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

Competition benefits consumers: (February 05, 2010 11:04am)

Not only jobs are at stake, mortgage companies add revenue to State's bottom line as well as the economy! States loose revenue as more consolidation takes place - not to mention commercial rental space, utilities, anciliary jobs like payroll, accounting, computer and copier support, etc...all this and more supports the economy. Consolidation eliminates this.

Quit whining appraisers: (January 20, 2010 10:35pm)

Just an idea about the lack of representation appraisers have. Quit paying your Appraisal Institute fees and taking classes from them. There are plenty of alternatives. Nobody is looking for qualified appraisers right now. There has been a good effort in my state to organize appraisers, but it needs to be at a national level. If the Appraisal Institute looses enough fees and attendance I bet they would get their butt in gear and we could get a national voice that people might hear.

pipe: (January 20, 2010 9:30pm)

Realtor Loan Officer, good luck collecting 2 commissions if you live in a SAFE act state.

Hard*ss: (January 20, 2010 7:14pm)

Boy this is the whinners website. very little if ever any if I can use. I am not an appraiser. I am a Realtor Loan Officer. What a waste of time.

SoCalApprs2: (January 20, 2010 6:59pm)

Joecolorado, your posts make me smile. Wish we could go get a cup of coffee and cry together. I like your spunk in regards to the underwriter wanting to use your MLS!! This just proves that the system is not working. And oh boy that San Diego AMC add is way too funny. $225.00 for an appraisal. KILL HVCC

Atlanta LO: (January 20, 2010 3:25pm)

James: - US Bank will consider a manufacured home.

findingsolutions: (January 20, 2010 1:26pm)

if we want our congresspeople to work on our behalf, we need to demand that if you run for political office you must accept public funding. everysince the late 80's early 90's, when the Repulican party pushed to allow pac's to contribute directly to the canidates, we (the general public) have lost our collective voices. pol's now only care about those who are able to contribute the max amount of monies to their campaign coffers. get that money out of the political process and watch the congress change overnight. almost all of the present congresspeople will be gone because they will not know what the american people truely need, they only know what their contributors want. you would have to have a very good grasp of your local issues in order to get elected, no longer will the campaigns have the money to smear their opponent and then govern on the behalf of the pac's that provided that money. they will have to listen to their constituents or else they will be replaced.

brian tbws: (January 20, 2010 1:24pm)

hey guys here's the info on how to get your tax credit filing. http://www.ehow.com/how_5719896_claim-form-5405-_extended-deadline_.html

Stingray: (January 20, 2010 1:22pm)

If this doesn't make your blood boil, I don't know what will: Look at the fees on this San Diego area craigs list ad……. Are you a Residential Real Estate Appraiser looking for more assignments? We are looking for appraisers willing to accept split-fee assignments. Yes, the fees are somewhat low – but YOU WILL NEVER BE ASKED TO HIT A VALUE. We want a fair appraisal. ***YOU TELL US*** what areas you are willing to cover for these lower fees. ***Higher fees negotiated for complex/high-dollar properties. ACI/Lighthouse – preferred but not required. · Location: San Diego County · Compensation: $75-$100 for Drive-bys & Reviews, $125-$150 for Fulls, $225-$275 for 1025's. · Principals only. Recruiters, please don't contact this job poster. · Please, no phone calls about this job! · Please do not contact job poster about other services, products or commercial interests.

Joecolorado: (January 20, 2010 1:10pm)

have to beat feet right now, but will be back periodically to see the latest issues which have arisen.Bye for now.

joecolorado: (January 20, 2010 1:09pm)

I have had AMC's ask for a copy of my MLS listing as the AMC has issues with the Sq.Ft. of my 1st comp basement figure.I wrote back telling them NO.If you want access to the MLS get a license from the MLS not from me,If you need confirmation of YOUR Sq.Footage in your reviewer databanks get it from the person supplying your reviewers data,as my data is correctly stated.

joecolorado: (January 20, 2010 1:01pm)

SoCalApprs2-I did just that and,boy, for my fee they came back over and over again asking for the stupidest rubbish that eventually I told them to give me the name of the review appraiser with his/her license number as I needed to include it in my appraisal as a contributing appraiser.THAT stopped the harassment,but I lost hours doing stupid dross,that was unecessary.BUT if you lie down with dogs you get fleas,so no more fleas for me,now I just say no, if you dont like my appraisal get your own.

joecolorado: (January 20, 2010 12:56pm)

CornerstoneKathy-I wrote a reply to the editor and stated that I would also submit that article anonymously as I would also be ashamed of my actions.I understand some of my letter will be included in the next issue.I cant believe the audacity of that idiot,crowing about his new found wealth,but neglecting to mention the fact that he has put the remaining ex-coworkers in a bind as now the "typical" fee for the area is his fee figure,which means the principle of the firm will have to take a bite from his fees to ensure the associates get a decent cut,which is now lower than the fee at which he was working.what a tool!like I have read on some bumper stickers if you are not appalled you are not paying attention.

mortgage GURU: (January 20, 2010 12:35pm)

Manufactored Homes FHA.. Sterns Lending, FPF,etc...

Stingray: (January 20, 2010 12:34pm)

Got a cold call (I've applied to none) from an AMC yesterday - first one I've received. Offered $225. I said no, I need more. I've had two deals this year and obviously need more, but I won't work for an AMC - trying to do my part...and it's almost over for me in this industry after 11 years, Certified, FHA, etc...

james: (January 20, 2010 12:21pm)

does anybody know of any lender doing manufactored or mudular homes

SoCalApprs2: (January 20, 2010 12:04pm)

Can anyone who is a broker or Realtor answer this scenario? What if you all refused to go through with what they offered? forced the underwriter to review a second appraisal (done by your expert appraiser}, then ask them to submit in writing, item by item,why their AMC appraisers value is correct and yours is wrong? Why are you not doing this. You can challenge them you know. Force the hand back to having the burden of proof on them. Just because they force you to use their AMC, doesn't mean their appraiser is correct. Hell, if it is taking them 90 days or longer to close a deal, you could force the issue during this time, document their response, hire a real estate attorney and force them to respond! You guys have to power to nearly shut this mess down by forcing the burden of proof back on them. But yet you sit there and accept it like you have to. Says who? Pick up the phone and call the home owner/buyer and tell them they are getting messed with and watch how fast things change.

Waitin on my Bamma check: (January 20, 2010 12:01pm)

I have a new song for everyone..goes something like this Just sittin here waiting on my Bamma check, i am swimmin in bills up to my neck, i wish Bamma would stop his blathering about change and hope, because the only good business i see in America now is selling dope! Just sittin here waitin on my Bamma check, gettin some sun out on my deck, used to sell loans for a living which was great, now i do gangster bus tours around washington to make ends meet Oh Bamma oh Bamma where is my check

LenderShop: (January 20, 2010 12:01pm)

All appraisers need to go on strike. Maybe start with a small state that's easier to unite all the appraisers ( RI maybe ) This will stop all loans from closing due to not being able to get any houses appraised. This will get the media attention and will help with motivating the other appraisers in the other states.

jp: (January 20, 2010 11:30am)

Frank, wehn do you think you will have some kind of news on this thanks

Brushing up the resume: (January 20, 2010 11:25am)

i told my account rep today don't be suprised if they see class actions suits against all lenders in a couple of years. i am not saying its right, but lower loan sizes purchases are being discriminated against indirectly. we are totally discouraged from helping people buy (and move inventory)within their means.

DAG: (January 20, 2010 11:22am)

brushing up! There's another interesting point. With the high closing cost restrictions on loans the poor sap with a low loan amount is screwed. We cannot afford to do these loans, or we need to do them for free. All in the name of protecting them.

CornerstoneKathy: (January 20, 2010 11:15am)

joecolorado..I had to read the Working RE article TWICE because I could not believe it..why be anonymus if you are SO HAPPY!! I dont know an appraiser right now who would be complaining about 10 deals a week, no headaches, all in his local area and being paid $300 per job on time. Give me a break. A well written article by some AMC goon who will spread it around to the powers that be and say see we are helping the appraisers look how happy they are.

burshing up the resume: (January 20, 2010 11:11am)

i am about ready to quit the biz. i have been in it for 12+ years but it has once again become to tough to make it. i love my job but i am basically unable to make money doing it. the small deals that used to keep me alive are now non profitable. the lenders limits our fees, they make use include their fee in the percent we are allowed to make(those feesw have gone up). from there i have to pay the house, processing, etc... i am now turning down 50k deals becuase i thinks its crap to make $300-$500 before taxes for doing someones mortgage. I work my ass off and its just not worth it anymore.

Frank Garay: (January 20, 2010 11:11am)

Not yet JP...

jp: (January 20, 2010 10:52am)

biran and frank if you have some kind on insite on what is going to happen on 2-15 with fha hvcc and jsut hvcc in general it might be helpful for us all

Atlanta LO: (January 20, 2010 10:48am)

FHA changes to be announced for implementation in the Spring: Up front MIP to go from 1.75% to 2.25% Seller contributions 3% from 6%. Requesting legislative approval to increase the annual MIP the FHA can charge Increased enforcement on lenders Go to: http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10-016

Sterling: (January 20, 2010 10:47am)

Someone needs to educate Steve Forbes. Congress repealed that telephone tax in 2006. Still- it illustrates how pernicious a tax can be and how reluctant any politician is to reduce the government's cash inflow even if it's outlived it's original intent. Heck- look at the bridge tolls in the Bay Area that were supposed to disappear after the bridges had been fully paid for. Ha!

TheFyouSay: (January 20, 2010 10:40am)

Thanks BammaCHeck. Hopefully they figure this thing out quickly because I have a VA client that I will be paying the non-allowables for and in the past with YSP it was never an issue since they would let you take 2. If I can only charge 1 origination I will be upside down. Im a big supporter of our military but I can't come out of pocket to put our servicemen and women in homes.

Malia the Appraiser: (January 20, 2010 10:31am)

A Mortgage broker I know, asked me to apply to GotAppraisals.com. I currently only work with Appraisal Firewall because they only take $24.00 out of my $400.00 fee. I applied, gave them all the info they asked for and checked out their fee schedule which indicated $400.00 for a full 1004. I thought great, looks good. Later that evening they sent me the legal paper work to sign which had a paragraph indicating that they keep 30% or $120.00 of the $400.00 fee. I told them thanks but no thanks. She emailed me back saying they they were a nationwide company and have their own bills to pay and everyone in this economy has had their pay cut. I wrote her back and said how about charging the lenders for your service instead of always taking money out of the appraiser's pocket. The cost for Appraiser's to do business, keeps going up and our pays keeps getting cut. $280.00 to do an appraisal is min wage. What this industry needs is a good lawyer for a class action lawsuit.

Washington gangster tours: (January 20, 2010 9:48am)

I would say showing people around washington these days would the same as a gangster tour right? Is there any difference to the way they conduct business?

So Cal /Certfed: (January 20, 2010 9:48am)

KC, call your local senator, call Andrew Cuomos office and wait until we end up uniting and unionizing. We need to get the ball rolling. No one but us appraisers and lenders understand the huge blow that HVCC delivers to the entire profession. Hard to fight when the general public doesn't get it and NO APPRAISER UNITY to date. Like a bunch of sheep to slaughter and when they can't find enough appraisers we will be replaced by AVM's. Our State Agencies should be doing more to help. I wish I had an answer or at least some direction.

real appraiser: (January 20, 2010 9:46am)

14 years in the business, had four certs trained from registered/trainee, we all worked together past 5 years as cert appraisers, each with our own clients. Only two of us left in the business, one looking for other options, he may not renew this year. I am hanging on and outlook for next 6 months not good. If I find anything that pays the bills, I am out. no other options. cannot live on what AMC's pay and demand. I interviewed with national appraiser companies (2), they take amc work and pay 40% of AMC fees, $70-100 a job, expect 3-4 inspections a day, must turn in work by 10:00a.m. following morning. WTF, knew I was going to be fired by end of week. form fillers and sweatshops, too sad. SO ANGRY EVERY DAY, TIRED OF SCREAMING IN TO NOTHINGNESS, FEEL ALL THE PAIN POSTED HERE!!!

Waitin on my Obama check: (January 20, 2010 9:44am)

What up The FyouSay..the VA has still capped their origination fee at 1%. This is being ironed out with the VA and respa right now..for now i think we can charge a "broker admin fee" to make up for lost "what used to called ysp/rebate".

Mark: (January 20, 2010 9:37am)

VA - has a 1% cap that can be charged to the Veteran. They also still have specific fees that cannot be charged. They will not go above the 1% as they feel that is compensation enough for our work

TheFyouSay: (January 20, 2010 9:28am)

I know that FHA has done away with the 1% origination but what about VA? VA said that a reasonable fee was 1% org and 2 rebate... Can we now charge 3 points?

kc: (January 20, 2010 9:18am)

Frank and Brian do you know how to get our concerns out there right now and who and where to send them - there has to be more we can do right now

N.Ca.Appr: (January 20, 2010 9:13am)

Eleven years in business. Professional, quality appraisals. Competitive fees. Now, with HVCC, I am almost out of business. Refuse to work with AMC's. How can I "run" a business if I can't market directly to my "customer" and develop relationships.

N.Ca.Appr: (January 20, 2010 9:13am)

Eleven years in business. Professional, quality appraisals. Competitive fees. Now, with HVCC, I am almost out of business. Refuse to work with AMC's. How can I "run" a business if I can't market directly to my "customer" and develop relationships.

Mark: (January 20, 2010 9:12am)

kc - as a mtg broker I don't have the time either. I'm struggling just like everyone else. Struggling to keep the doors open and the creditors at bay to try and hold on to serve our clients with honesty and integrity - something that the banks lack. I have tried for months to get people on board. I scream daily to my State Senators/Rep and my Us Sen/Rep but you know how that goes - deaf ears. They - govt - have meddled enough. How about focusing on job creation? Are our "elected officials" suppose to represent us and not their own personal adgenda?

DAG: (January 20, 2010 9:12am)

So, all you wise people starving out there, what do we need to do to make HVCC go away? Waiting for it to meander thru congress and senate is a slow death. Class action lawsuit may take too long, but heck, let's make an attorney rich because Cuomo deserves it. What can we do right now today?

jim: (January 20, 2010 9:09am)

where can you get leads for re loans

kc: (January 20, 2010 9:08am)

What is the statis of the bill, and what else can we do right now to stop this before 2-15

RE Beginner: (January 20, 2010 9:07am)

Great show guys, cant start my day without it. Was wondering Frank how is your RE business coming along. Dont hear you talk much about it, Going from loans to RE myself I was wondering how your transition was going?

kc: (January 20, 2010 9:06am)

mark we should of done that along time ago, alot of us dont have that kind of time before we have to shut it all down - hvcc needs to go now

DAG: (January 20, 2010 9:05am)

Mark, I'm with you! There must be something in the air today, I'm not the only one boiling over with anger. Is anyone out there old enough to remember the 60's! I want to do business like I used to, Yes, you heard it here! I want to order the appraisal from the guy who works hard and is honest. I want to close loans in 4 weeks. I want my reputation for being the best. And moreover I DESERVE it!

Miller 1: (January 20, 2010 9:03am)

Frank & Brian I have just read the discussions and see many appraisers tired of the HVCC and talking about leaving the business. What is the statis of the bill I am trying to keep my head above water till this is over or my 20 years in the business is gone

So Cal, certified: (January 20, 2010 9:02am)

It's funny when we say AMC's. There are really only a few. All of which are owned by the larger banks. Wells Fargo, B of A, Chase and City. IE Rels,Landsafe and LSI Those lists have been closed over 5-6 years. A good, quality appraiser couldn't even find placement with them if they wanted to. There is no other work besides Bank work and they are running the show. Cheap drive bys are what is being ordered these days. With the smaller AMC taking the run off, its half of a half of a fee and that is sporatic. I would be happy to flip burgers as people have mentioned but there are better, more experienced burger flippers waiting in line for the Taco Bell, McDonalds jobs. Where do we go from here? Any encouraging news out there?

Mark: (January 20, 2010 8:59am)

HVCC - is an agreement with Fannie and Freddie and THE STATE OF NEW YORK not the whole US. Apply the HVCC to NEW YORK AND THEN GO AFTER CUOMO AND SHUT HIM UP. If we could get TBSW to open an account to be the central point to donate to in order to hire an Attorney to represent us in a Class Action, and if we all sent in $100 I bet you we could get a great team of Attorneys to go after this mess.

Tim: (January 20, 2010 8:57am)

Brian and Frank, as a correspondent lender, we have personally not been told that we can not receive YSP. As a matter of fact we were told that id does not even need to show on the new GFE.. should I be concerned?

jim: (January 20, 2010 8:57am)

is fha still going thri with hvcc on 2-15 - this will put all of us out of buisness

GFE expert: (January 20, 2010 8:55am)

Your interpretation of GFE for brokers is DEAD WRONG. YSP is allowed AND fully disclosed.

bono vox: (January 20, 2010 8:54am)

Mark - Morgan Stanley Smith Barney pegs BofA stock at $30 one year from now. If you can't beat em, buy their stock.

SoCalApprs2: (January 20, 2010 8:50am)

KILL HVCC- Now you get it Dag!! While you are on your way to court, why not have an appraisal done by your trusted appraiser in your hands to lend more weight? And, as I read your paragraph, it is because of HVCC that your credit and ability to originate loans is being messed up!! How can a law like HVCC allowed to exist? Remember my automobile analogy? Your car breaks down, but you can't go to your trusted mechanic. You have to go to the "Automotive Mmgmt Co" to "submit" your request. They are hear because you are too stupid to choose your own mechanic. They want to "protect" you. They send you Joe Grease Monkey straight out of trade school to fix your car. The AMC has "set prices" per repair,thus you pay because you have to, they take two thirds of your fee, and give the grease monkey less than half. Is anyone breathing on this blog? Can you see why I am angry? Can you not see that using this analogy, that Brokers are next? KILL HVCC

Mark: (January 20, 2010 8:49am)

SoCalApprs2 - the only thing wrong prior to HVCC was teh pressure from the Realtor to hit the sales price - if I as a mortgage broker did not get the aprpaised value, then I suck and I will not get any more business from the Realtor - and I have that in writing from a Realtor!

Mark: (January 20, 2010 8:47am)

The only industry that is making any money is the Bank. They own the AMC's so they get their $150 for the "management" of the appraisal process and they then get another$800 in UW fees on every closing PLUS they do get SRP. Until we all get together and firm up the class action, we will all be out of work and at the mercy of the Banks and the Govt. When did Democracy disappear?

DAG: (January 20, 2010 8:40am)

BonoVOX it is good news . . . for now. When FHA goes to the AMC way of ordering, USDA Rural is going with it. Word, from my lenders. We are a bunch of smart people, any ideas what we can do for a living besides be Realtors. Been there, done that.

SoCalApprs2: (January 20, 2010 8:38am)

Hi Mark, I agree with you. Nothing was wrong with the appraisal industry prior to HVCC, we already have the rules and regs in place. HVCC does allow unfair business and restraint of Trade, and should be eliminated because of this. Period. Like I said, I can compete against AMC's because of my quality of work. I cannot complete against HVCC.

DAG: (January 20, 2010 8:38am)

SoCalApprs2. You are absolutely correct! HVCC has to go! I don't love the GFE, I can work with it. Why we have to go to this extent to show the borrower what he was shown in better detail on the old GFE, who knows! But HVCC is killing our livelihood. Yes, it is important to point out how the consumer suffers and boy does he, but waiting 8 weeks for a check because of HVCC is ruining my credit. When my credit is ruined, there will be in place a requirement I will need perfect credit to originate loans. I had a state audit yesterday where they confirmed LO's have left the broker business in droves and are at the banks because they are not scrutinized. I'm going with an organized march on Washington or a class action lawsuit for taking away my livlihood, and I don't care if the attorney(s) make a bundle doing it. I'm on the brink of selling my home to just eat.

Bono Vox: (January 20, 2010 8:27am)

POSITIVE NEWS: As an LO, I've been calling on FSBOs to present myself as a partner with free services. So far so good, it's generating some business. I'm also marketing USDA Rural loans to ESTABLISHED SUBDIVISIONS by sending notes to the Realtors AND the homeowners. Thank God for outdated census tracts!

joecolorado: (January 20, 2010 8:25am)

SoCalApprs2-The Brokers are in the same boat with us and the Realtors are next,though they may not realize it yet.Again everyone right now is thinking about their own little world,but we need to change that perspective.Appraisers need to start talking to one another and we need to be a single unit.Right now if you read this blog,the commentators are from all over the USA with contacts in their own state.I have spoken and referred this site to as many appraisers and brokers that I know(getting fewer by the day),hopefully with the more people that are aware of the problem,the issue will get addressed.I have been bitchin at the local TV stations and papaers,but as of yet they have not responded, but they will,even if its a court order to cease & desist.At least I will know that someone has paid a little attention.

Mark: (January 20, 2010 8:19am)

I think some form of HVCC will still be "alive". I think we need to approach the whole HVCC and YSP issue as unfair business and restraint of trade.

joecolorado: (January 20, 2010 8:18am)

Ancient-I got the drift from the beginning. However I also cannot do four in one day,even though I really really wanted to,I could not possibly remember all of the details and I think I have a pretty good memory.....now where was I?and what was the question?

SoCalApprs2: (January 20, 2010 8:16am)

What hurts me is all of you brokers and realtors in here are continuing to work with these banks under their terms. If you are losing $2,500 because of some idiot appraiser, then why don't you pay $400 as a back a backup to one of your reputable appraisers to do an appraisal to help dispute the issue? Did you know you have the right to do this? Just because the second (reputable) appraisal cannot be used to finance the loan, does not mean that it cannot be used to dispute the Bozo appraisers flunky work? It will force the bank to see the real value, based on the good quality of work done by a real professional appraisal. It can also stand up in a court of law if you decide to sue!! You guys have the power in your hands!! Do something! Give us some work to dispute the idiotic flunky appraisers!!

joecolorado: (January 20, 2010 8:14am)

SoCalApprs2-we cant do this without you,we need you to hang in there even if in a reduced appraisal capacity as the more good appraisers that leave the profession,the more justification the AMC's have in using cheap a** appraisers.I am in the same boat as you,but I have a little leeway.I have been an appraiser for 39 Yrs and hate to see good appraisers get the shaft,but it will change, hopefully before all the good ones have gone.The powers that be will see the effects in the market their bad decisions have created and will adapt to the situation.(they wont be making as much money-hitting them in the pocket is the most effective way of bringing this to their attention)We just have to hang in there,bitch at our pols,remember its the squeeky wheel that gets the attention.

Ancient Appraiser: (January 20, 2010 8:13am)

Meant to say I was an appraiser for over twenty five years - not inspected three or four inspections.

Frank Garay: (January 20, 2010 8:12am)

Bono Vox - I believe you are talking about BofA retail. If there is anyway you can validate that with us it would be great. tbwsdaily@gmail.com Thanks.

Ancient Appraiser: (January 20, 2010 8:11am)

Joe Colorado: I am amazed at the number of appraisers that can not only complete three or four inspections a day but complete the forms the following day. I did it for more than twenty five years and never got that good !

Ancient Appraiser: (January 20, 2010 8:07am)

CV Broker: My LO just sent the new GFE with a copy of the old GFE to show the borrower where the money went. Kind of stupid, but easier to explain on the follow up ! Great to have the new forms, huh ?

SoCalApprs2: (January 20, 2010 8:06am)

KILL HVCC- No excuses or exceptions!!

SoCalApprs2: (January 20, 2010 8:03am)

KILL HVCC- If this law was eliminated, I could go back to growing my client base and servicing them like I did before. I can complete on my own with AMC's as I always offered a superior product. So it was no competition!! I could walk into ABC Brokers office, give them my card, ask for one appraisal, do the work, and wham!! One more new client. Now, HVCC says I cannot do this. I will stay, only if HVCC dies!

SimpleSolution: (January 20, 2010 8:03am)

YSP-To answer your question to JC. Yes if we make errors on an appraisal that we do particuarlly an error that has an affect on the value we can be sued for the whole loan amount. I know appraisers that this has happened to.

joecolorado: (January 20, 2010 8:02am)

Ancient-how can anyone remember the details in four homes in one day? must be superman/woman.But then again, whoring yourself out like that at the expense of other appraisers is part of the problem.Doing that many reports increases the chances of errors,I am a firm believer that Karma will make sure that the errors will be brought to the attention of the State.

joecolorado: (January 20, 2010 7:58am)

YSP-no what I am saying is the AMC's are making sure that if there is a problem and THEY get sued as the requestor,there is enough cash in the appraisers E&O coffers to pay to cover THEM.I told them NO get your own insurance.

ThinkingAppr: (January 20, 2010 7:55am)

I too have had only a few orders this year. Does anyone know if the FHA guidelines for ordering appraisals still goes in effect Feb. 15th? I am getting mixed messages from other appraisers and lenders and when I contacted FHA they could not answer my question either. I have been in this business for 18 years, and by the way things are looking right now, I am also considering a career change. The AMCs are wreaking havoc on us and it appears the only appraisers getting any decent amount of business are those with much less experience who are accepting less than $200 per appraisal. It is driving all the experienced appraisers out of the business.

SoCalApprs2: (January 20, 2010 7:54am)

YSP- How often did you have appraisal issues prior to HVCC? I would put money on it that if I did your appraisal, you would have no issues. The real question is why are the Good appraisers not getting the work? It seems like only the flunky appraisers are getting the work. My license expires this year. To keep it, I need to put in over $3,000 in continuing ed, license fee, software and E & O Insurance. So, if I only make $300 a month, sitting around waiting for the almighty AMC to through me my bone (soaked in mule urine), it makes no sense to stay. The only way I would stay is if HVCC,not AMC's, but only if HVCC is killed. I have tried divorce attorneys, divorce mediators, real estate investors and the like. But the volume and work they give is sporadic at best. Plus, their respective market base doesn't care about their homes value, they all know its in the tank, so why get it appraised?

YSP or maybe I should say rebate: (January 20, 2010 7:49am)

BONO, What? I just received a BofA rate sheet. They are paying a rebate. Not sure what you mean.

Ancient Appraiser: (January 20, 2010 7:48am)

So Cal and Joe Colorado; Haven't had an appraisal order since early December. I am now Brokering Real Estate and went to meet an appraiser yesterday that was doing four inspections that particular day ! He works for AMC's while I won't!!

ySP: (January 20, 2010 7:46am)

JC, Are you saying that if their is something wrong with your Appraisal you may have to pay for the whole loan?

Bono Vox: (January 20, 2010 7:46am)

YSP - BofA has done away with YSP internally. Wells is soon to follow. Fannie, Freddie, HUD and VA are all gov't run agencies. How long until YSP is completely regulated out of the systme?

CV Broker: (January 20, 2010 7:44am)

Learn from my mistake everyone - My first GFE2010, after painstakingly agonizing over it to make sure it was correct, was emailed to my borrower, as per usual. Through ALL the multiple pages, all he saw was the box with originator compensation - even though the credit paid for 75% of it. He fixated on the top number ("Aren't I paying you too much?). So, bottom line is that I had to rejustify - after working five months - why I am worth getting paid. I know for a fact that if I disclosed this in person, I would have been able to explain it more clearly. Also, because all the fees are lumped into one and not broken down into lender fee, broker fee and origination, being near your LOS to highlight the breakdown will also help. Once again, in the powers that be's efforts to make the loan process transparent, their pendulum has swung too far, making it more muddled than ever.

Bono Vox: (January 20, 2010 7:44am)

DC - remember the Contract for America? One of the items passed was that Congress has to live under the laws in creates. This was an especially large problem for Congress when it game to sexual harrassment - seriously. This crap healthcare program may still get through. I think one party has put it's own ideas above 200 years of structure and rules that have made this country the best in the world. Not perfect, just the best.

joecolorado: (January 20, 2010 7:41am)

YSP-unfortunately the AMC's have generally snuck in a partagraph in their initial appraisal contract that covers THEM for errors in the appraisers E&O policy.The appraiser has to pay for any actions taken against the AMC through their E&O. I just had a letter from PCV requiring me to increase my coverage to $1M, even though I dont do work for them on properties valued in excess of $750,000 as their fees are inadequate.I figure if I make an error which necessitates an insurance coverage of $1M-(125% of value) on properties which are valued below $1M then I need to find another profession.

joecolorado: (January 20, 2010 7:35am)

Joe-thanks for the info,I needed the instruction. SoCalApprs2-sorry that you feel that you need to leave appraising,I am on a limited leash as well,but can hang in there for a little longer.I will be keeping my license active until Dec 31st 2012 as I have already paid for it,but perhaps the industry will change soon enough that I dont have to make a life altering decision such as a new career.

YSP: (January 20, 2010 7:34am)

JC I am thinking of that as well. I am just tired of appraisers, stating their oponion in shoty work and just not caring. It is not that they have to agree with what I think. It is just that when I see a weak appraisal it ticks me off that we are forced to use it. Maybe I should go after the bank that chose the AMC that chose the Appraiser. If everyone is held to a higher standard then maybe this will all workout. I belive: if I make the mistake I pay for it, if you make the mistale you pay for it. Unfortunitly, most people do not honor their honor anymore. Sorry to go off the track, time to go close some more loans.

SoCalApprs2: (January 20, 2010 7:29am)

Hi James Pratt,I have had one single appraisal. I have decided to leave the industry. I am fed up trying to fight this mess and I feel I am wasting my time doing it. Every time I try to explain it to business associates, their eyes glaze over for the most part and they don't see how they as consumers are getting the short deal. If you are going to buy a house, or do a refi, you pretty much have to agree to the amount the bank is willing to finance. My fear is what is next? The control of Brokers and Realtors? I do not wish to work for an amc company. I might as well get a job in another industry that allows me to show more of my talents if I am going to have someone hold me liable for my work, and control how much I get paid. Makes no sense to work for an AMC. I am providing the service and I should be able to form a relationship with any Broker, Realtor or Lender that wishes to do business with me. So, If I get appraisal work, fine, if not, oh well. Time to move on to something else.

Joe: (January 20, 2010 7:28am)

joecolorado - I am not an attorney but, if your fee agreement says the borrower will pay the credit to the broker then I would think he would be contractually obligated to pay it just like points that are paid from the borrower's own pocket. I don't see the difference. The concern here is if wholesale lenders are banned from offering YSP, even as a credit to the borrower, the business model of a mortgage broker will no longer be viable.

joecolorado: (January 20, 2010 7:26am)

YSO-inform the State licensing authorities.The app has errors in the report which need to be addressed by the State.small claims may be an avenue you may wish to pursue,however,the claim will be stronger if the Board sanctions the appraiser for the errors.But definitely report the error and the resulting action of that appraiser.

YSP: (January 20, 2010 7:22am)

LOOKING FOR OPINIONS: I am thinking about taking an appraiser to Small cliams for a bad appraisal. He took two weeks, gave a value 18% below market. I rebuted it with his own comps. He saw his errors and adjusted it up the 18%. The reason I am thinking about SC is: I lost over $2,500 the borrower lost a 25% in rate due to his delays. I think the appraiser should be held responsible for the damaged based on bad work and major delays.

joecolorado: (January 20, 2010 7:22am)

Joe-isnt it the borrower MAY give it to the broker?

Joe: (January 20, 2010 7:19am)

You guys misrepresented the issue with the Senate letter. With the new GFE, mortgage brokers still earn YSP although it is now given to the borrower and the borrower gives it to the mortgage broker. With the new system, a mortgage broker can still offer a no points loan, at least no points that the borrower pays out of his pocket. The revision to Reg Z that the Senators are recommending to Ben Bernanke will make any form of YSP illegal. In essence, that will take away the ability of a mortgage broker to offer a no points loan while a direct lender/bank can still offer that since what they earn is SRP and not earned until they sell the loan.

joecolorado: (January 20, 2010 7:18am)

I've been waaaayyy too negative today,sorry.I need to go and see if I can garner some work from past clients.There is always a way to getting appraisal work,you just have to adapt to the situation.

YSP: (January 20, 2010 7:13am)

LIVINGINDC: Your bassicaly right. In a country that is basically split down the middle a move to far right or left is to much. The people spoke but what did they actually say? if you go to cazy one way we will make sure we are heard. Let's make them accountable and hold the Polis to their word.

jr424: (January 20, 2010 7:13am)

Ignorant I am

joecolorado: (January 20, 2010 7:12am)

politicians are like A**holes, everyone is like one.It doesnt matter who is in power,they ALL do the same thing,They ALL are already bought and sold prior to becoming career politicians.They dont care about the people that put them there,they only care about keeping themselves there and they do that by protecting their investment......their sponsors.

Frank Garay: (January 20, 2010 7:10am)

jr424 - Brian is NOT supporting HVCC. What he meant is that within 4173 there is an amendment to abolish HVCC, and that's one of the good things in the bill. On the other hand there is parts of it that ban YSP. So, good and bad. Get it?

Ezradams: (January 20, 2010 7:10am)

JoeColorado: One of the main reasons we're in this mess is because some state appraisal boards turned their backs on appraisers...I agree. The way to change that is to get involved. Start a group of appraisers and make the change in your state. We've done this with a chapter of the American Guild of Appraisers. We attend every appraisal board meeting and have had some impact. And we're not finished. BPO's, Tough AMC regulation, enforcement, etc. are on our agenda this year. We started with a self funded (15 appraisers) mailing of every appraiser in NJ. (Cost was only $1,000.) We held a meeting and our group was off and running. The names and addresses of all appraisers in your state are available at the Appraisal Subcommittee site. They can be downloaded to Excel and most mailing companies can use Excel for labeling purposes.

joecolorado: (January 20, 2010 7:08am)

James-you beat me by one day.I have had no phone calls this year either.....none.I even phoned telemarketers to give THEM a hard time now that I have some free time during my dinner time.

LivingInDC: (January 20, 2010 7:06am)

GodLike... If the Dems loose power and the Repub take control again, same old song and dance, just different laws and Bills to deal with. We need to clean house and start from scratch with term limits and line item veto power. Why would they work on a healthcare bill that they don't have to use? They have their OWN healthcare system... any law that is passed should blanket everyone, not just the common people.

LivingInDC: (January 20, 2010 7:02am)

Our Federal Law Makers are at it again... gotta love the crime ring known as Congress...

GODLIKE: (January 20, 2010 7:01am)

Didja feel the ground shake? I did. Massachusetts, the most Democratic of states, elected a Republican. If they did that it just says the time is ripe for a CHANGE! Maybe that means that now we have a chance all these lame bills and rules we've been dealing with will go away.

Common Sense: (January 20, 2010 6:59am)

Yeah, Esra, unions are the wave of the future.

James Pratt: (January 20, 2010 6:58am)

HELLO APPRAISERS - have any of you completed a single appraisal this year? I have not seen aan order dating back to December 22.

joecolorado: (January 20, 2010 6:57am)

I dont want representation from The Appraisal Institute or the American Society of Appraisers, they dont help the general appraisal populace.I want the State to represent us as appraisers to the feds to protect our interest as independents. I want something for my fees.I want the State to belly up to the bar and stop this erosion of independence.I want the State to DO SOMETHING...DO ANYTHING to help their licensees as they wont be licensees for much longer if this keeps on going the way it is going. As usual we are on or own. Working RE has an anonymous article from an idiot that likes AMC's..we should be able to drum myopic, selfish, sycophantic morons like that out of the industry.We need the State to help rectify this injustice to our profession.My office has been decimated by these idiots,my profession has been irrepairably harmed by idiots and greedy bankers,and there is little I can do about it alone.

jr424: (January 20, 2010 6:51am)

Brian, why are you now supporting HVCC. This thing will destroy our industry. Look what its done to fannie mae. You asked should we continue to fight HVCC. ABSOLUTELY is the answer. Who changed your mind? and why? You said today again that HVCC is a good thing. If HVCC goes through I believe it will put thousands of appraisers out of biz and brokers will have issues keeping thier doors open. Please do not join the darkside on us. HVCC is garbage and if it goes through onthe 15th i believe it will be the worst thing to ever happen to our industry.......... a very long time broker......jr

joecolorado: (January 20, 2010 6:48am)

FM-I would like to see The State come up with something other that a Dickensian punitive system.They dont really seem to be doing anything other than collecting fees,employing inexperienced reviewers & crowing about the apps (and fines collected)they have punished (mostly reported by independent apps)& sitting back and waiting for the other shoe to drop.I want more representation from them to the feds demanding that independence be paramount for a free market.AMC's are just another body of fees that can be collected by the State the cost of which will be passed onto the consumer(us) as a necessary additional fee.I want help from the State.I need help from the State.I need the protection of the State.Our industry is being decimated by outsiders that have no clue.We dont have anyone representing us, and we need it fast,we may already be too late, but we need to keep on trying.We are idea people....lets come up with some ideas!

Ezradams: (January 20, 2010 6:38am)

Fedup: All businesses from the local carpet cleaner to McDonalds are not allowed to discuss pricing...it's against the law. I've owned service and retail franchises in the past and we've always been warned against the practice. Government can sometimes dictate pricing (utilities, milk etc.).

brian tbws: (January 20, 2010 6:33am)

Hey G.B. Muse puts on the greatest show on earth (today).

FM: (January 20, 2010 6:31am)

JOECOLORADO Good question, I have seen some of your post, what do you think?

Ginger B: (January 20, 2010 6:26am)

ZI like Van Halen too but AC/DC is the best. Great show today boys. Packed full of lots of info.

joecolorado: (January 20, 2010 6:24am)

Freemarket-and who decides what the base value should be to be able to calculate the % difference?

Ezradam: (January 20, 2010 6:23am)

The American Guild of Appraisers is currently working on some issues that will help restore fees and independence to appraisers. Dues are very low ($150.00 year). If all goes well, you may be seeing some good news in the very near future. It appears we are the ONLY organizations working for appraisers WITHOUT any hidden agenda. At this time, most of the action is happening in the NJ area, but some connections have been made at the national level as well. dan@appraising.biz

YSP: (January 20, 2010 6:18am)

Brian, Oh I understand it and sell it that way as well. But the fact that we charge what we want and then use the YSP to off set the charge is just a very good accounting trick. If on Dec. 31st I charged a 1% orig, for a 5.00% and made 1% YSP (but the buyer did not pay that) and now charge 2% orig. and the buyer gets a 1% credit for the 5% rate, what has truely changed. The buyer could always take a higher rate and lower fees or lower rate and higher fees.

Check This Out: (January 20, 2010 6:18am)

Apparently that is what HB42 is saying. You and I both know that is impossible! Also, I'm certain the Realtor or the Seller will inform the appraiser of the value.

?????: (January 20, 2010 6:12am)

SO HB42 states that the appraiser can not look at the purchase contract or the MLS when conducting an appraisal. Interesting.

brian tbws: (January 20, 2010 6:11am)

hi still making ysp. check out the niche report article. ysp belongs to the seller. with or without ysp, the lender can charge additional points. if they choose to adjust their rate and use their money to pay the offset... than they can. however, taking away ysp only takes that option from the buyer. there's a misunderstanding that ysp is associated with what the lender can charge. its simply not the case

FREEMARKET: (January 20, 2010 6:09am)

JUST A THOUGHT: That is basically what I have been saying. Let the free market work. But, I think they should take it a little further. If an appraiser is found to be off by a certain % (either way) then they should be brought up in front of the Board. 1st time is a fine 2nd time pull the lic.

Check This Out: (January 20, 2010 6:05am)

HB 42 was introduced to the Maryland General Assembly in Annapolis on Jan. 13. by Delegate Frank M. Conaway, Jr., D-Baltimore City. It contains just one provision, the prohibition of an appraiser from “providing real estate appraisal services under certain circumstances in which the certified or license real estate appraiser knows the asking price or the selling price of the real estate being appraised.” The bill also sets out the penalties for violating this act.

StillmakingtheYSP.: (January 20, 2010 6:05am)

YSP is not gone with the GFE2010. If you call rose a tulip does it change the fact that it is a rose. This is still an issue. They want to do away with our ability to raise the rate and make more money. That is still in effect. I am not for that at all. I think business should be able to make more profit if they can find a better source of money. Go ahead and restrict to total compensation. (Oh they have already)

Just A Thought: (January 20, 2010 6:02am)

I have a thought about how appraisals should be ordered. These days almost all transactions have two appraisals and that is cool but what is not good is that the homeowner is stuck paying for both, and the AMCs get to profit twice. Why not have the lender hire their favorite and "competent" AMC appraisers and pay for them from the bank's pocket and allow the homeowner to hire and pay their own independent appraisers from the recommendations of the real estate professionals in the local market and then take the two appraisals and come to a compromise. This will likely expose a poor quality appraisal and keep the costs distributed evenly between both interested parties: the lender and homeowner. Then appraisers can choose who they want to work for; the lender who pays them with peanuts and makes them produce work in two days or the homeowners who pay on the spot and allows for adequate time to perform a quality report.

FL appraiser: (January 20, 2010 5:50am)

It is way past time for there to be an organization to represent the appraisers in this industry if we are to survive. The "ones" out there now only want your dues, they offer nothing in return for those dues.

Nuke 'em 'til they Glow: (January 20, 2010 5:42am)

Van Halen Did Good Music? Who whould have Known?

Fedup: (January 20, 2010 5:39am)

Anything new with HVCC, what about a national union for appraisers protecting their rights and compensation. Why is it colusion for appraisers to discuss compensation, is this true for other industries, I think not.

njloanman: (January 20, 2010 5:36am)

already made sure to calendar a reminder for Friday's live show!

Mike Van Haden: (January 20, 2010 5:33am)

Hey, Eddie can play better than that!

Mark Green: (January 20, 2010 4:13am)

I liked VH2!!!

Realtor1jc: (January 20, 2010 2:57am)

Great Job guys explaining the YSP and how far off our elected officials are, WOW! We should fire them all and hire new ones. Yes, hire the best for the job!

Mark Madsen: (January 20, 2010 2:45am)

Good show today guys. Nice explanation of the YSP / GFE thing. Looking forward to seeing Khai on the show this Friday.