Tax Credit Extension STUCK in the House! - 06.24.10 | Vincent K. Mohr : First Priority Financial, Inc. : Fairfield, CA

RSDuquette: (June 28, 2010 7:28am)

While in Washington, DC last week, I heard from an insider source that the House will not extend the tax credit beyond June 30th. Why? It is estimated that there are approximately 800,000 qualified transactions that will not close in time. Congress is already calling the tax-credit program a success. However, it has been so successful they don't know where the money will come from to pay for the tax-credits they are already obligated to pay. If they extend now it means another $6.4 billion dollars they have to come up with but don't know from where. There are going to be alot of disappointed families who were counting on that money!

5pence: (June 26, 2010 7:42pm)

Yes, an appraisal completed by a state certified appraiser should be good anywhere the homeowner wants to shop it. There is absolutely no reason for it not to be except for maybe 2 I can think off. Number 1 is the banks have a captive borrower that is already broke (since they're looking to borrow) and insisting on non-portability is to keep them captive to their finances and the banks terms and the use of their AMC. I think it's gouging. Number 2 and this is probably the real reason why, if there's portability the banks will have to do real underwriting to measure their own risk, and that costs money. Also, there will be comparisons between the banks, the consumer can draw, & that would produce competition. The TBTF's are too big for competition. At least they think they are as they have grown spoiled by the GSE's buying everything they write no matter the costs to the public. They have got to be laughing at us & saluting our ignorance with crystaline goblets & finely aged scotch.

5pence: (June 26, 2010 7:30pm)

Owl Tree: I'm glad you're seeing that the only way to end the corruption of the system is to get rid of the bank as the client. Pressure and subsequent fraud has been the problem all along and now with bankster owned AMC's, the pressure (first on the AMC and then on the appraiser) for easy money corruption is higher than ever and growing. Why didn't the regulators see that leaving the fox in charge of the henhouse is criminal? Because they're paid by their bankster "handlers" to look the other way. Now cgappraisals has verified what I read. That the bank owned AMC's cannot be regulated by the states as they are part of a Federally regulated entity. States could have and would have regulated them out of existance as it's obvious to everyone, except our lawmakers that don't listen, that AMC's ARE the problem. The ONLY way the AMC's could have gained market dominance is if they were number hitters & value inflaters-exactly like in the WAMU & eappraiseit/Chase fraud. They are born of fraud

cgappraisals: (June 26, 2010 2:42pm)

In acknowledging the problems mortgage brokers have had with HVCC, lawmakers recommended that regulators try to provide for the "portability" of appraisals. This change would make it easier for brokers to use the same appraisal in shopping a loan to various lenders and save the borrower from paying for a second appraisal. But brokers are disappointed that final language does not require the regulators to ensure that lenders will accept an appraisal that was ordered by another lender. Found at BrokerUniverse.com

cgappraisals: (June 26, 2010 2:40pm)

The final bill named after its principal sponsors Sen. Christopher Dodd, D-Conn., and Rep. Barney Frank, D-Mass., directs banking and GSE regulators along with the new Consumer Financial Protection Agency to issue new rules to protect appraisers from lender pressure. The guidelines will replace the Fannie Mae/Freddie Mac Home Valuation Code of Conduct rule that is due to sunset November 1. Lawmakers left it to regulators to decide if the HVCC ban on loan officers and mortgage brokers selecting appraisers should be continued. Within 60 days after enactment of the bill, the regulators are expected to issue interim final regulations "defining with specificity, acts and practices that violate appraisal independence," according to a summary of the bill prepared by Canfield & Associates.

cgappraisals: (June 26, 2010 2:39pm)

Just found this: Federal regulators will oversee appraisal management companies that are affiliated with federally insured banks under the Dodd-Frank regulatory reform bill. Affiliated AMCs are not required to register with the states, according to the bill. The House and Senate are expected to vote on final passage of the landmark legislation before the July 4 recess. The Title Appraisal Venders Management Association wanted all independent, multi-state AMCs to come under federal regulation, but the provision was dropped during final negotiations on the bill, according to TAVMA executive director Jeff Schurman. The bill means the nation's largest lenders, all banks -- Bank of America, Citigroup, JPMorgan Chase and Wells Fargo -- with affiliated AMCs will come under federal regulation.

Owl Tree: (June 26, 2010 10:28am)

To jcollins: I'm pretty sure that brokers are now compensated directly (borrower points) or indirectly (by the lender), subject to a max 3% cap in most cases. And sounds like they've basically put a shovel to the subprime market (it was in a coma for over two year anyway).

Owl Tree: (June 26, 2010 10:23am)

The only way to save the appraisal industry is to unhinge it from lenders....banks and brokers included. The appraisal should be handled before the customer even sits down with their loan officer....borrower should present their paystubs, W2s, bank statements, APPRAISAL, and other supporting credit documentation. I'd prefer if they would pull their own credit report as well. Then, let the loan officer review everything to assemble a complete loan file, and get to work presenting it to underwriters. If one bank has an issue with the appraisal, for example, the borrower and loan officer can work to resolve the issue, or present it to another institution for consideration. I'm pretty much convinced that the ONLY way loan officers and appraisals will see any relief is by focusing on consumer rights. And really, the more I think about it, the more convinced I am that the appraisal process is at the very heart of our current problems.

dpapiernik: (June 26, 2010 6:27am)

Read this in the Kiplinger Tax Letter The IRS still isn’t effectively policing claims for the home buyer credit, Treasury inspectors say. Multiple credits were OK’d for the same residence. In fact, 256 filers took the credit for homes at just five addresses. Some claims by prisoners slipped through the cracks and were approved. Many questionable amended returns that warranted additional scrutiny were never examined. Inspectors even discovered that almost 100 IRS employees filed dubious claims for the home buyer credit. Those employees are now under internal investigation. Agency officials vow they’ll plug the leaks and do a better job of monitoring all claims for the credit. The IRS Agents themselves are getting in on the fun! NICE!! They caught almost 100 of them of those guys. Tip of the iceberg? I am sure they will get right on that!

jcollins: (June 25, 2010 9:55pm)

DOes anyone know if they passed title 14??? the part that would do away with the concumer receiving the YSP. They still believe it goes the the broker. :)

5pence: (June 25, 2010 9:37pm)

So next time an oil-blackened snowy egret gets you furious at BP, remember to save some righteous indignation for the financial polluters who are picking your pockets.

5pence: (June 25, 2010 9:36pm)

Now that Wall St. has collected its bailout billions, it wants the rest of us to tighten our belts. The captains of high finance are demanding that we reduce public debt, which we ran up to bail them out & deal with the mass unemployment they caused. It takes a hell of a lot of nerve. First they crash the system & run away with fat pockets of cash. Then we bail them out & they use the money to pay themselves tens of billions in bonuses. Then they demand that WE clean up our financial act or they won't loan out any money. Sadly, they're getting away with it. A generation of deregulation & regressive tax policies gave them the keys to the world economy. They now control so much capital that they have the power to veto policies instantly, just by rapidly moving money around. The porous financial reform bill won't stop them. The TBTF giants will grow even bigger. Get ready for more financial toxic shock as Wall Street's financial engineers drill through the bill's countless loopholes.

5pence: (June 25, 2010 9:17pm)

This is a good read about the pollution parallels between the Gulf oil spill and Wall Street. http://www.huffingtonpost.com/les-leopold/why-do-we-treat-wall-stre_b_625286.html

5pence: (June 25, 2010 9:14pm)

"We're living through 2 of the most catastrophic ecological disasters in history. BP's spill is wrecking the Gulf's ecosystem-It slaughtered 11 workers and destroyed the livelihoods of thousands in the fishing & tourist industries. And soon, we'll start hearing about the terrible toll exposure to oil-related toxics is taking on the bodies of clean-up workers. Meanwhile, Wall St, led by financial giants like Goldman Sachs, JP Morgan Chase, B of A and A.I.G., polluted our financial system with toxic assets. The wreckage includes $6 trillion in lost economic value & at least 8 million US jobs destroyed in a matter of months. And like the Gulf spill, the Wall Street catastrophe will have deadly long-term consequences, as hundreds of dislocated workers die prematurely from the economic shock. The Gulf and Wall St disasters are oddly parallel in many ways, except one: BP is paying for some of its sins. Wall St isn't. (And what better evidence than the watered down financial reform bill...)"

5pence: (June 25, 2010 8:18pm)

It's late, but you guys need an answer. It appears that AMC can not be regulated by the states if the AMC is part of the TBTF's. Federal regulators will "regulate" them is what I read. It sucks. They're afraid the states will regulate them out of business - and they would have. Now they're part of the untouchable elite (banksters) and under their umbrella with "regulators" that are probably lobbyists or bankers. They are insisting that the AMC model is viable and, they are deaf, dumb and blind.

birdielovr: (June 25, 2010 4:36pm)

I'm sure you've seen this: http://www.citizen.org/pressroom/pressroomredirect.cfm?ID=3147 Good or bad? I'm thinking it can't be good.

Clulessdad: (June 25, 2010 12:36pm)

Stantheman-I don't think much changed-appraisers will still have to work for the banks, or their AMC's.

Owl Tree: (June 25, 2010 12:18pm)

That sounds reassuring....so, some Federal stooge (when he's not surfing porn) will oversee the inexperienced stooges at the AMCs? Problem solved!

Clulessdad: (June 25, 2010 11:56am)

Here is an interesting tidbit off the wire. "Banking Regulators Get Oversight of AMCs Federal regulators will oversee appraisal management companies that are affiliated with federally insured banks under the Dodd-Frank regulatory reform bill" Is this the fox in the chicken coop?

stantheman: (June 25, 2010 11:04am)

So what happen in title 14? Did appraisers win,lose or draw.

5pence: (June 25, 2010 10:30am)

Does that Gulf oil spill remind anyone of what's going on in America yesterday and today like it does me? Toxic plumes from a deep and unreachable area. Profits at all costs - full speed ahead. That's enough depressing stuff from me today. Have a nice weekend all. It's almost beer-thirty time here.

5pence: (June 25, 2010 10:23am)

Ohh yeah. And lets not forget our captivity by the insurance companies. We're doing just fine.

5pence: (June 25, 2010 9:16am)

Worst of all imo - the banks don't have to make a "real" market for years. The get to play "Monopoly", unfettered and unrestrained, with the taxpayers money. How much do you want to bet bankster bonuses are going to rise? As the gap between the middle class and the rich widens to a chasm. How much do you want to bet that they will say, before the end of the year, that this is a "jobless" recovery and raise rates raising unemployment. Dark days behind, darker days ahead for Mr John Q. Public IMHO. How do I know? It's the law now.

5pence: (June 25, 2010 9:09am)

No video? Looks like all are frustrated with the Too Big To Fail protection bill. A short synopsis. Nothing is done about Fannie & Freddie even though they played a huge part in the meltdown & continue to suck taxpayers dry. HVCC is rescinded because it's illegal but bank origination & total monopoly remain intact ensuring continued "no competition" for the Too Big To Fails and their continued gouging of the consumer at the taxpayers expense. There is something truly perverse about that. Screwing the homeowner on origination & then continued gouging through the most menacing & corrupt TBTF's - The GSE's. The bill dealt with many things that had nothing to do with the meltdown-like payday loans/debit cards. They passed it at 5:39AM-Sounds like a forced vote to me. Does it help the economy or solve any real problems? No. The bank cartels get to continue their ponzi scheme/scam at the expense of the taxpayer. It's all show. It will not stop the next meltdown-it just placates the banksters

sailaway1123: (June 25, 2010 8:38am)

Thanks for brightening my day. I smile, chuckle, and belly laugh at you truth through humor presentations. Regarding the Credit extension, What Gov giveth with one hand, it taketh with the other. Birds of a feather flock together with regard to giving criminals tax credit. What can you say?

Clulessdad: (June 24, 2010 5:00pm)

I have had enough frustration for today. Good night all.

D-appraiser: (June 24, 2010 4:39pm)

You're right... remember USA last soccer game?

Clulessdad: (June 24, 2010 4:38pm)

I know it is weak, but at least there would still be a chance. You know about Yogi's "never over til it's over."

D-appraiser: (June 24, 2010 4:36pm)

Persistence versus money?.. :)

Clulessdad: (June 24, 2010 4:34pm)

I kinda agree, but I figured that at least I should try. You know about persistence...................

D-appraiser: (June 24, 2010 4:20pm)

In my opinion it's a done deal. There are lots of money invlved with AMC (stolen from the appraisers)... so they wil not give back. And the study? If TAVMA or AMC have the money, the sudy will be in their favor. IMO

Clulessdad: (June 24, 2010 4:17pm)

5pence-that came across some time ago. It gives more freedom to the lenders to approve with whom they do business. Not that it has helped any on a practical matter.

Clulessdad: (June 24, 2010 4:15pm)

I just called and asked if they would consider not putting any language about the prohibition of broker ordered appraisal in the bill. I asked that the study come back after 90 days and would allow the consensus to recommend the right appraisal process.

5pence: (June 24, 2010 4:14pm)

I just go this. FHA eliminated Correspondent lender approval? "FHA recently issued ML 2010-20 which provides an overview of key provisions of HUD’s final rule referenced above, and provides guidance to mortgagees on HUD’s implementation of this final rule. This rule increased the net worth requirements for FHA-approved mortgagees, eliminated FHA approval of loan correspondents, codified requirements of the Helping Families Save Their Homes Act of 2009 (Public Law 111-22), and made minor modifications to other aspects of FHA’s regulations governing lender activities. After a brief overview of the new policy decisions, FHA staff will field questions from callers.

5pence: (June 24, 2010 3:59pm)

They are still working on it so it's still open. Rep Kanjorski's office is (202) 225-6511 - I just called and the assistant said she would try to get my message to the Congressman. He's the most appraiser and broker friendly of them all.

D-appraiser: (June 24, 2010 3:00pm)

There are a lot of questions: for which type of loans brokers cannot order appraisals? (HVCC was only for loans sold to F&F) can a loan processor order an appraisal? is the borrower allowed to pay COD for an appraisal? Any clarification on these?

Owl Tree: (June 24, 2010 1:57pm)

If all else fails, I can still fall back on my old career as an exotic dancer.

Clulessdad: (June 24, 2010 1:35pm)

5 pence-I like your optimism, but lenders will never let the borrowers order an appraisal. They have more of a vested interest in getting the loan done than does the broker.

D-appraiser: (June 24, 2010 1:35pm)

The owner/potential buyer will not be allowed to order. Who's the client if they order an appraisal? Brokers not ordering appraisals has only one explanation: AMC lobby and MONEY!!!!!

5pence: (June 24, 2010 1:32pm)

TBTF protection bill - non-competitive clauses throughout.

5pence: (June 24, 2010 1:30pm)

But, brokers, the door may be open for homeowner ordering - possibly. They're going to post the entire text on the internet within 72 hours of both agreeing to pass it on to the Pres. for signing 7/4. Big whoop. If we don't specifically see that the homeowner can't order the appraisal, I'm thinking we could/should be good.

D-appraiser: (June 24, 2010 1:16pm)

Prepare for AMC's dictatorship. Unprofessional and cheap appraisals!

5pence: (June 24, 2010 12:53pm)

About the broker not ordering appraisals. They've abandoned all reason. Sad state of affairs, the government is broken when lobbyists can rule over reason.

5pence: (June 24, 2010 12:49pm)

The Senate just accepted the portability of appraisals concession from the House on Title 14. Looks like a done deal. Sorry brokers - it sucks for all of us.

Clulessdad: (June 24, 2010 12:40pm)

What Congress fails to realize is nothing will change after the HVCC sunsets. Brokers are still out, banks and their conflict of interest partners, the AMC’s, will still control the valuation process in this country. Appraisers “may” receive higher amounts of compensation (and we’re happy about that), but does anyone think for one minute the banks and AMC’s will give up one dime of profit? The consumer’s cost of home ownership just went up again, courtesy of the US Congress. The same issues highlighted in the MARI report will still continue. Appraisal fraud will increase, quality of work will decrease and the banks and AMC’s will get richer."

Clulessdad: (June 24, 2010 12:39pm)

From NAIHP "HVCC: Today, the House conceded to the Senate on allowing brokers to order appraisals. Brokers will still be prohibited, once HVCC sunsets.Despite personal assurances of being committed to fixing an injustice created by NY AG Andrew Cuomo, the House allowed retiring Senator Chris Dodd to have his way. (Most of you know why Senator Dodd is retiring).The compromise on the broker issue was “portability.” In my opinion, real portability has as much chance of happening, as appraisers receiving “reasonable and customary compensation”. cont

Clulessdad: (June 24, 2010 12:16pm)

I wonder how many small business owners are going to go out of business today? Can't collect unemployment though. If Marc Savitt is on the blog today, thank you for your tireless efforts.

5pence: (June 24, 2010 12:13pm)

sheraldia21 - keep calling and express your concerns. Even if they only note 100 calls to allow broker originations, it's something. It's just wrong to allow this crap, all dressed up as consumer protection, to be foisted on the American consumer. It's still crap no matter how it's dressed up.

sheraldia21: (June 24, 2010 12:08pm)

I called the 2823 # the first time and the gentleman listened to me. When I tried to get specific with him he said he could transfer me to the staff that was working on HCVV. I'm thinking "Great!" and give me their direct # as well. That's the 7391# BTW. It rang forever and it was as though someone picked the phone up off the cradle and put it back down. The first young man while very nice did listen, but I could tell he didn't take any notes and I had a lot to say!

D-appraiser: (June 24, 2010 12:03pm)

Dodd was involved in issues related to the federal takeover of Fannie Mae and Freddie Mac during the 2008 subprime mortgage crisis. As part of Dodd's overall mortgage bill the Housing and Economic Recovery Act of 2008 before Congress in the summer of 2008, Treasury Secretary Hank Paulson sought provisions enabling the Treasury to add additional capital and regulatory oversight over these government sponsored enterprises. At the time, it was estimated that the federal government would need to spend $25 billion on a bailout of the firms.[36] During this period, Dodd denied rumors these firms were in financial crisis. He called the firms "fundamentally strong",[37] said they were in "sound situation" and "in good shape" and to "suggest they are in major trouble is not accurate".[38] In early September, after the firms continued to report huge losses,[39] Secretary Paulson announced a federal takeover of both Fannie Mae and Freddie Mac. Dodd expressed skepticism of the action, whi

D-appraiser: (June 24, 2010 12:01pm)

In 2003 Dodd had refinanced the mortgages on his homes in Washington, D.C. and Connecticut through Countrywide Financial and had received favorable terms due to being placed in the "Friends of Angelo" VIP program, so named for Countrywide CEO Angelo Mozilo. Dodd received mortgages from Countrywide at allegedly below-market rates on his Washington, D.C. and Connecticut homes.[24] Dodd had not disclosed the below-market mortgages in any of six financial disclosure statements he filed with the Senate or Office of Government Ethics since obtaining the mortgages in 2003.

5pence: (June 24, 2010 11:59am)

I'd suggest all call and write down what exactly you want to say first. How no broker order eliminates competition for the big banks and hurts the consumer as they have no other choice. Soemthing like that. Don't complain about how you are being hurt, unless you got hurt as a consumer. They won't listen unless it's about the consumer. After all, their name is in the bill.

5pence: (June 24, 2010 11:57am)

Hi sheraldia21: Did you try that other number I posted? That gets through. Your number, I called and then it seemed to get disconnected. No one hung up, at least I didn't hear one. Try the other one

mtgchic: (June 24, 2010 11:56am)

I just called Dodd's office. picked up on the 2nd ring.Very polite and listened to what I had to say

sheraldia21: (June 24, 2010 11:55am)

Don't ask for the HVCC staff....it rings forever and then they pick the phone up and hang up immediately..............

5pence: (June 24, 2010 11:43am)

5pence: (June 24, 2010 11:03am) Thank you too Allison Appraiser: (June 24, 2010 9:29am) TODAY, NOW, CALL CHRIS DODD'S OFFICE (202) 224-2823 (It takes them forever to answer the phone)

sheraldia21: (June 24, 2010 11:42am)

NOOOO! They are hanging up on me before I even get a word out!

sheraldia21: (June 24, 2010 11:39am)

the direct # to Dodds HVCC staff is 202-224-7391

Owl Tree: (June 24, 2010 11:38am)

How about this: appraisers take a naked bike ride through Washington to protest AMC's "stripping" them of their fair fee, and "stripping" borrowers of their equity?.... I'll be watching, and cheering you on.

Owl Tree: (June 24, 2010 11:36am)

I'm going to try to keep things in perspective: HVCC is out; portability is in; new rules are to be written regarding the ordering process; the pressure won't let up as more and more consumers are stripped of their equity by AMC's sweatshops.

sheraldia21: (June 24, 2010 11:30am)

Dodds HCVV staff is not answering, acutally they are picking up the phone and hanging up!

5pence: (June 24, 2010 11:27am)

Ill appraiser - I haven't heard the fat lady sing yet.

5pence: (June 24, 2010 11:26am)

I just called again and asked if it was too late for comments on the consumer protection bill. The guy said no. This time I had notes written out and was able to deliver a very clear message that brokers had nothing to do with the meltdown as only the banks could have lent the money and they did no underwriting for risk. Brokers need to be able to order appraisals or else the banks will have no competition and that hurts the consumer. The HVCC and AMC's already have a stranglehold on over 96% of the mortgage market. Something along those lines. I'd suggest writing what you want to say before you all instead of just delivering off the cuff.

Ill Appraiser: (June 24, 2010 11:11am)

Mark has posted a "thank you for all of your help" at naihp.org

Ill Appraiser: (June 24, 2010 11:09am)

According to Mark Savitt at naihp.org it looks like its a done deal and Dodd did nothing to help the industry.

D-appraiser: (June 24, 2010 11:07am)

Same here! They'd relay the message!

5pence: (June 24, 2010 11:05am)

I told them that brokers need to be able to order appraisals if they comply with the safe act (as stated in the base text). He said they'd relay the message. CALL!!

Owl Tree: (June 24, 2010 11:04am)

Just called Dodd's office, and provided my opinion: if AMC's control the process, it will be at the expense of small local appraisers.

5pence: (June 24, 2010 11:03am)

Thank you too Allison Appraiser: (June 24, 2010 9:29am) TODAY, NOW, CALL CHRIS DODD'S OFFICE (202) 224-2823 (It takes them forever to answer the phone)

5pence: (June 24, 2010 11:00am)

clulessdad - I'm going to call right now. Thanks

Owl Tree: (June 24, 2010 10:59am)

Valueboy: If I had my preference, I (as the loan originator) would order the appraisal. If that is not possible, I'd like for my client (the borrower) to at least be able to get a referral from me concerning a good appraisal.

5pence: (June 24, 2010 10:57am)

I'm pretty sure the new bill has recourse for the appraiser and homeowner to complain and see some action. Maybe we can complain the AMC's out of business. Taken all together from what I've read I don't see much to reign in the banks from playing monopoly with the taxpayers money and keeping a non-competitive stranglehold on the mortgage markets. I noticed that national amc's don't need to register at the state level which means states can't regulate them - I don't know if that's changed or not. This is just ugly. TBTF protection bill. I've got work to do. Later guys, I'll check back for updates. Champagne stays in the fridge.

Clulessdad: (June 24, 2010 10:53am)

I just called Dodd's office-gave someone who is working for the committee my stance on HVCC and broker ordering. They said they would pass it along. Got right thru-everyone should call.

Valueboy: (June 24, 2010 10:52am)

Owltree, appraisers should never be representing the bank. Appraisers are only providing a product to a client. The lending and appraisal relationship should be no different than the general contractor and sub-contractor in construction. A general contractor should be free to hire any subcontractor (like an electrician) they want. Because the general will be the one who ultimately is holding the bag when the building burns down. The general should not be forced into using a sub by a middleman (AMC). In other words, the person who takes the risk should be free to hire their own experts. If they can't do that, then the cost of the risk will go way up.

stantheman: (June 24, 2010 10:46am)

I just had an AMC that ordered 3 appraisals on the same property within a 2 week period. I later found that two of the appraisal were not given to the lender by the AMC because the value was not high enough. This is the 3rd time that I have faced this from the same AMC. AMCs have a lot to lose if their appraisers don't make value for the AMC. Talk about pressure.

Owl Tree: (June 24, 2010 10:46am)

D-Appraiser: appraisers need a union. At the very least, HVCC will be out, and a new structure will be formed. Hopefully that will create the opportunity for local appraisers to regain their rights. I really don't know. All I can say is that appraisal ordering on the retail side blows...I'll just have to wait and see how this shakes out.

5pence: (June 24, 2010 10:45am)

Thanks D-appraiser. Staying in context the topic of discussion was the broker ordered appraisals wording. The concession, when still talking about brokers, is ensured portability. To me that leaves the door open for brokers to give the homeowner a list of appraisers and have the homeowner pay for the appraisal. Brokers were the leading context of that section and now portability is ensured under that same leading context as a sub-context conciliation. I think a door is open, but I don't know. Just my read. We'll see I guess.

D-appraiser: (June 24, 2010 10:41am)

Owl Tree: after HVCC appraisers have no money to lobby... all the money are in AMC's pockets.. and they use it wisely to lobby.... In 6 months from now I guess there will be only AMC's appraisers, which are not independent appraisers (per title 14 - if you read it). What they've done today is worse than HVCC, they legalized "no broker appraisal ordering" and use of AMCs.

stantheman: (June 24, 2010 10:32am)

5pence: sounds like your for AMC. Brokers should be ordering appraisal I agree with that. But get ris of AMCs as a must use. If the brokers don't want them then there is no reason that they should have to. Do you real think that AMCs haven't hurt appraisers and the housing market.

Owl Tree: (June 24, 2010 10:31am)

Correction...at least portability is now ensured.

Owl Tree: (June 24, 2010 10:30am)

D-Appraiser....just read the news. Appraisers need to unite to get the shackles of the AMC's off. I'll support you guys 100%. At least portability is gone.

Valueboy: (June 24, 2010 10:29am)

This entire industry (lending) needs to be striped back down to the basics. No GSE's, No AMC's. None of that crap because it only trys to remove risk from the heart of the matter, and that is underwriting. Also, the 4 big banks that are "to big to fail" also need to be broken up. They should not have that much influence. I can not tell you how much it pisses me off to see "FNMA1004" printed at the bottom of our appraisal forms. A stinking bank designed our work product, not appraisers. As you can tell, I come from a background of regional banking when we had our own appraisal forms that didn't include useless information like "census tract number" or "cost approach". It's time to remove all the garbage and get back to basics.

Owl Tree: (June 24, 2010 10:27am)

I lied...I didn't see Valueboy's last comment. I've been in this business since 1985....as a loan officer, mortgage broker, mortgage banker, lender, underwriter, and executive. In every conversation I've had with appraisers, the only pressure on them was to do a thorough job and respond to my comments....Again, the borrower pays for the appraisal. The borrower pays back the loan, plus interest. The bank has full authority to approve or deny a loan based on income, credit, assets, or collateral. The bank's due diligence give them full authority to lend the money. It is the job of a licensed, professional appraisal to determine what the house is worth. The appraiser should be representing themselves, not the bank, or the loan officer, or the customer, by doing their job, according to professional guidelines. Again, the banks should hire their own in-house appraisers to sign off on the reports, and leave the field work to the local guys.

5pence: (June 24, 2010 10:25am)

Without the homeowners collateral, what is their money worth? There's nothing real about the money until it's spent - hard assets is what they need, like real estate. I won't get into how our money is based on nothing but confidence and some would call that a confidence game. Money used to be based on hard assets like gold and precious metals - but no more, thanks to the Federal Reserve.

D-appraiser: (June 24, 2010 10:24am)

Go to http://www.naihp.org/index.php?option=com_content&view=article&id=50&Itemid=55 AMC's are here to stay. Sunset of HVCC is nothing now. We, appraisers are now legally trapped in the AMC's world. As I never worked for an AMC, now it's time to look further and leave this profession. Again, banks and their AMC's won! Congrats, and thanks Sen. Dodd.

Owl Tree: (June 24, 2010 10:19am)

One last thought.....the banks are under no obligation to accept an appraisal. If the appraisal is weak, they should be able to determine that, through their own professional software, and within a desk review by an on-staff licensed appraiser. They should reserve the right to accept, reject, or counteroffer the appraisal report. Then, if the borrower wants, they can direct their loan officer to resolve the issue, or else, take the loan to the next bank. Or, they can tell me and my lender to take a leap if they feel their house is worth what the appraisal says. Bottom line, an appraiser's license should mean something. The more it means, the more appraisers are worth. Just as a customer has the right to choose their own doctor, attorney, realtor, financial advisor, or loan officer, they should be able to select a professional appraisal to appraise their home. But that doesn't relieve the appraiser from doing a professional job. Thanks for listening, time to each a sandwich.

5pence: (June 24, 2010 10:19am)

This is fun valueboy, I could shoot holes through your logic all day long. Who owns that valuable collateral that the bank wants a piece of? Why do they want a piece of it? So they can make money off of it. They absolutely need the homeowners collateral. Now, get this right - it's the homeowners collateral and not the banks. The banks are basically buying an option to purchase that valuable collateral at a later date for an 80% LTV of the value.

5pence: (June 24, 2010 10:14am)

Stan the man, alright, but I believe it's already gone. You guys should be calling to allow brokers to directly order appraisals. That is the point of contention right now

Valueboy: (June 24, 2010 10:13am)

5pence, I've been appraising alot longer than you and have alot more experience at this they you will ever dream of. I have years of experiance inside small lenders such as S&L's, credit unions, and Thrifts. I've sat at the tables with underwriters and ceo's who wanted to make "lending" decisions. I also have 20 years with my own appraisal business. Homeowners are not stupid, but they are "not" the consumer of an appraisal. So what if it's the biggest transacation they ever make, they are not lending the MONEY. Let's say that again. "They are not lending the MONEY". The lender is the consumer, they are the one taking the risk. When I say lender, I don't mean loan agent or mortgage broker, I mean the actual entity handing over the money. They should have, and deserve to have the power to pick the appraiser because they will be the one who suffers if it's bad. In addition, let me say this again, there should be nothing inbetween the lender and the appraiser, in other words, no AMC's.

5pence: (June 24, 2010 10:12am)

You lose 1 homeowner as a client and you lose 1 job. There's hundreds of thousands more. Lose a bank or an AMC and you lose potentially thousands of clients and jobs - all at once. Besides, it'd much easier for the state boards to track fraud and to enforce with just 1 client at a time. Too many positives for me to consider anything else. It's the banks that corrupt the process and pressure for value. If I had my way the homeowner would be the client instead of the bank. Paid at the door is alright with me. If you feel pressure from a homeowner, you don't have to do the job. No big loss. Plenty more homeowners out there. Plus, it would MAKE the banks do proper risk assessment - unlike now. The homeowner wants to shop around for the cheapest appraisal, let them. Do you think they'll get the hint when they have to pay for a 2nd appraisal because their cut-rate appraiser's appraisal flunks underwriting? They'll want the best up-front. I'll be glad to let my reputation dictate my fees.

stantheman: (June 24, 2010 10:08am)

Allison Appraiser: I just called Senator Dodd office and got right thru. They stated that they were getting a lot of calls in support of getting rid of hvcc.

Owl Tree: (June 24, 2010 10:06am)

Valueboy...if the banks were paying the cost of the appraisal, then yeah, they are the customers for that service. But in the rest of the economy, the guy who pays is the client. Nice that the giant banks have been able to pull this little exception up to this point.

5pence: (June 24, 2010 10:02am)

Wrong valueboy. How long have you been appraising? Have you never been paid at the door? Any repercussions from the homeowners that paid you at the door? None for me. Stop treating the homeowner like they're idiots. A home is their largest lifelong investment. If they're not keeping up with the market then they're not being prudent. An educated homeowner is our best defense. There is no reason for a homeowner not to have an honest opinion of value of their home with free internet MLS services all over the country. Take off the blinders. This is not the time for tunnel vision

5pence: (June 24, 2010 9:57am)

The homeowner pays for the appraisal, to take away their rights of choice is calling them idiots. Not consumer friendly. Wow the HVCC is a nasty mess to unwind. Cuomo still needs to be returned the favor imo.

Valueboy: (June 24, 2010 9:54am)

Having a homeowner order an appraisal is the "STUPIDEST THING I HAVE EVER HEARD". Homeowners have no idea what an appraisal is or is not, and no idea what a good one is. Their idea of a good one is one that hits the value they want. You thought pressure was bad from brokers, wait till homeowners ask for gaurentees on values. The one and only "consumer" of an appraisal is the lender making the loan. When making a loan the lender has only one real estate question, "What's the colateral worth?". They hire appraisers for that answer, therefore lenders are the consumers, not the stinking homeowner. Lenders should be free to order an appraisal directly from appraisers, with no stupid middle men (AMC's)inbetween. That way they can control their own underwriting and risk assessment and they will have no one to blame if it goes wrong. Wow, I just took myself back to the 1980's.

Owl Tree: (June 24, 2010 9:47am)

As a tactical political matter, appraisal ordering can only be argued within the context of a consumer right; i.e., the right to order and retain the appraisal should rest in the hands of the consumer. And that decision should include the right to solicit a recommendation from their broker, realtor, or attorney regarding whom to choose, subject to the appraisal firm meeting certain regulatory requirements.....That's the only angle I see flying here as this bill moves forward....As far as everyone in that chamber is concerned, mortgage brokers are crack dealers, so fat chance of anything flying that is perceived as a concession to us.... At the very least, this idiocy of not being able to send an appraisal from one lender to another will be eliminated. It's a positive start.....and that's all I can say until I see some ink.

Allison Appraiser: (June 24, 2010 9:29am)

TODAY, NOW, CALL CHRIS DODD'S OFFICE (202) 224-2823 (It takes them forever to answer the phone)Tell him to GET RID OF HVCC. Dodd is the one who's goal is to keep any MB's from directly ordering appraisals. Fine for him, since he already got his sweetheart deal from Countrywide.

5pence: (June 24, 2010 9:25am)

Funny, it was just on again. Now my take is that the House rejects (possibly?) the Senate counter-offer and adds that portability is mandatory and regulators must enforce that. Not one "No" to the offer. It's still up in the air as far as I can guess. Side note, An appraiser friend said he was talking to an LO at a small bank that didn't use AMC's and he said that the regulators FORCED the smaller banks and credit unions to use AMC's. That makes sense considering how much the smaller banks and credit unions hate the HVCC and AMC's. Any bankers here have that experience with regulators forcing them to use AMC's?

GODLIKE: (June 24, 2010 9:25am)

Yeah, you appraiser guys better hope the Broker can order the appraisal or you'll be stuck with 1/3rd the fee.

D-appraiser: (June 24, 2010 9:23am)

I just heard what Kanjorski said: broker ordering appraisals AND appraisal portability........

Clulessdad: (June 24, 2010 9:23am)

If you read HVCC, all appraisals should be portable now. But many lenders put the overlay that they wouldn't accept any other lender's appraisal. Just cuz Congress says the appraisals must be portable, it doesn't mean a lender, who is liable for the collateral value, will accept any other lenders' appraisals. And lenders will never accept an appraisal from a consumer. Unless there is a competitive market force, the AMC model is here to stay. Without broker ordered appraisals, appraiser compensation will NOT change. IMHO

D-appraiser: (June 24, 2010 9:12am)

As I said, limiting appraisal ordering, they will give again power to AMCs... Sunset of HVCC in this case will do nothing...

Clulessdad: (June 24, 2010 9:07am)

Sunset of HVCC means that the GSE's can purchase loans without this provision. Lenders will continue with their AMC model of appraisal management. Why would they change? It is a profit center. Brokers provide the competitive key to appraiser compensation and portability. Lenders will just consider using their AMC as an overlay to do business with them.

5pence: (June 24, 2010 9:04am)

I'll wait for the final before I guess anymore, but with HVCC gone there is no structure except, it appears, that brokers can't order directly. Portability is a huge gain for the consumer and should be for us too.

Owl Tree: (June 24, 2010 9:00am)

5pence....I hope you're right. If anything, I applaud Kanjorski's efforts. He was the first guy that spoke in a manner that made me feel like anyone "gets it"...... Anything that protects the interests of the consumer usually parallels the interest of professional originators. So, if some consumer rights are built into the appraisal order/portability process, it could disembowel 99% of the harm Cuomo has inflicted on the industry.

5pence: (June 24, 2010 8:58am)

There is no specific language barring the homeowner from ordering the appraisal in the Senate bill or the House bill. Just that brokers can't in the Senate bill which I think Kanjorski accepted if they would accept mandatory portability of appraisals. Again, that's my take. I'd like to hear others opinions.

Owl Tree: (June 24, 2010 8:56am)

We'll need to wait to see the Senate response (currently in recess), and then hopefully they'll post up what the agreed text looks like. Unless Dodd is completely on the big bank's popsicle, portability should pass. Then, the matter becomes the structure of the ordering process...this is a huge issue for appraisers, originators, and consumers....But the Dark Ages of ordering multiple appraisals in order to give the customer the best approval appear to be over.

5pence: (June 24, 2010 8:53am)

I mean, why would he allow broker ordered to be removed without some reasonable alternative. I don't think he would. He was the one that entered the language about typical and usual fees for appraisers will be based on anything but AMC fees. He's 100% on the appraisers side. Hence my take. By opening the door for the broker he opened the door for the homeowner and by forcing portability he's in essence saying the banks will be getting competition. He's a smart guy, I wouldn't put what I've conjectured past him.

5pence: (June 24, 2010 8:47am)

Owl Tree : I didn't hear specifically that the homeowner can or can't order. But without the HVCC there is no reason for the homeowner to not be able to do the choosing of the appraiser. The original base text would allow brokers to order direct and noticeably, nothing is said about the consumer not being able to order the appraisal. By bringing in broker ordered he opened the door for homeowner ordered, is my opinion. Like I said, I'm just speculating on what I saw and heard.

cgappraisals: (June 24, 2010 8:43am)

Thats what I'm saying. If no HVCC, that stopped Brokers, LO etc... from ordering, then doesn't that mean they can order again unless it says somewhere else specifically.

GODLIKE: (June 24, 2010 8:41am)

I don't see how not letting the Brokers order helps us at all with HVCC. Of course if it allows us direct access to the appraiser and allows portability that's at least a beginning.

D-appraiser: (June 24, 2010 8:33am)

No brokers ordering = AMC power! Hopefully consumers or loan processors can order! No brokers ordering was the main issue of HVCC.....

cgappraisals: (June 24, 2010 8:32am)

If HVCC is gone, then who stopping Brokers, Agents or the consumer from ordering the appraisal. Fannie and Freddie has no recourse. There will be nothing that regulates the order system as I see it. If banks want to compete they will want to get the best appraisals again. Reviewers will have to be licensed, that will create alot of jobs. Just my take.

Owl Tree: (June 24, 2010 8:31am)

5pence....I heard the talk about portability, but didn't hear about customer-ordered provision...I've been juggling some work, so maybe I missed it. Did someone specifically state customer ordered, or is there language in the counter that was added?

5pence: (June 24, 2010 8:26am)

D-appraiser. Not sure, but that is what I got from the brief moments I saw. They didn't exactly clarify what was going on but Kanjorski did offer what appeared to be an alternative to the Senate counter offer of no broker ordered.

D-appraiser: (June 24, 2010 8:23am)

That's the final decision? Broker cannot order appraisals directly?

Bryan/MortgageFinanceGroup: (June 24, 2010 8:22am)

The tax credit should be scrapped - and never implemented in the first place (along with all the other wasteful govt. programs that just interfere with our "free" market: GSEs should be the first to go). For those of you who love the tax credit, you must also love the govt. wasting tax dollars as well (assuming most people here are in the top 50% that pay 97% of ALL federal taxes); feast your eyes on this: $30M claimed by and paid to people in prison. Good job people in charge of this program! http://money.cnn.com/2010/06/23/real_estate/money_stimulus_fraud/index.htm

5pence: (June 24, 2010 8:21am)

Thinking about it, striking broker ordered from the bill, this is a very smart viable alternative. Mr Kanjorski has always been on the appraisers side and the consumers. Hahahaa, customer order is a great alternative. The homeowner should be the client anyway imo. I hope I'm perceiving this right. Looks that way to me. Mr Kanjorski is not going to just drop broker ordered without a good alternative.

5pence: (June 24, 2010 8:16am)

We're both are good as gold if that's true. Give the customer a list and let them choose. Appraiser paid at the door.

Owl Tree: (June 24, 2010 8:11am)

If the consumer can order the appraisal, it represents a huge win. I'd prefer if responsibility for the appraisal rests between the consumer and the appraiser. I'd be happy to provide a list of referrals, but ultimately, if this passes to the customer, and if the report is portable, I'm as good as gold.

5pence: (June 24, 2010 8:00am)

It appears the House accepts the Senate offer on Title 14 that no brokers can directly order appraisals and the new counter offer to remove that section is that appraisals must be portable - which should help correspondent lenders. This is just what I heard and is not 100% guaranteed to be accurate. Damn, I wanted brokers to be able to order to enable competition for the banks. Will HVCC really be gone if brokers can't order directly? Well, wait, the consumer can order is my take. That might be very good. Anybody else?

Owl Tree: (June 24, 2010 7:57am)

http://www.c-span.org/Watch/C-SPAN3.aspx

Owl Tree: (June 24, 2010 7:56am)

Appraisal portability has been offered by the House....not sure about the broker-ordered language yet.

5pence: (June 24, 2010 7:50am)

It's just amazing to me that they would want any continuation of the same things that brought down the markets. Sure, the market got huge because of the tactics used, but it was an illusion. The market in reality hasn't changed, just the perception of it. Trying to legislate an illusion into actual existence for the financial benefits of the main players sounds like a great way to go - not. Sell the same debt over and over again. This country isn't the production powerhouse it used to be, so in place of actual production for growth and monetary gain, they're selling sliced and diced debt. Debt is the only thing left to trade here - it's our biggest export and we produce tons of it. Hey wait, look out guys - there's a cliff !

GODLIKE: (June 24, 2010 7:30am)

One way or the other I'd really like the tax credit and all talk of the tax credit to disappear. The day the tax credit ended the average credit score and money in the bank of my customers jumped to new highs. I hadn't seen a 80% LTV or an 800 credit score in so long I had begun to believe they didn't exist. Now come September I might be crying for a tax credit but right now I'm sick of it.

5pence: (June 24, 2010 7:29am)

The banks have concerns about the taxpayer getting off the hook for the continued bailouts of the GSE's. They'd have to make a real market???!! Ohhh no!! Anything but that!!

pazookie: (June 24, 2010 7:20am)

Sorry to be the rational, logic voice here but: Why should congress extend the tax credit? The tax credit was available for over a year... Should Tax payers really be empathetic to those who gambled & waited till the last minute to make an offer... they knew the risk... And I think we should uphold them to the risk they took with time.. Instead of continuing to pander, enable, and teach people how we love to 'hand out' for their lack of dutifulness.. Just saying.

GODLIKE: (June 24, 2010 7:19am)

Poorly underwritten loans? You mean loans underwritten to the CRA standards the Dems gave us back in 1999?

Owl Tree: (June 24, 2010 7:18am)

I've argued before that the GSE's need to be reformed, and since they are currently in conservatorship, now would be the rational time to create the "subprime" GSE that I spoke of in the past. Part of their mission could include a transfer of foreclosed properties unto their books. From there, a combination of modifications and/or tax credits could be applied to either keep people in their homes, or turn them into incentivized renters (i.e, modify their mortgage into a rent with purchase option, and apply a portion of their payments to an eventual repurchase price), or get investers to buy them up and get renters in there. But again, a firewall needs to be erected between distressed sales and non-distressed sales. As long as we deal with the bitches brew of HVCC and rampant foreclosures, the housing market will continue to suffer.

tbwbrian: (June 24, 2010 6:55am)

Hi Nate! I think we need everything we can do to move homes. Just 2 days ago Maxine Waters, during the finance reform committee meeting, said we have nearly 6 million reo's in shadow inventory. Keep our opinions of Maxine out, but I'm sure she's right. Any recovery we'll realize will begin with housing. Housing recovery truly begins by moving our inventory. All else is window dressing until that happens.

stantheman: (June 24, 2010 6:55am)

Anyone know if Title 14 will be covered on TV today.

5pence: (June 24, 2010 6:23am)

In case you guys don't know, quality underwriting for the TBTF's means outsourcing to box checkers in India. They have re-defined Scrooge

5pence: (June 24, 2010 6:21am)

Thanks Owl Tree and tkapp for the update. I'm tuned in - brokers shouldn't have to pay for the banks indiscretions

5pence: (June 24, 2010 6:14am)

The higher MIP is so that the banks don't have to do any real risk assessment or quality underwriting. To me, it's gouging the consumer needlessly. Just make the banks do their job of risk assessment and quality underwriting! But they won't as long as they don't have to create a real market with Fannie, Freddie and FHA and 96% of the retail mortgage market their captive players - all at the taxpayers expense. This is like the board game of monopoly for them, except it's real money being used.

GC: (June 24, 2010 6:05am)

Here in Washington, there is no such thing as a deadline to vote. They simply retroactively allow all eligible contracts to claim the credit up til whatever extension date they choose

Owl Tree: (June 24, 2010 5:58am)

Per the NAIHP website http://www.naihp.org/index.php?option=com_content&view=article&id=50&Itemid=55 "... HVCC: Yesterday, the House sent title 14, which included the HVCC sunset language to the Senate. Speaking for the Senate, Banking Committee Chair Chris Dodd accepted the offer with one exception. That exception was the removal of mortgage brokers from ordering appraisals. NAIHP has been working with the House to override the Senate objection. Final determination of this issue will occur on Thursday, June 24, 2010. NAIHP is confident of a positive outcome. ..." I'm lighting a candle.

Real Estate Nate: (June 24, 2010 5:44am)

I realize the current congress has a lack of accomplishments during the current session so the bar is set pretty low. However, if they can't even squeeze the extension of the closing deadline for the tax credit I now join many of my friends and colleagues who say we should vote out any incumbent! Making matters worse they pretended they would extend and that caused servicers and investors to slow down their decision process. These folks were on track to decide quickly on short sales but slacked off because they decided Congress would give them more time. Some of those deals will close anyway, but some will not. Don't we need all the sales we can get right now? Wasn't that the original point of the tax credit in the first place?

tkapp: (June 24, 2010 4:29am)

Final vote on Title 14 takes place today per naihp website. Naihp trying to get verbiage in that says mortgage brokers can order their own appraisals. We'll see what happens....

AustinLender: (June 24, 2010 3:53am)

does the "Prohibitions on steering incentives" verbaige in the new bill scare the (&**^%# out of anyone else but me...no one is really talking about it.

waynoo: (June 24, 2010 2:06am)

Ok, let's increase the FHA MIP 3,4,5,6% Now then just take it from the seller, becuse the buyer cannot qualify for the home loan if the home is XXX and then we add 4,5,6% we have to tell the seller, Bank, FNMA, VA, our buyer cannot afford the price because we had to add on the MIP, so Mr. Seller we need to reduce the sales price to match the LTV. We in the industry have no problem we just pass the extra tax on to the seller. Give us the rule book please, so we can play by your rules, and we will kick your axx. You will have to answer to the sellers when they whine and cry about the thousands you are taking from them Happy Nov. Glad it is coming fast!