Comments on: Mortgage Brokers Get The Final Dagger In The Heart

By: Jay

Jay — Sat, 28 Feb 2009 00:17:21 +0000

Brokers are such a small link in the chain and it is sad that they have had to carry the burden of recent happenings.

By: Lynne Thorp

Lynne Thorp — Thu, 26 Feb 2009 10:17:34 +0000

I have been an appraiser since the 1970’s–probably before most of the “bloggers” were born. I dont know why anyone is upset, surprised or shocked the market collapsed—it makes a correction every 10 +/- years, remember? Of course every bust cycle has a new villian–let me see, once it was the Savings and Loans, but the appraisers ended up being blamed for that one (the reason we now have licensing); then one cycle was Jimmy Carter recession/inflation/stagflation 20% interest rates debacle; the 94 Clinton meltdown; 2000 dot com bust followed by 9/11 2001. Each cycle had a completely seperate cause, but the one constant in every cycle is the only thing anyone remembers–housing prices collapse.

And please, if I hear one more appraiser whine about some other appraiser who did or didnt give someone a value on some property, and how unfair it all is, and it hurt business, etc, etc. Welcome to the adult world. Exactly which profession out there doesnt have it’s ethical issues as it is practiced? There will always be someone who will do anything for something!

But in this case, we all know the root cause of the current debacle—idiots like Barney Frank, Maxine Waters, Chris Dodd—–morons who cant even spell economics, and probably havent had a private sector job since high school, who were politically seduced by smooth talking, financially savey, more educated wall street con’s who stroked their egos by spounting the touchy feely socialist/communist dribble as in a house for every family whether you can pay for it or not garbage, that created the environment for fannie and freddie’s loosening of underwriting standards and loan programs.

Come on now—if you are allowing 100% financing to buy a home, at 4% interest—exactly what did anyone think was going to happen when 1) housing prices dropped even just a little? or interest rates raised, just a little? It doesnt take a rocket scientist you know!!

That is the saddest part of the current situation–the people in control are frankly, too ignorant to understand the dianamics of their actions.

Cheer up—-we finally are bottoming out—-and we can all look forward to the new boom cycle!!

By: Truett Neathery

Truett Neathery — Mon, 23 Feb 2009 18:34:55 +0000

Also, excluding Licensed appraisers allows Certified appraisers who have had their cert for 3 months can garner all the appraisal business in areas that have few conforming properties and would be misunderstood by inexperienced appraisers who were hired by price and speed. Same problems all over again, just a little farther down the road.

By: G HALL

G HALL — Mon, 23 Feb 2009 17:57:56 +0000

Whether you are a broker or direct lender the bottom line in this whole mess has not been addressed. What got us all here are unacceptable underwriting guidelines. With a push to expand the home ownership percentage underwriting guidelines were systematically reduced. This created a greedy scenario in the lending industry to close the maximum number of loans, securitize the garbage loans, stick the money in your pocket and keep doing the same as long as possible.
I still do not see anything on the horizon to correct this. When is the government going to wise up and create minimum underwriting guidelines? Lenders should not be allowed to securitize garbage loans and Fannie & Freddie shouldn’t be allowed to buy them. If the lenders had to hold all the Sub-prime & ALT A loans in the own portfolios they never would have been made. FHA has a great “245” graduated payment loan program for first time & lower income buyers why wasn’t there a flood of loans there? I guess this product was less profitable to lenders and had realistic underwriting guidelines making them less desirable.
While well intended the HVCC is a joke. All it will do is drive up the cost of an appraisal, drive out the best and most qualified appraisers and eliminate mortgage brokers. If you think there’s a bottleneck now wait till you try to get an appraisal done when the flood gates open. With a lack of available appraisers the lending industry will probably try to resort to AVM’s which was more than likely the goal all along. This will reduce there up front costs but reduce the quality of the valuation and send us right back to where we are now.
B of A used government money to buy Countrywide & Merrill Lynch, 2 failing entities, and now they want more bail out money but you still cant get any credit from B of A if you want to buy a car or house………….let them fail……….

By: dan briant

dan briant — Mon, 23 Feb 2009 16:49:54 +0000

Greed is at the heart of the mortgage mess & the greedy mortgage brokers, along with the greedy real estate agents, geedy homeowners, greedy buyers and greedy sellers fed the greed of the greedy lenders and the greedy executives of these lenders and the greedy Wall Street brokers and greedy investors.

By: Kevin 2

Kevin 2 — Sun, 22 Feb 2009 21:19:34 +0000

Among the appraisers I know the one goal in starting your own business is to get on lenders list to avoid the pressure and lack of payment from brokers. I’m sure there is some honest one’s. But over the past 10 years I don’t think I came name more than 3 or 4 lenders or brokers that didn’t pressure you. Are you familiar with cut and pasters. Have run across several that were brokers and lenders. Where I am at the real estate agent told the loan org or broker who to use. If you killed a deal the agent to the lender I want refer my customers to you if you continue using that appraiser. Hell country wide was one of the absolute worse. Don’t feel bad brokers they have been wanting to rid of the apprasiers too. AVM’s and now BPO’s for foreclosures. When I first got into appraising my supervisor told me that once you start pushing value and not putting needed repairs down your name would get around quick and the local banks wouldn’t use you. Not anymore so many small town banks were acquired by the big nationals that a honest appraisal went out the door with sales and profit goals replacing. I have been very disillusioned for a long time. Have been trying to start a different business and get out. I currently utilize my appraisal skills for investing for myself. I was telling realtors in early 05 that the market was over supplied and starting to decline. Wouldn’t believe me. I got alot of satisfaction out watching alot of them loosing investment properties to foreclosure and going bankrupt over the past couple of years.

By: Dwayne

Dwayne — Sun, 22 Feb 2009 20:41:10 +0000

As an Appraiser, I too find it hard to feel sorry for the crooks in the mortgage broker field. These folks would put pressure on the appraiser for values as well turn times and have the nerve to withhold payments if there numbers were not hit. When the appraiser would not allow these crooks to prevail they would comp search until they find a weak or crooked appraiser to hit the number for them. I am happy to see them getting what they desrve. It’s the bad apples in the broker field that has spoiled it for the very few; I mean very few brokers with integrity.

If the brokers want to regain confidence with the puplic and other business professionals in the industry they should report the bad brokers instead of looking the other way. By looking the other way you have allowed your bad brokers to betray the publics trust.