Article

[William Kirn]

http://www.bloomberg.com/apps/news?pid=20601213&sid=aacHqlTB6jTg

This is an issue, while appraisers have their hands tied, and must use supporting data, that is not misleading, and is from similar market areas as the subject property, the truth be said, if a buyer is willing to pay 200k for a property, but supporting data for the market area, say 3 miles out, only supports 150k, how will the market ever improve. Sure one could say that a buyer that has an extra 75k to put down on a house could change that market, but as it stands right now, the average person with good credit that could afford a 200k mortgage does not have 75k as a down payment.

BTW who ever wrote this article I don't believe has a real grasp on how the appraisal process works, like the appraiser actually determines the value. lol.

GLTA

William Kirn

[Dan Wilson, RAA]

This is one of the reason that I think all the Missouri Appraisers should join the MAR Appraiser Section and become a member. It is the best $65.00 a year that you can spend. We need to support our trade and in my opinion this group is one of the best for the buck you can join. I hope that all Realtor/Appraisers start to consider who is helping them in the long run and take up and get involved more them self. We need all the help and support we can get.

So all that read this please consider joining the MAR Appraiser Section and not just this site we need your support.

If anyone has any question on how to join just let me know or any of the Board members.

[Steven W. Owen]

Dan is right. MAR needs large numbers of appraiser members to be more effective. It is a very inexpensive membership in return for all it does.

From the article:

"Appraisal rules that went into effect on May 1 require lenders that sell loans to Fannie Mae or Freddie Mac to set up a firewall between appraisers and loan officers to prevent improper influence."

This is the real jist of the issue. Multiple forces are at work to try and return residential appraising to the 'good 'ol days' when mortgage brokers could call the shots. While I have some problems with HVCC, and do believe some tweaking is in order, I don't think that commissioned people should have any influence on the appraisal ordering/fee-payment process.

[Steven W. Owen]

Here is a related article, William.

http://blogs.wsj.com/developments/2009/06/24/whats-with-all-the-moa...

From the article:

"Mr. Cuomo’s code isn’t perfect. For one thing, it was imposed on the nation without any sort of legislative debate or vote. And the code makes it more likely that consumers will have to pay for more than one appraisal because lenders generally won’t accept an appraisal ordered by a rival, for fear that the rival didn’t scrupulously follow the code. Worse, the code allows lenders to own stakes in AMCs. So the lenders–who require borrowers to pay for an appraisal, which is designed to protect the lenders–can also profit from that appraisal. Whenever and wherever the home buyer can be nicked for another fee before the keys are handed over, that’s exactly what happens."

Perhaps, if we are going to take issue with HVCC, we should attack the stuff that is really wrong. I fear jumping on the NAMB bandwagon will be like jumping out of the frying pan and into the fire.