Video Marketing and Mortgage News Designed for Mortgage and Real Estate Sales

5pence: (March 15, 2010 10:38am)

Check out the link, it's from last Friday and is an offical Government document. The guy was there and talked with Senators including Kanjorski. Joe you're an enlightened appraiser after my own heart. too many just follow norms and refuse to think that outside the box may be where the solutions are.

Spearo: (March 15, 2010 10:29am)

5pence- According to naihp's posting last week, the most current version which made it to the Senate had the HVCC amendment removed. Whatever the case, I answered the "Call to Action" from their site last week. Pretty easy-just did a copy/paste of my personal letter to my senators (emailed & faxed). This week I'm doing the same to the Senate Banking Committee. I guess if the language is in or out out the Bill, at least it's a good backup. Go to:http://www.naihp.org/calltoaction.html

joecolorado: (March 15, 2010 10:28am)

5pence, I know you are correct and the method IS to adjust for excessive concessions as they NEED to be accommodated if they are atypical,no matter what the U/writer states or believes,If they have a problem with the adjusted value,they have the ability to reduce or increase the appraised value in their system,giving their reasons for the difference in value.Let them take the hit for their beliefs.If they have the courage of their convictions let them make the changes statistically at their end.I dont let U/writers dictate my appraisal.If I have not conformed to guidelines I will explain my reasoning,but to allow an U/Writer to tell you the value of a property is professional suicide.

joecolorado: (March 15, 2010 10:20am)

CPappraisals-I wouldnt stop there but continue complaining/reporting with the State,I would also complain to the MLS system as THEY need to be aware that the Realtors are entering incorrect/incomplete information which is then displayed on their system.Remember it's the squeeky wheel.Unfortunately,the guy that bitches a lot gets the system corrected.

5pence: (March 15, 2010 10:19am)

joecolorado : I was talking about adjusting excessive seller concessions to the comparables, not just adjusting the comparables seller concession. I know, no one believes that works and it actually gets laughed at by those that think the market is perfect including the brains at the ASB and every appraisal organization. I say the market isn't perfect and appraisers certainly aren't perfect so the best way to adjust for these imperfections is to make sure excessive seller concessions are taken care of at the time of sale as the appraiser has the purchase and sales agreement right there and absolutely knows what the excessive concessions are. But, maybe I'm ahead of my time. At one time they laughed at Ron Paul too and now look, everyone wants to audit the Fed and I personally want to get rid of it. Times will catch up and logic will reign sooner or later.

5pence: (March 15, 2010 10:13am)

Clulessdad: Sounds like Cool Hand Luke lol. "Is your mind right yet?" hahahaaa . My mind is right boss, my mind is right! lol

cpappraisals: (March 15, 2010 10:03am)

I paid through PayPal and it has actually been the only one that I paid into and I had a bad feeling after. I wonder if I can dispute it with PayPal...

cpappraisals: (March 15, 2010 10:01am)

joecolorado-My only answer is that relators here in CA are lazy. I have reported a few to the DRE for reporting false or missing information but seemed to have fallen on deaf ears so I just document it on my reports to cover my butt. Now that FHA has addressed the issue I may start to report it again and maybe something will happen. You should see some the MLS listings here in CA. Shotty at best with the info.

5pence: (March 15, 2010 10:01am)

I guess I need to remind you brokers again, the Fed left $4 trillion with the Treasury on Chirstmas Eve to continue buying MBS's. The Fed is not exiting if they're leaving that kind of money with the treasury.

5pence: (March 15, 2010 9:57am)

Sorry to hear that cpappraisals. That's why you have to be careful of all the new "join me and I'll save us" posters that pop up. There's already a ton out there and some are running scams. Not saying you are steve, but *hit happens.

5pence: (March 15, 2010 9:55am)

It's being sunsetted because the HVCC is illegal and they know it. After it's sunsetted it's going to vetted/researched by different agencies to determine if it harms the consumer and business and if any of it is salvageable. We know it hurts consumers and business.

cpappraisals: (March 15, 2010 9:54am)

5pence-I know and I am bummed because I donated $10 to his cause and $10 is a lot of money to me now adays....

5pence: (March 15, 2010 9:52am)

real-estate-steve: You might be mistaken about sunsetting of the HVCC. Here is a link to the latest bill that a poster, that was at the capital and talked to Senators and bankers last week, said was the HR 4173 copy as of last Friday. It's clearly in there. http://poconodirect.com/2010/H-R-4173.pdf

Clulessdad: (March 15, 2010 9:41am)

First West-I am busy also. I liken it to having a pile of dirt and a shovel. I am busy moving the pile of dirt 5 feet to the right. Then I move it 5 feet to the left. I am working real hard, busy as heck, and not accomplishing anything. LOL

joecolorado: (March 15, 2010 9:40am)

or should I just take off these rose tinted spectacles?

joecolorado: (March 15, 2010 9:39am)

All of the politicians cant be stupid,surely there is at least one out there that realizes the gravity of the situation?

joecolorado: (March 15, 2010 9:38am)

I guess that in CO I am lucky as the Realtor is mandated to report all the salient financial facts on the sale.If they dont and refuse to respond to enquiries,the State gets VERY interested and investigates the complaint immediately.If they find the Realtor deficient a fine is levied and the Realtor is sanctioned which is then reported on the license data on the State's web site for all to see.(public information)

BrokerSteveO: (March 15, 2010 9:35am)

I have been tracking FED MBS purchasing (see below) looking for a potential rate spike ahead of their Q110 exit. With the FED having to “down-shift” on the volume of MBS purchasing, the end of Q1 2010 looks a bit scary unless the private MBS investors hit the Nitrous Oxide switch and push the “pedal to the metal." I don't think we'll see this as I believe there is a real and justifiable fear that housing has not stabilized, employment and corporate top line revenue numbers still lag, and/or post stimulus inflation potentially driving standard passbook savings rates above current fixed MBS returns. Leave the light on for the FED, they'll be back! http://docs.Steven-Anthony.com/FedMBSpurchases.pdf (3 pages)

joecolorado: (March 15, 2010 9:34am)

Dont the Realtors realize the reality of the situation? Does the State regulatory agency not require that information to be presented?

joecolorado: (March 15, 2010 9:32am)

I am at a loss as to why a Realtor would withold information about a sale, as its in their best interest to help the appraiser as much as possible.(we ARE on the same side after all)The sale or purchase of a home at some point may be dependent on whether the appraiser can report the facts correctly,subsequently the Realtor would want information from other Realtors to be correct and details verified.Is there any response to the protest in DC from anyone,I want to go,but hopefully anything organized wont be between 14th-26th June as I wont be in the country.ANY detail available is a great help, anyone?

cpappraisals: (March 15, 2010 9:31am)

joecolorado-I hardly ever get a response from the agents when I call them on the concessions but believe me I do notate it every time on every comp. the agents name and that I got no response on the concessions question. What happens after that I don't know. Haven't ever got a response from underwriting on it.

cpappraisals: (March 15, 2010 9:27am)

The agents here in SoCal rarely list the concessions. Once in a blue moon do I see it on the listing and it is frustraiting because I know there is a concession on almost every sale. Especially the REO's...

joecolorado: (March 15, 2010 9:25am)

If the concessions are not reported in the MLS,it doesnt preclude you from calling the Realtor involved and asking.Thats your job as an appraiser.If they don't or won't profer the information, put THAT in your report,with the realtor's name. If the financial details are hidden,wait until the deed is recorded before using that comp & get details at that point.I know that makes it difficult,no one (with a brain)said our job was easy,but think about the ramifications if you ignore a concession and you get reported.Appraising in non disclosure states must be VERY difficult,I am lucky in Colorado,I know,but sometimes our details are sketchy and then I try & look for another comp.My exclusions and reservations would be 10 pages long if I was in a non disclosure state to try and cover my proverbial.

sus92691: (March 15, 2010 9:24am)

MortgageScribe - you are Correct..GREAT 60 minutes spot last night....I've been trying to add a comment about HVCC..but have not figured out how to do it...CBS 60 minutes...might be interested in investigating HVCC... I suggest everyone add a post on CBS 60 minutes... Contact all your Rep's about HR 4137....

joecolorado: (March 15, 2010 9:15am)

5pence-concessions are ALWAYS considered.If they are typical for the market they are considered but may not be adjusted,as the comp prices may reflect the concession.If there is only 1 comp with concessions that is adjusted on a $ for $ basis(some do, some dont, I do)Where there are concession with no uniformity, the excess of "typical" is adjusted.If the subject has concessions the excess or deficiency is adjusted. U/Writers do not understand or wont accept that concept.(I dont know which)My appraisals ALWAYS accommodate the concessions,ALWAYS,I dont care whether the U/Writer accepts it or not,I adjust and let THEM make a decision on what to do to accommodate their guidelines,thats not my job.I just report the market and if there are concessions they are reported.

real_estate_steve: (March 15, 2010 9:14am)

Link for Kill HVCC with Teeth - http://www.ipetitions.com/petition/kill_hvcc/

real_estate_steve: (March 15, 2010 9:12am)

For those that think that HVCC will Sunset, think again, what follows is a report from Washington DC last week. Please sign the Petition with Teeth – KILL HVCC with a Legal Fund, please sign or donate or both!!! Tim Brown from Waxman's Committee just called me an told me that the Kill HVCC clause from HR 3126 carried over to HR 4137, which passed the house and is now in the Senate did contain the Stop HVCC clause. But, on further review of the Discussion Draft of the Senates response to HR 4137 DOES NOT Contain the Kill HVCC clause. Although, Waxman will push for it to be included, you all have to write and call your respective Senators to make sure the HVCC clause is included in the Final Draft in the new Financial Reform Bill that the Senators are working on right now amidst, Health Care and Immigration Reform.

miller1: (March 15, 2010 9:11am)

check the MLS and they must put the concessions each sales. In MLS MERD in Il and IN GNIAR put the concessions.

cpappraisals: (March 15, 2010 9:04am)

5pence-This is the problem that I have had with concessions. It can not be verified. The agents don't put it on the MLS. At least not here in SoCal and I try to call the agents but 9 times out of 10 don't get a respons so until the agents are required to list this information it makes it hard to adjust for the concessions. I would love to be able to adjust for it and it is vital that we do but unless we can get that information verified we can't. I always just put unknown.

5pence: (March 15, 2010 8:53am)

FHA seller concessions should remain at 6% but too many appraisers don't adjust for those concessions, meaning you'll have a market going up 6% a year. 3% seller concession would/should keep values rising at 3% a year. Excessive seller concessions were a big part of the meltdown. I've tried to get appraisers to adjust for the excessive seller concessions in the market approach to the comparables as a sort of market test of whether the concession is excessive or not, and I get laughed at. They think the market is perfect and seller concessions do not affect market value, I call HUGE BS on that one. Stevens is right, until appraisers come up with a way to adjust for excessive seller concessions (it really isn't that hard and I've illustrated, when asked, that it works) we need to hold down speculation to 3% a year. Raising the insurance is the way to go rather than a larger down payment. Good show today guys. I'm going to try to see you in Seattle

Broker in RIC: (March 15, 2010 8:21am)

I agree completely with Nuke em till they glow's statement. We need 1 unified voice.

FirstWest: (March 15, 2010 7:27am)

This is the busiest I have been.. Am I the only one?

FirstWest: (March 15, 2010 7:26am)

This is the busiest I have beer benn. With the most escrows I ever had open at any time ever! Am I the only one?

Nuke 'em Until They Glow and Shoot them In the Dark: (March 15, 2010 7:26am)

RE: NAMB - Better to have one BIG group than to have lots of little groups. As you said speaking in one unified voice is what's needed. Let the State orgs merge into NAMB and reduce fees to joing I might actually join.

Noel Cookman: (March 15, 2010 6:22am)

We need a NAMB rep that will give congress a Morgan Freeman style performance (from "Lean on Me") - stand on the table and give 'em "what for." The present leaderss are too reticent. Look where "nice" has gotten us.

St Pauly Girl: (March 15, 2010 5:42am)

Anyone know why no NAMB representation on certain state levels? I'm in MN. Very sad our industry isn't holding a united front during these times.

Real Estate Nate: (March 15, 2010 5:33am)

Withdrawing from the MBS market will ultimately have an effect - even if it hasn't been appreciable. 6.25% won't hurt entry level buyers (if there are any left after April 30th) but it will further stymie the mid market, which is currently stagnant. Sounds like more 300K+ short sales for HAFA to try and sort out. On the FHA front, I wonder if the change to 3% seller paid CC will have that much effect? I would love to have a crystal ball to know how many buyers we'll have after June 30th.

MortgageScribe: (March 15, 2010 5:16am)

Three things... 1. The Fed has been withdrawing from the MBS market for 3 months now with less purchases and rates haven't risen yet. Will be interesting to see what happens. 2. FHA needs to keep 3.5% down payment and 6% seller concession. A drop to a 3% concession will also hinder the housing recovery. 3. GREAT 60 Minutes spot last night on TV with Michael Lewis. Lewis is a best selling author and former wall-streeter. His new book, The Big Short is all about our industry, the insiders, the rating agencies and who knew about it. Great Stuff.

oinkboy: (March 15, 2010 4:54am)

It's too bad that several states have no representation in the NAMB, but don't you think the better solution would be telling the government to stop micro-regulating our business? Does Bloomingdales have to post its profit (ysp) on every garment it sells? It's only the real estate busines and real estate finance business that are subjected to these special "consumer protections." I'd rather do away with the need for representation. Maybe we could pretend we have a nation of adults who can make their own decisions, and that fraud is already against the law.