Freddie Mac Interviewing Brokers for REO's - 06.11.10 | Video Marketing and Mortgage News Designed for Mortgage and Real Estate Sales

kkric: (June 13, 2010 9:48pm)

I love this owner occupancy thing. Fannie's own statistics show higher foreclosure rate with OO loans than NOO, thus proving OO loans are more risky. So, they charge more, and now are going to charge the consumer more in order to prove Fannie is getting a more risky loan. These guys are suffering such rectal cranial inversion that will never again see light.

5pence: (June 13, 2010 9:56am)

Guys, read this article - it lays out plainly what I've been trying to say for months. "Is there a Global War Between Financial Theocracy and Democracy?" http://www.huffingtonpost.com/les-leopold/is-there-a-global-war-bet_b_608703.html

5pence: (June 11, 2010 7:32pm)

Great post valuequestor and very good points to make - this is our last chance on amending the Consumer Protection bill before it becomes law. We need to blitz our government representatives, brokers and appraisers alike, to show them we're not kidding. Crabber, don't say the HVCC won't go away - don't lose hope. It's illegal and can not continue to exist in it's current form. If they want to keep it, they can put it through due process of law to make sure it doesn't hurt the consumer. When they see it hurts the consumer it will be sunsetted and altered to the best interests of consumers and small business. Don't get me wrong, I have no problem with the HVCC if it's put through due process like it's supposed to be "required" to be. I mean, wtf is this when they can enforce policies or laws that hurt the American people without due process? A dangerous precedent

Crabber: (June 11, 2010 5:07pm)

Valuequestor is right. Those jobs will be lost to BPO's and AVM's. Just take the State of Nebraska for example. The conference bill favors AVM's and AMC's and does nothing to address the "cramdown" fees to appraisers. Dodd took that appraisal reform revision out. Hopefully Casey and Kanjorski can get something in. HVCC will not go away since it is supported by TAVMA and the banks that own AMC's.

Valuequestor: (June 11, 2010 4:53pm)

Sunsetting HVCC may face some resistance from NY Senator Chuck Schumer. Senator Schumer worked very closely with NY AG Andrew Cuomo in the development of HVCC. Accordingly, please call your Senators & ask them to contact Schumer, along with other Senators on the conference committee. Ask them to support Sec 4312 in the House bill in the reconcilliation. Talking Points: 1)Several reports have shown, including the recent MARI Report that appraisal fraud has increased substantially since HVCC began. Appraisal quality has also decreased substantially. 2) Consumer costs have increased under HVCC. Estimated to be 2.8 Billion dollars a year. 3) Appraisers are being driven out of business by the tens of thousands, because they have lost their independence to “unregulated” appraisal management companies (AMC’s). These AMC’s charge the consumer higher fees under HVCC, who then pay the appraiser 40 to 60% less in fees per assignment. 4)Businesses are failing, jobs are being lost

Valuequestor: (June 11, 2010 4:40pm)

Soccer is Cool. Don't be an ugly american. Loving one sport should not preclude you from enjoying and appreciating another sport......unless you have a very limited brain capacity. Its World Cup 2010. USA has a real chance to impress the rest of the world doing something the rest of the world really cares about. And it doesn't cost us all billions of dollars and/or the blood of our military. Enjoy the Beautiful Game. England vs USA on ABC tomorrow. Coverage starts at 10:30AM PST. GO USA !!

GODLIKE: (June 11, 2010 2:00pm)

How do we know when to add the extra fees to our GFE for the potential inspection after closing?

chattrealtor: (June 11, 2010 1:44pm)

Just got my first Freddie Mac sale. Buyer side. Cash deal. Major headache. Get ready agents. Freddie runs the show. $200 per day late fee if buyer causes delay. Yet, only Freddie knows the rules of the game. Plus all the new agents who take the listings: ARE NEW!

BigKel: (June 11, 2010 12:58pm)

Audacious, very Kramer like (as in NOT the Sienfeld one!).

StLRealtor: (June 11, 2010 12:51pm)

Thanks guys, this is my first time watching, the Lender in my office recommended it. I enjoyed the video, I think I will be back

GODLIKE: (June 11, 2010 12:48pm)

Once again I thought the NMLS license deadline was June 1. I even got an email from the state of Texas telling me so. Is it different in other parts of the country/

GODLIKE: (June 11, 2010 12:47pm)

Good call in Apple guys. I have one PC and 14 Macs. I spend more time in maintenance on that one PC than I do on all of the Macs combined. My son-in-law is a part time Mac guy for an office with 50 Macs. The PC side (10 PCs) requires a full time guy and a part time guy. We don't let our PC touch email or the internet and that helps a lot, but doesn't eliminate all the "normal" regular maintenance that isn't needed on the Apple side.

5pence: (June 11, 2010 12:29pm)

Frank and Brian, is there any way to contact the 122k+ signers of the anti-HVCC petition to get them to call their government reps? I've just sent out a Call To Action to every appraiser and mortgage broker website I know and the more people we can reach, the better. I don't know if it's possible, but thanks.

5pence: (June 11, 2010 11:49am)

LT appraiser. A good reason to call your government representatives to either make it legal or get rid of it.

LTAppraiser: (June 11, 2010 11:24am)

What bill supports removal of HVCC? Because HR4173 does not. It legitimizes it.

5pence: (June 11, 2010 11:23am)

Thanks Mark ! If anyone cares about their profession they better pay attention to my previous posts about contacting your states politicians. Time is running out because when the Consumer Protection bill is done it can't and won't be changed and it will be law. It will take years before it will be questioned again - maybe until there's another melt-down. This is your last chance to be heard and to defend your profession and your livelihood. Take this message to heart

mark: (June 11, 2010 9:41am)

5pence - excellent ideas. Getting out State organization involved and contacting our small contingent

Alabama Country Boy: (June 11, 2010 9:35am)

CAREFUL GUYS! Soccer has rabid fans that live and breathe the sport just as some do that secondary sport (from a planet wide perspective) that we call football here.

Ancient Appraiser (Retired): (June 11, 2010 9:12am)

One final thing before I stop hogging the blog. Just questioning appraisers and lenders alike. Am I one of the only one's having major problems trying to close loans anymore? Between the appraisal reports and the lenders not having any open communication with the AMC's everything is going to hell. Was there a change within the industry that doesn't allow LO's through the actual lender to speak with AMC's either? There must be some sort of available communication or we are in bigger trouble than I thought. Going to start making my calls to my representatives and I hope everyone else does too !

Ancient Appraiser (Retired): (June 11, 2010 9:04am)

Regarding the HVCC and AMC's the following was posted regarding AMC problems - Within 72 hours of receiving any complaint, the lender will begin a preliminary investigation of the complaint and upon completing the inquiry (or, after a period not to exceed 60 days, whichever shall come first) shall notify the Independent Valuation Protection Institute. So there you are ! Just call the number provided (by regulation with every appraisal) and all your problems will be over. Anyone, get this separate document? And where is the Independent Valuation Protection Institute located? So it is written, so it shall be!

5pence: (June 11, 2010 8:39am)

One more thing, when you call your Senators and House reps don't talk about how whatever your concerns are will hurt or is hurting your business, the only way they'll listen is if we talk about how it's hurting the consumers, additional fees, lack of choices, higher costs etc..

joecolorado: (June 11, 2010 8:37am)

when I submit a report,my estimate is what I have found from the marketplace,not what someone has steered me to consider.I have to be able to justify and defend MY figures not someone else's.As for investors insisting county records are the "norm".Try getting someone from county to justify THEIR measurements of THAT building(which was probably done many years prior to your on site visit).I had that problem with a reviewer that insisted that I was incorrect as county indivated a different GLA and wanted me to warranty the county's figures or justify mine.I insisted THEY contact county and get that from them,but I measured that building on the day of the appraisal and thats what I found.Its not my job to find out whether the county has measured incorrectly.If they have a problem with county,then they need to reconcile that with them direct.I can justify MY figures only.Dont get bullied by these people,be strong enough to say NO to any outside pressure to alter your report.

joecolorado: (June 11, 2010 8:24am)

When a review appraiser comes in at a different value than I have estimated,its ok.If the investor wants me to change my figure to his/hers its not.Changing your figure means that you were wrong in your logic and analysis(the main reason in employing you is because they trust both of these qualities).Its the investors prerogative on which value to consider to lend money on the property.It is,after all being said and done, their money.If they have a different figure,they consider as beng "better" than mine,then they can use it,I am not proud & dont insist that my figure is THE value,but to change your estimate based on someone else's logic or analsis is insane.How can you justify your figures if the data used is not found and analysed by you?Like I always say,if you dont like my appraisal then get one of your own.Be confident as an appraiser,use your brain not someone else's as its you who gets nailed when something goes wrong and then you wont be able to say,"it wasnt my data".

5pence: (June 11, 2010 8:22am)

Mark : it's much appreciated but these guys get thousands of e-mails a week. Time is running short. It's best to actually call them - actually, flood them with calls IMHO. The people that answer are nice and write down your concerns to actually give to your politician. Call (866) 544-7573 to be connected to your Senators. The following link will take you to a page where you can find contact information for your particular State Representative. http://www.house.gov/house/MemberWWW_by_State.shtml or you can just call the Senate number and ask to be transferred to your state House member.

5pence: (June 11, 2010 8:17am)

Here’s something to think about: politics without principles wealth without work pleasure without conscience knowledge without character commerce without morality science without humanity worship without sacrifice Are there any nuggets here you can relate to? Is there anything our industry might learn from these? It is a portion of a speech by Gandhi.

mark: (June 11, 2010 8:16am)

I have copied the letter from NAMB in regards to contacting your US Congressman and have blasted it to my AE's with all of my Investors. Some have responded that they will write and also pass on to other AE's. Has anyone else blasted this out to get people to write?

5pence: (June 11, 2010 8:14am)

Oh, here's a link that was posted by D-appraiser yesterday to the conglomeration of the bill which they will use as a base to amend and vote on. http://msnbcmedia.msn.com/i/CNBC/Sections/News_And_Analysis/_News/__EDIT%20Englewood%20Cliffs/BaseText.pdf

5pence: (June 11, 2010 8:11am)

Title XIIII Subtitle E appears to be the one you mortage brokers and LO's need to weigh in on. Title XIIII Subtitle F is where appraisers need to weigh in on with their representatives. They are starting the final voting next Tuesday and will be voting title by title. If they go by the numbers they will have to vote in over 2 titles per day which would get our Subtitle up at or near the last day. But, we should pay attention to the meetings as we don't know when our concerns will come up and it will likely go fast, so we need to weigh in. Call (866) 544-7573 to be connected to your Senators. The following link will take you to a page where you can find contact information for your particular State Representative. http://www.house.gov/house/MemberWWW_by_State.shtml or you can just call the Senate number and ask to be transferred to your state House member. Yes, I've been working, no thanks necessary, just please do your part. Thanks

5pence: (June 11, 2010 7:55am)

Ancient appraiser: You probably know this but there may be some here that don't. Researching appraisal boards over the last year it has become overwhelmingly apparent that AMC's are using low paid & educated appraisers they can manipulate to put whatever they want in the report. They are forcing the skippy (gutless) appraisers to use REO, foreclosures & short sales whether there might be a need to or not-as if they know the market better than the appraiser! AMC's, if they did nothing it would not look like they're fighting fraud to outsiders & they are ALL about appearances. So they force lowball valuations to make it appear like they're worth their useless existence. See, they are not appraisers & know little about the profession so they use the least educated appraisers they can find to manipulate. 2. It's been suggested that AMC's are also forcing low valuations because they don't want to be responsible for the borrower getting off paying mortgage insurance. The don't want ANY risk.

5pence: (June 11, 2010 7:50am)

I posted this yesterday : The Consumer bill they have is a conglomeration of both bills but Frank just said that the whole thing does not stand as is and could be wholly amended. They are meeting next Tuesday to start voting on the final form of the bill and will meet for 6-7 days. We need to lay it on thick with calls and e-mails to be sure we are heard and concerns addressed as our concerns are for the health of this nation and not for a continuation of bailouts. Fannie and Freddie must be dealt with and the HVCC must be exposed as the piece of chit it is.They are going to vote on it title by title. Subtitle E is mortgage servicing (you LO's and brokers might be interested in weighing in on that and Subtitle F is all about AMC's and appraisers. If they go through it alphabetically, the last 2 days should be about us. I deduced this from a quick perusal, you should look for yourselves to see what matters most to you and, and and... did I already say it yet? BE HEARD !!! Thanks

Fl Mortg Lady : (June 11, 2010 7:02am)

Is anyone addressing the problem of banks selling properties in great need of repairs, but refusing to do needed repairs? Have spoken with many banks when extra value for repairs could be recouped in a higher, supported sales price. Common answer is "not our policy" or "don't want liability". We continue to see values decreasing in Florida due to these bank owned REO's and bank shortsales as properties finally sell for pennies on the dollar due to repairs. I find it remarkable that we give these same banks our mortgages with qualified buyers and good properties. Even HUD repairs their REO's! Where is the banking industry's responsibility in putting out the same quality of proerties that they require us to give them, and helping to get our values back up, versus contributing to the decline?

mark: (June 11, 2010 6:24am)

Do you think that HR 4173 and S 3217 are going to passwith it eliminating our compensation?

Ancient Appraiser (Retired): (June 11, 2010 6:16am)

Part-3. As a final note – the lender threatened to cancel the loan commitment if the seller did not close at the $67,000 figure. The final review appraiser could not be found to make any changes as he has skipped town due to a lawsuit filed by the State of Florida for fraudulent activity involving in his ownership of a loan modification company taking deposits/fees from the homeowner and running with the funds.

Ancient Appraiser (Retired): (June 11, 2010 6:16am)

Part-2. The reviewer (sent by CoreLogic) did not inspect the property to see the on-site permits or check public records or he might have known about the additional bedroom and bath and/or the extent of the improvements. Now the bank (1st Mariner) wants the “original” appraiser (who saw the permits, but failed to comment on them) to re-do his report and value it at $67,000. This “appraisal?” has been going on for six weeks and now the buyer is dangerously close to losing his tax credit. First American CoreLogic should be prevented from working as an AMC and both of these appraisers should be sent back to school, or loose their license. As long as there are AMC’s there will never be a housing recovery. HVCC and AMC’s are blight on the industry!!!

Ancient Appraiser (Retired): (June 11, 2010 6:15am)

Part-1. I have one for you appraisers out there to ponder. A rookie “scab” appraiser (sent by Appraisal Loft) came in at $73,000 on a friend’s house. It had been rebuilt from the ground up, added to and easily matched up with homes selling $90 K to $100 K. Seller was cash poor and put it on the market and sold it in less than two days for $80 K (with multiple offers). After looking at their report I sent a rebuttal letter with comparable sales that were much better; explaining how difficult it must have been to value it at $80 without using a sale over $68 (all short and bank owned in at best, average condition) – using the new sales and discovering a brand new technique (to him) called bracketing he changed it to $80 K. A review was henceforth ordered and the reviewer said the living area SF did not match the County Records and knocked the additional bedroom, bathroom and living area off the original appraisal and came in at $67,000.

FLappraiser: (June 11, 2010 6:11am)

GaryP. Nope, that is not the appraisers job, The appraisers purpose is to determine the "MARKET VALUE" of the subject property (assuming that is the assignment, not CONFIRM the price. Basically Gary an agent can't go to jail, have to pay a hefty fine, lose your certificate, or all of the above if you "PRICE" the home incorrectly. The final determination "OF VALUE" will be when the appraisal is done for the lender. In some states, as here in FL, a realtor can do an appraisal and call it such, as long as they follow the USPAP (Uniform Standards of Professional Appraisal Practice) that is what will send you to jail, pay the hefty fine, etc. Since realtors generally are not educated to those standards it would take a BIG FOOL, to do that. Also, relators CAN'T do an appraisal for a federally regulated transaction, ONLY AN APPRAISER CAN! So Gary, to determine "VALUE" in it's truest sense do you think a realtor is a logical choice? Keep in my I'm not saying "PRICE", big difference.

Owl Tree: (June 11, 2010 6:02am)

Any loan originator that does not confirm the applicant's intent to occupy is a complete moron, and is part of the reason why this industry is so screwed up right now. Speaking as a broker, I wish unending torment on any originator or borrower that trys to pull a fast one on the occupancy.

GaryP: (June 11, 2010 5:21am)

FLappraiser: Please educate me on this point. How is this any different than what an agent does with any other private party seller when they initially determine a listing price? The listing agent does a BPO/BVO that is used to determine the listing price of the home, right? Isn't the appraiser's function to confirm this price, regardless f whether it is a BPO or BVO?

GaryP: (June 11, 2010 5:00am)

Hey Frank & Brian, Could you please use your resources to see what is going on wih the flood insurance program. Congress let it expire on 5/31 (again). It has basically got us shut down along the gulf coast, and other areas that flood prone. I have 2 files in limbo right now. I havebeen checking for news on the net, but it seems like the bill that came out of Barney's committee is not moving through the process. The fact that it's Hurricane season down here just makes it more frustrating. I had t laugh when I saw that the House passed a unanimous resolution making this Hurricane Awareness week. Apparently, everyone is is supposed to be aware except for our elected officials that voted for the resolution. We just had a major flood this week, 30 miles from my location.

FLappraiser: (June 11, 2010 4:45am)

Sorry boys, Realtors SHOULD NOT be providing BPO's for any lender where VALUE is to be determined. These are not BVO's (broker value opinions)they are BPO's. There is a big difference in PRICE and VALUE and Realtors, in my opinion are NOT QUALLIFIED to render an opinion of VALUE, that is what an APPRAISER is for, plain & simple.