Video Marketing and Mortgage News Designed for Mortgage and Real Estate Sales

Kitty: (October 22, 2009 10:08am)

Appraisals bother me alot. There is no recourse for a shoddy done one at all (just pay your money for poor service with no chance of a refund). HVCC appraisers are the worst because unlike VA, it is just a middleman service that is trying to make money. They will hire the least expensive appraiser, not the most experienced or quality appraiser. One appraiser insisted that a client's brand new air conditioning was a swamp cooler. When we provided pictures as proof, she wrote a note about how the client TOLD her it was central air and that meant swamp cooler! Dumba$$es like this don't deserve to be paid. I love VA loans and am surprised about how many people in my area are scared to do them. I have only ever had two problems with the appraisals on a VA loan (one was resolved and one wasnt paid!).

THE PATRIOT: (October 21, 2009 1:33pm)

Why are we not given the option to express our opinion to STOP the $8k buying incentive? Why should we expect our government (we pay for it) to help people get into housing? DO AWAY WITH IT. It is only posted here because the lenders make more money with more business. Please don't forget that it costs us in the long run. The government should stay out of it.

Idunno: (October 21, 2009 7:46am)

Hey, I think it's great that VA loans have such low default rates but I would argue that most of the credit should be given to the pool of borrowers VA loans go to. People who serve our country and are possibly more disciplined and more likely to continue making payments than the average Joe getting an FHA loan.

Nuke 'em 'til they Glow: (October 21, 2009 6:55am)

As usual Realtors are stupid. There are Realtots writing listings that forbid VA Loans because of some of the minor costs that cannot be paid by the Vet.

lowrateabbate: (October 21, 2009 5:48am)

I have heard that the 8000 tax credit ws extended for all veterans that were overseas for at least 3 months. Is this true and is it extended through 2010 or just for 2009 and is it 3 months overseas in 09 or any time?

real mark: (October 21, 2009 12:08am)

personally i have done 100 of value check or oral reports or options of value or what ever you want to call them i personally i think they are harmless since sometimes i came in more then what i said it would be and sometimes less. my clients always understood that the 5 min i spent on looking up similar comps didn't mean that it will always adjust to the might be value. But they rarely complained since they saved more time and money on the checks that i told them had no real promise to pursue. i don't like HVCC since as much as i try to give my best at the value some times its a matter of a few grand that can make or break a deal and if i have my order from some company that pays no interest in the deal why should i put any value then what i think is the minimum value don't get me wrong i had enough pressure from companies to push value beyond what a reasonable buyer would even consider, but i always told them that it will never fly and i don't want any part of it they still came back

Cyn in Miami: (October 20, 2009 6:25pm)

Agreeing with SoCal Appraiser RE: VA I have been doing VA loans for years and these guys are serious when they sign docs. - but also remember - if these guys don't pay the VA can actually go after the Veteran's benefits. So they risk their life for this country but if they don't pay their VA Loan they risk loosing not only their home but their income as well.

Valuequestor: (October 20, 2009 5:59pm)

Hey all, how about these statements from an appraiser: I really believe that all USPAP has accomplished is to put a BIG TARGET on the back of every appraiser. It gave sharp lawyers the tools they need to catch honest appraisers on technicalities. In one way or another it has allowed a huge volume of valuation work that should only go to appraisers to fall into the hands of brokers and or un-licensed non-professionals. Our current system is now so flawed and multi-layered I'm not sure it can survive without a complete overhaul, meaning a simplification. A perfect example of the disconnect is the confusion over "comp checks". If so many appraisers can't grasp the concept of the correct way to stay in compliance with USPAP on this issue then the regulators have FAILED. And now we add FNMA Guidelines, FHA Guidlines, VA Guidelines, HVCC and on and on. Thats just to do the bread and butter appraisal work. Its time for some common sense here.

Private pile needs to give some ass kickings : (October 20, 2009 5:51pm)

I think everyone on this post and especially the appraisers could do with some early morning boot camp training from Private Pile so some of you can grow a pair of balls and and sack up. There is definitely a strong correlation between the militarys sense of pride and accoutability and loan payment responsibility. Too many folks in this country are taking the easy route and expect to gain success on a platter..No you cant should be Bama's mantra...instead of "yes we can" get a handout and a bama check

johnboy: (October 20, 2009 5:12pm)

Brian did state there is a rotation to be followed on the VA loans; which has been for quite some time... Still not HVCC...

johnboy: (October 20, 2009 5:09pm)

USDA will also allow 100%, in fact they will also allow the 2% USDA fee to go on top of the loan. If the appraisal will allow closing costs can be rolled in. No HVCC on appraisal orders. Appraiser has to be FHA rostered. Another Great Loan out there!!!

Valuequestor: (October 20, 2009 4:56pm)

Hey Jeff the bereft low man in tow. Sorry to pop the bubble skippy, but VA is a a rotating panel. Just a chance you'll get one of your guys. Change your name player.

Frank Garay: (October 20, 2009 3:45pm)

Like I said.. anytime I asked for a comp check - I got it. So if it's illegal and you know it, tell me and don't do it. Personally, I'm done with this conversation. I think everyone has pretty good idea as to what's going on with comp checks now. Let's move on to improving our business or finding ways to deal with what's being thrown our way every day.

KL-FAMC: (October 20, 2009 3:32pm)

Hey CA-AAC - I'm actually happy to say that I have never funded a loan with any of those players. As to the ancillary providers you mentioned, I have never been a part of any Joint Ventures, or Affiliated Business Arrangements. Clearly all of those parties receive compensation as salary. Title Companies, only if the loan closes. Originators if the loan closes. Appraisers, regardless of whether the loan closes or not. It's quite simply a shame that so many good players on all sides of the transaction get painted with the broad brush. Dirt bag lenders/brokers and good A players get thrown into the pot together. Marginal, minimally licensed Appraisers, with the Certified, and experienced pros. Welcome to 2009! What is the old Chinese curse? "May you live in interesting times......"

brian tbws: (October 20, 2009 3:17pm)

Hi value dude, It appears there's some ambiguity within the appraiser community as well. We've been sent quite a few emails stating comp checks are ok. I think if the appraisers had a strong governing body to outline the guidelines would help clear this up. In fact it probably would have cleared up a bunch of problems up to this point. By the way value dude in Frank's 23 years he was never told from any appraiser and was never not given a comp check. So where does the problem truly lie.

SimpleSolutin: (October 20, 2009 3:05pm)

Wow...MMN....that sucks...they still have to comply with the state appraisal regulatory agency. You may want to go that route in filing a complaint...

CA-AAC: (October 20, 2009 3:03pm)

KL-FAMC - You are correct. California has a "highly documented" history of slippery & slimey lenders and other participants (benefiting parties) that have intentionally defrauded and placed Consumers and others at undo risk, for personal gain. In many cases they have actually cost Consumers their live savings and homes. The traditional tool utilized by "third party participants and lenders" in a Consumer Mortgage Transaction to influence and pressure State Licensed Appraisers is "undocumented verbal communication". State Licensed Appraisers are glad to hear that in your 20 years of professional experience as a lender, you have never pressured or personally benefited from a loan transaction in which a State Licensed Appraiser was influenced or pressured. Have you ever placed a loan with CountryWide, Washington Mutual, 1St Century Mortgage, etc. or utilized the services of a Loan Processor, Title Company AMC, that benefits (get paid) from the proceeds of closing your loan?

MMN: (October 20, 2009 3:02pm)

I personally love the VA loan as well. However, there are two particular counties nearby that have appraisers that are over 70 years old, they don't know how to use computers, they handtype the appraisals, they don't have a digital camera and they snail-mail the appraisal to me. In addition, they are very negative appraisers. In the 12 years that I have been an originator, I have NEVER been able to close a loan when they are assigned the appraisal because they typically come in 10% UNDER contract. I have learned to warn my borrowers of my experience when we draw their name and let them decide whether they want to do VA or USDA. Unfortunately, though, despite all the complaints I have filed with the district VA office (and I have been told that these appraisers have a number of complaints), they are "grandfathered in" and will not be replaced until they choose to get out or they die.

KL-FAMC: (October 20, 2009 2:27pm)

BoblinVA - Easy to see why so many people are "retired LO's" if pay was the only driver. Contrary to your position, it isn't "all about the money". If you had ever worked by referral during your career, you would have learned that the clients' needs come first: the pay check second. I have closed over 4000 mortgages during my career thus far, NEVER a subprime, and few NINA's, Alt A's, in the mix. My clients' interests have always come first. It's funny that some of my appraisers have stated that fair market value shouldn't be established by an appraiser. In their words, isn't the fair market value actually the value that a Buyer is willing to pay? That is simplistic and fundamental; however, there is more to this than meets the eye. In many parts of the country, we're not fortunate to have tract housing. (Multiple comps, same floor plan, same color, same side of the street, etc.) Pushing values remains inappropriate. Poor quality reports produced by AMC appraisers is too.

valuedude: (October 20, 2009 2:14pm)

I amazed how many guys like frank and bri do not know the rules. I told LOs everyday "you cant do this, you cant do that" and they never believe me. They THINK they know the rules and are rarely correct. The past couple days of statements do not surprise me in the slightest. 23 yrs in the biz, I'm sorry but no excuses. Admiting a mistake is repectable though.

BobInVA: (October 20, 2009 2:11pm)

as a former LO who fortunately retired early, and still keeps up with the biz since retirement, what appraiser wouldnt come in conservative! They lock them up and throw away the key if they feel they are too high. The risk for appraisers on their "opinion" is rediculous. LO's, if it were you giving that value you would be doing that same, and you know it, I sure wouldnt want to get caught on the high end. I know the LO's are complaining about low values but they have to keep in mind that a recession like this often does a very good thing - re-establish realistics values for EVERYTHING. This may be a good sign that your value pushes, drive for higher commissions, were the root of the problem. Not everyone can afford a $250,000 house, but many led them to believe this. The values in my opinion arent "lower" but "realistic". Sorry LO's you are going to have a to work a little harder for the same money. The last few may have been a mirrage, welcome to the real world.

Jeff the Best Loan Man in Town: (October 20, 2009 2:07pm)

Great news, getting in touch with my old appraisers to see if they are VA approved. I will be doing some research on this avenue for new clients, thanks

KL-FAMC: (October 20, 2009 1:48pm)

CA-AAC - You must really have some slippery, and slimey lenders in your area. My condolences. In my 20 years of lending, I have NEVER pressured an appraiser to "bring in my value". (Hello/Good bye WAMU) That being said, conversations pertaining to a purchase transaction and the subject property value is normal and typical in my marketplace. Further, on a refinance transaction, particularly one that has been appraised by the same purchase appraiser, it is "common sense" to reach out to the Professional Appraiser who did the previous report and consult with them on a range. It certainly harms referral relationships to walk into a refinance transaction blindly hoping the value is there. A range, is something that Borrower and Lender can work with, and should be permitted. The results of HVCC are frustrated consumers, who are spending $400 a pop for values that never will come in, particularly on refinances. A cottage industry for fees by the AMC's. No winners.Sad days for sure.

Mark: (October 20, 2009 1:46pm)

James - I know how you feel, I spent all Monday doing the same dang thing, on the third request from one AMC I told them to send the report as it is to the lender and let them make the call. Then I sent a fax to the lender and told them that the AMC was holding up the report. I also told them it was 29 pages and for them to make sure they get it all

Lender: (October 20, 2009 1:24pm)

Valuequestor....You're a kind soul. I don't like bashing and I certainly do not look for it. Your thoughtful nature shows thru. Thanks for the offering of alternative websites, I do enjoy this one very much though. It's just the last few weeks have become out of hand in my eyes with appraiser HVCC complaints, thats all.

CA-AAC: (October 20, 2009 1:19pm)

Thank you for your comments concerning COMP CHECKS. COMP CHECKS are identified with predetermined values, substandard appraisal reporting and selective employment practices, as a generally undocumented behind the scenes tool traditionally employed to enhance a "participate or benefiting parties" ability to direct & control the disposition (outcome) of a Consumer Mortgage Transaction, for personal gain. COMPS CHECKS are used to pressure and shop appraisers. The KEY word is "Consumer Mortgage Transaction". Undermining the system, for personal gain, places Consumers at unrisk, which is a clear violation.

James the Appraiser: (October 20, 2009 1:16pm)

Dang, another day of STUPID QUESTIONS from Lenders and Underwriters wanting me to change the wording or remove that ugly photo from my reports. Come On, if the property is a DUMP then it is what it is, OMFG

KL - FAMC: (October 20, 2009 12:59pm)

Kim and Mtg Broker Gal - Right back at you! Nice to hear from both of you! Here in the frozen north of New England, there are some military bases nearby, but most are being closed down by the geniuses in Congress. Most of our VA clients are just regular folks who did their 4 years of active duty, or 8 years of reserves, and are utilizing their benefits. If they have purchased and sold a home using their Eligibility, we're more apt to plug the Vets into an RD program. Softer hit on the Guarantee vs. Re-User Fees for a second or third VA loan. Hope your Q-4 is fabulous!

MortgageBrokerGal: (October 20, 2009 12:51pm)

Kim and KL-FAMC: Good to hear from a couple of lenders on this site that actually know what they are talking about re: VA loans. Coming from the Seattle-area, with Naval, Army and Air Force bases, I do a great many VA loans. We certainly have our fair share of active military here, but also many ex-military and retirees work at the many civilian jobs at those bases. They all do this country proud! So you are right - THANK YOU FOR YOUR SERVICE!!

Valuequestor: (October 20, 2009 12:47pm)

Dear Lender, SD Loan Guy and other offended parties. I hear you, I feel your anger and resentment. I want to understand your needs, and I want to help by offering you a chance to swim with the appraisers. Just go to Appraisers Forum and sign in as an industry affiliate. There are hundreds of threads for you to choose from covering a miriad of relevant, happening topics......you can even bash appraisers if you wish...you just better be accurate. There are some very sharp knives in that drawer. Have Fun. PS: I came to TBWS because I wanted spirited discourse with other industry professionals. I too get impatient with whinners.

KL - FAMC : (October 20, 2009 12:37pm)

Bravo Kim - Thank you for your service! With 55% of the previously licensed lenders having "left the building" or the profession, I'm surprised by the newbie postings by supposed experienced lenders. Come on class of the profession! If you're out there, chime in!

Kim: (October 20, 2009 12:33pm)

Right on KL-FAMC! I've been doing VA loans over 8 years, and you're absolutely right - and I lend an hour from a USAF installation. Oh, and you're welcome! I'm also very proud of my 9 years in the Air Force!

Kim: (October 20, 2009 12:31pm)

Response to the comment that the majority of VA loans are being paid by housing allowance: WRONG! Only active duty servicemembers receive BAH (Basic Allowance for Housing) and the majority of VA buyers are VETERANS using their entitlement. Unless you primarily lend in the vicinity of a US military installation, you're going to see the reservists (No BAH), guard members (no BAH), separated veterans (no BAH) and retirees (no BAH) as buyers.

KL - FAMC: (October 20, 2009 12:30pm)

I've been lending VA mortgage money for nearly 20 years. Less than 10% of all of the VA Loans that I have done were for active military borrowers. BAH money is a non event, unless you're active duty. The vast majority of VA lending nationwide is to non active duty buyers who receive little or no compensation from Uncle Sam. (Reserve pay, retirement pay.) I do believe with the earlier post, that the typical veteran's commitment to their obligation has much more to do with superior VA loan portfolio performance. THANK YOU VETERANS!!!!!

MortgageBrokerGal: (October 20, 2009 12:29pm)

Helloooo! BAH (housing allowance) is only paid to active servicemen and women. What about all of the VA loans made to vets? Good grief, people!

San Diego Loan Guy: (October 20, 2009 12:20pm)

Ancient - Learning is a great thing....I agree with you. FRANK - The military pays BAH (a housing allowance) and I believe that CJH means that this BAH pays for most or all of the mortgage payment, thereby reducing the chance of default. But I don't know much so I could be wrong...

Ex Phx Realtor: (October 20, 2009 12:19pm)

Fed Up Lender and CDPE Realtor. I completely agree. The 8% tax credit may help real estate sales short term, but we need to look at the bigger picture. We can't afford this much government in our day to day affairs and the penalties we are going to pay for all these bailouts are, I believe, going to be catastrophic for this country.

Frank Garay: (October 20, 2009 12:12pm)

CJH - What in the heck are you talking about?? I'd love you to send me some info backing that claim up.

Ancient Appraiser: (October 20, 2009 11:55am)

SD Loan Guy: I'm going to join one of the previous posters and say I follow this Blog to learn. Never to old to find out a few more things about my industry. Everyday I get a little more information that I feel is important regarding Loans, qualification, turn around time etc.

CJH: (October 20, 2009 11:51am)

The majority of VA loans are being paid by a housing allowance provided by our govenrment. Cant really credit the loan for a low default rate

EdC: (October 20, 2009 11:33am)

My suggested solution is to make the homeowner the client. They get the appraisal, they can shop it around with a broker. Any appraisal done by a Certified Appraiser should be shopable anywhere. The banks have a hammer lock on the homeowner and anybody else involved. With the homeowner as client, get paid at the door and they would want a quality appraisal and appraiser. Let my local experience and rep be my calling card. I do not see a problem with this. No pressure, paid at the door and you get hired by experience. Of course the banks would have do their due diligence on risk, but fk, that's their job. For those afraid of home-owner lawsuits, look at the new regs. The homeowner has to have a copy of the appraisal 3 days before closing. If lawsuits are going to come they're going to come anyway. Educate the homeowner of their role in the transaction and that we are federally protected entities with punishment for attempting to influence. Naw, it'd never work - too consumer friendly

SimpleSolution: (October 20, 2009 11:23am)

I agree. Not signing it either. Government needs to stay out of it. Seems as though they have made things worse or caused the end result of all of this to be delayed.

CDPE Realtor: (October 20, 2009 11:16am)

I won't be signing the petition. I'm not willing to contribute my hard earned money to help somebody else buy a house.

SoCal Appraiser: (October 20, 2009 11:14am)

San Diego - might want to wait an hour or so for the tide to back down some more, the extreme high this morning has really messed up the break. But water is in the upper 60s' and repotedly 2'-4'so enjoy. Glad to see your going to get wet, does wonders for the soul. Sorry, you inlanders wouldn't understand. .

SimpleSolution: (October 20, 2009 11:05am)

LOL....SD Loan Guy...thanks I look forward to the info.. :)

Fed Up Lender: (October 20, 2009 11:05am)

I recommend NOT signing the petition to extend the $8K tax credit - all the govt. intrusion in the market place is just distorting reality. The problem with our industry (lending) and housing in general is too much govt. influence, and the laws of unintended consequences are negatively affecting the free market (assuming that's what our economy is still based upon). Quantitative easing, HVCC, fannie, freddie, sallie, subprime, MDIA, tax buyer credits, etc. etc. are ALL running our "industry" into the ground - please don't solicit petitions that request more govt. intrusion.

SoCal Appraiser: (October 20, 2009 11:04am)

REAL SUGGESTION FOR REFORM!!! Here is my suggestion for real reform. We need to allow whatever entity is ordering appraisals the ability to choose based on experience, education, & quality of work. Sounds pretty logical doesn't it. Unfortunately, currently it is a violation of state law to use credentials other than state licensing to hire an appraiser for federally related mortgage transact's. An appraiser who goes & spends energy, time, & money getting a designation like ASA, SRA, MAI etc get no benefit from it other than "feeling good" about themselves. Which would you rather have do surgery on your torn ACL? an ER physician, an Orthopedic Specialist, or a Board Certified Orthopedic Specialist? of course you would choose to have the Brd Cert. specialist because they are the most educated highly trained person available. So why can't appraiser's be chosen for their specialities and certifications? why is the lowest educated Licensed person given equal consideration?

San Diego Loan Guy: (October 20, 2009 11:00am)

Here it is - Straight from Frank. "I will admit though, I too am somewhat tired of all of the appraisal comments." The writing is on the wall. Stop bitching and whining! That is ALL I've been trying to say for weeks! If you look over the appraiser's posts for the last couple months, this is not a constructive blog as intended but has become a bitch and whine session for appraisers. Very UNPRODUCTIVE! Those appraiser's who are not bitching and whining, thank you so much for your participation. That's all I'm saying today....Taking So Cal's advice and going to Swamis. Simple - Don't know much about VA's, or anything else according to my ex-wife, but just spent some $$ to advertise for VA business. Will report back once I go thru on the job training...

SimpleSolution: (October 20, 2009 10:49am)

Appraisers-I am reading all of the posts from this morning and I am trying to see where any of us were winning or complaining. Am I missing something here? On my post I stated that I liked the VA appraisal process and was wondering if anyone knew why it hasn't been adopted by FHA, Fannie and Freddie but instead of an answer I was told that I was complaining and whining....maybe you should not address your posts to all appraisers. We are not all on here to complain. I have here and there got useful information from brokers/LO and other appraisers that I appreciate....

SoCal Appraiser: (October 20, 2009 10:46am)

San Diego -- How could I call you ignorant? I do not even know you. I called your suggestion ignorant which by definition is merely "lack of knowledge". I am ignorant in many things, and therefore I either do not speak of them, or I search out knowledge to mitigate that ignorance. I was just trying to help you be more informed so that you would be less ignorant in this particular situation. And seriously, don't take things so personally, If your a long boarder take a break and head up to Swami's, or if you bodysurf, go head over to boomers. But Everybody just needs to RELAX.

Starving Appraiser: (October 20, 2009 10:42am)

HHHMMMM, these post are not attacks, just constructive suggestions...."San Diego Loan Guy : (October 20, 2009 10:10am) Thank you Lender. It's not the constructive and helpful comments but the bitching and whining (that seem to come from the appraisers for the most part) and is dragging down the blog. If you don't suggest a solution for every complaint you make, then shut up! And then Tired of Stupid acts like appraisers are the only intelligent life form related to our industry. Really... TOS, please make good on your promise to go away if you can't be part of the solution." >>>>"But you've shown your lack of class by suggesting I'm ignorant. You too should go away." PLEASE!!!

SimpleSolution: (October 20, 2009 10:36am)

OK...then instead of bashing appraisers why aren't you discussing the issue of the day San Diego Loan Guy???? VA loans remember? I personally am not too familar with the VA loan process so maybe we can get back to that and you can give us some insight to the VA loans that you have closed....

Starving Appraiser: (October 20, 2009 10:35am)

My alternative to HVCC would be as my main clients have done...banks/lenders establish their own AMD, Appraisal Management Depts, completely separate from the lending dept, staffed by hourly employees, who order & manage the apprsls & have no dog in the fight to hit a certain number. Is HVCC compliant as well. There's my contribution to the solution side.

San Diego Loan Guy: (October 20, 2009 10:32am)

Simple...No, this cause is NOT in regards to HVCC but whatever the video of the day is. Unfortunately the appraisers THINK this cuase is completely in regards to HVCC. So Cal Appraiser...You are right. I never said I had the answers to your problems and there were no attacks by me. I was just trying to help by offering a constructive suggestion. You know your business better than I do. But you've shown your lack of class by suggesting I'm ignorant. You too should go away.

Starving Appraiser: (October 20, 2009 10:31am)

YIKES-post @ VA volume is a little disheartening. Wonder what the military population is in those areas? Hoping with the good VA news provided here & 2 military facilities in my area, my VA apprsing experience will be better. >>>APPRSRs didn't just wondering onto this site, we were deliberately drawn here, unsolicited on our part, by HVCC petition e-mails. And like it or not, apprsing is a part of the mrtg process. Funny how the ones who post negative comments @ apprsr's post are displaying the very thing they are accusing apprsrs of....bitching & whining. Only they're doing @ apprsrs instead of real industry issues. F & B know what they're doing, obviously, increasing their audience w/subjects that result in extensive debates. I, 4 1, will NOT just go away. Giving up never won a fight. CLUE-once again U & your post R appreciated. Please share your idea if possible.

SoCal Appraiser: (October 20, 2009 10:19am)

Can't we all just get along? Oh, and by the way San Diego Loan guy, take some of your own medicine and do not speak of things you have no clue about. You think that us reputable appraiser's have not attempted to market our services to our old assignments? Unfortunately, all of the counties I work in have assessor's that are publically stating on their websites that paying anyone for help in getting your taxes lowered is nothing more than a SCAM and that the county is already doing what is necessary to reduce their taxes. Please see "SCAM ALERT" on the LA County Assessor's website "assessor.lacounty.gov". I mean we all trust the govt to lower our taxes right? And no I am not whining, I am merely correcting your ignorant suggestion. Those of us that have been in business for a long time and have integrity will find ways to continue to work in the appraisal industry. But lets be real for a moment, we need each other, so stop the attacks, take a chill pill or go catch a wave.

joecolorado: (October 20, 2009 10:16am)

san diego-I agree, I as all appraisers, have a bitch with HVCC and AMC's but as I have said in the past, we need to come together as a unit to defeat this. believe me, brokers and loan officers heads are on the block too due to this, U R next but some dont seem to realize it., stop bitchin about the same thing over and over, lets hear some solutions, ideas or just positive outlooks rather than negative issues. I want some answers an direction about what we ALL need to do.

SimpleSolution: (October 20, 2009 10:14am)

Well put cluelessdad....thanks....and last time I checked this cause was in regards to the HVCC not your other top 3 problems Lender.

Frank: (October 20, 2009 10:13am)

Clueless - frank@thinkbigworksmall.com

San Diego Loan Guy : (October 20, 2009 10:10am)

Thank you Lender. It's not the constructive and helpful comments but the bitching and whining (that seem to come from the appraisers for the most part) and is dragging down the blog. If you don't suggest a solution for every complaint you make, then shut up! And then Tired of Stupid acts like appraisers are the only intelligent life form related to our industry. Really... TOS, please make good on your promise to go away if you can't be part of the solution.

Clulessdad: (October 20, 2009 10:08am)

Frank-what is your email address? I wold like to bounce this alternative HVCC idea off you.

Frank: (October 20, 2009 10:03am)

Tired of stupid - Sorry man.. 23 years in the business and I never knew they were illegal. Whenever I asked for them I got them, so why would I think they were illegal? I will admit though, I too am somewhat tired of all of the appraisal comments. I've said it before and I'll say it again.. there are over 10,000 people that watch this every day (majority mortgage and realtor) and we could use this for so much more. BUT - it appraisal stuff is whats on everyone's mind, than so be it. Truth be told, the blog is open to everyone and everyone can post, so if we want more mortgage/realtor posts than it's up to us to make them.

Lender: (October 20, 2009 10:02am)

San Diego Loan Guy...I 100% agree with you. The appraisers are so loaded on this site that lending is 2nd seat. Lenders have much more to discuss than HVCC problems. I understand it sucks for everyone with HVCC, but it's not even in my top 3 problems in lending. What a crock it is to hear whining from appraisers every day on this website. Please create your own Appraisal Problem Website and leave this good lending one to the lenders. GO AWAY...Especially Starving Appraisal and all his other post names he uses.

Clulessdad: (October 20, 2009 9:54am)

San Diego loan Guy-I respectfully disagree with you on the appraisers on this blog. The reason I came to this site is to help repeal the HVCC. In order to do that, we as brokers and appraisers need to band together to fight for that common goal. Don't you see that they are trying to rid (or really thin the herd) of all appraisers, brokers, and yet to come realtors. Everyone needs to vent a little, if it makes you feel good, kinda like your post. As long as it isn't excessive.

Tired of stupid: (October 20, 2009 9:52am)

San Diego Loan Guy, you are right, I for one cant stand listening to most of you talk about things you should know about but have no clue. You sometimes sound like the dumbest people on earth and you must be their king. If that is what you guys want, seems frank and brian have helped create the mentality with their comments(c'mon frank, 20+ years in the business and you did not know comp searches are illegal). The appraisers have dropped off, you should see less and less as this site dumbs down(fast). I agree, this site should have less of the groups that work with each other, man, you really know how to make things better. Truth be told, the appraisers that were here were at least decent, some of you are scum looking for a fight, and you know it. But I digress, you are right, I am gone, I hope others follow, thanks for the advice.

Anonymous: (October 20, 2009 9:51am)

Great points about the VA loans. It's interesting that their delinquency rate is only 4.69%. I agree with other comments herein that veterans may be more solid people or more accountable and responsible. However, I also believe it is because the process of obtaining a VA loan and securing one is better, less convuluted and does not have to adhere to HVCC appraisals.

SimpleSolution: (October 20, 2009 9:46am)

Never said it wasn't bought down. Just said that is the rate he ended up with. It was bought down from 5.5% but the seller paid for it not him.....

MortgageBrokerGal: (October 20, 2009 9:44am)

Just heard on Fox Business News that there will be a hearing on the $8000 tax credit for homebuyers to determine if it will be extended. Apparently they are already investigating fraud in the program (will people EVER learn?), and there may be some changes to it if it is extended. Also, sounds like they may want to extend it up to 18 months.

Dude!: (October 20, 2009 9:41am)

Simple Solution....your dad did not get a 4.5% rate on a VA loan......rates were never that low for VA....that's a crock of B.S. IF he did get a low rate, it's becaseu he paid a crap load of points to buy it down...get real.

San Diego Loan Guy: (October 20, 2009 9:39am)

Hey - I have an idea... Why don't you appraisers create your own blog! This blog has turned into an appraiser's bitch session and that sucks. This is supposed to be a mortgage blog and the majority of the comments are from whining appraisers. JUST GO AWAY! I know business is down; I know we all are working harder than we used to; I know it will get better; I know the time spent complaining could be better spent doing dollar producing activities. Appraisers - Want to make some easy(ier) money?? Why not call all of your previous (purchase) clients from 2003 to 2006 and offer a discounted appraisal so they can lower their property taxes? Maybe there's some money there, huh??

The reason VA loans do better is because...: (October 20, 2009 9:31am)

Honestly the reason VA loans are doing better is because these folks were taught to be decent humans in the military and their superiors knocked some old fashioned accountability into them..cheers to them. I think a large % of the population in this country could do with a daily ass kicking and conditioning of getting out of bed early and learning how to act like a man and a proper woman..instead of each culture and race blaming each other for their troubles and always expecting their hand out from the Obama regime. I have heard the phrase " waiting on my Obama check" away to often.

Tobby: (October 20, 2009 9:29am)

VA has an old-school approved appraiser panel that is constantly monitored. FHA up until October allowed any old crooked appraiser to work for them. They still allow crooks, but they need to be certified crooks. :) Also, VA is an advocate for the borrower and enforces fair lending. They will slap down a lender/broker attempting to gouge fees. Although the seller can payoff the borrowers loans (credit cards) it is coming out of seller's own pocket as their is no "fluff" in the appraised value to jack up the loan amount. So this feature is somewhat muted.

real appraiser: (October 20, 2009 9:21am)

Starving Appraiser. I had the same problem once, if you have system restore, try to restore to a date prior to the problem. it worked for me, hope it helps

Starving Appraiser: (October 20, 2009 9:15am)

Simple- same experience here. Have had a VA loan for 23+ yrs. Refi'd once in that time and smooth as silk on both transactions. Full doc was required, as it should be. Will some day refi to cnvtnl to free up VA eliglblty for HOPEFULLY future purchase of bigger/newer home.

SimpleSolution: (October 20, 2009 9:10am)

Just posting my personl experience with a VA loan. It was actually my Dad that just bought a house with his VA loan. Used it for the first time ever and the whole process was a super smooth transaction. He closed in 30 days the appraisal was done in a timely manner and he got a 4.5% interest rate and of course he did qualify for the loan via full docs. I personally think the default rate is low because you have to qualify for VA loans(full doc) and correct me if I am wrong please but they are all also 30 year loans. Again, correct me if I am wrong please but most of our defaults until jobs were lost were on loans that were stated income or partial docs arms....

Starving Appraiser: (October 20, 2009 9:09am)

LOL!!!LOL!!!LOL!!!LOL!!! ROTFLMAO!!! TINK - NOW U C 4 YOURSLEF!!!

Lender: (October 20, 2009 9:00am)

Starving Appraiser...I know you played Tinkerbell earlier. Busted again...You take aim whenever you can, but you really don't know what you're talking about when it comes to lending. Trying to post under a different name doesn't work anymore, but go ahead and keep doing it...moron.

SimpleSolution: (October 20, 2009 8:54am)

Correction-that last sentence should have said-I am not sure wny the VA system wasn't adopted by them in the first plase...sorry no coffee yet....

SimpleSolution: (October 20, 2009 8:51am)

I think Fannie/Freddie and FHA should follow the same guidelines as VA does in assinging appraisers. It would of course require a little work on their ends God forbid but the VA appraisal system works well and as stated there is never any pressure because no one get a choice or even knows who will be going out there. I am not sure why the VA system was adopted by them in the first place. Any thought as to why from anyone???

Starving Appraiser: (October 20, 2009 8:50am)

Submit issues to support yesterday & waiting for reply. Thanks for the guidance.

TBWS Support: (October 20, 2009 8:48am)

Starving Appraiser : please submit your issue to support@thinkbigworksmall.com; this forum is not monitored by support and isn't the place for asking technical questions regarding the site. Thanks;

Starving Appraiser: (October 20, 2009 8:47am)

Tink - C my prev post re:IGNORING some posters.

Starving Appraiser: (October 20, 2009 8:44am)

O.K., now WHAT??? Downloaded Firefox, as suggested, to view video and SURPRISE, it's no better than IE. Actually longer delays. But, it does appear to have some spell check within this blogosphere, that's a good thing. Can't wait to hear back from tbws support. AND BTW - some posters here are better to IGNORE. Volly w/them & you'll soon know who they R. Won't mention names as this will only egg them on.

Lender: (October 20, 2009 8:41am)

Tinkerbell....I'm still waiting for you, but only have 5 minutes to respond to your blasting of me for my lack of knowledge. I can't wait to hear from you on why you feel that way. I can prove your ignorance, but you need to explain yourself for me to do it. I'm running out of time Tink..

SometimesStillWorkingAppraiser: (October 20, 2009 8:38am)

I have been on the VA Fee panel for years and never did any VA work as the prices were too high in my county for VA loans. It was not until after the whole melt down and prices came down that VA loans started popping up in my area so I agree that this may be why their default rate is so much lower right now. Also, the originator cannot choose their appraiser, the appraisal is assigned by the VA system on a rotating basis. This is a very effective way of eliminating pressure. The VA monitors the apraiser's for quality and turn time and will remove appraisers is they are found lacking in either area.

bec2112: (October 20, 2009 8:36am)

You know what other loans have even lower default rates? USDA. Why? Because rural home owners are normal people. Real jobs, no hyper-appreciation, just normal folks. And veterans deserve every benefit they get and more. Good job VA.

TheFyouSay: (October 20, 2009 8:32am)

Days like today make me want to shoot someone in the face. Oh yeah, Fu@& HVCC in the A$$

funnybusiness: (October 20, 2009 8:30am)

good to see frank and brian did their research on VA loans before giving out incorrect info. That comp check issue was a mess!!! Way to go frank and Brian!!!!

Platinum: (October 20, 2009 8:26am)

Lender is right about "volume" of VA loans. I've been in lending for 14 years and can count on one hand how many VA loans I did. FHA is our leading source at the moment to close loans and keep our industry alive. Eliminate the 90 day seasoning and extend the Tax Credit and watch the markets thrive. Short Sales that the banks don't want to do along with BS Loan Mods are creating neighborhoods of depression. Allow the investors to buy up these abandoned homes, fix them up to FHA standards and watch the buyers line up along with improving the appearance of the neighborhoods. BTW, USDA has no Seasoning requirements. 0 down, market rates.

Lender: (October 20, 2009 8:17am)

The poll has almost half of the folks say VA is low in defaults because they look at DTI's and residual income. Half of the poeple on here should know that all loans do the same thing. Some people shouldn't be allowed to vote. Just my thoughts. I guess half the viewers are appraisers who think they know everything about lending too

Lender: (October 20, 2009 8:15am)

Frank, thanks for responding. I'll vote for D then. An 80% increase is amazing. But is that 1 deal to 8 deals? I live with an underwriter. She did 1 VA loan from '01 thru '07. I funded 1,000 loans during that time, not one was VA. Those are the facts too. I definitely agree it's getting ready to hit hard soon though. I can't get by 6 VA clients in escrow and they've been trying for 6 months or more. We still have inventory issues in SoCal.

Mortgage Specialist: (October 20, 2009 8:12am)

Another way VA avoids the high default rate is that monitor their loans. If a borrower becomes behind in their payments even one month, VA has a division that contacts them and starts credit counseling immediately.

Frank: (October 20, 2009 8:11am)

Lender.. that's why I put option D in the poll question. VA loans are up 80% from last year. It could be that the defaults just haven't caught up, but, so far their numbers are their numbers and the numbers don't lie.

Clulessdad: (October 20, 2009 8:11am)

Last night I had an idea of an effective alternative to HVCC. It protects the Borrower, provides full revenue to the appraiser, makes the broker "have skin", bring back communicataion between appraiser and LO's, provides $ penalties to brokers and appraisers that conspire to provide non-defensible appraisals, creates a "process" of review for an appraisal, and makes the lender put some skin in the game. It takes the valuation process instead of alienating all the parties involved in a transaction, it would create a team of lender, broker and appraiser to have a defensible valuation on a property. And they would all have some financial accountability in making sure that the final value is denfensible and the quality of the appraisal is unquestioned. And most importantly, it protects the borrower. Borroewrs, appraisers, and lenders will like it. It adds more risk to the brokers and I am sure many of my broker brethren may not like it, but in the end it may be exactly what we need.

Lender: (October 20, 2009 8:09am)

Tinkerebell...Mention one item you disagree with? I've been a lender for 2 decades. I know the gig well. If you are going to be pointed, point it out so I can shoot you down

Flips r Good, Most flippers r not: (October 20, 2009 8:07am)

jack your deal. Some guy that wants to take close up pics of your stem wall and any other mild defect that is generally blind to the naked eye just "to protect himself". You go FHA I can choose the Appraiser, you go conventional you are in a random lottery, good luck powie. So Flippers need to know that taking their time to "FIX" the property is in their best interest. Market to VA as they don't need 90 days. Then be willing to take LOI's prior to the 90 days from FHA proposed buyers. It's like these flippers have tunnel vision and don't have any forecasting abilities. They need to have an Educated Lender in their back pocket. AN OUNCE OF PREPERATION IS WORTH MORE THAN A POUND OF CORRECTION.

Rob in AZ: (October 20, 2009 8:07am)

One more item about VA loans: Vets take their VA Eligibility very SERIOUSLY. They will fight--HARD--to keep it. They feel (justifiably) they put in their time to earn that Eligibility and don't want to give it up for something stupid...

Sacto Appraiser: (October 20, 2009 8:07am)

James - I'd tell the AMC to hit the road. You are hired to provide a summary appraisal not self-contained. They are getting to the point that we have to have lengthy descriptions on how well the windows are working. I'd tell them it is not part of the scope of work to write up the list n a summary appraisal. If they still expect it tell them your added fee for the added work and you need the home inspection report to complete your list. If you just do the work for them, guess who will be expected to do the next one without a fee increase? Yes me!! Guess how we got to fees below $275, because appraisers just did the work... Its time to get the fees back up to $350.

Tinkerbell: (October 20, 2009 8:05am)

LENDER, there are so many flaws in your last post that I don't know where to begin. Let's just say that not one statement you made is right and you need to go back and do a little research before you embarrass yourself again.

brian tbws: (October 20, 2009 8:03am)

Yes you have to be a vet to get a va loan and you probably get a better pool of buyers that the average. But those buyers that are gonna walk from 100% financing are gonna walk from 97% financing and it doesn't matter how the appraisal is ordered. The point of the VA story is to illustrate how a system that "shouldn't" work, works well.

Lender: (October 20, 2009 8:02am)

Frank, I think the defaults are lower on VA because no one used them during the boom, there was no need for them. Also, it's nearly impossible to get a VA offer accepted these days. VA slid right by the problem by being obsolete at the time. FHA has always been full doc, people just walk from their homes when the value decreases. Which is why FHA defaults are 20% from '07. Let's not give too much to VA procedures, they just got lucky by missing the tidal wave. Secondly, they have a Govt job. No worries about a meltdown there (For now).

Flips r Good, Most flippers r not: (October 20, 2009 8:00am)

Hey Platinum: I don't hate Flips, but I hate uneducated flippers. There is a need for flip investors, couldnt agree more. But there are a good share of them that have unrealistic expectations and have no idea of the current mortgage market conditions. Like listing the property before it has seasoned for 90 days. Sure they THINK they can get a conventional buyer. They need to study their demogrpahics and stay in close contact to a Mortgage guy that can keep them approsed of the current market conditions they are working in......but most flippers are too pretentious to take advice from anyone. Uhhh, why do thin FHA is so popular rigth now? Why have conventional borrowers lost momentum? Who has 10-20% to put down, versus 3.5% or less? The n tehse flippers think that they will get a bad FHA Appraisal and a good HVCC conventional Appriasal. I can get clean FHA Appraisals all day long. Conventional? Squueze your but cheeks and cross your fingers that some random system doesn't

Starving Appraiser: (October 20, 2009 7:48am)

Agree w/Socal also, re:list 2 bring to avg condtn. BE SURE to CYA, stating the limitations of your qualifications (not an expert in this or that) kinda thing. Fairly typical & standard in most reports, but when being ask to go ABCD, extra CYA is called 4 aslo, IMO. >>> Thank you FRANK, I full intend to make it work. I don't take this "gift" lightly & do consider it a gift at a most important time in my career/industry.

Platinum: (October 20, 2009 7:44am)

U Hate Flips? How about learning how to spell? Property investors that Flip properties add to the economic up turn which is happening here in the Phoenix market. When will FHA start to understand that they and other lenders are protected by HVCC when it comes to value. The home is worth $120k, then it's worth $120k regardless of how long the current seller has owned the property. Get over it, there's a need and a demand for "cleaned up properties that the bank no longer wanted anything to do with".

LA: (October 20, 2009 7:38am)

Don't you still have to be a veteran to get a VA loan??

Starving Appraiser: (October 20, 2009 7:37am)

SoCal-great post re:vets & responsibility. They have more 2 lose than just a house &r credit rating..VA 4closure can result in loss of ALL va benefits. Story, I'll try 2 keep short...worked 4 a rental prprty co. yrs ago. Fired 4 buying a house thru another RE co. 3 yrs later, working as a data collector 4 credit reporting srvcs, ran across a lawsuit. Vet was sueing my 4mer employer 4 falsifying docs 2 get va loan approved. Fake lease on mbl hm so vet would qualify 4 loan on new home, that 4mer employer had built. If the vet lost the suit, they lost all va benefits. After days of rangling in my own mind, I contact the vets lawyer, volunteered to be diposed (I knew how & where they hid the dirty deals in the rental dept). 4mer employer settled out of court & lost his Coldwell Banker affltn & eventually his entire sales dvsn. Vengance shall be the LORDS & if patient, what goes around comes around. I sleep GOOD knowing I did what was right by the vet-I am a PROUD VET myself!!!

I HATE FLIPS: (October 20, 2009 7:31am)

PROPERTY FLIPS RUIN THE MARKET

I HATE FLIPS: (October 20, 2009 7:31am)

FRANK- Defalts come from all teh so called "investors" buy 10 house as "owner occupied" thinking they can flip them and make a ton of cash like teh guy on TV. when they can't sell them they let the houses go to forclosuer. That is why we have so many defalt*****FLIPS raised the prices of homes to unrealistic numbers and then they strip the equity and let it go back to the bank!!!!!!!!!!!

mike: (October 20, 2009 7:30am)

thanks Frank

Alabama Country Boy: (October 20, 2009 7:23am)

SoCal Appraiser I agree and please remember those Veterans who never had the opportunity to own a home because of the sacrifice they made so that others can whine about their tough circumstances.

SoCal Appraiser: (October 20, 2009 7:22am)

comments continued: I would also state that you reserve the right to alter or add to the list if at a later date through the process of repairs and updates additional required repairs were found that would not have been seen in what your peers would consider the normal course of inspection. (i.e. mold behind drywall that would obviously not be seen in the normal appraisal or even inspector's inspection regiment). Whether or not you charge your client is up to you, but considering this order probably came through an AMC, I would charge them for the list as it is more of a "consulting" assignment than an appraisal assignment. Just my thoughts, others will probably say that you are opening yourself up to potential litigation and you should not do it, it is up to you. Have fun.

SoCal Appraiser: (October 20, 2009 7:14am)

James, Your assessment of fair-poor was based on your observations of the residence, how it compared to other prop's in the neighborhood, and what the typical buyer would rate the residence in comparison to those other properties. The inspector's job is find & report structural, mechanical, and other repairs that may be needed to make the property safe & habitable. A property may be safe & habitable, but still be in fair-poor condition based on the expectations in the neighborhood. All this to state the following, I would make a list of repairs that I perceive are necessary to put the property into average condition with the caveat that additional repairs may be required based upon the findings of the home inspector & that a review of the inspection report would be required for a complete & accurate list of necessary repairs. I would make the extraordinary assumption that the inspector's report was accurate & thorough..... being cutt off will continue on next post

Troy: (October 20, 2009 7:12am)

WE SHOULD GET RID OF ALL THE fannie AND fredies save our money !!!! Stop paying all those salarys at FANNIE and FREDDIE Get rid of them and expand VA Loans think of the money we would all save!

Mark: (October 20, 2009 7:10am)

James - just tell then in your eye the building should be destroyed and rebuilt

Frank: (October 20, 2009 7:06am)

Mike.. I think it was back in 05... I'm sure if you google it you'll find a bunch of info on it.. it was mainly in the south east of the country.. Florida got the most I think.

Frank: (October 20, 2009 7:04am)

Congrats Staving! I hope that works out for you!

Starving Appraiser: (October 20, 2009 7:02am)

FINALLY - A discussion @ VA. I brought this up twice last week with little to no response. Haven't watch the video yet due to issues viewing, which I've reported to tbws support, thanks FRANK. Question - anyone have volume info re:VA loans/appraisals? I applied in Feb, recvd the "no openings in your area" letter. Keep my file to re-apply at the 6 mnth mark, but just weeks shy of 6 mnths, rcvd notice of an opening & reqst to submit addl applctn docs. I'M APPROVED & go for training/indoctorination this Thurs or Friday. Trainer is flying in from Houston. I'm exicted and VERY thankful for this coming about especially at this time. Feel like someone is watching out for me (thank you God). Took from Feb - Oct but I think it will be well worth it as there is an Air Force Base & Natl Guard Trainig Center in my immediate area so lots of local vets.

mike: (October 20, 2009 6:58am)

who knows when China sold the US the tgoxic drywall

James the Appraiser: (October 20, 2009 6:55am)

Inthe past I required Home Inspections and let the lender deal with the Home inspector and his report. My report on this one required an inspection on the foundation as well, just more notes for you to comment on

James the Appraiser: (October 20, 2009 6:51am)

Hello All - I have a question and I would like advice from all sides. I completed an appraisal on a dump and made the report SUBJECT TO a Home Inspection and the condition was listed as Fait to Poor (lots of photos). Now the Lender wants me to make a list of the items needed to bring the subject up to AVERAGE condition. Should I tell them that the Home Inspector should do that as part of the Home Inspection or should I go ahead and make the lender a list?

Frank: (October 20, 2009 6:34am)

I'll try and send word to NAR and tell them to change it to "Realtor, or Real Estate Professional".. you know they'll leave "realtor" in there for bragging rights.

St Pauly Girl: (October 20, 2009 6:09am)

Another positive with the VA appraisal system is that the appraiser must promptly set appointment to get into property to have report completed in timely fashion for protection of the Vet's loan program. If the appraiser is slow or unresponsive (as has been seen with HVCC- a current client of mines is on week #3 waiting for appraisal- horrible service)..anyway, if VA appraiser is slow or unresponsive; they risk removal from VA appraiser list. In the past 10yrs, I've only had 1 VA appraiser issue with timeliness...I made 1 call to the VA and the report was in my inbox within 24 hours. It's about service to the client, which is awesome

BIG MAC: (October 20, 2009 6:03am)

HEY GUYS, PLEASE EDIT THE NAR LETTER OR HAVE THEM DO IT, WE ARE NOT ALL REALTORS!!!

SoCal Appraiser: (October 20, 2009 6:01am)

Hey Guys, Have you ever considered the possibility that the reason VA loans have such a low foreclosure rate is that the only people that qualify for VA loans are those that have been in the military. These are people that have been trained to be disciplined, how to problem solve and have respect for themselves, and to understand the meaning of personal responsibility. While not all that have served are perfect, I personally believe that Vets take their signature on a loan a whole lot more seriously than the average non-vet. I think Vets will fight harder and do whatever it takes to meet that obligation. Vets have been through a lot more than the minor pain of trying to figure out how to work a little harder to make a payment. Vets understand that freedom comes with a high price. Compare that to the rest of our "entitled" society who think that homeownership is a right and not a privelage and if they can't make a payment its someone elses fault. My hat is off to Vets, Keep it up!

LL: (October 20, 2009 5:58am)

It's nearly impossible to get on the VA list. Someone literally has to die in order for you to get on the list as they cap the number of appraisers per county. I've been on the wait list for 8 years.

SpCalMtgGal: (October 20, 2009 5:47am)

It's been a few years since I did a VA loan. Don't lenders want you to be VA approved, pay $100/yr fee, etc? Or are you talking about going through VA directly? Any advise? Thanks!

Big Mac: (October 20, 2009 5:45am)

You guys rock! Its about time someone mentioned the fact VA and its appraisal system is working well and provides a prototype for our industry to move forward. Take it to DC with your petition. Thanks

nevada tim: (October 20, 2009 5:34am)

As realtors, we should assume some of the responsibility for sub-prime loans getting out of hand. As Jeff points out, his buyer was obviously not qualified, but did that stop him from making the deal? NO. We know when we're allowing, or even pushing a sale through that is questionable.

Apprasier: (October 20, 2009 5:10am)

VA appraisals are selected off a roster of apprasiers, quite similar to some bank rosters out there that comply with HVCC, as a real estate broker I had a VA deal about 6 months ago that did not work, the appraisal came in about 20K less than the purchase price. As an apprasier I would be happy to be on a state approved rotation for appraisal were I still am not pressured by lenders to hit a value.

GaryP: (October 20, 2009 4:58am)

I think Mountain man's experience with 15-20 days must be a local issue. I just closed one that was approved by USDA in 24 hours. I know their loan volume is way up now and I'm sure that is part of it. Just like we experienced with FHA, there just aren't enough bodies to handle the volume. As for 100% loans, like VA, I think that little factoid will never be considered in the rush to judgement in DC. They already have their mind made up as to cause of the mortgage problems. Besides, they are too busy closing the barn door to prevent any more sub-prime, stated, NINA, Option ARM, and predatory loans. As if! There is an expression that I think applies here. "Generals are always doomed to fighting the last war." Well, I think Barnie and the boys and girls at Fed are very heavily engaged in fighting a war that no longer exists.

KL - FAMC: (October 20, 2009 4:50am)

USDA - RD remains the best product on the market today. 100% financing, no monthly PMI, and no maximum on Seller paid closing costs. Lender approval, and then a "rubber stamp" approval by the RD Specialist at your state office. In New England, the average turn time for an approval by RD is less than 3 business days. This program still allows the Lender/Broker to order their own appraisal. Great for 100% Buyers, all the way to 85% Buyers. With MI companies capping DTI at 41%, the automated approvals offered by GUS are viable up to 52%. RD is the best product on the street!

Pete: (October 20, 2009 4:38am)

I'm using alot of USDA in the areas that qualify for its use. I don't believe that we'll see high foreclosure rates because they are very strict with their DTI's, unlike FHA. Its great for the consumer due to the fact that there is no PMI in addition to the rest of great benefits. Use it.

Apex Appraisals, NC: (October 20, 2009 4:31am)

www.aimsdashboard.com is the site address, I have been getting full fee assignments from brokers through this system, it works!!

Apex Appraisals, NC: (October 20, 2009 4:21am)

has any here heard of aimsdashboard? it is software program that allows brokers to be HVCC compliant and not have to AMC's

NJDLMKR: (October 20, 2009 4:21am)

USDA are great! I’ve been originating them for some time now. Jeff - Maybe what you experienced was a L/O who likes to ignore guidelines and flirt with losing his livelihood regardless of the loan program.

Unemployed Appraiser with no benefits: (October 20, 2009 4:20am)

Frank and Brian what happened to the Extended Federal Unemployement benefits? I lost my job in appraising company and ran out of benefits last month.

Mountain Man: (October 20, 2009 4:17am)

USDA used to be my bread and butter program... you could sell it to ANYONE, low credit option, low DTI, no PMI, unlimited seller concession and you can finance 102%. (100% for the home and 2% for the funding fee) The problem with the loan now is that the loan is "guaranteed" by USDA so... not only does the loan need to be underwritten by the lender, it needs to be "certified" by USDA. The certification process used to take 2-4 days now we are at a 15-20 day turn time. I think that because of this delay in the "certification" process you will see brokers shy away from the program.... Well at least until Conventional borrowers go back to conventional programs.

Jeff : (October 20, 2009 3:50am)

USDA loans should have a high future foreclosure rate. As a Realtor, I just had a couple who had to borrow the $1,000 for an escrow deposit, the builder is paying closing costs and the buyer has a 100% USDA loan and they only have $1,300 saved in the bank which is $300 less than what their monthly mortgage payment is. Government at its best.

APEX APPRAISALS, NC: (October 20, 2009 3:36am)

GUYS, THAT IS GREAT THAT VA IS DOING SO WELL AND IT HELPS THAT THEY PAYA FULL FEE TO THE APPRAISER. HOW IS THE USDA PROGRAM DOING? IT ALSO OFFERS A 100% FINANCING OPTION FOR RURAL PROPERTIES AND HVCC IS NOT APPLIED.