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on Mon Aug 3 2015, 1:23 PM
Every state Angelina has a property tax appeal system and if you ask, "How does the value get calculated" then I suggest your hire a professional appraiser that understands the appeal process. The numbers are to small for me know, however a few years ago I used to represent entire condo complex's and go in front of the review boards and plead my case. The most successful condo complex I worked was a 300 unit condo conversion complex where the city/state was overvaluing by roughly $100,000 per unit. With a tax rate of 1%, I was able to reduce the total tax liability by a combined $300,000. Appraisers are more than servants to the lenders.
on Sun Aug 2 2015, 8:21 PM
I agree the market is struggling to pick up but my property taxes and the value amount for which the accessors office uses in calculating property taxes hasn’t a clue we experienced a collapse. So I too would like to know when non-goverment backed property owners will be entitled to relieve for overpriced purchases trying to hold on to these property’s that lets be honest will never reach the intended value for which property taxes are being calculated on.
on Fri Jul 31 2015, 3:08 PM
You say wage Growth, what's that? If the current 80,000 appraisers nationwide made $400 per assignment prior to HVCC in 2008, and with only a 3% yearly increase in wages, the fee directly paid to the appraiser today should be $491. With most big box appraisal management companies offering wages in the $275 to $300 range we would be very happy with a raise of 0.02% this past quarter.
on Thu Jul 30 2015, 12:30 PM
I turned my head and appraisal business away from Prospect Mortgage as they ordered their appraisals from the Mercury Network, then C2C, then hired a staff appraiser, then Velocette, and now mostly go through an AMC (Solidifi). Every step of the way they lowered their appraisal split to the appraiser (now $300 versus $400 in 2000 - 2008) but increased the scope of work. Prospect, when you lower your appraisal fees to what an appraiser made back in the late 1980's, guess what, you'll always be chasing to find new inexperienced appraisers to work on the cheap. Additionally, via Solidifi's Performax platform, they expect the work back in 3 days from assignment. No thanks.
on Thu Jul 30 2015, 11:39 AM
Thanks Chris for keeping a watch on the markets and relaying your information to the rest of us with your daily run down. I am back into loan origination and your website is the first thing I read every morning. Good job! Mark Hoye Mortgage Loan Officer America Trust Funding Rockville, MD
on Thu Jul 23 2015, 12:14 PM
Congratulations on now working for New American Funding Frank. Their hiring requirements for panel appraisers in my area is to have at least 10 years of experience. A high school graduate today can look forward to 5 years of college, 2.5 years of supervisory training, and 10 yeas of gaining knowledge before they could even apply. My nephew will be 35 and the year will be 2033 before he can submit an application. Good luck Frank as their scope of work requirements for appraisers is 15 pages long and their requirement for 4 closed sales always brings on extra liability.
Frank Ceizyk
Producing Branch Manager, New American Funding
on Thu Jul 23 2015, 12:25 AM
Well, we're not too busy to join the MAA and contribute our voice of protest here: Please contact your Senators to make clear to them that homeownership cannot, and must not, be used as the nation’s piggybank. Please click HERE to go to the Mortgage Action Alliance (MAA) homepage and click on the “Take Action” button to get started. If you don't have, or have forgotten your username and password, click on "forgot password" to retrieve it. If you are not a MAA member, you will need to join MAA to take action. Please contact Annie Gawkowski at 202-557-2816 or if you need assistance. The MBA is a hop, skip and a jump away from Capitol Hill and is our biggest lobbying voice in DC...
Ted Rood
Senior Loan Officer , MB Financial Bank
on Wed Jul 22 2015, 4:28 PM
Well, the Gfees were already permanently raised to finance the temporary Social Security cuts, why not raise them for highways too? What a great idea, NOT.
John DeLeva
DeLeva Group
on Wed Jul 22 2015, 3:58 PM
Many of our elected officials at all level of government bet on the fact that their constituent's are not paying attention. I trust soundly that the American people will remain too busy or disinterested or both to notice...funny thing is, it is our city, state and federal government's that keep us busy....
on Mon Jul 20 2015, 1:13 PM
Tim- Not exactly apples to apples there, though...since NACA buyers are paying no MI, and I would imagine the bulk of them are buying down the rate substantially, too.
Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Tue Jul 14 2015, 11:33 PM
If by "they," you mean "any borrower with poorer credit history, lower equity, and less of an ability to withstand financial stress," then I quite agree, as would the author of the study. He would likely then go on to point out that the fact that the "they" are also first time homebuyers has nothing to do with the increased risk. The author would readily agree (and did!) that the average first time home buyer is riskier because they tend to have more of these traits. The author's point is that an FTHB without those riskier traits isn't riskier simply because they are an FTHB. Therefore, we should adjust the cost of risk based on the factors that actually impact it.
on Tue Jul 14 2015, 3:19 PM
Thank you for posting this article and for taking advantage of the flexibility provided by Fannie Mae’s underwriting guidelines. I applaud the terrific service and value you provided to both of the families reflected in the case studies. Zach Oppenheimer Head of Customer Engagement Fannie Mae
S Reichert
Mortgage Banker, Black Hills Community Bank
on Tue Jul 14 2015, 11:43 AM
"First-time buyers are inherently different, with lower credit scores, income, and equity in their homes and are therefore less likely to withstand financial stress or take advantage of financial help in the marketplace than are repeat homebuyers." The ability to repay is only one layer of risk. Credit history, equity and ability to 'withstand financial stress' are other layers of risk. They are riskier.
Frank Ceizyk
Producing Branch Manager, New American Funding
on Fri Jul 10 2015, 4:13 PM
Also doesn't help when you have a regulatory agency that characterizes the home loan finance industry as one where consumers must be wary of "debt traps, surprises and runarounds"...that whole dialogue of distrust \that David Stevens keeps talking about...
on Fri Jul 10 2015, 2:46 PM
A very large percentage of people buying through the NACA program all across the country are reporting that their PITI mortgage payment is less than their rent. Definitiely still a good time to buy!
on Fri Jul 10 2015, 1:07 PM
Thank you so much for this insightful article!
Ted Rood
Senior Loan Officer , MB Financial Bank
on Fri Jul 10 2015, 12:44 AM
Some days, it feels as if we've all been in this business 43 years.....even if it's only been 4.3!
Ted Rood
Senior Loan Officer , MB Financial Bank
on Fri Jul 10 2015, 12:38 AM
Sadly, many folks have heard media reports of mortgage "truths" such as "you have to have 20% down", "must have a 720+ credit score", and "no one is getting mortgages these days", so are scared out of the market without even investigating their options. Such a shame, given that guidelines are now actually easing somewhat, giving buyers extra opportunities to qualify!
Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Wed Jul 8 2015, 1:11 AM
Entirely possible, but not probable yet. I'd want to see how the Greece situation is resolved and how Spain's elections end up before thinking too assumptively that the Euro is a failed experiment. Heck, Greece could exit and Podemos could take power in Spain and it STILL might not mean the Euro has failed. This is very much a "jury's out" sort of thing for me. I go back and forth on it as far as long term hypotheses. All I know is that we're not seeing it right now.
on Tue Jul 7 2015, 5:15 PM
My home is under water and not covered by Fannie or Freddie. Would love to refinance but I don't qualify for HARP. Is there any help for me out there?
Frank Ceizyk
Producing Branch Manager, New American Funding
on Thu Jul 2 2015, 5:54 PM
Bill--so I'll throw you a bone. It's not a free market right now in the context of your definitions above. The government is to a large degree dictating what we can and can't charge/make in the name of protecting consumers who arguably were badly damaged by years and years of abuse at the hands of all the housing players including appraisers and lenders. The comp plan is what it is. Is it unfair? As Matt said, absolutely. Do we have an organized lobby with a unified voice and a message capable of changing it? I'd say unequivocally no. If you are trying to educate consumers, great. The question is, will they care about spending $400 to $800 on an appraisal, when they watched thousands of dollars of equity evaporate when the housing meltdown happened? Not likely. Maybe you should take your argument straight to a consumer protection group. There are a ton of them out there, and they might be able to help you craft a platform for change with all of your facts and figures supporting the harm the current system is doing to customers. You've educated us all about the injustices of appraiser compensation and the flaws in the AMC system. Now what are you going to do fight the injustice besides rant and attack anyone who tries to provide you with some perspective other than your own? Provide the details of a new system for appraisal compensation and valuation and then covince a grassroots movement why it will work better. If you can't do that, then you will just be written off as a guy who is angry about his place in the housing industry food chain, and just wants to complain, but doesn't have the will or creativity to come up with something different than anyone will care about.
Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Thu Jul 2 2015, 10:38 AM
I'm a fan of healthy dialog, but the "Bill Johnson Show" in the comments section of most every MND article is getting a bit tedious. I'd wager you're not doing yourself any favors with the verbose rants. You come off like a guy who has been deeply personally injured by the after-effects of the financial crisis (Hi, welcome! You're among friends) and who is looking for a place to make his voice heard. This is a website about "mortgage news." Try to keep the comments more directly connected to the topic of the article. If an article is about the gross injustices of the appraisal system, lucky you! Otherwise, ranting about the gross injustices of the appraisal system isn't really helping your cause. I'm sorry to say that gross injustices are always a risk for any group of people who don't have a big enough lobby. It ticks me off that life's not fair too, for what it's worth. When we explicate those injustices with too much zeal, we risk alienating people that might otherwise listen.
on Wed Jul 1 2015, 8:27 PM
I feel your pain Lauren, but people just don't want to listen or simply think they know best.. I have routinely brought forth the ongoing issues at it relates to the 70% of all appraisal transactions that go through AMC's, but have routinely been met with strong resistance to the truth. I'm told I'm angry, abusive, and my honest truthful comments to questions get edited to remove facts. Keep up the fight.
on Wed Jul 1 2015, 7:04 PM
Jason, do you really think that the 70% of all residential transactions (appraisals) that now go through appraisal management companies (AMC’s) operate in a true free market? Here’s a definition of Free Market; “A free market is a market system in which the prices for goods and services are set free without consent between vendors and consumers, in which the laws and forces of supply and demand are free from any intervention by a government, price-setting monopoly, or other authority. A free market contrasts with a controlled market or regulated market, in which government intervenes in supply and demand through non-market methods such as laws creating barriers to market entry or directly setting prices.” Let’s take a few of these on one by one. The appraisers do not set their fees with the majority of big box AMC’s as they are solely controlled by the lender. How can you have a free market when the business owning appraiser is not allowed to establish their own independent rate? The definition states, “The forces of supply and demand are free from any intervention by a government, price-setting monopoly, or other authority”. With the government’s involvement with past and current regulations, the forces of supply and demand are not being met. With the government price-setting of VA appraisal fees on a state level, how can supply and demand be free to work? If within the DODD/Frank bill there is specific verbiage to try and control what is considered a customary and reasonable appraisal fee, then how can this be considered free of government intervention. When most big banks own their own AMC’s (BOA = Landsafe / Wells Fargo = RELS) and set their own appraisal fees, how can this not be considered a price-setting monopoly? When the government sets AMC regulations so stiff and expensive that forces it out the smaller AMC’s, then they are in effect creating monopolies and creating barriers to entry/competition. Ted, although I see that you follow me as it relates to the question and answer section of this site, routinely flag my answers, and ask for administration editing, what you like to call countless hours of complaining, is in fact an education to the public. Ted, continue to operate and sell your services in all 50 states as your profile indicates, while disclosing in prior comments you are licensed in none. I look forward to an educated specific line by line response to still support your claims of a free...
on Wed Jul 1 2015, 5:00 PM
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Ted Rood
Senior Loan Officer , MB Financial Bank
on Wed Jul 1 2015, 4:33 PM
Great point, Jason. We'd all love to make more money. Loan officers can't be paid anymore on loan profitability, but it sure wouldn't do us any good to spend countless hours complaining about it.
on Mon Jun 29 2015, 6:25 PM
I agree with you Andy that an appraisal should be a credible opinion of value, however as I've stated many times, most people who review our work are not licensed appraisers and thus are unable to determine credibility. Unfortunately, a credible report to most just means that the value suites their intended goal (purchase / refinance). I also do not want anyone to set my fees, however if its the law of the land that a customary and reasonable fee be established freely from known work via AMC's, then I think this will establish a floor to fees and should not be considered the ceiling. I to have taken on work that I considered less than a reasonable fee, however the ultimate business decision is mostly based on the clients needed scope of work (Liability). If client A pays $425, has a very stiff and extended scope of work, and often calls for unneeded reconsiderations on the back end (post submittal), then working for client B who pays $350 with an easier scope of work, may result in a higher hourly wage.
on Fri Jun 26 2015, 4:52 PM
Jason, in a true open and free market your thought holds some validity, but with the well-established use of AMC’s in the appraisal process, the system is not a free market. The appraisal fee that’s reflected on the HUD-1 statement is in most cases, not the actual fee that goes to the appraiser. If the appraiser is paying out of pocket (up to 60 % of the noted appraisal fee) towards the lenders enforcement of regulations (by use of an AMC), than the market is not free. If I have no control in setting my fees for noncomplex assignments by my clients, than again, the system is not free. If the lender forces me to us a delivery system of their choosing that charges me $10 to $30 per transaction, and I have no ability to raise my fees to offset this, the system is not free. As it relates to banks being forced into the current process, some of the issues facing the appraiser today, are not due to new regulatory changes, but are due to each lender independently setting their own set of appraisal standards (Scope of Work). How can appraisal fees be established in a free market when each lender is working off their own individual template / set of guidelines, and have all but abandoned what is supposed to be set federal standards? Lenders don’t care, but they should know what a standard appraisal looks like (meets federal guidelines) set a base fee, and expect to pay more each time they add addition requirements onto the scope of work. The lenders have paid for a $10 car wash, but every week since (2008/2009 - HVCC) they have continually been forcing the appraiser to add freebies. They now receive hand washing, chamois drying, waxing, full interior cleaning with leather detail, wheel polishing, and headlight restoration.
on Fri Jun 26 2015, 3:15 PM
Amen Frank.
Frank Ceizyk
Producing Branch Manager, New American Funding
on Fri Jun 26 2015, 1:38 PM
Bill: The reason I haven't responded any further to your argument is this debate is a waste of time. The Supreme Court's ruling on disparate impact needs the attention of every single industry professional that exists, and will require that we set aside petty differences like the ones that are being debated here and come together as a united whole in the very near future, or simply watch the nationalization of this industry take another giant unobstructed step. The regulatory and political powers that be see arguments like this and it only fuels their justification that we have no cohesive argument to make that will protect consumers any better than they are. In the absence of any focused opposition, they have power to regulate, fine and legislate us into oblivion. Imagine how many voices there would be if title companies, credit vendors, appraisers and AMCs, loan officers, secondary market personnel, builders, financial planners, and every other stakeholder involved in every housing transaction were united towards one focused goal? I fear the very well designed timing of each tsunami of regulatory implementation keeps us in a perpetual state of adaptation where all we can do is the best we can to survive. But is also keeps us in a state of perpetual retreat. I wonder at what point we will reach a precipice where we have no more ground left to retreat to. At that point, we either fall of the cliff, or figure out how to fight back with some teeth. Until then, we run.
on Wed Jun 24 2015, 4:25 PM
Jason, I agree with you about the repurchases and the increased scrutiny of appraisals, however the thought that they are being thoroughly vetted today, is simply not true in most cases. Instead of hiring teams of qualified appraisers on a local level to sure up quality control (at the lenders expense) lenders steal from the original appraiser (split fee) and pay outside AMC’s / software providers to put a seal of approval on each appraisal report. Truth be told, AMC’s and their primarily lower level staff are unqualified to determine the true quality of an appraisal, as what they review is very limited in its scope. Although the individual appraiser must be licensed, have access to all relevant data (MLS, etc.) be competent of the local area, etc. the companies hired to monitor us do not have the necessary tools or knowledge to do so. If I go to a doctor and want his findings reviewed by a 2nd opinion, I would go to someone with equal or a higher degree of knowledge and not have the work reviewed by someone less qualified, but yet that is what happens to the appraisal as it relates to AMC reviews. Also, keep in mind that many of these AMCs primary function is to be a secondary income stream as it relates to the loan process. The BOA’s and the Wells Fargo’s of the world force the borrower to use their company owned AMCs (Landsafe / RELS) and pocket the portion on the fee not paid to the appraiser. As it relates to the 2nd level of scrutiny, the appraiser’s frustration with our clients (the lenders) is absolutely not misplaced. Our clients have chosen to reduce appraisal fees to levels of the late 1990’s; have randomly increased the scope of work without acknowledgement of the increased time and liability put on the appraiser; demand turn time of 24 to 48 hours; have required higher license levels than necessary for the job; can at random times demand 5 to 10 years of experience to complete basic assignments; chose to not allow Trainee appraisers to assist in the completion of an appraisals; often charge the appraiser $10 to $30 in delivery fees for each assignment; require us to pay annual fees for the companies they choose for background checks; charge the appraiser a 3% credit card processing fee when the borrower chooses to pay the appraisal fee with a card; keep internal blacklist (do not use) on those appraisers that do not give into to their illegal attempt to influence us; etc., etc., etc. Follow the...
on Tue Jun 23 2015, 10:41 PM
Bill...the reason there is so much scrutiny on the appraisal is that when loans went bad during the crisis lenders became accountable for repurchase requests from Fannie and Freddie based on the accuracy of the valuation. In order to avoid this, they were forced to put in place processes that insured appraisals are vetted thoroughly. AMC's have similar QC processes in place to ensure the product they provide to the client is of satisfactory quality. Yet banks cannot rely on this alone because they are ultimately responsible for any errors by counterparties such as the AMC. This creates a dual level of scrutiny that won't likely go away soon in our current regulatory environment. It is frustrating for all involved, but it is what it is and directing your frustration at lenders is quite frankly misplaced. My experience is that the other parties you reference (agents, buyers, sellers, etc) may complain but at the end of the day as an industry we defer to the appraiser across the board as it relates to the final value determination.
on Mon Jun 22 2015, 4:16 PM
Ted, as an appraiser I clearly understand who the intended user is (The lender) in a typical purchase and understand the roles involved. If you state that “Listing agents and sellers ONLY have access when the appraised value doesn’t meet the sales price”, then you are proving my point that our work is overseen by a vast majority of individuals and systems. When by law the borrower is given a copy of the appraisal, it’s my experience that they have no filter when it comes to giving out copies. My original comment was in response to Frank who indicated that “the valuing system didn’t/doesn’t work”. My question to Frank still stands, how many more sets of eyes need to review the appraisal to get a final seal of approval?
Ted Rood
Senior Loan Officer , MB Financial Bank
on Mon Jun 22 2015, 2:05 AM
Since when do listing agents and sellers get access to the appraisal paid for by the buyers, Bill? ONLY when the appraised value doesn't meet the sales price. Loan officers may/may not peruse appraisals, but certainly don't underwrite them. Your contention is not accurate, appears you may not understand the roles involved.
Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Fri Jun 19 2015, 1:11 PM
Fixed, thank you!
Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Fri Jun 19 2015, 1:06 PM
Thank you Chuck
on Fri Jun 19 2015, 8:54 AM
Great site.... Nice level headed analysis. Any mortgage broker should be using this site
on Wed Jun 17 2015, 4:44 PM
Your headline is wrong. From page 5 of the Corelogic report: 94 percent of homes valued at greater than $200,000 have equity compared with 85 percent of homes valued at less than $200,000. Therefore15% of low-end homes are underwater, not 85%.
Ted Rood
Senior Loan Officer , MB Financial Bank
on Tue Jun 16 2015, 3:19 PM
Looks like we're headed towards a downward spiral in homeownership rates. Guess all those housing reforms may not have boosted the market quite the way they were intended.
on Mon Jun 15 2015, 5:17 PM
I'm not sure if appraisals are included within the accounting for how much a borrower pays for a home loan when it closes, but the split appraisal fees offered by the big box AMC's have been the same since HVCC (2008/2009). I'm sure my story is similar to every appraiser out there, but I have never received an e-mail saying "Good news we are raising the appraisal fees". If every body else finds it necessary to raise the costs of doing business 30% from 2012, then why has the appraiser been forgotten. As it relates to residential appraisal fees, its the lender who sets the fee paid by the borrower, so why hasn't the appraisal fee been increases in 10 years? Correct me if I'm wrong, but if property values have increased 30 to 40% over the past same 3 years, have commissioned real estate agents not seen a significant bump in income? If borrowers are seeking higher loan amounts to be able to buy, are the commissioned loan officers not also getting a huge increase in pay? This is not sour grapes, but people forget that with a set fee (established by the banks) I will get the same/similar fee for a $300,000 property or a $1,300,000 property. Appraisers do not have a carrot to chase like an agent (desire/plan) to work the higher end neighborhoods or like a commissioned loan officer (higher dollar loans) so without a modest cost of living increase every year, we are losing ground.
on Sat Jun 13 2015, 10:25 AM
The violations Bill points out are a tiny subset of the market. I have never seen or heard of an industry with its comp structure so painstakingly regulated by Federal Law. i understand as someone outside of the industry the headlines seem jarring....although it is such a small segment of the broader industry it does not even register for me other than to take note of the enforcement action and wonder "what we're those guys thinking?".
Frank Ceizyk
Producing Branch Manager, New American Funding
on Fri Jun 12 2015, 4:54 PM
I keep speaking about the appraisal industry from the same place you are speaking about the originating industry--from a place of not doing it for a living. So if I am 'falsely speaking' about the appraisal industry, you are simply doing the same about the mortgage industry.
on Fri Jun 12 2015, 11:26 AM
Frank, if recent trends continue and your industry/profession keeps getting dragged through the mud, (illegal activity) then I think you will find this is the bottom floor of change. When you lose the ability to market yourself, set your own fees, pay some middleman company 50% of your pay, become licensed to a higher standard and you start to lose 5% of your membership a year, don't say I didn't warn you. I agree that the market values our professions differently, and based on the extreme variances for entry, its no contest. You ask " Why should we waste time beating a dead horse" as it relates to the ongoing illegal activity? If the allegations are true, and I have $millions of reasons to believe they are, than why does it seem to be a culture of activity and not a simple rouge individual. As it relates to the appraiser profession, and certainly on the residential/lender side, I'm always provided a phone number to call when illegal influence is attempted (LO's/agents, etc.). If I had a boss and he presented a way to illegally collect funds under the table and wanted the entire company to get on board, I would be the first person blowing the whistle. Frank, you keep saying "Why try to speak as to what I do" but yet you keep falsely speaking about the appraisal industry. Sorry, but market value is not standardized and there's no chart for me to refer to when establishing current value. As it relates to current appraiser issues, when this site or any other indicate 3 large companies were busted for illegal activity in a single month, my stance will be just as strong.
Frank Ceizyk
Producing Branch Manager, New American Funding
on Fri Jun 12 2015, 12:33 AM
Bill--you helped make my point beautifully. "Why try to speak as to what I do". Yet that is what you want to lump the value of originators functions in the housing chain in the same manner as how you are paid. The simple truth is, the market values what originators differently from what appraisers do and compensates accordingly. Why do some lawyers charge $400/hour and other charge $100/hour. Why do some hospitals charge $1000 for a CT scan and others charge $500? Why are brand name drugs more than generics? Why should a CEO make 100 times more than the employees that bring in the business to his firm? Because the market values them differently. As far as the lack of comments about all of these 'outrages" why should we waste time beating a dead horse about these violators actions when regulatory agencies have already done that. You also assume that the companies in question were 'guilty for a fact'. The truth is with a regulator that has no oversight, the potential reality of the endless litigation expenses that would be incurred if a lender actually fought a regulator's findings make settling or paying fines a less costly approach. The answer is to educate customers about how to save, budget and purchase homes with higher down payments, less debt, and at prices that are not at the top of the market range. This site teaches customers and loan officers how to actually know what makes the best rates and terms and how to shop accordingly, and gives them as much knowledge as they want to make educated decisions. You especially can educate customers about why that house they want to bid up $10-15-20k to stay in the running in a 'hot market' is basically speculating on real estate. Compensation reform was a mortgage banking industry designed ruse to control competition, period. It was brilliant--the broker industry had strayed so far from it consumer benefit oriented beginnings that it was easy to justify the need for the controlling of compensation after some heavily advertised abuses by the worst of the worst. But all it is has done is help make the costs of originating a loan more predictable. The secondary market is where the profit can be made, so the originating market simply serves to keep the velocity of money flowing in and out at a more controlled page. Appraisal fraud was a massive cause of the meltdown. Where were the alarm bells when values were going up year over year over year with no basis on any historical...
on Thu Jun 11 2015, 5:40 PM
Frank, as someone who indicates you are a consumer advocate I can take off my appraiser hat and approach the issue from a non-industry professional and ask the same questions. As a consumer I can read the headline “Third California Lender Fined for LOC Rule Violations”, and although I may know nothing about the topic, the people that do (CFFB) are finding multiple violations under the current laws. Taking my personal feelings out of the equation, I have no reason to doubt these illegal payments were real and that the CFFB findings are fact. If my approach of a flat fee is off target, then what do the professionals on this site suggest is the answer to curb this ongoing illegal activity? To answer that question, the first step would be to agree there’s a problem, of which I have not read any strong comments to condemn these violator’s actions. Frank, if you say I’m coming from a place of ignorance as it relates to your profession, then why try to speak as to what I do. 30% of my yearly business comes from residential loans and trust me, as a business owner I have had to push hard for that 30%. The other 70% comes from soliciting agents, attorneys, and as an expert witness, etc., so nothing is handed to me. As it relates to always getting paid Frank, let me correct you on a few things. With the push for faster delivery times the amount of work that appraisers must do prior to the inspection is out of control, and when the orders are cancelled, we get nothing. In addition, 20% of my day revolves around dealing with past appraisals that I’ve already been paid on where anyone and everyone can continually ask irrelevant questions of. Your thought that I can’t make a change in my industry and that somehow I have sour grapes, could not be further from the truth. I have and will continue to push for the appraiser/consumer cause, and hey look at me, does it look like I have a problem telling anyone what I think.

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