BetterAppraisers

More Than A Dream

If I can turn back time...
everyday thought, right?
I suppose we are all just-a-like.

But if I could:
I would take back every fight.

Listen to you more,
and try to answer your heart right.

Cry, just a little more;
be true to your heart`s patience;
and believe in us more when I write.

"But I cannot turn back time.
I like this fact, Alocasia.
Love will not exist if this was so"

I can apologize for what I did not know.

I can look forward to the future,
and cherish you and I, watching us grow.

I can promise to love you with all my soul.

I can live with your love,
and do what my heart is told...


Larry Benjamin Brossette
Copyright ©2009

CENLA:

Volume is down, listings are to high, sale prices have dipped in half (for selected locations) and others have slightly dipped, but other locations are less volitle. The bottom isn't here yet. The more inner city and it's suburbs are a leading indicator. The towns scattered out in Rapides Parish and in neighboring parishes are a lagging indicator.

The news paper here ran a story about how the market didn't bust. They spoke too soon. The media and strategist are trying to trick behavior in believing something before the bottom hits.

Louisiana is a lagging indicator, in general. CENLA is Louisiana's regional, lagging, indicator.

The MC's do not detect this. The MC's, currently, are made wrong. The MC's are missing two types of analyses. The MC doesn't conform to Appraisal studies and USPAP completely. The MC is only 50% complete. The lending industry obviously built another poor analysis thrown down the throats of Appraisers. What a shame; the lending industry is pathetic - dictating the market (supply and demand) with silly forms. The lending industry is stupid! The Independent Appraiser is smart and they care. The lending industry doesn't care.

Can't buy a home at th ebottom of the market as of today. Good timing is important. Being at the right place at the right time is 25% luck. In a imperfect world, luck does a play a role, in my eyes. I'll have to wait to see what happens. I do have credit...

...The NAR has won.

They and the Mortgage bankers have convinced the nation that "undervaluation" is epidemic and appraisers are to blame. The facts don't jive with reality but ....it is the new reality that the man with the most spin is the one bound to win. Welcome to your new world, scumbag and fellow appraisers....

The above is a quote from Terrel Shields (Independent Real Estate APpraiser).

I completely agree; however, I would say that they are winning (not won). They are winning because they are doing what they do best - SELL! And, they have sold many stupid, incompetent, unethical, and uninformed Appraisers, as well as, the general public.

NAMB is doing the same thing, except they aren't as good as selling as the NAR and aren't as powerful. The Real Estate Appraisers who feel as though Appraisers aren't fighting and they see NAR getting publicity as being a champion, automatically want to jumo on their bandwagon. Is it because they feel like NAR and NAMB is fighting for them? Probably so, but, there are a lot of Appraisers who the days of false booming to conitnue so they can make pennie son the dollar (poor business decision). How can sales people rmotely know or care about what an Appraiser knows and does? They don't! The have their own agenda and if that agenda means allying themselves with a basic Appraiser problem, then so be it. They will absolutely throw the Appraiser under the bus after all said is done. I feel sorry for Appraisers who truly think NAMBand NAR is own their side I do, I feel sorry for them. Being ignorant in style isn't easy

Thank you Mr. Terrel Shields for the post. The market has been collapsing. That's economic behavior, Monies are being burned up, values are dropping due to fraud and a false boom. It is what it is and people really should concern themselves about the current state of the economy and exactly why the current state is so helpless. Istead of complaining, they can Independent Appraisers how to fix the problem...

Below is a post or quote from a fed up Real Estate Appraiser:


...I recently updated a profile with an AMC that I had not received work from in over two years. I received an order today for the wrong product, of course. The owner was angry because he paid for this Appraisal 3 weeks ago and it had not been done. He said that he had paid quite a bit for the Appraisal.

Despite my better judgment, I asked how much he paid for the appraisal. $750!!!!!!!!!!!!!!!!!!!!!! What the………….

This is wrong in so many ways.

I am close to tears. If the AMC monitors this website, so be it. Forget YOU ~ Posted by Joe Booth

AMC's pay less than 50% to inexperienced and incompetent Appraiser and even honest Appraisers. AMC's data mine and seel it back through AVM'S TO THE PUBLIC AT THE SAM EPRICE AND CALL IT AN APPRAISAL. AMC's also ousource this data overseas. AVM's is one of the tool sused to attempt to centralize a market that cannot be centrlized. However the market can be monopolized. AMC's want cgeap data with margin.

I guess the bet is on growth. I think some would call that luck, but, I think it's skill

AOL radio at CBS rocks! Check it out...(tons of stations, rating system, skip button, etc...it's really good).

Sincerely,

http://www.nytimes.com/2009/08/19/busin ... nted=1&hp=

The above link is a New York Times Article.

Below are paragraphs; the beginning of each paragraph is the writer's reporting; the latter part of the paragraph is my commentary.

1.) A basement with five feet of water was found by an Independent Appraiser.

The mortgage broker asked the Independent Appraiser to ignore the water and, assume ably value the property high (in essence, just pretend this time so we can all get paid). I’ve had a mortgage broker tell me one time: Come on, throw some magic dust on it, so WE can all get paid. First of all, the Appraiser gets paid no matter the Appraised value. Magic dust must mean, ‘pretend something isn’t there’ or we all won’t get paid.

2.) Brokers, real estate agents and banks asked Appraisers to do a lot of pretending during the housing boom, pumping up values while ignoring defects.

It’s true! A lot of Appraisers did that. Obviously; it contributed. Inflation is bad when it can’t be accounted for, however, it’s worse than just ‘bad’ when inflation can’t be accounted for and market intervention is necessary for the correction of the market. Inflation was and, is terrible, because market value has been lost. It’s like inflation creating its own inflation (similar; robots building their own kind). What goes up must come down, right? Well, yeah, in many areas or locations (deflation creating its own deflation is terrible, too). When mad scientists set out to create a monster, they unintentionally create monsters they didn’t intend to create. Appraisers did the same thing as everyone else involved, creating monsters! Appraisers trained inept human capital and the inept human capital trained more inept Appraisers. Mortgage Brokers, Bankers, Realtors (a.k.a. sales people), Appraisal Management Companies and the government created monsters that created monsters; all the monsters got together and decided to collude; now, the monsters are more centralized. Remember, land is immovable, and all under land that’s affixed is immovable. Let’s all just pretend that immovable assets can be centralized

3.) On May 1st, a sweeping change took effect that was meant to reduce the conflicts of interest in home Appraisals while safeguarding the Independence of the people who do them.

Imagine that! Anything written to propose such a thing would look like pink elephants and leprechauns. Ha! Ha! The Independent Real Estate Appraiser and main street buyer/sellers are taking the biggest hit.

Typical owners of homes can’t get a fair market value and the Independent Appraiser can’t get real clients and improve the economy. Here is a good example of an economic gauge: If this sweeping change doesn’t improve the economy, then this particular market intervention was a failure. Improving the economy means improving the Independent Real Estate Appraiser. It’s almost like a ‘duh’ moment for many people after they’ve read so many stories about how the economy got so bad, when you listen to someone say: The Independent Real estate Appraiser is the one who reads and interprets the Real Estate Market.

The Real Estate Market is an immovable; it logically cannot be centralized nationally or by state. By region – NO! By economic neighborhood boundaries decided by the Independent Real Estate Appraiser – kind of, but, not really.

One reason conventional loans or packages cannot be sold to investors dwelling in the secondary market and beyond, is because mortgage brokers and Realtors black listed, blackmailed, threatened, and pressured too many Appraisers (monsters ended up playing with other monsters behind everyone’s back). Appraisers started looking for that type of stimulation in return. Everyone involved in the process started looking for some type of financial stimulation (like a drug addict looking around for its next high). Rings were formed to sell and buy their own financial stimulus; they are called Appraisal Management Companies.

Government, Banks and Management Companies sold out and cut the strings from under Realtors, Mortgage Brokers, and Main Street. Yeah, Appraisers are left because there’s market behavior implying they do not have complete trust. In a bad economy, everyone becomes a critic. This is bad timing for the Government, Banks, and Management Companies. They are the new bad guys whose curtain call is in waiting. The Independent Appraiser saw this coming a decade ago! This is why the Independent Appraiser is still in the game, playing the fences, along with main street. The Independent Appraiser is advocating for an Independent Economy. It’s too late, there needs to be a physical, external, intervention by the appropriate human capital. The appropriate human capital is the Real Estate Appraiser. The name Appraisal Management Company offensive and promotes economic slavery. Economic slavery is enslaved human capital. Only a monster would enslave human capital to centralize the impossible. I have an idea, let’s all just put our tail behind our backside and pretend!

Now, Realtors and mortgage brokerage monsters are in an uproar because the top three left them out. An equal share of the pie is no longer an option. The economy would be completely helpless if it wasn’t for the Independent Appraiser and Main Street. Both, the Independent Appraiser and Main Street is the part of the same pie that has been chewed on (and now attempting to be sold completely to the top three) for so many years/decades. Until Appraisers start fighting back in larger numbers and Main Street starts demanding more truth, the system will stay broken, no matter if the right answer is under everyone’s nose. I say, it’s good timing for Main Street and the Independent Appraiser. The level of soreness of the economy will depend on how long the answer takes to set in (in other words, how many ‘duh’ moments a group or two will actually have until the answer sets in).

It seems like, through all the comment periods, there is a three way race. The Independent Appraiser really doesn’t know yet if they are to join forces with Main Street (Main Street the same thing), the Realtors and Mortgage Brokers have FHA, and then there are the big dogs- top three! Everyone has a stake in it now; who wants it the most or should good timing take precedent? I think it’s a little bit of both. Good timing is like dominos, though! Ten Thousand Independent Appraisers and Main Street can double in a hurry and make this a real game, a two way race. For the, entertain-able, look at this way, it’s a real live monopoly game; controlled by real life socio-economic behavior

The economy doesn’t need new technology. The economy needs new rules! The economy also needs Independence, and, that should come first, because logically, new rules wouldn’t happen unless an Independent Economy takes a strong hold and an Independent Appraiser to measure the market. Keeping track of an economy/market place this size, then it better be measured for intelligence to evolve (human capital to evolve – become more valuable). An Independent Economy would slowly subdue the fraud, release angst, and end another type of slavery, as well as, having more confidence amongst a free society. Good unintended consequences have already been proven in a free country. The economy, as a whole, has been abused, but, when the Real Estate Market was abused by monsters, the economy really felt it; the timing belt has definitely been broken from the machine.

The parts of the HVCC that does not promote an Independent Economy should be taken out. First of all, an Independent Economy would not let them be sold by a bunch of monsters. Trickery shouldn’t be allowed; open and being understood contributes. The Independent Appraiser being sold as something they aren’t should be abolished. Eliminate AMC’s all together and declare them a firewall – they hall be named “Firewall” so long as it exists; their entire operation will persist that they are only a firewall. Appraisals are confidential, a middle man should not be entitled, only a firewall which would be an ethical passage of transferring Interpretation of markets to the rightful client in an “as-is-forever” condition. Without a, hands off – eyes off, approach, insider trading may occur. Middle men with different uses, can easily manipulate the market. And, it’s temptation due to the fact they are owned by big banks (mostly), they review them, their name isn’t on the report as the client, they essentially can evolve to detail them to their liking. Idle hands on confidential things can cause damage.

I think the above is a good start. And by not letting Realtors and mortgage brokers get their claws on the Appraisal profession, eliminate the rule for FHA loans. Firewall everyone or Firewall the trouble makers/monsters with a sincere review process, or let the Main Street consumer have the bigger hand so long as they know the truth. The HVCC isn’t too bad; it just needs more Independence in it. I think Independent Appraisers and Main Street should pull the “chance card”.

4.) Brokers and real estate agents can no longer order Appraisals. Lenders now control the entire process.

Well, pretty good anticipated assessment, but, FHA rules currently imply that MB’s can pick their own Appraiser. This is a good match for the top three because; in essence they are in control, even if it really is a three way race at the moment. It’s a comparison between their performances. Which one will out-perform the other? The Independent Appraiser and Main Street is sitting last, waiting for an opportunity. Opportunity costs: therefore, if it costs the Independent Appraiser and Main Street too much to effectively act on the opportunity to move up in the race, then that opportunity produced decreasing returns. Good timing is like dominos, though - an injection of an economic vitamin. I’m starting to think there is positive and negative timing, too. I supposed negative timing would indicate a manipulated market, I think I guessed right. Betting on volatility is a good idea, in my eyes. Of course there’s a hope that the HVCC won’t dissolve too fast or even grow too fast. There needs to be volatility among the top three and a less correlating volatile behavior among the rest. The less volatile group would have to rely on a domino effect (good timing). I think there is volatility among the top-three, as of today, in my eyes. There is always a chance for a losing moment, however.

5.) The Home Valuation Code is setting off a bitter battle.

The economy and how it got here is the real bitterness. Unfortunately, a fix is being the object causing denial. How did the HVCC get here - Because the monsters played behind everyone’s back with no enforcement? In a nutshell, human capital has been enslaved. Everyone wants the old days back except the top three and Independent Appraisers. Mortgage brokers and Realtors want the old way back - as well as, Main Street on the account they don’t know the full truth/debt is bad for market behavior. Several problems exist and one fix can contribute to another problem. One word: Independent! There is a fix. In an Independent Nation, there should be an Independent economy based on principles and not fairy tales. The Independent Appraiser speaks on behalf of an Independent economy.

6.) The agents, maintaining that changes are effectively blocking home sales by encouraging the use of inexperienced Appraisers, are asking Washington to suspend the code until 2011.

I wonder how many Realtors voted for “change” in the last election. So many mistakes are being portrayed; it’s becoming endless within the eye of the Independent Appraiser. What the agents claim is just part of the angst they feel. Instead of relying on experienced incompetence and unethical Appraisers, they now accuse inexperienced and inept for existing home sales. Basically, they blame similarities of the past for the current state of existing home sales/and or values. Doesn’t make sense to me, must not be too logical. It seems ironic, to tell you the truth. That’s an ignorant statement to make on behalf of an organization like the National Association of Realtors (NAR). By avoiding sincere “Independent” measurements and interpretation, the market will continue on the path of sickness and wickedness. Sales people want a sale now! Sales people include Mortgage Brokers, Realtors, and Loan officers (big banks!), etc..Don’t be sold for pennies on a dollar nor join forces with groups of professionals who will sell you for pennies on a dollar. The Real Estate Appraiser isn’t supposed to have any interest in the asset they are reporting because they are unbiased professionals in theory. If real estate market professionals respected the Appraiser more, the economy wouldn’t have felt such a harsh landing. The real change or effect would be an Independent economy and multiple Independent Appraisers employed to do their job. The HVCC can be a declaration of that Independence, but, as of right now, the top three are slowly claiming ownership. It must stop! Suspending the code may allow a fast paced dissolving mechanism that would interrupt the timing for the Independent Economy. Allowing a vote to edit it, while selling an Independent Economy at the same time would produce a get out of jail free card; remember, there is a three way race and the Independent economy is dead last. If Independent Appraiser and Main Street do not align themselves, timing will be disrupted. The code is “as-is” does undermines the entire economy, not just the profession.

7.) We’ve been begging for years for enforcement of existing state and federal laws regulating Appraising, said Mr. Kennedy, a leader in the Appraisal community.

At least a decade, Appraisers have been screaming! The code is putting ethical Appraisers out of business, because if that were to be false, the economy would start seeing some type of advancement (confidence). No enforcement on economic criminals shows lack of interest. Now, it’s a big deal! The top three wasn’t counting on a big deal; this helps with volatility the Independent Appraiser and Main Street needs.

8.) Financial change is one of the most contentious issues in Washington, and efforts to fix even widely acknowledged problems seem stalled.

Stalling the inevitable (in theory) is a no-no! Bad! The fix is under their noses. They know it. They are being pressured to fix now and they are stalling. The longer the economy stall, the top three wins. Opportunity does cost. Manipulating several mechanisms in the economy can cause a great opportunity to cost too much. Is it harder to adopt change or is it harder to adopt what is right?

9.) The real estate industry is incredibly complex, said Josh Denney, a lobbyist with the Mortgage Bankers Association.

Very complex indeed - this is another shot at stalling what is right. The lending industry has tinkered with Appraisals and Appraisers for a very long time. Being part of the Appraisal profession for a decade, reading a Mortgage Banker’s statements about tinkering with one piece can cause problems to the entire market, annoys me. It’s appears to be a simple answer for a difficult question. I always try to hope that sincerity will win in the end.

10.) The Home Valuation Code of Conduct had an unusual origin

(laughing) oh, I know! I hope it has an unusual ending. If something appears legal, that doesn’t mean it’s economical to do so. Therefore, it may not be at its highest and best use. I support the Dodd/Crowley IVPI Proposal.

11.) Putting Appraisals completely in the hands of lenders may sound like a good idea in principle, because it supposed to be lenders who are putting their money at risk in a home loan.

logically many can’t concur due to many states being lien theory states. The borrower takes on risk in which they aren’t aware of. They have an obligation to pay back monies in the future. If the borrower fails, then the bank fails. If the bank fails, borrowers who took the risk will fail. A ripple will occur. Banks sell money. Banks are financial salespeople. In order for monies to move in the real estate market, a false boom must be created. Risk took on a whole new meaning. By law, lenders and their agents (MB’s and LO’s) were already in charge of selecting Appraisers with regard to being the client. No, it doesn’t seem like a good idea at all. More power isn’t the answer, for sure. Now it’s not the monies at risk, it’s the economy at risk. Risk rate is very high. It’s Vegas risky; they may as well be pulling the trigger on a dollar machine in a casino with their last three dollar. Not good odds.

12.) But the reality is that many companies that write home loans these days do not have much incentive to worry about the accuracy of Appraisals.

Well, dealing with sales people who sell money, has a lot to do with it. Investors can buy into that. Knowingly investing in a false boom would be considered insider trading. Giving savvy investors who break the rules a break isn’t reasonable. Investors having a national data base of values can easily control supply and demand by breaking simple rules and raising a particular bar (the De Minimis). Something happened! There is too much advancement by the top three. I think timing the market is different than controlling the timing.

13.) The code is a formula for continued problems with fraud, said David Callahan, a senior fellow with the public policy group demos who has studied Appraisals. Appraisers have been asking for a long time a reliable firewall between themselves and lenders, and are further from it than ever.

I agree, but don’t become an expert overnight, (or you’ll turn into skippy Davey Boy! - Thanks for the paragraph, it says, “Duhhh”). However, don’t rush to judgment; timing has a funny way of sneaking up on you. Plan A, B, and C stands. Attempting to be Independent, one will always consider back up plans and sometimes, the group or person attempting to sacrifice for Independence will not give up. Mr. Kennedy also said, “Its skill”. A Mr. Stone, an Independent Real Estate Appraiser and leader said, “It’s time to re-think market behavior”. The execution for the highest and best use for the problem needs both!

14.) Before Real Estate prices went out of control, the Appraisal work was straightforward.

That’s subjective. I say, the market was studied more and, during several false booms that evolution of education/mentorship was crippled. Monsters created monsters. Mad scientists are out there and they are real.

15.) As lending standards collapsed during the housing boom Appraisers were pressured from all sides.

I think it started with offerings and temptations, and then pressure set in. Appraisers created monsters to assist/on behalf. Economic slavery went into overdrive behind the scenes. Let me remind you of the single most ‘duh’ moment that may pop up from time to time: The Real Estate Appraiser is the unbiased professional who measures, analyzes, and interprets the real estate market. Whoever controls the Real Estate Appraiser can ultimately manipulate an economy. Only enslaving the human capital that reads and interprets the real estate market can a person or entity control an economy as powerful as the United States. Pressuring the Appraiser can cause any false number to fly. The Independent Appraiser isn’t worthless; they are part of the solution – and economic vitamin. The lending industry wants to throw up pictures and claim the Independent Appraiser unreliable. Propaganda has assisted in these troubles. The Independent Appraiser doesn’t want to just fix their profession, they want to fix the economy and create a friendly, competitive, positive, and competent, due diligent, confident market place. Pressure creates obstacles for Main Street. Main Street is a victim. Real, Real Estate Appraisers wan to help and protect, but they feel fear that no one will listen or care. They've basically been beat down, and fighting off monsters their peers helped create. Main Street was sold, as well as, Real Estate Appraisers and Appraisals.

Where was I?

I'll get back to speed once I finish ths Appraisal I'm working on. I have a lot to say and little time to do so.

Sincerely,

...GSEs Address Independence, AMCs, HVCC at Valuation 2009

As part of a panel discussion at Valuation Expo 2009, Jacqueline Doty, director of collateral policy at Freddie Mac, and Robert Murphy, senior business manager, enterprise risk management at Fannie Mae, presented their agency updates on the impact of the Home Valuation Code of Conduct, appraisal management companies and appraiser independence.

Doty reiterated comments made last month and earlier this month regarding the fact that her agency had received complaints about appraiser independence prior to the implementation of the HVCC and that the code has “stemmed many of these complaints” and “enhanced independence of appraisers.” Further, she said, “Our findings support we are getting higher quality of appraisals than before.” She attributes that to the fact that lenders are paying more attention to the appraisal process.

I think many complaints are gone. However, my gut thinks that other type of complaints have replaced the ones that are gone. Hopefully many viable complaints will rear its head before its too late.

I think the lending industry is paying more attention to the process. Because Independent Appraiser rocked the boat.

I think quality is the same. She is wrong, in my eye.

Overall, her words were not good enough. She could have used different verbiage and used a slightly different meaning.

I think Ms. Doty is using a very special lipstick made especially for pigs

I posted this in here because I am not allowed to post this in a certain forum. Freedom is speech is limited to certain kind of Appraisers.

Sincerely,

I'm going to hang out in here for a good while because I feel more "free" here. I do not walk in this forum and feel like I'm owned or I have to watch what I say.

If a person is high up in the lending industry 'food chain' doesn't like my freedom of speech then they can kiss my ARSE!!!!! Complaining because you don't have thick skin isn't my problem! If you can't handle real criticism then move on and handle something else.

You ticked off that someone said you are using a very special lipstick on a very special pig, then GET OVER IT! You can't hide the truth, you are what you are. If you work for the lending industry then you shouldn't be trusted and most of the time their agents are very transparent.

The lending industry is crooked.