The Hagar Institute

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12,346 Appraisal Failures - Per Week (Click Link for Full Article) 

"Every week 12,346 appraisals fail to pass the GSEs basic screening 'review.' In this case the screening, or 'review' is performed by Fannie Mae and Freddie Mac's new Uniform Mortgage Program (UMDP). These numbers come from the recent report by the Federal Housing Finance Agency, Office of the Inspector General (FHFA-OIG) so please don't shoot the messenger!"


Why the Client is Separate from Everyone Else (Click Link for Full Article) 

"Those who do not remember the past are doomed to relive the failures! "


Bullies and Appraisers (Click Link for Full Article) 

"In many instances the way the banking business is run today, it looks like appraisers are the beaten victims of school yard bullies.  Appraisers sometimes call the bullies by their generic names AMC or Bank.   Before we go further, let’s look at some definitions."

 

Functionally Obsolete Appraisers (Click Link for Full Article)

"Functional obsolescence is the reason many appraisers are going out of business. On a daily basis appraisers moan: 'It's because of the HVCC thta my business is down' or 'that AMC or X or Y or Z caused by income to decline.' Really? Are you sure? So why is my company buried in business and you're not?"

 

Flight to Quality (Click Link for Full Article)

"Late one evening last week, I sat in the corporate offices of one of the nations largest mortgage lenders and watched the owners break down and cry at the thought that their company would go out of business within twenty-four hours.  A multi-billion dollar mortgage lender  was about to go...... poof!"

 

Mortgage Brokers - You've Been Set Up (Click Link for Full Article)

"Mortgage brokers, you were set up to be the 'fall guys' the ;patsy' in the next S&L bail out. Having mortgage brokers blamed for our mortgage mess was planned about fifteen years ago.  Didn't you know?"

 

It's A White Collar Thing (Click Link for Full Article) 

"Unfortunately cops, from patrol officers to police chiefs have become involved in real estate and mortgage fraud, and most officers don’t know it. Now the last thing any of us needs are cops becoming involved in felonies . . . so we suggest listening up!"

  

Data Stripping (Click Link for Full Article) 

"Stripping appraisal data, the hidden problem brought about by…   Last evening I had a nice discussion with a person from a software company.  He described how two versions of an appraisal could exist; my technology friends call it “normalization!" 

 

What I’ve Learned from Criminal Complaints (Click Link for Full Article) 

"I’m a real estate appraiser, like many others.  I’m also an expert witness tasked with helping courts understand the lending and appraisal business.  While one side or the other may hire me as the expert witness, I’m required to be an unbiased third party, there to help the court (the trier of fact) understand the issues." 

 

We Can Get Around Anything (Click Link for Full Article) 

"The current collapse of our economy will be the fourth time I’ve been to this rodeo.  You’d think we would have learned the lesson by now.  The last time the entire United States went through the same issues and problems was back in the mid 80's, and here we are again, but this time it’s bigger." 

 

The Settlement Clarified (Click Link for Full Article) 

"In 2007 a coalition of 35 attorneys general and state banking examiners launched a cooperative effort, called the State Foreclosure Prevention Working Group.   For years, I’ve been communicating with the staff of several State Attorneys’ General.  We’ve profiled what was wrong with the foreclosure process and supplied real world examples of bad policies and procedures." 

 

How Can That Be Illegal? (Click Link for Full Article) 

"I find that many of the common “creative financing” clauses used in purchase and sale agreements.... are illegal.  I have gone through my own epiphany moments, usually while sitting in a court room, listening to an attorney admonish a real estate agent who is squirming on the stand.  In these moments I have learned that many real estate transactions, written by nice agents and mortgage brokers, are illegal." 

 

Customary and Reasonable Fees (Click Link for Full Article) 

"Appraisers and lending institutions - Maybe the best way to explain the “Customary and Reasonable” appraisal fee problem is to provide excerpts from one of many class action lawsuits that have been filed against the lenders." 

 

Another Reason for High Quality Appraisals (Click Link for Full Article) 

"In January the Consumer Financial Protection Bureau (CFPB) issued a new set of regulations relating to appraisals.  While the new regulation isn’t too different from the old, it does place every appraiser square in the bulls’ eye of lawsuits.  If you’re not aware of this, hang on, this is going to hurt a bit."