We're walkin on sunshine over here - 11.08.10 | Vincent K. Mohr : First Priority Financial, Inc. : Fairfield, CA

Approved Mortgage Banker: (November 09, 2010 6:19am)

Al Capone: Born of an immigrant family in Brooklyn, New York in 1899, Al Capone quit school after the sixth grade and associated with a notorious street gang, becoming accepted as a member. Johnny Torrio was the street gang leader and among the other members was Lucky Luciano, who would later attain his own notoriety. About 1920, at Torrio's invitation, Capone joined Torrio in Chicago where he had become an influential lieutenant in the Colosimo mob. The rackets spawned by enactment of the Prohibition Amendment, illegal brewing, distilling and distribution of beer and liquor, were viewed as "growth industries." Torrio, abetted by Al Capone, intended to take full advantage of opportunities. The mob also developed interests in legitimate businesses in the cleaning and dyeing field and cultivated influence with receptive public officials, labor unions, and employees' associations. Torrio soon succeeded to full leadership of the gang with the violent demise of Big Jim Colosimo, and Capone gained experience and expertise as his strong right arm. In 1925, Capone became boss when Torrio, seriously wounded in an assassination attempt, surrendered control and retired to

gordeal59: (November 09, 2010 5:50am)

HI guys, good show, Al Capone was from Chicago!

Ezradams: (November 08, 2010 1:50pm)

Brian, Frank....I'm trying to take control by getting direct lenders to order appraisals directly and not use AMC's. You can help (you know what I'm talking about here). Dan

GODLIKE: (November 08, 2010 1:50pm)

Brian & Frank thanx for today's video. I incorporated some of your happy, happy, feel good in my Realtor/Builder flyer for the week.

GODLIKE: (November 08, 2010 1:49pm)

Appraisers I feel for you, but mentally I've crossed you off. I don't feel you will be part of the real estate process for long. They've gone so far down this road it would take common sense to change things and we know how common that is in an elected official.

Owl Tree: (November 08, 2010 12:09pm)

Now that the Republicans have regained control of the House, an opening may exist to revisit HVCC.

Owl Tree: (November 08, 2010 12:08pm)

Appraisers: your only remaining option, to regain true independence, is to file a class action lawsuit. You need to make the case that the regulations in place make it impossible to operate your business. In short, they should either invalidate appraisal licenses, or else strike down the existing regulations that prohibit a licensed appraiser from working with the general public.

5pence: (November 08, 2010 11:46am)

I know that much of what I'm posting could be considered totally off-topic, but all these concerns we have are tied together in the corrupt policies of our government and the Federal Reserve. If you might be interested, hear Sen. Ron Paul's moving "What if" speech in the Senate 2/12/09. http://www.youtube.com/watch?v=4s_IUwwGq-A&feature=related

5pence: (November 08, 2010 11:30am)

You might want to watch this "Sobering Warning" from 2/2010. This guy is a genius and ahead of his time, he wanted to end the Fed 30 years ago. http://www.youtube.com/watch?v=q21n6EeHbIY&feature=related

5pence: (November 08, 2010 11:24am)

The fraud committed by the giant banks-including mortgage fraud, "encouraging appraisal fraud", fraud representing the soundness of mortgages packaged, ratings & accounting frauds. As long as they can continue their fraudulent activity unimpeded, well guess what, we're all going to pay for it in more ways than in just through taxpayer monies. Goodbye appraisers, goodbye brokers and sooner or later, goodbye realtors. There is just no concern for the consumer. The new Consumer Protection Bill does nothing to address fraud. FK!

5pence: (November 08, 2010 11:09am)

They were so hot and heavy into making profits they ignored the basic principles of recording to make the deeds legal, and then they ignored it again in selling CDO's. The note must travel with the assignment - so simple. Greed does strange things to people. BTW, this is an even better animation from Taiwan. Funny, they're a half a world away and they grt it but our leaders here don't. http://www.youtube.com/watch?v=RwetW1B3J8A&feature=player_embedded

5pence: (November 08, 2010 10:51am)

carefree jackie - blame the amc's, regulators and the banks. The amc's for their total ineptitude in the process telling appraisers what needs to be done because they chose the cheapest appraiser they can find, and the regulators for insisting that all loans go through bank owned amc's. Blame the banks for preferring easy to manipulate appraisers over experience. Blame HUD and collusion with amc's in identifying "value depressed areas" and amc's insisting the appraisal reflect this blanket assessment. @Bryan that is truly unfair. Maybe 1 person in 10,000 is like that person - maybe. So punish 9,999 people because of 1 person gaming the system? Efficiency says go after the perpetrators of the frauds - there's many of those. To punish all for the mistakes of the few is wrong. That person is a deadbeat? LOL. The banks wouldn't exist without taxpayer funds. If anybody is a deadbeat - it's the banks on the taxpayers dole. They can't even foreclose legally, that's how screwed up they are.

carefree jackie: (November 08, 2010 10:42am)

@joecolorado: You bet I reported the dingbat appraiser to the state (appraisal board in our state). Also, I did an entirely relevant "Comparatiave Market Analysis" for the credit union (lender), in addition to doing a point by point breakdown of the inaccuracies of the appraisal, which I also sent to the State. (My buyer got her loan without putting down any additional money.) Her purchase: $400,000, appraisal - $342,000. She had seen all other comps and knew she was buying an excellent property at a fair price. There are good appraisers here. I use one 20+ year veteran for my clients for estate purposes, or whenever I can. This guy also reports "bullsh..t" to the proper folks. So, Joe, I completely and totally agree with you. Thanks for your reply.

JMA: (November 08, 2010 10:37am)

While Al Capone was originally from NY, His mob activities were based in Chicago.

sus92691: (November 08, 2010 10:33am)

5pence...my point exactly...it Fraud...does not matter what political party....as long as Wall Street & the Big Banks have control....we are in trouble.

Bryan/MortgageFinanceGroup: (November 08, 2010 10:17am)

Perhaps this will help: http://www.youtube.com/watch?v=9Aq6k1MsxLQ&feature=related

joecolorado: (November 08, 2010 10:16am)

@carefree jackie:having been told by reputable appraisers they've been told to bring the appraisals in low,what did you do?The appraisers you confide in shouldn't be influenced by anyone if they are reputable,so if THEY have been told by amcs to lowball a property,the very first thing a reputable appraiser should do is reject the appraisal request as THAT IS EXTERNAL INFLUENCE. The second thing they should do is to report the offending party to the State licensing boards. DONT ignore this crap,HVCC and amc's are not going to go away 'cos you ignored it,it'll get worse.Do something other than complain about bad appraisals,report the offending party,its really easy,just pick up a pen and paper and write to the State licensing board or AG..

joecolorado: (November 08, 2010 10:09am)

@Vintage RE Broker:you are preaching to the converted.WE are not the problem,until you report the bad appraisals to the State for their scrutiny and punishment YOU are the problem.We ALL want to get rid of these cowboys from our midst,but until people like you(who have received a problem appraisal)report the appraiser to the State the"problem"persists.So dont go blaming all of the appraisers for the quality of one or two rinkydink amc appraisers,spend five minutes,write a letter to the STATE and complain to THEM.That is what they are paid to do,and tell them why you consider the report to be bogus,dont just cow about the appraiser.If its an appraiser with geographic incompetency TELL THEM,if its just bad appraising TELL THEM.They are just sitting on their butts right now waiting to get paid so give them something to do to earn their money.We appraisers dont get to see or review other appraisals anymore,but you do,so use that power and anger and help get this problem fixed.

carefree jackie: (November 08, 2010 10:03am)

con't from previous: ... I truly believe we would have become stabilized 18 months ago, if it were NOT for the crappy appraisals. We would not have seen the strategic defaults, and continuing devaluation of our prices. Also, I've been told by reputable appraisers they've been told to bring the appraisals in low. One of mine used ONLY REO's and short sales, when in fact there were non-distressed sales in the immediate neighborhood, which he didn't use. Not all appraisals are garbage, the bad ones really do affect our recovery. Anyone know what's happened to HB 6218?

carefree jackie: (November 08, 2010 9:59am)

to VintageBroker: Amen. Numerous contracts in Carefree, Arizona have failed due to incompetent appraisers, seriously impeding our recovery. Examples: 1)home under contract at $1.3, appraisal was $900,000 ~ sale failed; 2) home under contract at $600,000, appraisal was $450,000 ~ sale failed. The appraiser refused to give any valuation differentiation for a total renovation, including new roof, HVAC, exterior and interior paint, new WINDOWS, Viking appliance, SubZero, Slab granite in kitchen and both baths, etc. You get the picture. I've been showing my buyers ALL reasonably comparable homes in the neighborhood before going to contract, as well as taking them past sold homes to explain the features of those homes. If the appraisal comes in low, the buyer will appreciate the difference. I tell them the horror stories in advance, so they're not shocked when it happens to them. (I've been lucky, on 2 crappy appraisals my buyers made up the cash difference.) I truly believe ... con't

5pence: (November 08, 2010 9:40am)

This is all ignored by our leader??!! Crazy. I have no respect for a leader that ignores bank fraud, rewards the perpetrators of said fraud & then blames "we the people", in essence, stealing our inalienable rights so that corporate fraud might proliferate & a perfection of these same frauds could become SOP-against the will of the people. The highest office is not the place to play at politics. It comes with a moral obligation to defend the will of the people. He takes the Nobel Prize & then expands the Afghanistan war! What kind of person does that? Is there no shame? Apparently not. He's just another shrub-another Bush. Pre-emptive war, killing of US citizens and then holds the banks completely immune for their continued frauds at the taxpayers expense. FYI: Obama administration's "presidential assassination program," whereby American citizens are targeted for killings far away from any battlefield, based exclusively on unchecked accusations of terrorist involvement. What's next?

5pence: (November 08, 2010 9:21am)

Saturday, November 6, 2010. Even Greenspan Admits that Moral Hazard and Fraud are the Main Problems Even Alan Greenspan is confirming what William Black, James Galbraith, Joseph Stiglitz, George Akerlof and many other economists and financial experts have been saying for a long time: the economy cannot recover if fraud is not prosecuted and if the big banks know that government will bail them out every time they get in trouble. Specifically, Greenspan said today in a panel discussion at a Fed conference in Jekyll Island, Georgia (where the plans to form the Fed were originally hatched):Banks operated with less capital because of an assumption they would be rescued by the government, he said. Lehman Brothers Holdings Inc. wouldn’t have failed with adequate capital. “Rampant fraud” was also an issue. The fraud committed by the giant banks-including mortgage fraud, encouraging appraisal fraud, fraud representing the soundness of mortgages packaged, ratings & accounting frauds.

5pence: (November 08, 2010 9:04am)

More on William Black : "William K. Black thinks President Obama didn't acknowledge a key component in the financial crisis that the bills before Congress won't address — fraud. A former regulator who helped crack down on massive fraud during the savings and loan crisis in the 1980s, Black tells Bill Moyers on THE JOURNAL that, despite evidence of fraud at the top banks, prosecutions seem far away. "If you go back to the savings and loan debacle, we got more than a thousand felony convictions of the elite. These are not, you know, tellers or something. We today have zero convictions, zero indictments, zero arrests of any of the elite, non-prime lenders that, through their fraud, drove this crisis."

Smokin10: (November 08, 2010 8:56am)

Al Capone was from Chicago Guys!

5pence: (November 08, 2010 8:49am)

sus92691: How is it legal? It isn't - it's fraud. But, according to William Black, the leading investigator and prosecutor during the S & L crisis, Here's why : "the FBI has continued its "partnership" with the Mortgage Bankers Association (MBA). The MBA is the trade association of the "perps." It created a ridiculous on its face definition of "mortgage fraud." Under that definition the lenders -- who led the mortgage frauds -- are the victims. The FBI still parrots this long discredited "definition." That is one of the primary reasons why -- in complete contrast to prior financial crises -- the Justice Department has not convicted a single senior officer of the large nonprime lenders who directed, committed, and profited enormously from the frauds". See, this inalienable right to be immune from blame used to be the right of "we the people" but thanks to Obama who blamed "we the people" for the meltdown, he assisted and enabled this crazy definition that put banks above prosecution.

larryw: (November 08, 2010 8:45am)

I could use some help understanding something. I understand a lender's right to add underwriting "overlays" but I am not sure why they do it? As just one example: If FNMA will buy a loan with a borrower that has 10 properties, why do so many lenders refuse to lend when the borrower has 5 or more?

Vintage RE Broker: (November 08, 2010 8:43am)

Appraisers - let's get a grip!!! Just because it's within a mile doesn't make it a good comp. Urban neighborhoods change drasticly within a matter of blocks. Comps in lesser quality neighborhoods or next to major arterials must be adjusted for their inferior location. If you don't know and understand a neighborhood, you should politely bow out and not do the appraisal. You have incredible power to affect lives and housing markets. That needs to be taken far more seriously. I am a managing broker of a RE firm that's been the mainstay of our neighborhood for the past 25 years. The last two appraisals to come across my desk were absolute trash, and one crashed the deal due to pure incompetence. If you feel that you're underpaid, go do something else. You're responsibility to do a quality job hasn't changed just because your paycheck has.

sus92691: (November 08, 2010 8:39am)

The Nov "The Niche Report" has a Great Article by "Martin Andelman" explaining "Securitization" in easy to understand terms. Step 1 - is where the "a company that Originated Loans, Identifies which loans it wants to REMOVE from it Balance Sheet, Creates a Pool of these Loans - "Reference Portfolio". They then Set-up a Separate Company with the Special Purpose called an "SIV"..not found on any Financial Statements....to buy the loans they want off their books.... Now I'm not the "Sharpest" Appraiser in the Room..but I do remember a couple of other books written over the last several years ..that also talked about this same "Policy/Practice".... So explain to me HOW it is THAT THIS IS LEGAL...and that NOT ONE WORD of this is MENTIONED in the DOD/FRANK Financial Reform Bill.... & Are these not the SAME Financial Institutes that WE BAILED OUT.... Cause & Effect......Wall Street & the Banks win no matter what...while the rest of us are just "Pons" in their Chess Game

joecolorado: (November 08, 2010 8:28am)

write letters to the borrowers and inform them if the bill remains unpaid,that legal advice will be taken,let the borrowers complain to the broker who will complain to the amc AND the investor.Dont just sit there and be bullied by these morons,If ypu got the jobs through AlaMode,complain to them,get them involved as its their software that was used and you probably paid to get that job,be procative,get all of the people involved in the system included and activated,but be prepared for the s**tstorm that may follow.You probably wont get work from that amc anymore, but then again you arent getting paid by them anyway,so its no big loss.

joecolorado: (November 08, 2010 8:20am)

PropOne-report the amc to your State licensing authority,when the time comes for them to be licensed,they will already have a black mark against their name and believe me,licensing for amcs is coming as the State can get fees from them.If they have a problem paying the State will help stop that pretty quick.Talk to your State AG and ask his/her opinion also.I would also speak with the IRS and ask them for some advice,when the amc learns that the IRS is involved their attitude will change.BUT most importantly,dont do any more work for them until they pay their bill and tell them why!

PropOneApprsl: (November 08, 2010 8:13am)

In the mean time.... I have a management company that owes me $2,500 duckets. Some of my fees are 3 months old. My question is this. Who do management companies answer to? Who can I bring this to the attention of?

joecolorado: (November 08, 2010 7:30am)

some of us are not missing the message and have gone out and adapted to the situation,other appraisers will also adapt when they see that the amc trap is not the only avenue out there to making a living,even if you do work for amcs,why would you work for anything less than your worth?stick to your guns and tell them what YOUR FEE is,remember they came to you to offer you work,that means they are looking for an appraiser in that area and they WILL pay your fee,just stick to it and dont cave in.There is a lot of work out there for appraisers ypu just have to find it. BonoVox gave a couple of PRIME leads,take the offer and go out and market yourself to clients that really want to work with you for your worth.

Bono Vox: (November 08, 2010 7:23am)

APPRAISERS - YOU'RE MISSING THE MESSAGE - YOU CAN TAKE CONTROL!!!! Today, call 10 small to midsized mortgage banks. Ask them if they use an AMC or a panel from which to order their appraisal. Call 10 listing agents. Ask them if they ever order appraisals for their clients in order to show their clients the reality of the market. DO THE SAME THING TOMORROW! You guys should be cashing in on refis, you just have to find the right partners. Our Mtg Bank is paying $365 - 390 per appraisal! There have to be other companies like us out there!

JUSTFRANK101: (November 08, 2010 7:07am)

joecolorado

jerry: (November 08, 2010 6:47am)

OK Where is my TBWS 3X shirt as promised at TAMP Convention in Austin, TX? Thanks, Jerry

joecolorado: (November 08, 2010 6:41am)

Appraisers dont need amc's to survive.There is a stack of work out there just go and find it,adapt to the situation,If you sell out to amc's then you werent that much in demand anyway if that is your only resource.Dont kill the messenger for the upbeat video,just get up off your ass,stop whining and find the work that you feel will pay commensurate with your worth.dont settle for anything less.

JUSTFRANK101: (November 08, 2010 6:22am)

Oh and nice uplifting show if I was a Lender or Broker as far as being an Appraiser all I can do is wait to be hand fed table scraps. The private work is swarmed by starving Appraisers willing to do work for lawyers at half or less fee than in 2006 it is no longer worth the effort. Hey but what the heck this is America land of the Free as long as you are not a US Citizen

JUSTFRANK101: (November 08, 2010 6:18am)

THE NEW GUILDLINES SUCK JUST AS BAD AS THE HVCC WE ALL GOT SCREWED - NO UNION, NO COALITION, NO ASSOCIATION ACCOMPLISHED ANYTHING - THE APPRAISER CONTINUES TO BE SCREWED.

JUSTFRANK101: (November 08, 2010 6:17am)

THE PUBLIC SUFFERS ANYTIME A THIRD PARTY ENTERS A PAID SERVICE OPERATION.

JUSTFRANK101: (November 08, 2010 6:14am)

FORCING AN APPRAISER TO WORK FOR AN AMC IS WRONG!

PropOneApprsl: (November 08, 2010 5:25am)

In regard to AMC's lets not forget how we also must chase our slashed fees because they rarely pay on time. They over charge the borrower. Pay us a minimum fee. Expect the report in 24 hours with every conceivable request they can think of. What exactly was this DOD bill supposed to accomplish? It would be nice if our industry could expose these parasites for what they are getting away with. Having said that however, I must say a few AMCs are fair and are good to work with...... Very few though

tdwonne: (November 08, 2010 5:21am)

I just love your show guys. Even though Al Capone did grow up in New York, It is Chicago(Cicero), IL. was "His Town" , and were he is best remembered for adding a new twist on a Valentine's day celebration thttp://en.wikipedia.org/wiki/Al_Capone

FLappraiser: (November 08, 2010 5:10am)

Frank & Brian, Your show appears to be directed to loan officers and realtors. I am an appraiser and really enjoy and look forward to the information you put out daily. I'm quite sure there are many appraisers that watch your show daily and I'm sure you are aware that appraisers are in a very different boat. Since Cuomo brought about the big change and brokers are pretty much out of it, or at least the way it was, how are appraisers to advertise like we did in the past? Sign up with the all the pimps (amc's) out there and be willing to work twice as much for less than half. Hardly an option in my mind! Give us some hints on how to market OUR professional skills. Realtors and loan officers can still chase the ambulance, so to speak. Appraisers have been tied to the fence and we have to wait for the meat wagon to come to us, only to find out what they carry is rancid. Thanks,

rogera: (November 08, 2010 5:08am)

Realist I hope you dont put to much faith in our former Governor. I thnk he might be just a little paranoid.

Frank Garay: (November 08, 2010 4:30am)

Chicago? You could be right... You get the point. Have a killer day... d'oh!

jimbob: (November 08, 2010 4:25am)

Isnt Al Capone from Chicago not NY

Realist 1: (November 08, 2010 2:33am)

Walking on Sunshine? Are the banksters walking on sunshine? Here is IMO the best video clip ever put together about the whole thing: http://www.youtube.com/watch?v=AvaGbb6PNbI