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DEDE: (March 10, 2010 10:47am)

yes its still there, lets make sure this gets done

cgappraisals: (March 09, 2010 9:16pm)

Its still there, Thank God!

cgappraisals: (March 09, 2010 9:11pm)

Thanks, Clulessdad! I'll check it out, hope its still there.

bill: (March 09, 2010 7:50pm)

The new and ever changing guidelines for financing a real estate purchase and sale is getting horrible. I liken it to the insurance industry where the insurance lobby reps started working on the president 2-3 years ago and crafted the $300B+ insurance industry to protect the profits they have attained. Financial institutions and insurance companies will squeeze more hard earned cash out of the masses. When are the vast majority of people going to wake up to the conditions that are being created that will strangle not only themselves in the next 5 years but their kids in 10-15 years. The kids will never: own anything unless given to them through inheritance; never retire with a company pension or 401k; never have any benefits worth a damn. Maybe someone off shore can come in and create a new system the usurps the current systems, like the Cleveland Clinic has done. ps love the daily videos, keep up the excellent work.

Clulessdad: (March 09, 2010 7:20pm)

Guys-get the pdf version-it is not in the appraiser section. Look at Section 4312, pages 823-825 of the pdf version. It has EXACTLY what we need. Any SAFE Act originator can order an appraisal and the HVCC will be sunseted and have no force and effect. It is still there.

cgappraisals: (March 09, 2010 7:12pm)

All they have to do is look at the amount of Appraisers not renewing their license,Trainees not getting any work and no body in there right mind coming into the industry, due to HVCC. We all saw this before HVCC, why didn't they?

cgappraisals: (March 09, 2010 6:37pm)

Barney and Friends must have received there lobby money. Cause the banks and AMC's just got there wish by having the Sunset HVCC taken out of the HR 4173.

cgappraisals: (March 09, 2010 6:33pm)

For the first time since 2006/07 I was finally having a good year in 2009. Then HVCC hit and I have been way under poverty line. I have two kids and wife to support. I did appraisals in the mid 1990's and knew it would come again, so I also put away money. I think many appraisers new it couldn't last forever and did the same. I don't know what else to do. I sit around waiting for an order from what AMC's I've joined. Can you believe, I got two orders this Monday, both over 95 miles from my house. Goes to show AMC's from out of State don't have a clue where the Appraiser's office is compared to the subject property. I can see how out of the area Appraiser's who are hurting can accept such assignment. I turn them down and I haven't had a appraisal order in over a month that I could do according to USPAP. This has to stop. By the time they figure it out, it will be to late as usual.

CornerstoneKathy: (March 09, 2010 5:03pm)

Since FHA HVCC I have had 6 orders and the phone NEVER rings here anymore!! I have diversified myself as much as possible and tried to remain positive. By the time they run a study all the people worth studying will be gone. Since I have seen the bad before I had over a years worth of money aside to keep my family afloat but who could have prepared for this? Anyone else in this boat..pre HVCC last year I made good money..now the taxes are due ..there is little extra set aside and I have to pay quarterly taxes on what I made last year..health care hah! people need jobs to pay their mortgages and taxes..

cgappraisals: (March 09, 2010 4:52pm)

Just looked at the Appraiser section of HR4173, nothing there on "Sunset HVCC". Look for PDF version. Its gone. The whole things been changed and includes AMC's to be regulated and HVCC to be looked into for its effects on small business like Brokers and Appraisers. I believe it said it had 180 days to come up with study. Thats another 6 months after, if the new bill gets passed. I can't wait another month. My bills are mounting. Looks like another blow to Appraiser's as AMC are being looked as if we need them. No more Sunset, means the AMC's got there way again.

Clulessdad: (March 09, 2010 4:11pm)

I have contacted Gray Miller's aid to the HFSC to see if HVVC has been deleted from 4173. I hope to know tomorrow-Will keep you posted. FYI-Gary Miller (CA-42nd) is the champion for the sunset of HVCC and HR 3044.

djensen: (March 09, 2010 3:28pm)

Regarding this April 5th projected change...what if the loss suit is instituted by MI company? I have a owner doing a short sale and the MI company is threatening to sue for $40k+. This has the seller frozen in their tracks. What will this new rescue effort do here?

theauggrp: (March 09, 2010 3:21pm)

definately call your senators !!! and this is showing why signing the NEW petition and contributing to the legal fund is more than necessary. Frank & Brian have turned their backs on any political action for whatever reason so it is up to us ! I have also contacted MSNBC people and am waiting for reply (which probably won't happen)but WE ALL NEED TO CONTACT THE SENATORS AND REPS REPEATEDLY!! Once is not enough, not by a long shot. COMMON SENSE; appraisers are the cops of the deal as their expertise is above all on the food chain of entities involved in real estate.The problem is there is no one or entity to report malfeasience to and that is part of the problem and how we all got here. The banks want to control it all again as if they didn't learn or don't remember the late '80s debaucle that led to The FINANCIAL INSTITUTION REFORMATION AND RESTORATION ENFORCEMENT ACT. (F.I.R.R.E.A.)The necessary regs that were implemented and swept away by the previous admin. KILLHVCC!!ABOLISH AMC'S!

Ill Appraiser: (March 09, 2010 1:35pm)

Guess what people. I just got through talking with a nice young man at Dick Durbin's office (Illinois Senator) and asked him about HR4173 and there is no mention of HVCC or Home Valuation Code of Conduct. It has been removed.

miller1: (March 09, 2010 1:27pm)

Frank and Brian Also when you talk to the head of the FHA in Seattle summit ask him why appraisers have to pay E & O and have full responsibility and why we have to split the money with the AMC's and they are not licensecd and have mo e & o and no responsiblity

5pence: (March 09, 2010 12:52pm)

Call your Senator - tell them what you want. It's easy, toll free and the people that answer are nice and respectful. 866-544-7573 Office of Senate Toll Free (please call between 9am & 5pm). It connects you to your own state Senator. Link : http://capwiz.com/affil/callalert/index.tt?action=results&ca_type=callalert&alertid=14700841&content_dir=&external_id=&alert_active_taf=1

5pence: (March 09, 2010 12:48pm)

Thanks kathy - that was the stupidest move at that time and that stupidity lives on. AI went the CT legislative meeting about new legislation to protest it. Why? It would have gotten rid of AMC's. KatBryce, it's going to take a heck of a lot more than a letter for me to applaud the AI.

stevetimper: (March 09, 2010 12:45pm)

Tim Brown from Waxman's Committee just called me an told me that the Kill HVCC clause from HR 3126 carried over to HR 4137, which passed the house and is now in the Senate did contain the Stop HVCC clause. But, on further review of the Discussion Draft of the Senates response to HR 4137 DOES NOT Contain the Kill HVCC clause. Although, Waxman will push for it to be included, you all have to write and call your respective Senators to make sure the Stop/Kill HVCC clause is included in the Final Draft in the new Financial Reform Bill that the Senators are working on right now amidst, Health Care and Immigration Reform. Kill HVCC NOW - FHA Steve

CornerstoneKathy: (March 09, 2010 12:33pm)

Its a long read but heres when it happened 5pence..in 1994 http://www.archive.org/stream/realestateapprai00unit/realestateapprai00unit_djvu.txt

stevetimper: (March 09, 2010 12:25pm)

I spoke with an Appraisal Firm that Contracts from AMC yesterday, who wanted me to work for $175 per appraisal, but they get $225 from the AMC. What a joke. I also asked him what about the FHA rule that appraisers need to be paid a Fair Wage, and his response was that if they can get AR FHA Appraisers to work for $175 per appraisal, then that is the Fair Wage. You can imagine where I told him to take his head out of. Kill HVCC with Teeth, FHA Steve

ROB: (March 09, 2010 12:20pm)

To sus92691, check this out, justed called bposonline.com spoke to the person who answered the phone and was told that they have unlicensed people doing BPO'S. You are right, might as well find a different career.

stevetimper: (March 09, 2010 12:20pm)

Here is the Kill HVCC with Teeth Link!! http://www.ipetitions.com/petition/kill_hvcc/signatures Thanks, we can WIN!!

stevetimper: (March 09, 2010 12:18pm)

KILL HVCC Legal Fund We have $153 dollars towards the Kill HVCC with Legal with Teeth Fund now. We have 53 signatures after I removed duplicates from the Signer Database. I spoke today with Matt Weiner (a Waxman Staff Member) who is on the committee staff for HR 3126, which has now been incorporated into HR 4137. He is checking to see if the language to stop HVCC that was in HR 3126 transferred to HR 4137. HR 3044 is still growing and has 124 Co-Sponsors right now. Please, if you cannot donate to the KILL HVCC with Legal Fund petition, at least sign it and send it out to everyone you know. We can win, but we need signatures at least. Once we have the numbers, we can ask for a small contribution from Everyone who signed. Thanks, KILL HVCC FHA Steve

5pence: (March 09, 2010 12:10pm)

miller1: if they want to get rid of 80% of appraisers they should employ the top 20% and let the other 80% find some other work, like casino jobs or bookies or carnival work - some occupation that can use their "talents". Maybe government jobs. You know the banksters have absolute power when they can elevate the least worthy of us to predominance without anyone in Gov saying a word.

5pence: (March 09, 2010 11:59am)

Pursuant to these mandates, the regulatory agencies and the RTC imposed a new set of standards in July and August 1990. These standards also required that real estate loans falling in certain categories above $50,000 be appraised by a state licensed or state certified appraiser.(1) This $50,000 minimum is referred to as the de minimis threshold level for the requirement of an appraisal. The Federal Reserve Board, however, had set its de minimis at $100,000 for the banks under its supervision. Since the establishment of these de minimis levels, banks have argued for an increase in the de minimis. I tried to find a direct link from the early 90's that related to the AI agreeing to and fully supporting a $250k de minimus but there are too many pages to go through. Those of us that were around then remember it very well as well as the AIReady software that ripped info. Sorry, but I know their spots and their games.

miller1: (March 09, 2010 11:47am)

Frank and Brian are you going to talk to the FHA in Washington and ask him about his comment about so what if appraisers leave the business. If an appraiser is on the list they know who has never had problem then the best apprasers will be out of business. Is that what he wants

sus92691: (March 09, 2010 11:46am)

Check out this BPO web site....Especially the Commercial example.....IT's the BEST.....www.bposonline.com...yes we should all pack our bags...cause if this is the Future for Appraising.....

joecolorado: (March 09, 2010 11:37am)

5pence-It worked ok for me, must just be a small glitch

5pence: (March 09, 2010 11:28am)

miller1 - it couldn't be found? I just tried it again and it worked for me. Maybe google Americans for fairness in lending with a sub of Americans for financial reform. I'm glad you're getting involved

SFShortSale: (March 09, 2010 11:21am)

Organized and methodical short sales will be an important part of the housing solution. Many of these homeowners are not going to keep their home in the next 1-3 years. The method they choose to dispose of their home will have a major impact to the housing industry.

miller1: (March 09, 2010 11:20am)

5Pence I tried to use the http you put in the message and cannot be found could you make a link to we can find it

Katbryce: (March 09, 2010 11:19am)

5pence: Since when did the AI (Appraisal Institute) become legislatures, THEY raised the de minimis. Where did you come up with this FACTOID? 5pence how about some solutions to the problems instead of being one...

mdeery: (March 09, 2010 11:01am)

Barney Frank for President! Andrew Coumo for VP.

5pence: (March 09, 2010 10:56am)

Call your Senators to support financial reform. Toll free number that connects you to the office of your state rep. They ask what happened with my call and this is what I wrote : "Nice girl. I said to not put it under the Fed or the Treasury - having them oversee the CFPA is having the banks oversee it - that's crazy. Have them stand alone preferably or put them under the FBI or DOJ where there can be real oversight. I also said to make sure the HVCC is sunsetted. She said she would relay my message." Easy .....http://capwiz.com/affil/callalert/index.tt?action=results&ca_type=callalert&alertid=14700841&content_dir=&external_id=&alert_active_taf=1

Katbryce: (March 09, 2010 10:51am)

To Amy The press doesn't care, you are wasting your breath...

joecolorado: (March 09, 2010 10:46am)

5pence & Katbryce-too little too late I think.BUT one small concession is that instead of promoting their various associations they DO state "qualified Appraisers" in their letter. may be a small concession by the mealey mouthed bastards but its a start.

5pence: (March 09, 2010 10:40am)

Katbryce: Looks like they're trying to cover their ass for raising the diminimus to $250k - the level below which an appraisal isn't needed. They should be trying to lower the diminimus to a more reasonable $100k instead of wasting energy on pleading with the Government when the Government KNOWS that it was AI that initiated the raised diminimus level to begin with and that $250k policy is the root cause of BPO's growing in use. They were bought out and are now trying to save face? I'd imagine their pleas have no clout as they've already shown their stripes. I suppose they think we should applaud their efforts to cover their screw-up.

cpappraisals: (March 09, 2010 10:33am)

joecolorado-I agree. It seems as if we will soon be a thing of the past like the milk man....

5pence: (March 09, 2010 10:27am)

If you guys make the mistake of downloading IE8, you might have to go to firefox for you browser. It's so glitchy it can almost be classified a virus imo. Nearly every page gets errors and then you lose all the open windows. Funny how it usually happens when you're typing in your password - then the request to notify microsoft of the error problem comes up. I tried fighting it for a couple days, getting rid of it, re-downloading IE7 and tweaks and just gave up and switched. Just thought I'd let my friends know

Katbryce: (March 09, 2010 10:27am)

Attached are links to a letter and a press release that Appraisal Institute (along with our government affairs partners) sent to Treasury Sec’y Geithner yesterday regarding the administration’s latest mortgage modification proposal regarding short sales that is skewed heavily toward BPOs. These letters were delivered very soon after the program was formally announced yesterday. Letter - http://www.appraisalinstitute.org/newsadvocacy/downloads/ltrs_tstmny/2010/AI-ASA-ASFMRA-NAIFA_ShortSales.pdf Press Release - http://www.prnewswire.com/news-releases/appraisal-institute-opposes-obama-administrations-plan-for-homeowner-short-sales-87101267.html

cpappraisals: (March 09, 2010 10:26am)

Real estate agents doing appraisals. That is just brilliant!! They dont' even know what a comp is half of the time. Talk about inflated values...LOL

5pence: (March 09, 2010 10:20am)

Amazing to me joe that they think that kind of risk is ok. Greed truly affect the mind. As if appraisals are a commodity and the same everywhere for every property. Sorry, you can't replace appraisers with robots - yet

joecolorado: (March 09, 2010 9:58am)

that bpo site can be used to order bpos throughout the USA.They can even give a value!but then again they can pretty much get the same thing from Zillow for free.Unfortunately, the ap88er will be a thing of the past pretty soon as there wont be a need for an app88al,it'll all be done by statistics.

5pence: (March 09, 2010 9:50am)

Ok, some minor differences of opinions but nothing substantial to the point where the board or the law was brought in. It was a joy not having to buy E&O insurance for 20 years. Now if you want to work you have to have E&O to cover the amc. It's so friggin screwy

5pence: (March 09, 2010 9:46am)

Didn't Stevens said the goal of FHA is to help buyers? I think keeping the downpayment at 3% is the only way some people can their kids out of the house, by gifting them that 3%. Keeping it at 3% is humane and needs to be kept. All you have to do to reduce risk is hire only experienced appraisers that accurately value homes. Too late, you've gone the amc route and I hope the reason that route was chosen was not to be a part of the bailouts and join the crowd. We shall see. Reduce risk = hiring experienced and qualified appraisers. In 20 years not one complaint about any of my appraisals from the banks I did business with. They knew better than to argue with me hahaa

Bill2455: (March 09, 2010 9:40am)

On the short sale part - No BPO's , use appraisers only. Short sales and short refi's must work or we will never recover. We are now paying for a mistake 5 years ago, fueled by greed, driven by Wall Street.

aaron.m.byrd: (March 09, 2010 9:34am)

Nevermind, I'm just taking the unicorn to the farmer's market and selling "fresh" lolipops :)

joecolorado: (March 09, 2010 9:24am)

5pence-of course, how silly of me to not know that!

5pence: (March 09, 2010 9:23am)

silly, unicorn flavor of course

CornerstoneKathy: (March 09, 2010 9:23am)

LOL oh wait he is selling the whole unicorn! I can only buy that if I can pay 40% of the fee in 60-90 days

joecolorado: (March 09, 2010 9:20am)

what flavor?

CornerstoneKathy: (March 09, 2010 9:19am)

How much are the lollipops?

aaron.m.byrd: (March 09, 2010 9:14am)

Solution for the agent's being tempted to low-ball a BPO on a short sale: Hire an appraiser through an AMC that pays the appraiser a fair fee...and if you can find one of those, my daughter has a magical unicorn that poops lolipops for sale.

5pence: (March 09, 2010 9:13am)

sus92691 - LOL @ Coester. Did you read my comments TedWa - I think I tore him a new one :^) It's really pretty easy to do when you're dealing with lies and distortions of the facts.

sus92691: (March 09, 2010 9:10am)

Well the FUN/STUPIDITY never ends....Obama's Short Sale Plan...where does he get his information...Like the 2nd's are going to accept such a low payouts... & the RE Agents assist in the pricing...or maybe using a BPO...PLEASE...THE APPRAISER is the ONLY INDEPENDENT Agent in the whole process....yet once again we are flushed down the toilet.... for a 50 cent valuation.... Feedblitz...has the "Coester Annual Vendor Survey" READ between the LINES....their Questions are Very Misleading...."Standard Quoted Completion Time" & "If a Lender contacted you directly what is your Typcal fee charge for a 1004 in your service area".....None of these Questions ASK...what is the AMC's Required Turn Time or What is the Typical Fee the AMC's TELL YOU they will PAY YOU for a 1004..... Great Marketing Coester Appraisal Group.... I read an open invitation from Micheal Moore to Pres Obama in the Huffington Post over the weekend..he is OFFERING his HELP......

exMtgPDguy: (March 09, 2010 8:55am)

Just a couple of thoughts. 1st I'm pretty sure the FHA had previous capital infusions back in the late 80s early 90s when their single family and multi family books were hemorrhaging. Someone might want to look into that. 2nd the mortgage industry, including HUD needs to consider higher down payments as a way to foster better loan performance - at least in the sort term. 3.5% is a pretty low threshold in a soft market. There are studies out there that suggest anything less than 5% down costs the taxpayers more than its worth and the borrower would be better off just being given the money in equity (goggle Von Furstenburg). 3rd, license everyone - assuming the government(s) are monitoring the performance of the licensees and corrective actions to licensee and employer are part of the plan. This industry made this mess, they should expect an over reactive regulatory response.

5pence: (March 09, 2010 8:54am)

The reason they can get away with BPO's is that AI helped raise the diminimus level where an appraisal is required when the value is $250,000 and over. How many homes are worth over $250k today? And how many owe over $250k? Not many. And banks are finding ways around it. Thanks AI - how's that AIReady working out for you? Dump Cuomo and the bankster cartel.

5pence: (March 09, 2010 8:43am)

You hit all of it on the head today guys. What they're trying to do is lay off due diligent underwriting (hiring experienced appraisers) by making the borrower put down more money. Realtors doing BPO's are held to no standards like appraisers, so you're exactly right that is an avenue open for fraud. Any valuations not done by someone qualified and responsible for that valuation will not be reliable and that leeway in valuations will be a known fact to scam. It's inviting fraud actually. Very good and informative show today. :^)

Sean: (March 09, 2010 8:40am)

For now, anything that will speed up the short sale process is a plus... if it takes brokers 30 day's to close a loan, it should only take a lender 30-60 to approve a short sale... we are often left in limbo with the last condition on our file being the short sale approval letter!!! Many clients give up looking for homes since they have to wait so long to hear back if their offer will be accepted by the short selling lender. We have had plenty of borrowers close on a home, and then have the first home they looked at and really liked, send them the short sale approval, which is obviously to late!!!

amy: (March 09, 2010 8:38am)

If you can't get licensed- go to work for a bank!

ybondan: (March 09, 2010 8:37am)

Hmmmm...I wonder when those 40% underwater FHA loans were originated? If they were originated 2008 or after, it's possible that the Fed Reserve may have a point. The reason I say that is in 2004-2007, I did not do one FHA loan. The market was too hot. There was too much competition putting down 10% or more, so the FHA buyers were less desirable in comparison. (Also, because of the strict appraisal guidelines.) So, it would be interesting to know when the majority of those loans were originated. Yes, the market continues to fall, but the majority of people who are underwater bought during the height of the market. Just a thought.

rodeman: (March 09, 2010 8:15am)

In the new Obama short sale program, Supplemental Directive 09-09 that starts April 4th or 5th, how does that impact the 2nd mortgage company? I see that the first lien holder has to waive rights to collect the deficiency, but does the second have to do that as well? It looks like they do, but I'm not a lawyer and you know how they love BIG, BIG words in these documents that have double meanings. Thanks, John

T Bone: (March 09, 2010 8:10am)

If I have to do it everyone should hafve to do it!

marc: (March 09, 2010 8:03am)

HUD and setting the wording of and/or......GIVE ME A BREAK! Banks have enjoyed the ability to avoid or skirt the lic. requirements every other Mortgage professional must meet. Its time that there is no difference including people doing Modifications! Now, HVCC.........politicians were smoking fatty's when they crafted that studid idea.

leeann: (March 09, 2010 7:46am)

Well, since I had to get a license and spend a small fortune to be licensed in every state I want to originate loans AND since loan officers can flock to banks to work to avoid getting a license and miss out on all the cost and fun. Yes I think not only those negotiating a modification should be licensed but ANY loan officer regardless of where they work or how many loans they originate should be licensed and take continuing ed classes. By raising this bar, maybe the time and effort and years I have put in as a loan officer will finally have some value.

amy's frustrated: (March 09, 2010 7:43am)

EVERYONE READING THIS ...please go to ABC's 20/20 facebook page and check out the outrage and ball thats rolling agains AMC and we are calling for an investigation...there are other email address to fox news etc...we are not going to stop until someone is listening....please read thru all the posts and where there is an email address be sure to flood it! also post what is happening in our industry on the wall of ABc so the average person can find out how they too are being screwed by the system and AMC!! here is the link to the 20/20 facebook discussion page http://www.facebook.com/topic.php?uid=163497464933&topic=13795#topic_top

joecolorado: (March 09, 2010 7:19am)

Real Estate Nate- I dont think that "AND" is the right word to use in this case. I think the language should real "OR" as when the "AND" is used that means the banks could obviate the issue by using two people to solve their safe act compliance problem. Using the word "OR" takes away that loophole. Am I saying this right or does that make any sense?But in any event have a look at the video poll,it looks as though the majority of Real Estate pros have indicated that the word"OR" should be used.

Clulessdad: (March 09, 2010 7:19am)

Interesting that they would use BPO's, which could (is?) be ridden with fraud. In SCal, I have anecdotal stories that this lowball BPO scam is running rampant and still driving down home prices. I have seen a few RE agents flipping properties now for 25% gains. How were they able to buy a single property from a bank at a 25% discount? How can I do that? Why isn't HVCC used to do a shortsale? Why don't the banks at least use their "pet" valuation method, the AVM to verify values? If these are good for a residential purchase, why not for a shortsale?

Real Estate Nate: (March 09, 2010 7:08am)

As a Realtor who does short sales I have hope for the HAFA program but agree that pricing is one of the big factors to it's success. Appraisers would provide the most reliable pricing. The other factor is what they want second mortgages to swallow: A maximum $3K or split the $3K between all secondary lien holders and give up the right to deficiency? I would love to see this but I'm not so sure they'll do it. With regard to "AND" Vs. "OR" in the HUD document, think about all of those city, county and state foreclosure counselors who help negotiate mods. The language has to be "AND".

joecolorado: (March 09, 2010 7:07am)

We wont have to worry about that aspect of work pretty soon as reviews are being done by out of state review ap88rs working for the amcs.We wont know about any fraudulent ap88als as we dont have a chance of getting any access to them.

Clulessdad: (March 09, 2010 7:06am)

Why are Banks so against having their personnel registered on the NMLS? They don't have to do anything except pay the fees and register! It is not like they have to do 20 hrs of education, take a federal test, take a state specific test, comply with fingerprinting, or have a credit check! Anyone want to bet that the banks will get their way? Lower standards mean lower salaries is the only thing I can think of at this time.

joecolorado: (March 09, 2010 7:05am)

The word "police" is used by educators in classes and State poobahs from the Division of Real Estate in Colorado I have heard speak in continuing education seminars.I am not sure it is the "correct" word to use, but it also fits the surveillance aspect we are expected to maintain.

joecolorado: (March 09, 2010 6:59am)

Common-We as ap88rs are mandated to police our own industry in Colorado by State law to report errant ap88al reports(I am not sure about other States as I dont live or work there).If we are aware or see a problem ap88al and we do not report it, then we are sanctioned by the State.So WE ARE the police.

scott: (March 09, 2010 6:57am)

Short Sales - 2nd Liens & HAFA: Big Problem: Most short sales short the first. If the second doesn't agree, no deal. I believe that most 2nd lenders (who also handle a lot of 1sts) know that most deals bring the 1st lender a payoff higher than the 1st lenders minimum net. The 2nd wants that money for their permission to proceed. It's leverage against the first. So fewer and fewer big 2nd lenders are willing to agree to a short sale that will only bring $3K or less to the 2nd. HAFA allows ONLY $3K combined for subordinate lien payoffs. HAFA does not REQUIRE (at least not that I can tell) a 2nd to agree. So it looks like a standoff. And every lender can establish their own plan for how they intend to participate with HAFA. This is not goinf to be pretty. 2nd mortgage lenders are the biggest deterrent to short sales now. I'm afraid HAFA will only make it worse. Also, lenders will continue to order 3rd party BPOs and appraisals. They won't rely on the listing agent for value opinion

Common Sense: (March 09, 2010 6:40am)

Who are these policement and women?

Common Sense: (March 09, 2010 6:36am)

Banks DO have to comply with HVCC.

joecolorado: (March 09, 2010 6:28am)

The banks ARE using HVCC- unfortunately its against us,the policemen and women of the Real Estate industry.

americanhome: (March 09, 2010 6:25am)

Maybe the banks should use HVCC??

joecolorado: (March 09, 2010 6:23am)

great show today guys, perhaps the mucky mucks should be informed of the overwhelming results SO FAR of your video poll.incredible inexpensive direct example of what people at the grass roots level of this business think of this particular issue.

frankgaray: (March 09, 2010 6:02am)

Ezradams - This was an article in the NY Times, so I'm sure there will be more formal guidelines coming out soon, it they don't already exist somewhere. we'll see what happens!

Ezradams: (March 09, 2010 5:55am)

I agree with Katbryce....an appraiser must be used in the Obama Short Sale plan. In New Jersey it may not even be legal to use a sales agent. The Fed better check state laws before moving forward on this one.

TD Hawk: (March 09, 2010 5:48am)

Those of us in housing need to accept a few realities as we business plan, tangential to today's video: 1. Not everyone deserves to own, some are actually financially benefited more by renting 2. Foreclosures/short sales and unemployment will get worse. In my state (VA), tens of thousands of teachers and other state workers will be getting laid off/furloughed due to huge state budget shortfalls. And those exiting the mortgage industry will increase with rising rates (i.e. end of refi gravy train), increased regulations/licensing and the resulting lower volume. And this doesn't include commercial. The survivors will prepare accordingly but I'm afraid the worst is yet to come although I'm not rooting for it.

frankgaray: (March 09, 2010 5:46am)

With respect to them using a BPO, I believe the article said that a real estate agents would assist in setting the value, I would assume that it would be via a BPO. So... not entirely sure.

frankgaray: (March 09, 2010 5:45am)

DeeDee - Go to www.thinkbigworksmall.com and log in there. From there you can go to "profile" and change it.

bpolka: (March 09, 2010 5:28am)

Regarding the registration/licensing of companies/individuals who modify loans...ummmm....yes! A large amount of these companies are law firms and let's face it, attorney's aren't typically known as ethical people (before I get hunted down and sued for slander, not all attorney’s are unethical liars…I personally know a few with high levels of ethics and integrity). Attorney’s know the law well & therefore, have the knowledge to bend the law. Additionally, the modification programs have a horrible success rate. It ruins the credit of individuals and if denied the modification, they're left with no other options b/c they typically have 3 or more late payments being reported. Hey, I have an idea; perhaps instead of proving they're late on their mortgage, how about changing it up a bit to show they're late on everything else EXCEPT the one bill that would leave them homeless. Hmmmm...that sounds like a good foundation to build on; any feedback?

Lwood: (March 09, 2010 5:16am)

So I'm curious what the deal is with 2nd Lien holders holding up Sales....a friend of mine is underwater on the 2nd, but not the 1st, and is trying to sell before it gets worse, only problem is the 2nd lien holder won't play ball....thoughts?

Deedie: (March 09, 2010 5:03am)

How do I change my password?

linda-joey: (March 09, 2010 4:43am)

Hey, may I offer some advice? When traveling to Idaho in March....take a warm jacket, your sweatshirts, although cool won't cut it!

Katbryce: (March 09, 2010 4:35am)

It just saddens me that the government is suggesting the use of BPO's to price short sales for this new program. The government has saddled us Appraisers with regulations and rules that are nearly impossible to comply with with the intention of "protecting the public good". USPAP, HVCC, State Licensing, etc. Agreed, there were some bad apple Appraisers that contributed to this bubble. But, since the downturn in 2007 the BPO has been king in valuing Bank Owned REO properties. And as you and I know the market is SO MUCH BETTER NOW! (sarcasm intentional) There are no rules or regulations regarding BPO's and thereby the popularity. Use of BPO's to set the listing price will just encourage further fraud. <sigh...> I attended a popular short sale seminar where low-ball BPO's were encouraged in order to secure the property from the bank at 40% to 60% of the value so that the property may be re-sold at a profit. Kathleen Bryce State Certified Real Estate Appraiser

Katbryce: (March 09, 2010 4:26am)

They are going to use BPO's to set the short sale price!!! Are you kidding me! There are no regulations or rules that suggest that a BPO must be accurate or credible. Here is my real world example, in land of Mortgage Fraud SW Florida. A friend lost her home to foreclosure. For months she actively marketed the home and finally received a short sale offer of $84,500. I worked with her Realtor prior to setting the listing price as we didn't want to over-price the property and a bona fide offer was received. Problem was, the offer came in the day before the public auction of the property. The house was foreclosed and less than one week later the house was back on the market for $40,000!!! Yes that is right 1/2 the price of what can easily be considered market value. The home was under contract in 4 days! Duh... Can you suggest that THAT BPO was credible? Kathleen Bryce State Certified Real Estate Appraiser

jsf9121: (March 09, 2010 4:02am)

Really enjoy your stuff guys keep up the good work. Would love to be part of the solution of filling the gap between what government sees as a fix to the housing issue and reality of what is going on in the local markets. Don't think that a blanket government program is going to help individual markets as the environment is so different from state to state.

EODJIM001: (March 09, 2010 3:27am)

Pick one government program that has been a success recently? I have no expectation that ANY changes or new programs are going to have a positive effect.