Industry Tightens Down on Pregnant Women - 07.22.10
Today's Poll: Have you experienced difficulties with clients on paid maternity leave?
Yes
No
Rate this Program
Nuke 'em Until They Glow and Shoot them In the Dark: (July 24, 2010 7:18am)
I don't have problems with people who are pregnant or on ST disability because if they are not working even if they are getting paid. I mean c'mon in either case they could not return to work and the borrower no longer can make payments. I agree with the lenders in this depression ANYONE can lose their job ANYTIME!
gsuarez1: (July 23, 2010 7:32am)
Guys as your poll is indicating, the pregnancy thing shouldn't be an issue. My take on it is a lender is dancing with an ECOA violation to even think about this. If you have documentation that a job is being held open, and that the rate of pay will not change; then by not doing the loan you can open yourself up to civil suit!
gamecock phil: (July 23, 2010 4:57am)
why hasn't the hvcc law been terminated. what happend to the petition that we all signed last summer?
williamk2v: (July 22, 2010 11:27pm)
Congratulations to Katie and the proud Grandpa. From one Grandpa to another, you will love it.
5pence: (July 22, 2010 6:45pm)
Ever Had A Job? A chart that showed past presidents and the percentage of each president’s cabinet appointees who had previously worked in the private sector – you know, a real life business, not a government job? Remember what that is? A private business? •Roosevelt – 38% •Taft – 40% •Wilson – 52% •Harding – 49% •Coolidge – 48% •Hoover – 42% •FDR – 50% •Truman – 50% •Eisenhower – 57% •Kennedy – 30% •LBJ – 47% •Nixon – 53% •Ford – 42% •Carter – 32% •Reagan – 56% •GHWB – 51% •Clinton – 39% •GWB – 55% And the Chicken Dinner Winner is……………………. •Obama – 8%* This is the guy who wants to tell YOU how to run YOUR life! ONLY ONE IN TWELVE in the Obama Cabinet HAS EVER HAD A JOB. *YEP, EIGHT PERCENT! And these are the guys holding a “job summit”; going to tell us how to run our businesses, make our decisions for us? Do you want to trust them with every aspect of your life?
Owl Tree: (July 22, 2010 6:31pm)
Frank.....Congratulations on being a grandpa.
5pence: (July 22, 2010 5:43pm)
I'll say 1 thing, this new bill gives lawyers a lot of ammunition against HVCC and the bankster/amc monopoly/oligopoly with hefty fines.
dirtygreygoose: (July 22, 2010 3:58pm)
Congratulations Pa Pa on the new grand baby!!
goodrealtor: (July 22, 2010 2:18pm)
Hey guys, first time post...had to join the fracas. 1975.. buying first house, married less than one year...going FHA...LO told me could not use my employment as "it is not reliable income, since after all, you'll probably be pregnant in a year" Had to use my husbands alone, so we bought less house, less desireable area but Hey(she says tongue-in-cheek)at least today they are waiting till they're pregnant before they start to discriminate...!!
5pence: (July 22, 2010 1:29pm)
Good to hear divedude. It sounds like you're getting full fees. There must be a lot of competition out there! We need to stick to the median fees to stick it to the amcs's. Price fixing? Not with the amc's in play - people/clients always have a choice. Get what you pay for in experience and quality or get whatever the amc sends you.
5pence: (July 22, 2010 1:23pm)
$18 joe to make sure your appraisal is basically copywrited and the data not mined and you can keep your long term clients? I'd hardly call that onerous in this day and age. It's much better than paying an amc $250 for the privilege of doing their appraisal for $200 and having your data ripped/mined by appraisal port for an added $10 fee. Easy choice for me if I had to make one. Too bad my biggest client was WAMU lol - they be no more. Nothing to save there lol
Divedude: (July 22, 2010 1:19pm)
5Pence: The median fee for Hampden County, Massachusetts is $322 so we're close. Local banks pay $350. Joe Colorado: I don't know the specific agency to report apprisal pressure is but I hope it's not the IVPI.
5pence: (July 22, 2010 1:17pm)
APPRAISAL COMPLAINT NATIONAL HOTLINE.—If, 6 months after the date of the enactment of this subsection, the Appraisal Subcommittee determines that no national hotline exists to receive complaints of non-compliance with appraisal independence standards and USPAP, including complaints from appraisers, individuals, or other entities concerning the improper influencing or attempted improper influencing of appraisers or the appraisal process, the Subcommittee shall establish & operate such a hotline, which shall include a toll-free number & an email address. If the Subcommittee operates such a national hotline, the Subcommittee shall refer complaints for further action to appropriate governmental bodies, including a State appraiser agency, a financial institution regulator, or other appropriate legal authorities. For complaints referred to State appraiser board or to Fed regulators, Subcommittee shall have the authority to follow up complaint referrals, status & resolution of the complaint.
joecolorado: (July 22, 2010 1:03pm)
We already pay for the use of the web site included with the yearly appraisal program license fees,which includes web site usage as"premium"members.This is above and beyond that charge.
5pence: (July 22, 2010 12:50pm)
joecolorado : No, they charge for the use of their website. They don't rip data and they don't have anything to do with set fees. They are just a portal of convenience. They don't have anything in common with AMC's beyond comparing them to appraisal port for uploading reports (of course appraisal port rips all your data which Wintotal doesn't). If you want to consider them an amc you must consider that they are a minimal intrusion. They charge for their use, yes, but with them you can keep your clients and be HAVOC compliant. I don't use them but I see no harm with getting full fees and keeping your clients for a pittance. I think they charge $18 per report? And yearly maintenance fees... I don't use them so I don't know. Everyone that I've heard from that uses them loves the set up though. I think they have a great appraiser-friendly alternative until the HVCC is buried. And, 3rd party fees in the legislation I'm sure relates directly to what Dave compiled. All in all, it helps IMHO
joecolorado: (July 22, 2010 12:46pm)
Divedude:-who do you complain to when there is pressure so that the outside influence may be punished?
joecolorado: (July 22, 2010 12:43pm)
I trained 6 newbies in the past and now none are in the profession as the work is too sporadic, there is not enough money to be made, appraisers get blamed for everything,and the onus is on the appraiser to get all kinds of expensive insurance.I will not be taking on any more newbies and no one I know that still has an appraisal office will be taking on any new trainees.
5pence: (July 22, 2010 12:40pm)
cpappraisal - true. And having an office with trainees? Don't appraisers understand what's killing this profession is too many appraisers? Why would anyone want to add more appraisers??!! So they can be their competition and underbid them in less than 2 years and put them out of business? It doesn't make sense unless greed is the motivator - you know, profit now and worry about it later. Being an appraiser should be a sacred trust and not a way to quick profits. IMHO. Bono Vox - that's good that you do that, but, legislation says the more complicated the more the fees will change. Reasonable and customary has screwed this thing up so much. The only way that reasonable and customary standard fees would make sense is if all homes were the same. Of course they're not.
joecolorado: (July 22, 2010 12:39pm)
5pence-Alamode ARE an amc as they charge for the work offered.
cpappraisal: (July 22, 2010 12:33pm)
If you have to have a trainee follow you around you may as well do the appraisal yourself. I sure as heck wouldn't want to be a trainee now a days....
cpappraisal: (July 22, 2010 12:31pm)
Divedude-Sorry but $325 is still low. Those are 1980's rates....
Bono Vox: (July 22, 2010 12:17pm)
Appraisers, are there correspondent mortgage banks that would pay you better? Instead of using a management company, we hand out appraisals VA style, ie, appraiser 1 gets the first order, then appraiser 2, then appraiser 3. We pay $400 per appraisal. Trying to help.......
5pence: (July 22, 2010 11:38am)
Hey Divedude : How do those $325 fees fit in with the Wintotal median fees county by county across the US in your county? http://www.mercuryvmp.com/documents/Free_AFR_February_2010.pdf?ClickID=AFRDOWNLOAD&ClickThruEmail=&ClickThruCustomerNumber=0
5pence: (July 22, 2010 11:32am)
Hey AI members. How does it feel now that your President and institute has been caught in lying and subversive activities determental to the appraisal profession? Still have undying allegiance to these subversives? You should join the Appraisal Foundation as a member if you can. They are obviously the only ones that can tell the truth. Yes, I love that the AI has gotten their due. It's been a long time coming....
Divedude: (July 22, 2010 11:22am)
I wouldn't worry too much about being taken off the "Chase list". Due to the rates where they are, my office has been swamped for over a month and everyone pays $325+ including AMcs. Tell Chase to get with the program or go play. It's supply and demand. Where will they go? AVMs'? BPOs? I don't think so. By the way, the Dodd/Franks bill contains language that for any lender that pressures an appraiser for an inflated value is subject to a $10,000 fine. There's a new sherrif in town!!
5pence: (July 22, 2010 11:21am)
I believe AL and AR's (or CL and CR's certified in our state) are supposed to accompany trainees on every assignment. Too much of trainees doing inspections on their own so they decided to try to make sure only licensed and certified are there with the trainees. I don't have and haven't had trainees to add to the skippy appraiser population and competition. I think I trained 2 in 20 years lol. I'm still trying to figure out if homeowner ordered will still exist - pay at the door. Portability suggests it is and so far I've run across nothing that specifically denies that. I'm guessing, again, like broker ordered, it'll be up to the banks if they want to accept it or not. If true competiton for the TBTF's amc's does return, they're going to want the business from brokers and homeowners imo.
cpappraisal: (July 22, 2010 11:12am)
5pence-Something else that I noticed too in the bill is that AL's and AR's can only do appraisals, again if I read correctly. So how is it they expect for trainees to get their hours?
cpappraisal: (July 22, 2010 11:10am)
AI supports AMC's too which is soooooo against what any appraiser wants....
cpappraisal: (July 22, 2010 11:08am)
5pence-LOL...thanks for the clairification. Wanted to make sure I read it right. I saw that HVCC goes away but didn't see anything stating how appraisals were to be ordered after so this is good...I hope...
5pence: (July 22, 2010 11:07am)
Uhh ohh for the AI cult members - it appears the kool-aid has gone bad.
5pence: (July 22, 2010 11:04am)
It really makes one wonder that if the AI had anything at all to do with the new consumer protection bill, what exactly those efforts were aimed at. It appears the Foundation has a good handle on the "contributions" of these liars. Good for you Appraisal Foundation!! Can I join the Appraisal Foundation?
xskydryvr: (July 22, 2010 11:04am)
Congratulations Frank! If I'd known how much fun grandkids would be I would have skipped the kids all together...
5pence: (July 22, 2010 10:51am)
It appears the AI and it's Pres were trying to push through self-serving legislation. The AI said the legislation was a response to a Congressmans request but the Foundation knows and the AI later admits, there was no Congressional requests. Shame shame. "the proposed legislation was the apparent brainchild of the Institute and actively promoted as a means of limiting the activities of the organization it chooses to sponsor, namely, The Appraisal Foundation." and "there was no Congressional request to draft an amendment to restrict possible future educational endeavors of the Foundation." The AI is non-profit and working in the best interests of appraisers??!! Lying about Congressional requests & trying to slip in their own legislation into the new bill that had unanimous dissaproval without notifying the Foundation! I wish the SREP was still around. Big mistake joining those 2. The AI can't even stick to it's own Code of Conduct. They should disbanded as too big/corrupt to exist. JMHO
tjandt: (July 22, 2010 10:49am)
Congratulations Frank!
brendab: (July 22, 2010 10:43am)
to Godlike... you are an ASS. What a stupid comment to make. Pretty remarkable that you would find that appropriate.
5pence: (July 22, 2010 10:38am)
It appears the AI Pres, Mr Leslie Sellers, was involved in an inappropriate propaganda effort and lied to the Foundation. "on June 15, the Foundation’s Board of Trustees held a Special Meeting to consider evidence concerning conduct by the AI that might be viewed as materially and seriously prejudicial to the Foundation and that could result in the possible suspension, expulsion or other sanctioning of the AI" ..."Foundation’s Code of Conduct had been violated." ..."your letter omits a significant fact: by the time the proposed legislation – which was apparently created by the AI - came to the Board of Directors for consideration, it is undisputed that the proposed legislation had been actively promoted by the AI to other Sponsors of the Foundation for quite some time, and it was only following the rejection of the AI’s proposed legislation by those Sponsors, and an apparent unanimous lack of support the AI board decided not to move the proposal forward." (continued)
Anonymous: (July 22, 2010 10:37am)
5pence: (July 22, 2010 10:13am)
right cpappraisals: Accroding to an aide of Sen Kanjorski, the language leaves it open as to whether the banks accept broker ordered or not. They tried to make it mandatory that banks accept broker ordered but the Senate would not accept that. So, broker ordered is alive but it's up to the banks whether they will or will not accept them. I'm sorry that mandatory acceptance was not in there, but the door is open. So, brokers, find banks that will accept broker ordered and call me. ;^)
RPalmer: (July 22, 2010 10:12am)
The email exchange between the Appraisal Foundation to Leslie Sellers is available. If you advise where to send I can email it to you.
cpappraisal: (July 22, 2010 10:08am)
5pence-The Financial Reform Bill that was just signed says the HVCC will sunset. There is nothing in there stating that brokers can not order directly from appraisers again after the HVCC sunsets correct?
5pence: (July 22, 2010 9:56am)
mark: You can't sue them for paying too low and you can't sue or stop the appraiser from taking those low fees. Free enterprise. It's a take it or leave it. Oligopoly at work. They don't have to use you either. The balls in their court thanks to HVCC. In the court of the exact ones that committed the fraud with WAMU. Nothing like giving power and entitlement to criminals, but I guess that's the way Cuomo the putz, planned it. All you can do is refuse to work for their fees. I think they're lowering the fees the fees because they know what's coming. They want to drain as much money from appraisers and the system as they can before they have to pay reasonable and customary fees - $400+ in this area. 3rd party survey says so. Gawd the AMC's are worthless. Rewarded for being worthless. When is my check due? hahaahhah
5pence: (July 22, 2010 9:47am)
CONGRATULATIONS FRANK!! Grandpa, hahaaa. Suprising about the AI being suspended from the foundation. Maybe because the AI is supposed to be non-profit like the foundation and they haven't been? Maybe for their recent letter claiming how much effort they put into changes in the new consumer bill when no one, absolutely no one that mattered, stated the AI gave any input? Maybe because of them continuing to push AIReady? Maybe because they switched to lime cool-aid from grape? I'd be really interested to know why exactly. Great show again today guys. Congrats again Frank, I hope all are doing well.
Bono Vox: (July 22, 2010 9:40am)
Godlike - they are in Frisco. At least she was able to find a guy :-) Mat leave - 76% of people haven't had a problem with this? Does that mean only 24% have tried to do a maternity leave loan? I had two denied last year. You guys have been sexing up the site more lately: lots of Mabel (hubba hubba), some random gal on screen last week, and are those purple panties behind Brian's flip chart? Note: I'm not complaining. Brian, Google this "Romanian model political party"
mark: (July 22, 2010 9:36am)
Chase can demand you to take what they are willing to pay. If you do not "take it" you are removed from their list. Will someone sue Chase for this???
Divedude: (July 22, 2010 9:27am)
DO NOT allow Chase or any other bank tell you that $195 for an appraisal is customary and reasonable. Chase has always been low rent and this is just another example. Establish your fees where they should be and don't be swindled anymore. These cheap banks are the ones on the ropes now and announcing $195 fees makes them sound desparate.
monicamat: (July 22, 2010 9:23am)
Yes BOA and Chase consider it a "gap in employment"
Clulessdad: (July 22, 2010 9:19am)
Hey Frank-Congratulations! Hope Mom and son are doing fine. To all the gramppas out there, you know how special it is to continue the human race. That is what it is all about. The rest of the stuff everyday, albeit serious, is never as important as health and family.
5pence: (July 22, 2010 9:18am)
For those of you too busy doing $190 1004 appraisals with the MC - Here's is the WINTOTAL survey of what median appraisal fees around the country are - and it fits in with the guidelines of the new consumer bill. For instance, in my area the fee for a 1004 is $400 and does not include the 1004 MC, nor does it include typically higher FHA fees. Dave Biggers at Wintotal has been gracious enough to do this for free and provides updates on fee county by county across the US. The fees are based on use of their portal for ordering. TAVMA had a hissy-fit when they saw this and posted all over the internet that the fees quoted by Dave are not typical fees - that typical fees are what AMC's pay. The Government does not agree. If you are working for less than the fees quoted you are not only cutting your own throat, you're cutting the throat of this profession. Wise up. http://www.mercuryvmp.com/documents/Free_AFR_February_2010.pdf?ClickID=AFRDOWNLOAD&ClickThruEmail=&ClickThruCustomerNumber=0
ChrisSorensen: (July 22, 2010 8:59am)
If you want to increase your business, list more homes and help those who should not be attempting a modification to understand the benefits of a short sale. With more inventory, you’ll be able to help some of those buyers who are getting frustrated with being beaten out by investors or all cash buyers. Also, please call Sen. Durbin's office and other Senators and tell them you support Cram Down legislation. Yes it's back and this time we cannot let it die. We tried things the way the MBA suggested and we can see how well that worked. Let's use a stick to go along with the HAMP carrot and I assure all of you that the lenders will miraculously be able to now handle the volume. I just hung up with Will White in DC with Sen Merkley office and he agrees, we need this to speed this healing process up. He bought this up in a conf in DC on Monday. http://www.help.freehomeownershiphelp.org/?p=936
cgappraisals: (July 22, 2010 8:43am)
Like I've been saying for years, AI is only out for itself to make $ off Appraiser's. They want a Monopoly just like anyone. Thats why they got rid of considering designations for appraising back in 1989. And somehow in the new bill it was put back in. Gee, I wonder if AI had anything to do with that?
frankgaray: (July 22, 2010 8:43am)
Godlike - Judge not lest you be judged with the same judgment - I'm VERY proud, thank you.
joecolorado: (July 22, 2010 8:38am)
djohns-it will be very interesting to see if(i)you get a reply(ii)what the reply will state and (iii)if the reply is boilerplate.please keep us informed.
DJohns: (July 22, 2010 8:31am)
I just called the Appraisal Institute in attempt to get an answer as to why the organization was suspended as a sponsor of the Appraisal Foundation. They couldn't give me an answer and I was advised to submit all questions by email to [email protected].
llilredbaumer: (July 22, 2010 8:24am)
ps Congrats on the new addition ;)
llilredbaumer: (July 22, 2010 8:23am)
http://portal.hud.gov/portal/page/portal/HUDMobile/pressreleases/2010/HUDNo.10-158 I cant believe you just skimmed over this topic! Shame on you. Even refering to a woman that she is pregnant is illegal, let alone asking what her intentions are to determine aloss of income. Like my mother in law would say... "Sue the bastards!"
joecolorado: (July 22, 2010 8:10am)
here's a thought, when the fee gets to be too low....just say no!BUT how low does it have to get before you stop accepting fees below your worth?dont forget its YOU who decides what your worth is,not someone else,when the banks reduce the appraisal fee,they obviously dont consider you to be worth that,so let them go somewhere else.If you think for a second that the fee reduction is going to stop going down,you are dreaming.Stop this madness now by rejecting fees that are below your worth.
Evil Genius: (July 22, 2010 8:08am)
And Grandpa Frankie, you're a little young for that aren't you. Congratulations to you and yours. Now let's go stabilize the economy starting with the mortgage industry for the little fella!
Evil Genius: (July 22, 2010 8:05am)
wstsidemtg: my feedback about Fannie/Freddie is that they need to completelt split off non-performing loans from the portfolio and handle them separately. If there is any hope for long term survival (and I hope there is not) then all of the tightened U/W guides need to be in place for more then 2 years. In order for them to become viable again they need to provide cash flow consistently, otherwise the securitization methods (dicing notes into little bitty pieces) cannot sustain the credit cycle. Make safe long term loans that pay off consistently and my God, reduce debt. Any way you look at it private institutional investors (the same ones that lost big on Fannie) need to bring sideline dollars back into play. The system needs to be set up differently then Fannie/Freddie. The Government as usual is saying one thing and doing another. It's ultimately the People's money. We need new architecture.
joe: (July 22, 2010 8:02am)
@Frank & Katie: So happy for all of you! The Grandpa Gig is far more awesome than you could ever imagine.
mark: (July 22, 2010 8:01am)
Jordan - I hope you are right. The consumer will pitch a fit when they see that the cost of the appraisal report will increase $200 for an AMC to get paid for pressing a button.
joe: (July 22, 2010 8:01am)
@Godlike: That comment was so out of line, I am almost at a loss for words. Are you proud of yourself, you sanctimonious twit?
kevinrahill: (July 22, 2010 7:55am)
Congratulations Katie! Congratulations Grandpa.
jordan: (July 22, 2010 7:53am)
Mark - dont get me wrong, I don't hink that the money will be taken away from the banks. I do think that htis will cause the fees charged to the borrower to increase. The banks will always make THEIR money. Also, the language indicated that the research to determine what is reasonable and customary would not include what is paid by AMCs. and I am sure that fees outside of what AMCs pay is much higher.
jordan: (July 22, 2010 7:52am)
Mark - dont get me wrong, I don't hink that the money will be taken away from the banks. I do think that htis will cause the fees charged to the borrower to increase. The banks will always make THEIR money. Also, the language indicated that the research to determine what is reasonable and customary would not include what is paid by AMCs. and I am sure that fees outside of what AMCs pay is much higher.
hillhse: (July 22, 2010 7:49am)
I can see lenders not wanting to consider the paid maternity leave as income. I have known several cases where the woman took the leave had the baby then went back to work for a few days and quit because she wanted to be home with the baby. They just did not quit earlier and pass up all the free money. This is a quite common practice from what I have seen. So, just because she is getting paid now it doesn’t guarantee that she will continue receiving an income.
hillhse: (July 22, 2010 7:48am)
I can see lenders not wanting to consider the paid maternity leave as income. I have known several cases where the woman took the leave had the baby then went back to work for a few days and quit because she wanted to be home with the baby. They just did not quit earlier and pass up all the free money. This is a quite common practice from what I have seen. So, just because she is getting paid now it doesn’t guarantee that she will continue receiving an income.
cpappraisal: (July 22, 2010 7:47am)
tlc-GOOD FOR YOU!!! It is people like you who will make the difference and stop this BS. I have stopped doing appraisals all together and got another job outside of the industry because I also refuse to do an appraisal for any less than $350 as with out licensing fees, CE fees, E&O fees and database fees I can't make a living off of $200 an appraisal....good for you...
mark: (July 22, 2010 7:42am)
Jordan - until the AMC's - sorry - the BANKS are taken out of the picture, no fair compensation will be paid. You are now going to take money away from the BANKS and they will not allow that. They will use the information from the previous year showing that 198 is fair and that is what everyone is being paid. You all need to start building report showing your compensation PRIOR to the HVCC and AMC take over and compare it to after and show what you have been stripped of.
mark: (July 22, 2010 7:39am)
Godlike - man, that was uncalled for.
jordan: (July 22, 2010 7:38am)
Have you guys heard of the language in the new financial reform bill that the Pres signed yesterday? The appraiser is to be paid "reasonable and customary fees" "to be determined by an indipendent third party and not include what AMCs pay. This should help a lot of appraisers.
tlc: (July 22, 2010 7:29am)
LI Appraiser - Chase is paying a whopping $198 in CA - why are you losing out on the $3?? haha. Actually not a laughing matter. I have turned down at least a dozen appraisals over the past month because the jackwipes are such scumbags. I certainly could use the money but I would rather live in my truck and starve than accept such a rediculously low fee. Not only the aerial photo from google, but cut and paste your CMA into the report. Why not just give them the CMA and tell them "DO IT YOURSELF!!!"
mark: (July 22, 2010 7:29am)
Liappraiser - I have heard the same. Chase is looking to increase their bottom line through their AMC's. In my appraisal orders, I have required that the appraiser include a statement which states their actual compensation. They initially stated that they would not comply but when I pushed and provided explicit documentation that if they did not provide it they were in violation of Federal Law and the have their attorney call me, they relented. Last time I was told, I'm the client and you, the AMC, are to comply with my requests. AMC's are getting anywhere from 170 at a minimum to over 200 for each order while the aprpaiser gets screwed. I have said it before - every appraiser should be including a statement of their compensation in the report regardless. This builds the case for underpayment and not being compensated at a fair level. I have forwarded my information to NAIHP with HUD's, appraisals and AMC invoices. Everyone, please do the same.
cpappraisal: (July 22, 2010 7:17am)
Guys???? Financial Reform Bill was signed yesterday. No info to report on that???
wstsidemtg: (July 22, 2010 7:09am)
Hi Guys- Very Informative information. I have a question regarding FNMA/FHLMC Guides: Why are they continuing to tighten guidelines when the vintage loans over the last 2 years' (i.e. full doc) have been stellar? I would think that all this serves to do is push home prices down even further, pushing their legacy asset values lower (the ones still on their books), and actually furthering the decline in home prices. The Obama administration states that it is trying to get banks to lend, however Freddie and Fannie (which are govt. entities) seem to be taking the opposite tact. This makes no sense to me.....would like to hear your feedback?
wstsidemtg: (July 22, 2010 7:08am)
Hi Guys- Very Informative information. I have a question regarding FNMA/FHLMC Guides: Why are they continuing to tighten guidelines when the vintage loans over the last 2 years' (i.e. full doc) have been stellar? I would think that all this serves to do is push home prices down even further, pushing their legacy asset values lower (the ones still on their books), and actually furthering the decline in home prices. The Obama administration states that it is trying to get banks to lend, however Freddie and Fannie (which are govt. entities) seem to be taking the opposite tact. This makes no sense to me.....would like to hear your feedback?
GODLIKE: (July 22, 2010 7:06am)
Katie and her BOYFRIEND? You must be sooo proud.
LIAPPRAISER: (July 22, 2010 6:46am)
Was just informed by Chase management company that they have decided to reduce appraiser fees in my area. The fee for a conventional appraisal has been reduced from $225 to $195. They also want Aeriel photos and a list of all comps in the area included in the report. I know from mortgage brokers in my area that they are charging the clients 375-500 per appraisal. I feel like I should be peddling myself on a street corner.
CornerstoneKathy: (July 22, 2010 6:43am)
CONGRATULATIONS!! I hope Katie and baby are doing well!
dloader: (July 22, 2010 6:25am)
Practically speaking: if a family has maternity leave, they don't have the income - does that come into play for family leave for illness too? Congratulations Frank, nothing more amazing that a grandbaby, I think it is why we have children so we can wait for that moment.
jordan: (July 22, 2010 6:17am)
Dreamcatcher - Yes, that is probably the appropriate way to handle seller concessions. Each market is different, so I can't say for sure. The appraiser, for refinance and purchases, is using a definition of value that is based on Cash Equivalency meaning that the value on the report is what the subject should sell for to a buyer with cash, no concessions/special financing needed. So when you apply this Cash Equivalency to the comparables used, you have to ask if that comparable would have sold for the same price with and without the concessions. Often, typical concessions have little to no effect on what the seller would take for the house. But when you start getting into 6% of the purchase price,it most likely will require an adjustment. I hope this helps!
SHIRLKRICH: (July 22, 2010 5:54am)
If it is paid maternity leave and there is no disruption in income, I suggest that the borrower call the ACLU and speak with them about the possibility of discrimination. Enough is enough!
DreamCatcher: (July 22, 2010 5:41am)
Good Morning Guys. I need some help in finding standard practices with relation to seller assist and property valuation. I have a situation right now where an appraiser is making downward adjustments to comparable sales for the seller assist. If this is a standard practice, then a $200K house bought with an FHA loan with 3.5% down and a 6% seller assist is a bad loan. The way my appraiser has addressed that sale is to take $12K (6% seller assist)right off the top before making any other adjustments, meaning that the base value on that home was really $188K. And by my reasoning, that would mean that the lender who wrote that loan is upside down by $5K (not including the financed MIP). This appears to me to be causing values to spiral downward. Do we not pay the transfer on $200K? Is $200K not the contract price? is this a standard practice? (I do mostly purchase loans and this was a refinance) Can you help me with an answer?
McKinneyTexas: (July 22, 2010 4:37am)
have you done a piece on retirees being unable to qualify for mortgages? I've had several close calls this year with people about to retire or just retired. I have a retiree with good pension who is putting off looking for a home until he has six months of history with his post retirement job. At the moment he doesn't qualify.
Divedude: (July 22, 2010 4:24am)
Hey guys! What about the Financial Reform Bill signing yesterday? This means reasonable & customary appraisal fees!! HVCC going away!! When consumers realize they foot the bill for AMCs, AMCs will go away!! When Cuomo is exposed for the HVCC scam that he played on the industry, he will go away!! Naaaaaaa!