The Bail Out Banks Find Yet Another Way to Hose the Consumer - 11.05.09 | Personal Finance For Life / Jeff Underwood TV and Coaching

Bono Vox: (November 05, 2009 5:57pm)

Guys - if you're still monitoring this, can we look at S.A.F.E the next few days? I've heard there won't be grandfathering and one can be booted from the industry for bad credit. While that would nix some of my competition and help me, it doesn't seem sporting - it seems like bad form.

Starving Appraiser: (November 05, 2009 5:11pm)

VQ-the 1st apprsr is the only eyes the UW has in the field & some are too willing to cut corners. Heck, I did an FHA 2nd apprsl a yr or so ago. The 1st apprsr was a guy who I'd worked for, his dad & then him, for 15+ years... trained me to do FHAs. He missed/overlooked a gapping crack of missing mortar under a large window that would obviously allow water behind the brick, exposing the sheathing to moisture, compromising the "soundness", IMO. If all amc apprsr held your standards on fees, the other issues, most are not new just exaggerated by the amcs, we could deal with, IMO.

Valuequestor: (November 05, 2009 4:42pm)

Starving: I certainly try to do my best on each assignment. The skippies don't want to do the complex assignments, sooo......they come to me and I quote my fee. At this point the order is getting old and you have them by the nads. Apply pressure. The easy orders are gone so fast its tough to grab the ones close by. Occaisionally I'll get one. Then I try to use James the Appraiser's method of calling them back with an issue after the appointment has been set. Mo money. BRILLIANT. Its a pain to have to do all these tricks and BS but I have to survive to see were this all ends up. Call it morbid curiosity.

Valuequestor: (November 05, 2009 4:30pm)

Starving: You would be completing the appraisal based on an extraordinary assumption of the subject's interior supplied by the underwriter. You would be in compliance with USPAP as long as you have an appropriate Scope of Work identifying where the information came from. If you knew it was all bogus I could see you contacting the FHA underwriter and expressing your need to complete a full 1004 FHA inspection and report. Hell give it to me. No problemo

Starving Appraiser: (November 05, 2009 4:21pm)

Valuequestor-GREAT!!! If all apprsrs doing AMC work followed your lead it would eliminate one of the biggest issues - very low pymnt for more work. Hope you are giving them examples of what an honest fee will get them verses the crap their getting under the "get what they pay for" mode of operation.

Starving Appraiser: (November 05, 2009 4:06pm)

YEP-poster did not mention rather or not it was a second. BUT, I would NOT put myself or my license on the line by doing an FHA drive-by based on someone elses opinion of the condition/state of required repairs. Too many willing to overlook the repair requirements to appease the lenders & facilitate quick closings. I'm not one of them though.

Valuequestor: (November 05, 2009 3:19pm)

There were lots of opinions posted on whether 2055 Drive By appraisals could be completed for FHA. I think the poster failed to mention if it was a 2nd Appraisal ordered according to Mortgagee Letters 2008-09 and 2009-08 (Yes, the #'s are correct). The 2055 is ordered using the same Case # and must be completed by a different FHA Roster Appraiser. The interior condition will be related to the new appraiser by FHA or the underwriter. Second appraisals are required when: The loan amount, excluding the upfront MIP will exceed $417,000 and The LTV excluding upfront MIP, equals or exceeds 95%, and The property is determined to be in a declining market by the appraiser, or the lender using other sources. See ther letter for definitions.If the 2nd appraisal comes in lower by MORE THAN 5% then the Max Mortgage must be based on the LOWER appraised value. Letter 2009-08 gives guidance for Cash Out Refi's. Ha Ha Ha Ha Ha!....and length of ownership.You are dealing with 85% ltv'S COMBINED.

ILL Appraiser: (November 05, 2009 3:12pm)

I read most of the comments but didn't see the obvious answer to the 15% increase in quality appraisals reported. Can't only good appraisals be used to get loans. The garbage gets thrown out I thought. And from this site's blogs as well as the hvccpetition.com site it would appear that there is plenty of garbage around which would not get counted by those saying quality is improving.

vorpal bunny: (November 05, 2009 3:04pm)

Nevermind - just found it. d'oh!

vorpal bunny: (November 05, 2009 3:01pm)

I can't find anywhere on the House of Representatives congressional website where it mentions they have passed HR3548...

joecolorado: (November 05, 2009 2:41pm)

I have just been asked to do an exterior only drive by of a $7mm property on 35 acres..... Hilarious......for $315....OH my sides.......in Larimer County 7 miles from the Wyoming border.... 52 miles from here......OH stop.....Please........THATS too much money for a 2055...... and have it back by friday....OH my giddy aunt....let me get right on that.....shoot....now I have to change my BVD's.....

Cornerstonekathy: (November 05, 2009 2:40pm)

YEAH tax credit extended and expanded!!!

joecolorado: (November 05, 2009 2:36pm)

as Nancy said....JUST SAY NO...

joecolorado: (November 05, 2009 2:35pm)

value-sorry wrong blogger meant Barney Loves-, had a brain f**t, as usual this time of an afternoon,had too much to do today,pretty much all of it did not concern appraising,but enjoyable just the same.AMC's already have your fee schedule,when they phone and ask will you do a job for reduced fee DONT DO IT.I dont give them ANY information on ANY fees other than my schedule.I am not doing their research for them to ascertain fee levels of "other" properties to store and use against other appraisers.If they want to employ me,my fee is $xxx.If they offer a figure less than my schedule,I dont even bother to reply to them as they usually ask for a reason for refusing a job..Fees or turn time?Why do their work for them?let them guess what the market is and force them to make decent fee offers.The longer it takes them to turn apps back the faster the investors will get tired of their bull.I will work for a decent fee,but I am not giving away my experience or name.

Valuequestor: (November 05, 2009 2:31pm)

Joe: can we write that bill to exclude AngelSoft?

joecolorado: (November 05, 2009 2:24pm)

value-I say we should just tax gerbils...and toilet roll cardboard and Bic lighters....I dunno, maybe Mr.Gere could shed some light on this matter.......nope dont think so....last time that happened it was nearly Armeggedon...

Valuequestor: (November 05, 2009 2:07pm)

Realist 1: Great idea. I've done that as an individual when my former bank got abusive with fees and lost their concern for customers. I think I might try RABO Bank here in Cali. I hear they are pretty good. Any info ??

Valuequestor: (November 05, 2009 2:02pm)

WHEN I work for an AMC its because they have met MY fee requirements. I'm glad you guys are in a position to refuse ALL amc work. My idea of a reduced fee is most likely what you guys would consider a bonus...so go pound sand. Organizing ourselves and having decent representation of our concerns before our individual states and the feds is the only way we will escape the abuses purpetrated by the management company's. I'm cutting off a decent source of income because Jorge and App tell me too. I would if Jorge and APP were part of a unified appraisal organization and spoke for an effective block of appraisers all doing the same. That's what I want and I'm trying to help get it going in California.

Barney Frank loves gerbils: (November 05, 2009 1:55pm)

I say we murder all gerbils, this will make Barney Frank want to kill himself and then our problems will go away!

Starving Appraiser: (November 05, 2009 1:44pm)

APP & Jorge - "DITTO" and HOORAY!!!

Jorge: (November 05, 2009 1:41pm)

Well said APP, if every appraiser would do just that, we'd be in control as we should. But in real life this wouldn't work because there are always those who for a "small hand out fee" would continue working for AMCs ruining it thus far for the ones like you & I.

Realist 1: (November 05, 2009 1:40pm)

Do you bank with Chase, Citi, B of A or Wells Fargo? They are the big banks that received bailout money and they turn around and jack up your credit card rates to 30%. This used to be called Usury. Don't just opt out of your credit card, Opt out of you bank alltogether. These guys are legalized criminals. CLOSE YOUR BANK ACCOUNT TOO.

Realist 1: (November 05, 2009 1:40pm)

Do you bank with Chase, Citi, B of A or Wells Fargo? They are the big banks that received bailout money and they turn around and jack up your credit card rates to 30%. This used to be called Usury. Don't just opt out of your credit card, Opt out of you bank alltogether. These guys are legalized criminals. CLOSE YOUR BANK ACCOUNT TOO.

App: (November 05, 2009 1:27pm)

You guys need to stop working for amc's - take your life and your career back. If every appraiser could do it for just 1-2 weeks, we could shut the whole thing down and have things our way again. It's a race to the bottom working for amc's, with them is charge I doubt this profession has 1.5 years.

Valuequestor: (November 05, 2009 1:26pm)

Thanks Starving.....I think?!. JoeColorado: Sorry buddy, I was so busy ranting and raving I didn't hear you yelling and screaming right next to me.

Starving Appraiser: (November 05, 2009 1:24pm)

And always remember.... when life hands you Lemons, ask for Tequila and Salt and call me over!

Starving Appraiser: (November 05, 2009 1:17pm)

Sorry Valuequestor...a 5th might not be enough...LOL!!!

Starving Appraiser: (November 05, 2009 1:15pm)

Turn on the NEWS-Shooting Rampage @ Ft Hood... reporting at least 7 dead & 15 wounded.

Valuequestor : (November 05, 2009 1:14pm)

For God Sake somebody tell me some good news....I'm about to bang down a fifth of PATRON.

Valuequestor: (November 05, 2009 1:10pm)

MD Appraiser: (November 05, 2009 11:14am) This completely off the subject but i am having problems with the AMC's we have joined( we meaning my company). Now the AMC's are sending checks to the individual appraiser's not the company. I think this might cause a problem with the taxes that get paid at the end of the year. Has anyone else having this propblem and what can be done/ the amc's will not change they why they payout.... Hey MD Appraiser I went through the same thing. They will also insist that they have a full profile on your appraisers with all documents uploaded. Soon they won't need to contact you at all and they will have successfully coopted your appraisers working directly with them so they can start the squeeze on fees. Welcome to the show.

Starving Appraiser: (November 05, 2009 1:00pm)

Clue & Joe - great posts. Clue thanks for providing the interesting info. My question would be, 15% more than what??? >I don't think<, >in my opinion<, >I believe< values are not declining so much as correcting/adjusting. Many areas were over-valued, properties were never worth what they were selling for. AVMs will be/are another crisis like HVCC/AMC. AND ascr records are just as you stated... here, there's little to no interior information, exterior measurements are rounded to the nearest foot, no access to the garage or rear, so it's barely a starting point for anyone. >>> To others, BTW, vast majority of my post are labeled/started as "I believe" or "I think" or "In my opinion". All of which, as an American, I am entitled to just like everyone else. My remarks covered more than 1 adminstrtn & more than 1 political party & spread the blame throughout. The only whining or hostility I noted was in the responses.

Valuequestor: (November 05, 2009 1:00pm)

Even Stevens (no pun) is on the record stating that FHA has not set aside enough reserves to handle the coming flood of defaults. The Wall Street Journal thinks we the people will be on the hook for $50 to $60 Billion. This means we will have to increase the federal debt limit. I'm sure the Admin-o-Bama will push this off until next year along with all the other bad news coming in. Vote all of these bums out in 2010, 2012 and finish it in 2014 if we are still here. I am so proud to be an american right now.

Ancient Appraiser: (November 05, 2009 12:52pm)

Sorry! Forgot the first part. Nov. 5, 2009 – The $8,000, first-time homebuyer tax credit has not yet been extended beyond its Nov. 30 end date, but it’s very close to gaining a longer life.

Valuequestor: (November 05, 2009 12:52pm)

According to the HUD inspector general, the FHA, which has virtually no strong oversight against fraud, now backs $560 billion of mortgages. That’s four times what it was insuring three years ago. Last summer, HUD’s Inspector General issued a scalding report on the FHA, finding that its default rate zoomed to 8.4%, almost triple what the big banks and mortgage lenders say is safe! The most recent data available shows nearly one out of seven of these loans were more than a month delinquent, headed for default. The FHA expects 24% of its 2007 mortgages and 20% of its 2008 mortgages to go into default. FHA let its rainy day reserve fund shrivel to $30 billion to support its business, a cushion that has halved to 3% from 6.4% in 2007, and a cushion that is set to fall below 2%, and thats from HUD. I know they're not the same animal but didn't Bear-Stearns go through about 20 Billion in one week?. cont.

Ancient Appraiser: (November 05, 2009 12:50pm)

How about some good news ! The extension was added as an amendment to an existing bill, HR 3548, that extends unemployment benefits. The U.S. Senate passed that bill on Wednesday and, after debate, the U.S. House passed HR 3548 this afternoon. It now needs only President Obama’s signature to become law, and the White House has indicated it will sign it, perhaps as early as tomorrow. Until the president signs the bill, however, it is not law. In addition to extending the tax credit for first-time homebuyers under the current rules, the bill adds a smaller tax credit for move-up homebuyers who have lived in the house for five of the past seven years. The bill also increases the income limits of homebuyers from $75,000 (single) to $125,000; and from $150,000 (married) to $225,000.

Valuequestor: (November 05, 2009 12:38pm)

FHA delaying the release of its annual audit can only mean bad news and behind the scenes chaos. Meaning, taxpayer dollars will be needed to rescue it. Thanks to the nimrods of government mortgages (Fannie, Freddie, Ginnie, and the FHA), the U.S. taxpayer now insures about nine out of every 10 new mortgages. The FHA stuck to the basics during the housing boom: 30-year, fixed-rate traditional loan products with standard underwriting, and not insuring mortgages like no-doc or subprime loans. However, the FHA has mismanaged its capital cushions to support its business, at a time when the Congress and the Administration have leaned on the FHA to do more to help homeowners buy homes, to potentially catastrophic consequences.

joecolorado: (November 05, 2009 12:25pm)

I'm gonna kick the stuffing out of a punch bag...maybe it'll get rid of some anger.

joecolorado: (November 05, 2009 12:23pm)

Stop bashing the present & past administrations. It is not their fault..its OURS...WE permitted this to happen time and time again.No admin'n appears to be responsible for ANYTHING they do while in office.Banks are having a field day, politicians dont appear to have to abide by any laws created by them for us.Insurance cos & co.s with money get what they want when they want, screw the populace...we dont come into the equation.I am sick to death of Pages and Aides being molested by the pols, watergates, irangates, contragates, silveradogates, and any other "gates"...NONE of these thieves have been punished enough or at all.There does not seem to be any control over ANY politician.It costs $thousands for a coffemaker for airforce 1.Kmart sells the same thing for $29.95,a screwdriver for the military costs $1700,Walmart sells them for $5.WE have no say AT ALL.How did we let this happen?the founding fathers R spinning in their graves over the state of the union.we ought 2 be ashamed.

Ancient Appraiser: (November 05, 2009 12:10pm)

Brian: Article Can be found here but was originally in American Banker October 20th. http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=225529

joecolorado: (November 05, 2009 12:08pm)

These bah humbug Scrooge buggers have too much power.politicians are selling out to the big banks.It makes NO difference REP or DEM,they ALL do it.They dont care about,listen to,or have any other concerns about constituents until its re-election time, when their income stream is in jeopardy.THEN its promises, promises, promises. Politicians ANYWHERE & EVERYWHERE in the world are the same.They are all Liars, cheats, selfish, greedy,backbiting,backstabbing moneygrubbing weasels.(No offense to Weasels)They change parties ignoring the majority that put them there,They vote the way THEY want to with no apparent constituent oversight or recriminations. Its no wonder the banks have free run of the system....THEY PAID FOR IT WITH OUR MONEY.

SF Big Dawg: (November 05, 2009 12:00pm)

Soldsum: How long was the process to get FHA approved?

joecolorado: (November 05, 2009 11:57am)

A friend owned a succesful mortgage company. He told me the only piece of the puzzle he didnt have control of, therefore he had no income from..was the appraisal, and he told me he was going to charge me a desk fee for me to get work from him. That was in 1992. He personally cleared in excess of $30MM income per year!!!!!and he wanted a piece of a $300 appraisal fee!what a Scrooge.I didn't work for him much after that,& his greediness ruined a friendship,but the banks are doing exactly the same thing.My bank savings account was to be closed as it appeared to them to be inactive(money goes to the state).Its a savings account,I put money in to save it, not spend it.They told me that they could not get sufficient interest from transactions on the acct,that I was to pay them to keep it active!I closed the account so they got now they get nothing.They dont have my money(at 1 & 1/2% interest for me) to re-lend(at 9-10%interest for them)to someone that needs it more than I do. Greeeeeeedy

SimpleSolution: (November 05, 2009 11:45am)

To add to that joecolorado-The asses office also use comps a year back. They don't use the most recent comps. I was personally told this by the asses office so if that is what the AVM's are using for value and that is what the lenders are using well then stuipid is as stupid does I guess....

joecolorado: (November 05, 2009 11:42am)

AVM's statistic base is the assessors office data. now THERE's a standard for us all to measure to.Any asses office ANYWHERE has data that is not as current as the visiting appraiser in a transaction.WHY are THEY considered the standard?Half the time the information is incorrect and the other half of the time the info is so dated its useless.The asses dont visit the property but rely on mass appraisal technique, which is statistics, and dated stats at that...The problem is the AVM's assume that fee appraisers are not capable, and ar reluctant to rely on the fee apps current information and would rather use incorrect data from an "official source" what a crock.The error just keeps on getting bigger and bigger.more rubbish in....more rubbish out.

AMC Hater: (November 05, 2009 11:39am)

Will someone please call Obama. He will fix everything.

App: (November 05, 2009 11:37am)

They're forcing appraisers to use inappropriate AVM derived comparables in their reports - that's why 15%. Twist fannie twist in trying to make it appear avm's are the golden rule to measure appraisal quality. Twist yourself apart you crooks. The truth will come out

App: (November 05, 2009 11:33am)

They have absolutely know clue what we appraisers do so they try to dummy it up to where they can understand it. AVM's. Not too mention that the big 4 bankster cartels are influencing them. Greed is STILL out of control

App: (November 05, 2009 11:27am)

I told ya, they want to replace appraisers with avm's and bpo's. Doesn't that statement from Fannie reek of collusion? They're trying to put forth that avm's are the golden rule to judge appraisers work. Crooked as the day is long. I hope they're gotten rid of, soon! And this crap is on the taxpayers dime! I'm really sick this.

BT: (November 05, 2009 11:22am)

Realtive to the AVM's that I've seen, I would think that the fact that "15 percent more appraisals come acceptably close to the AVM value" would be cause for concern...

MD Appraiser: (November 05, 2009 11:14am)

This completely off the subject but i am having problems with the AMC's we have joined( we meaning my company). Now the AMC's are sending checks to the individual appraiser's not the company. I think this might cause a problem with the taxes that get paid at the end of the year. Has anyone else having this propblem and what can be done/ the amc's will not change they why they payout....

Oregon Appraiser: (November 05, 2009 11:12am)

Isn't amazing how groups come along like "Freddic Mac" and sounds off that appraisal quality is up since HVCC, when the reality is far from that. I am sure there are some good quality appraisals coming through the door, but it is more than likely minimal with the greater percentage being junk. Don't you love have the appraisal quality is determined by comparison to a "AVM". Where has has common sense gone???

GODLIKE: (November 05, 2009 11:11am)

FINANCE LOGIC the person who doesn't know history is doomed to repeat (or something like that). If you know what got you here then you hopefully do a better job of not getting here again.

SoCal Mortgage Broker: (November 05, 2009 10:58am)

Kevin G. Last I heard it is still in the discussion period. See my earlier post to lookn4FHA

soldsum: (November 05, 2009 10:54am)

Call Ben Slayton at www.thelenderapprovaldepartment.com they helped me with my broker approval last years, the best in the business. East Coast:843-755-2200 / West Coast: 310-568-1112

Kevin G.: (November 05, 2009 10:49am)

Does anyone know if FHA will allow brokers to be approved without going throught the audited approval process starting next year or sooner?

Clulessdad: (November 05, 2009 10:46am)

I can infer that Freddie thinks the AVM is the standard and the appraisal is used to validate the AVM. Well ain't that eye opening!!!!!!!!!!!!!!!!

Clulessdad: (November 05, 2009 10:44am)

Marko Berishai of DartAppraisal.com cited three factors for the increasing cost of appraisals. Supply and demand is one reason. The cost for appraisers to comply with new requirements is being passed on to consumers. and Third, the 1004MC has added to the cost of the appraisal How about those facts?

Clulessdad: (November 05, 2009 10:43am)

brian- narblog1.realtors.org/mvtype/appraisalinsight/freddie_mac/ This is real interesting verbiage. What a crock of "s**t" "The National Mortgage News is reporting that Freddie Mac is noting a "tangible improvement in the quality of appraisals of loans it buys" since having implemented the Home Valuation Code of Conduct (HVCC). The appraisals are compared against an AVM that Freddie uses as a check. Patricia Clung said that 15 percent more appraisals come acceptably close to the AVM value. The article goes on to quote Ezzard Alves of Fannie Mae: "Appraisals are low simply because values are declining, which was happening before the code took effect, Alves said. As for the claim that management companies are using "out-of-area" appraisers, he said, Fannie and Freddie require the use of appraisers who know the local market." contd

FinanceLogic: (November 05, 2009 10:27am)

Republicans? Democrats? Who frickin cares! WHY on so many of these blogs do you guys feel the need to go BACK and place blame. We are here! Does going back in the past help with anything!? Geez, it's like some of you are in a bad 20 year marriage and feel the need to store your emotions under the rug. Get real! Find a solution to the current problems. Who cares who caused them! Look forward not back!

brian tbws: (November 05, 2009 10:06am)

Does anyone know where the Freddie HVCC article is located.

Clulessdad: (November 05, 2009 9:49am)

Has any broker out there heard any of the wholesalers dealing with any of the Mortgagee letters which are set to implement 1/1/2010?

Clulessdad: (November 05, 2009 9:48am)

Oregon appraiser-Freddie only sees the ones that worked, not the ones that didn't. Quality in their eyes are whether they bought the loan.

Doofus: (November 05, 2009 9:39am)

New name today Oregon Appraiser?

GODLIKE: (November 05, 2009 9:37am)

THANK YOU KEEP IT CLEAN

SoCal Mortgage Broker: (November 05, 2009 9:31am)

looking4FHA: Just for you information, I requested a Mini Eagle approval for a company on 7/22/09 and received approval on 8/17/09. I don't think they are as busy as they were with so many companies closing down.

Looking4FHA: (November 05, 2009 9:10am)

So Cal, thanks for the response. I agree I would rather have it stay as is, but I don't want to spend the money to get FHA Mini Eagle if it is money down a hole. Have better uses for money right now. As Far as you guys playing politics; I blame the politicians, BOTH parties. Vote "NONE OF THE ABOVE" next election

Oregon Appraiser: (November 05, 2009 9:10am)

Did anyone see the story from the Appraisal Institute about, Freddie Mac says Appraisal Quality is up since implementing the HVCC?

whos2blame: (November 05, 2009 9:04am)

starving appraiser-Who was running congress from 1980 (Regan) to 1994 (clinton)? you can blame who you want, but last I checked in my policical science book Laws (regulations) are done through congress not the president. Currently (since 2006) the Democrats are back in charge of writing bills...who are you going to blame for the credit card regulations that are being pushed back...is that still Bush's fault?-harder to hang this one when congress and pres are both on the same team.

SoCal Mortgage Broker: (November 05, 2009 9:03am)

lookn4FHA: It is my understanding that FHA is thinking about getting rid of the Mini Eagle. They are still in dicussion about it. I'm not sure it would be a good idea. Instead of FHA regulating you, it would be the lenders and I think they would be alot tougher than FHA.

brian tbws: (November 05, 2009 9:00am)

Hi cluless dad. I'll see if I can find the article, but the article did not mention seller funded down payments & defaults.

Mortgage/Real Estate Dude: (November 05, 2009 8:59am)

Starving Appraiser, now dealing with the Credit Card mess we have been discussing. The last time the Credit Card industry faced a major overhaul: Carter and Reagan because of the US recession of the late 70's. Reaganomics, regarding the Credit Card industry, was a result of the previous President's term. Much like Obama delaing with Bush's problems now. The problems didn't start with Reagan, and obviously didn't end with him. But it is obvious that you are just guessing at an ERA that had a Republican President because you have some score to settle with "People that say they are Republican". Remember that MEASURED success of a Politician (REP/DEM), when replacing someone from the other side of the isle: HOW SUCCESFUL WERE THEY IN CHANGING THE PREVIOUS SEAT HOLDERS CHANGES!!!

InsuranceBeacon: (November 05, 2009 8:58am)

I jsut got one of those letter from Chase. 29.99% interest rate. Ouch. I have over a 740 credit score and have never been late. Just paid it off last month to over $18k balance. Don't know what would have happened if I didn't pay it off

Don't use credit cards then!: (November 05, 2009 8:56am)

The solution is simple. Don't use these bastard banks..don't use credit cards period so they can take advantage..pay cash for things and get back to better habits!

Starving Appraiser: (November 05, 2009 8:54am)

Off to measure a couple. Post you guys later. Everyone have a GREAT DAY !!! : )

DAG: (November 05, 2009 8:52am)

STOP WITH THE POLITICS!!!! AND PLEASE, PLEASE, PLEASE, FILTER OUT THE INAPPROPRIATE POTTY LANGUAGE. IT IS EMBARRASSING TO THOSE OF US WHO ARE PROFESSIONAL!

Mortgage/Real Estate Dude: (November 05, 2009 8:44am)

Starving Appraiser: If you would not be so hostile in responding to others you might get some respect back from them when people agree to disagree. Democrat/Republican, doesn't matter, another system of control. Any affiliation is worthless. Let's discuss comments made today: The deregulation affecting the Mortgage And Real Estate Industries started with Bill Clinton in 1997. Furthered Deregulation by Bill Clinton in 1999. 'W' and his team were going to tighten down some of Clinton's changes. Then September 11 happened. Because the insuing market crash, and interest rates significantly mocing lower. George Bush and his teams moved to Deregulate more than Clinton did. Now 10-12 years later we are filling the affect of all the deregulation. Credit Cards hadnled next...To Be. cont...

Sam: (November 05, 2009 8:21am)

Any intelligent person had to know what the "plan" was when credit card companies got til next year before the new regs take affect. They would have a year to do whatever they damn well wanted to. The whole change in guidelines was either (1) a ploy to make "us" believe the Obama Admin was really trying to do something for commom folk OR, (2) the Administration is full of arses who couldn't see 2 feet in front of them as to what the banks would do to consumers in the interim. Heck, they are going to make so much money in interest on the interest hikes made prior to 2010 that they don't have to worry about changing rates on everybody else. I find this abominable. The big banks get government bailouts AND a year to get their "systems" together. What does the customer get? A "seeming" junk-mail letter in the mail with a deadline that could cost you dearly if you miss it. And was it really sent at all? There should have been a requirement that it also be sent via email.

Starving Appraiser: (November 05, 2009 8:20am)

Pest-o-mous - No, I got your name correct. I only post what I STATE as my opinion (IMO = In My Opinion). A)-Never sd I wasn't making $$$. B)- Won't get out of the field. No battle has every been won by giving up. C)-I DO write my legsltrs. You just elaborated on the creative financing resulting from Bush de-regltn, and further made my point. IMO, you are the WHINER of the day, so far, and sounding like an UNHAPPY poster. I love the WHINERS complaining about posters WHINING. I'd rather be a democrat than in the 20-22% that consider themselves Republicans. And you might want to use some grammer/spell check. The start of your post makes no sense whatsoever. But have a GREAT DAY, sound like you need one!!! : )

Keep it Clean: (November 05, 2009 8:09am)

Please keep all posts to the blog useful. We are going to go to a registered system to curb the indecent posts soon. In the meantime we are going to closely monitor and delete posts that are inappropriate. We'd like to keep it open, but it hinders the product from being forwarded confidently to others that could use it. Sorry we have to go this direction, but it's just life.

lookn4FHA: (November 05, 2009 8:03am)

Does anyone Know anything about HUD eliminating the Mini Eagle? There was a big announcement about a month ago and now nothing. we need to add FHA and were just going to do it when that announcement came, So we are waiting since we wouldn't have been able to get approval for 90-120 anyway. what is happening here?

Prestamos2009: (November 05, 2009 7:56am)

Starving Appraiser: First of like the heading in this day and age when all the AMC's do is take money form borrowers and dam the final valuation and who cares if we can't close the loan at least I got my money. If you are not making any money may I suggest you a) get out of this field b) write your democratic legislators and tell them what is going on. No Bush did not create the debacle in the Mortgage Industry you can thank Wall street and their wisdom in securitizing sub prime loans with 80/20 products that where given to people with credit scores as low as 580 who would not be able to rent an apartment much less buy a home if this product did not exist! So please stop your winning and do something about your situation if you are unhappy period.

Starving Appraiser: (November 05, 2009 7:56am)

GOD - I agree w/both responses. It started w/Clinton. But (IMO) it escalated enormously w/all the "creative financing" that was bourne of Bush's deregulation efforts. The RICH got RICHER, the Poor got Poorer, & the working man carries the burden. Also agree w/your take on separation of debt via divorce, but let's face it, most who are at the point of divorce have little to no honor or morality when it comes to their soon-2-b ex. The couple I speak of, she's is/was an idiot. Should have pd, at least in part, to make sure the refi happened, or taken him back to court for contempt, to protect herself. Her stupidity is evident in the fact that she joined the cult like MLM scam and did it, in her own words "just to piss off the then-current husband". What an IDIOT!!!

Clulessdad: (November 05, 2009 7:47am)

Frank-Is there a site from where you guys got that 20-25% default rate? How much of those loans are expected to be Seller Funded Down payment, which were showing 4x the rate of the 3% down variety? Maybe the 2009 vintage loans are perceived to be better quality,and with it a lower default rate?

DAG: (November 05, 2009 7:38am)

Here's a first for me. Every appraisal has been a nightmare for one reason or another. But TODAY, I got notified by the lender that "LSI has determined that the original appraiser who inspected the property is unreachable, therefore they will be reassigning it to a new appraiser". How about that, they took the borrower's money on 10/22 and now on 11/4 we are back to square one. Although I've not had "good" luck with Equifax or Fiserv, I think LSI must be the worst of the lot. If only Washington could understand how ridiculous this is. What will the rate be by the time I can actually be assured I can lock and close this loan?

GODLIKE: (November 05, 2009 7:36am)

Starving Appraiser you are right - Clinton did things that lead to more home ownership and we are currently paying the price for his attempt to buy votes. All the loan programs and issues we discuss here on a daily basis began in 1999 with Mr. Clinton at the helm

GODLIKE: (November 05, 2009 7:35am)

Starving Appraiser the Separation of Debt I'm talking about has the courts handling the following thru and getting the debts put in one person's name. You're talking the cheap way and the way Kim was talking about. The judge "giving" the debt to one party or another is a gentleman's agreement and is not binding on either party. It's meant to make them morally liable so that maybe they'll honor the agreement.

Starving Appraiser: (November 05, 2009 7:34am)

I personally believe the current mess started w/Reaganonimcs. Clinton did things that lead to more home-ownership, BUT it all went south when the BUSH admin declared NO REGULATION and all wealth for the wealthy... IMO !!! I'm sure I'll hear about this post.

Starving Appraiser: (November 05, 2009 7:30am)

On divorce & debt, debtors generally could care less what the courts says, it's my understaning that the original credit agreement as a couple is binding. BUT, if you do get the debt separated in court, there's no guarantee one party or the other can/will follow thru with having names removed from accts or mrtgs refi'd. Both are still responsible until one of these things happen. I know a couple divorced 2+ yrs ago, per the dvrc agrmnt he got the house & was to refi. But they couldn't agree on who should pay the cost to refi, so it was never done. Now he's lost his job, missing pymnts, & subj to 4clsr in the near future. And the stupid blonde he dvrcd, thinks when it 4closes, she'll be able to just swoop in & get the house. That won't happen unless she cathes up all the missed pymnts, fees, etc. And if it does 4close, &/or pymnts are late, it'll be on her credit too as the mrtg is still in both names. She's possessed by the MLM cult, TEAM NATL. It's a rip off - stay away!!!

QTRHRSE: (November 05, 2009 7:27am)

I have always hated CitiBank...now I hate them even more. Just cancelled my Bank of America account too.

MortgageBrokerGal: (November 05, 2009 7:21am)

Doofus: Your 'nickname' fits you perfectly. What a loser comment.

GODLIKE: (November 05, 2009 7:19am)

All usury laws were declared null and void by the feds back in the 80's (I believe) and they left it to the individual states to decide if they wanted to reenact new laws, most states didn't.

Starving Appraiser: (November 05, 2009 7:19am)

Increased rates are just one of the jabs the CC cos. are taking. I've heard on the news (& It was on TV so it HAS to be TRUE...LOL) many are also starting annl fees that didn't apply before, increased minimum pymnt, penalties for paying off early &/or for not enough use. Let's see... how many ways can this be a screw the consumer situation... every credit limit on every card, regardless of balance used/owed, counts as a liability against the consumer, & now the cc cos. are gonna punish the consumer for using or not using the card. And if you close a cc acct., that counts against you also. You should request it be "closed @ the consumer's request", but not often do the CC Cos get it right & the consumer doesn't know for a while. And good luck getting the Credit Report info corrected!!! A NO WIN - NO WIN situation for the consumer.

MortgageBrokerGal: (November 05, 2009 7:18am)

Old Loan Officer: The solutions to the true credit risk theory you proposed sound like the VA underwriting philosopy! I always thought they were right on with their approach, which is one of the reasons VA loans have much lower default rates, even though they are 100% LTV.

GODLIKE: (November 05, 2009 7:16am)

There's one other option on the divorce thang - a legal separation of debt. While it will cost you more money in attorney fees you can require a separation of the debt responsibility thru the courts during a divorce proceeding. Keep in mind everything Kim said is true if you go thru the regular divorce proceedings but if you opt-in to this other layer of divorce (costs) you can end up with only your own debts.

James the Appraiser: (November 05, 2009 7:14am)

WOW - NICE COLOR SPLASH KIM, wakes me up

AZ Linda: (November 05, 2009 7:07am)

Hammer - Paul Dunn has a referral for you...contact him: paul@TUCSON-FHA-LOANS.COM

JuzBroker: (November 05, 2009 7:04am)

Just a question...with banks hiking up their interest rates on their credit cards...how come they are not being brought up on racketering or "loan shark" charges?? They are just like a legitimate MOB and making huge profits...because they are the only game in town...

RealtorRob: (November 05, 2009 6:34am)

Here's the question I'd love to see Kim answer...If a high credit score borrower gets their CC rates raised to near 30% because the banks are seeing large numbers of defaults, what's the rate that a poor borrower is getting with their cards? Isn't the system supposed to be "risk based?" They are lumping everyone into the same risk category? Also, doesn't "Opting Out" put you at credit rating risk? You'll be freezing a card and rendering it inactive, thus putting your credit available lower and thus lowering your credit score, thus giving the banks more reason to raise your rates? Total Win-Win for the banks, huh?

Old loan officer: (November 05, 2009 6:33am)

Perhaps consideration of a persons residual income after the transaction. If someone chooses to debt up to 55-60%, I think a residual money remining to spend after housing consideration would make some sense.

DAG: (November 05, 2009 6:29am)

Get Serious and Starving Appraiser! Kudos, only posts I've seen where the poster seems to know something about the political climate of how we got here.

Jer: (November 05, 2009 6:24am)

FHA should just cut back the max DTI's. I've seen crazy things approved like 55 DTI's for someone that makes 2k a month. . . . That leaves 900 bucks to pay for food, gas, taxes, etc. . . . Come on! They keep tightening credit scores, when all they have to do is take a look at the DTI's. The reason RD loans have a low default rate is because they are tight on the max DTI's.

GaryP: (November 05, 2009 6:19am)

Rotgirl, Ever notice that a lot of credit card companies are based in S. Dakota, like Citi? The reason is there is no usery law in S.D. Besides, the reason that your rate is high is exactly beacuse you pay off every month. You're not exactly a profitable client for the card companies. They're still making money on you, but not as much as if you maintained a balance so they are going to make up for that by charging a higher rate. This is all being addressed in the Credit Card Bill of Rights and the CFPA bill that is going through the House right now. We'll see how that all changes.

T-bone: (November 05, 2009 6:15am)

Yes!!!! Moonshine man is back. We love that guy!

Starving Appraiser: (November 05, 2009 6:12am)

Nail on the HEAD w/the CC crap. BoA raised rates months ago but did offer the "no future use & pay balance at current rate opt." NOW Wells Fargo is jacking rates & their only opt out is to pay in full. I called & sd no future use & I'll pay off balance at old rate...they sd not an opt. Shell also is jacking rates. BEST CC is with the CREDIT UNION-JOIN ONE TODAY!!! I am lucky in that they they are only raising the rate by 3-4% & are still under 10%. YEP, screw the consumer before the new "consumer protection" rules go into effect. >>>Glad to see someone else thinks this mess goes back to the Reagan yrs. Ironic, I think, that all Reagan had to say was "I don't recall, I can't remember" and in the end he went to his grave "not being able to recall or remember" his own wife's name. Vengance shall be the LORDS!!! WATCH OUT CHANEY-your next!!!

joecolorado: (November 05, 2009 6:02am)

Credit cards are a tool. If you use them like a tool they are great, if they become a crutch they are awful.The problem arises when the borrowing rules get changed mid stream(The credit card people are allowed to do that at ANY time) with little control over their limits.Kinda baffles me.If you cant pay your initial bill how are you going to pay the penalties.gets me about the PMI...if you cant pay the mortgage,how is adding an additional insurance amount ON TOP OF the mortgage payment going to help the payer?

Rotgirl: (November 05, 2009 5:59am)

I pay off my credit card IN FULL EVERY MONTH and they've got me at 27.24% APR!!!! Whatever happened to usury laws?????? I've purchased a brand new truck on the card and paid it off in full the next month, I have them increase my credit limit every year by $5-$10k, I pay the bill off IN FULL every month and they STILL are charging me this rate! However, I'm with MLappraiser on the cash back issue.....I get 3% back on gas, dining, office supplies and hardware purchases (my main expenses) and 1% on everything else plus bonus points on certain purchases so I'm going to take advantage of that every time. I know this CC company HATES me for paying the card off each month......

joecolorado: (November 05, 2009 5:57am)

My BofA credit card was paid off every month..They sent me a letter informing me they did not like my spending habits and were setting a fee of $30 for the use of their card as of 1st December. I phoned them cancelled the card.There are too many no fee credit cards out there to warrant paying a fee for the use of a card.If you use credit cards the way they are meant to be used by THE CONSUMER,(not by the bank,)they are great,its free money for a month.If the debt is permitted to accumulate there is a cost but thats acceptable if you pay the interest on the principle.I underpaid by four CENTS on a bill and I was charged a late fee of $13.00 PLUS Chase told me when I complained about the late fee that it will take 6 weeks to remove it from the bill.(Thats $26)all because of me misreading the bill. wont do THAT again.

MIappraiser: (November 05, 2009 5:44am)

Use your credit cards to get the cash back (I get 2% on everything - 4% on gas), points or whatever else you can get from them and then just pay it off every month. I pay my utilities and everything on them (except the mortgage). How can you beat that?

brentarizona: (November 05, 2009 5:18am)

Stop using credit cards.......the best advice

App: (November 05, 2009 4:45am)

That shows the gratitude of these banks - doesn't it? They have us hostage to debt. In the UK, bailout funds were accounted for, every euro. If the banks took money they had to use it for it's intended purposes and not just pocket it like here. Total transparency there, not here tho - Arggggg

Hammer: (November 05, 2009 4:12am)

It's pretty pathetic that we would need moderators or filters at all.......

clean it up: (November 05, 2009 3:32am)

You need to have better moderators / filters in place to ban people posting like this.

Get Serious: (November 05, 2009 3:29am)

No, you're not the only one up but let's get off the new administration. There's enough blame to go around - starting in 80's during the de-regulation Reagan years and the Nafta Clinton years. Bottomline, how do we save our industry and the ability to provide a quality living for our families.

Sleepless in Fishkill: (November 05, 2009 3:01am)

Can it be I am the only one up this early in the morning? FHA's increased defaults is indicative of the failed economic policies of the current administration. This is the change we voted for.