs

Jake — Thu, 27 Mar 2008 11:00:00 GMT

Let me clarify some points some post seem to not understand. Fannie Mae is a private company that has choosen to enter into this agreement. Of course the Attorney General of New York will sue them if they don't, because he has evidence against them. (the agreement says he will stop the investigation if they sign) Lenders don't HAVE to follow these rules. ONLY if they wish to sell to Fannie Mae, which yes is the largest secondary buyer and most lenders will conform to Fannie Maes guidelines, however it is not a "LAW". Legally Fannie Mae, as a private company, has every legal right to enter into such an agreement. The agreement, Titled "Home Valuation Protection Code", states that NO member of the loan production staff can order an appraisal... so basically no sales agent at a lender or mortgage broker only a seperate division that the lenders must pay to set up themselves can order appraisals. (Most Brokers could not afford such a division) Hope this clarifies wether you like it or not

RE:Appraisal Reform Accord Reached By NY Attorney General and GSEs

Bill — Tue, 25 Mar 2008 11:00:00 GMT

This is fine and dandy, but I believe that the problem is and will always be with the Real Estate (so called) Professionals. They are the front door to all that has happended in the last 5 years and then they have the odasity to declare themselves the victims in this mess? Come on Mr. Cuomo, why don't you investigate some of the Realtors in the community and see what CRAP they unload on both Appraisers and Mortgage Originators!

RE:Appraisal Reform Accord Reached By NY Attorney General and GSEs

anonymous — Sun, 09 Mar 2008 12:00:00 GMT

I just listened and read this thing. Are they basically handing the keys to hell to the devil. The lender being the one who chooses the appraiser is an old corrupt system from years ago before brokers were so primary. That was an old boys school thing, you had to have a bank in, and it was a hush hush situation on how far to reach when appraising. Each bank had it's own tolerance level of corruption. Appraisers were dismissed or ignored completely and hung out to dry if they were non compliant or messed up too much the loans. crude i am disgusted so far, and are they the ones who are holding the appraisers money also. They used to rip off the appraisers all the time with non payment or 60-60 day payments. Not good when the appraiser isn't paid at the door, otherwise the lender really torques control on you. It doesn't look good for the appraiser. I hope some equitable way for appraisers to do appraisalsa is made and we can get paid at the time of service. We don't make enough to get paid the next quarter of reporting.

RE:Appraisal Reform Accord Reached By NY Attorney General and GSEs

anonymous — Sun, 09 Mar 2008 12:00:00 GMT

so if only the lenders can order an appraisal then the brokers just go get a correspondant lenders license???

RE:Appraisal Reform Accord Reached By NY Attorney General and GSEs

Kathy — Thu, 06 Mar 2008 13:00:00 GMT

Since everyone is playng the blame game, let's look at where it really starts and with credit scoring. Before you even begin to think of ordering an appraisal you pull credit. Depending on the score you have you are graded. Depending on whether you are an A borrower you get higher LTV's and better rates. If you are a B-C (bad & crappy) borrower you don't get to borrower as much. That's why the push for value, I could get somene a better rate, I could help someone get rid of the 27% interest rate on a card they had never even been late on. Credit scoring and the credit card industry play a big role in the start of all of this. What have people been doing with the cashout on these refi's? Paying off their high interest rate credit card, that is offered by the bank as soon as you close on your mortgage. If the government wants to do any kind of a bailout bring back the deduction of being able to write off that interest on credit cards on your taxes. Make the credit card company verify income too. If you can fog a mirror you can get a credit card. No one needs more than 2or 3 cards at the most. They get overextended on them, they can't write any of it off, so they refinanced their house because they could get that write off. The problem then goes back to being responsible for your actions. Those same people who had to get put into the 2/28's because of their credit score and poor judgement on accepting and using credit cards, went right back out and used them again. Why, because as soon as you did that your score went back up and 20-30 offers showed up in the mail offering you a card again. Credit scoring is a joke, it doesn't take into account how much money you make, how long you have been on the job, how long you have owned your home. That's what an undewriter is supposed to look at but now it's automated and the computer program doesn't care that you are behind because you lost your job, or had a heart attack. It just says you don't pay your bills, your a deadbeat, so you deserve a higher rate. Even though lenders are stll allowed to manual undewrite, I have never had a loan approved manually, when DU or LP denied it. You want accountability, put it on a loan officer or undewriter who can make a decision, based on all the facts, no on a fake-o score.

RE:Appraisal Reform Accord Reached By NY Attorney General and GSEs

Anonymous — Tue, 04 Mar 2008 13:00:00 GMT

Besides the market begin depressed here we go someone needs to try to take advantage of the situation and get their 15 minutes of frame. Non sense-Over Regulation-Knee Jerk reaction-it is obvious that cumo has never been involved in anything that pertains to mortgages I bet you that moron still rents. He wants to show us he's doing his job he is full of it and we should express our outrage. I am Glad I didn't vote for him and I am going to make sure when he is up for re-elections that I let everyone I know that he is a incompetent

RE:Appraisal Reform Accord Reached By NY Attorney General and GSEs

Anonymous — Tue, 04 Mar 2008 13:00:00 GMT

I just read the New Home Valuation Protection Code. Bunk. I find it interesting that Banks want to get ride of Mortgage Brokers. For all of the salaries, office space, 401k, medical insurance, life insurance and other benefits banks receive from NOT having full time paid employees, you would think that these banks (along with lenders) would be THRILLED to have Mortgage Brokers in the Industry. The banks still get paid (maybe not full loan commissions, but they still get the benefit of "outsourcing"). Greed. That is all this is. Pure and simple. But let's see how consumers fair in these changing times both from a Legislative perspective and from a new business "arrangement" perspective. My guess is, "A" banks will find that they miss their little buddies "the Mortgage Brokers." Because, just maybe they will not be as successful in the B & C paper as they thought they were going to be. But only time will tell where less competition on pricing, loan products, # of lenders to chose from, types of lenders, and more legislation will have on the consumers and the banks "bottom lines" that want this business. Maybe someone can share P&L and Balance Sheet information in aggregate number in a year or two or three to see how Banks and Lenders fair out in this mess. Interesting times. Definately, interesting times.

RE:Appraisal Reform Accord Reached By NY Attorney General and GSEs

TMOlsen — Tue, 04 Mar 2008 13:00:00 GMT

When did Cuomo (D-NY) & FHMA-FHLMC become king of the US money market? How do they decide something SO HUGE without any elected offical, NAMB, & public opinion? Two small business industries closed - no appraisers & no mortgage brokers = no choice.

RE:Appraisal Reform Accord Reached By NY Attorney General and GSEs

Anonymous — Tue, 04 Mar 2008 13:00:00 GMT

This will not get rid of mortgage brokers. All this really does is rob small independant appraisal companies of their business. Most lenders, (like Countrywide Wholesale) and mortgage brokers, (like Sierra Pacific and Plaza Home Mortgage) are already requiring Landsafe does a review of all appraisals submitted. As I said, all this does is rob small businesses and give to the big banks. That's all. Nothing new.

RE:Appraisal Reform Accord Reached By NY Attorney General and GSEs

paul — Tue, 04 Mar 2008 13:00:00 GMT

I have been a Real Estate appraiser in Ma for approx. 10 years. i have worked very hard on my practice and have achived the level and volume I can handle, also I have worked very hard in providing good service to good clients, clients who DO NOT PREASURE FOR inflated values, and understand that appraisal can only be this high. So now how is my practice and my 10 years of hard work fit into the new picture ?? . I will now be fully dependant on some buracratic agency who will rush me with time frames and will most likely give me only the portion of my fee ?? How is this fair, how is this good for appraiser ? can anyone tell me also thouse new rules ( re brokers) are completely not nessessary since most if not all appraisals now are being reviewed ?

RE:Appraisal Reform Accord Reached By NY Attorney General and GSEs

Anonymous — Tue, 04 Mar 2008 13:00:00 GMT

So as a recent home buyer who has watched as the prices for the very same house as mine in the same neighborhood (two doors down!) has dropped by 60K I can now sue the Bank, Mortgage Broker and the Appraisal Co. because the NY atty Generals Office has proven that my home was fraudulently appraised and the Bank/Mortgage Broker were in cahoots with the Appraisers to swindle me out of my money? I smell blood (money) and the Sharkâ€™s (Lawyers/Attorneys) certainly can not be far away!

RE:Appraisal Reform Accord Reached By NY Attorney General and GSEs

Dave — Tue, 04 Mar 2008 13:00:00 GMT

RE:Appraisal Reform Accord Reached By NY Attorney General and GSEs

Ron Grandorf — Tue, 04 Mar 2008 13:00:00 GMT

It amazes me how manipulative our Government can be at misdirection of blame/finger pointing. In the appraisal arena, values are simply going down via deflation/recession and lack of funds available in the Mortgage Backed Securities arena. Simply put, the Government wishes to redirect blame to Mortgage Brokers and Appraisers by painting us with a negative brush versus telling the truth about the incompetence of several Government agencies,(SEC, Congress, etc....). that allowed these Sub-prime Loans that put us in this mess. Isn't it coincidental that the Dollar is losing value as property values are declining . Coincidentally,isn't it amazing that consumer confidence is at a 40 year low while rates are being manipulated by Bernanke to improve the US Economy as Foreign Governments are changing from a Dollar backed economy to a Euro or Asian based monetary system. The Dollar has lost all credibility in the eyes of the world and we are surprised that REIT's as well as Property values for all MBS's held by Foreign Countries are losing Money by holding on to the MBS: versus selling the security that is Dollar based for a commodity that will fare better in the EURO or Asian Economy. Yet, none of those issues are discussed/brought forward since it is far simpler to blame Appraisers and Mortgage Brokers versus the "People in Power". Come on, isn't that just a little too coincidental/convenient to point the finger at appraisers and Mortgage Brokers when in Reality the situation is truly a complex problem brougt on by many mitigating factors that have nothing to do with the parties Cuomo and FNMA/FHLMC blame for the problem. I wish I had the ability to exert such influence on such a complex problem, because I could redirect the blame/point the finger at any group but myself. I guess absolute power does corrupt absolutely, especially in the blame game.

RE:Appraisal Reform Accord Reached By NY Attorney General and GSEs

Eric — Tue, 04 Mar 2008 13:00:00 GMT

If I want to go to the local barber shop for a trim, the barber needs to have a licence to cut my hair. The the loan officers that cause people to lose their homes, go into bankruptcy and cause families to breakup only need a smile and a good bull.... story. Why aren't these people licensed? Why aren't they in court with the rest of the con artists? Above Posted By: Dave | Tue, 4 Mar 2008 09:43:13 EST Dave, Just cause the Barber has a liscense doesn't mean they can cut hair well. Liscensing may help some but it is not the answer. People need to speak with more than one mortgage professional and do business with a true professional who will not take advantage of them. Those people may be hard to come by, but they are out there.

RE:Appraisal Reform Accord Reached By NY Attorney General and GSEs

Cyrus — Tue, 04 Mar 2008 13:00:00 GMT

Who does Andrew Cuomo think he is? What office does he think he's running for? First of all, he's the AG for NY, not the whole country. He doesn't have any authority over the whole nation's appraisal process. I think in the USA, we have an Attorney General for the whole country. The OFHEO is supposed to regulate the GSEs, not Cuomo. He was chasing the Student Loan industry and when the RE downturn started making headlines he switches over to attack the banks and lending industry. What a slimy politician! So now only the banks are going to be able to order the appraisals? What does that mean? Big deal, the banks have their retail channels and are going to lowball all the appraisals now. At least with the Brokers, the borrower pays for his own appraisal and he gets an independant 3rd party opinion on value, not what the lender says its worth. I worked for Washington Mutual in its retail division when we had in house appraisal staff and after when we switched over to E-Appraisit and LSI. Now as a mortgage broker, I work with independant appraisers. What's wrong with asking your regular appraiser that you always work with what he thinks the property is worth before ordering a $400 appraisal that may be worthless otherwise? The consumer has his rights to have his own appraisal done that he can use with any bank he wants to. WaMu and other banks are all going to start charging $350-450 application deposit fees to "cover their appraisal costs" why is this more "independent" than the borrowers paying for their own appraisals via their brokers in the wholesale channel? Appraisal is not an exact science, you can get 10 appraisers to appraise a property and you will get at least 6+ different values. How is that? Hmm... Were there some excesses in the industry? Maybe, but let the market forces weed the bad actors out, not overly excessive regulation that didn't even go through the normal proceses that bill has to go through.. ie the House, Senate and eventually the president. I agree with the NAMB.. this is a de facto regulatory act that has no ground to stand on. Cuomo has no jurisdiction over Fannie or Freddie. The most that he should be able to do is regulate his own state of NY. As a mortgage broker in CA, I have no idea who he thinks he is telling us here what to do. Outrageous!