A bit of year end housecleaning…
I know this story is two weeks old, but it concerns the appraiser on Long Island who was arrested for making death threats to New York State Attorney General Cuomo. Apparently he was upset about Cuomo’s May 1, agreement with Fannie Mae that was hoped to control mortgage-related fraud.
As I’ve written here on many occasions, the HVCC agreement, despite good intentions, actually made the appraisal profession worse and exposed banks to far inferior appraisal quality by enabling appraisal management companies.
Of course, I’m not condoning this sort of behavior. Whether proven guilty or not, his life is going to change substantially and not for the better.
Ok, back to work.
I’m not hearing quite as many appraisal horror stories from brokers these days. Are the out of town appraisers learning the local territory? Which I guess would be one way for the situation to evolve.
As for “good intentions” even a master cruncher and collator like Jonathan Miller might never figure out the benefits verses the harm that these smart people, certain that they know best, have bestowed on us with their good intentions through the millennia.
Wish we could say “thanks but no thanks” to good intentions. How about just good policy? And we won’t care what your intentions were.
The appraiser from Long Island would do well to tone it down a bit. (I suspect that the authorities are already handling this for him) Everyone is someone’s scapegoat sometime. While I haven’t overheard any death threats from brokers directed toward appraisers, certainly not me, there has been some very strong language.
Cuomo has been infatuated with trying to convince the government that appraisers and lenders have been in collusion for years. Cuomo was the author of the FHA Buyer Protection Plan and now the HVCC – Does anyone know what happened to the Buyer Protection Plan?? Software companies all had to modify their software etc – it actually was a good plan – but it put to much responsibility on the buyer and not enough on the appraisers – is that why it passed away quietly? This guy is only out to make some noise and have everyone look to him as some sort of savior – appraiser’s are voters too – he won’t get many votes from my brethren.
Just when I was thinking that Fannie colluded with Freddie to come up with the HVCC. Surely you have heard that Freddie now measures the credibility of appraisals with its AVM. I don’t think the lenders really need Cuomo’s help, even if he wanted to assist. To the extent that HVCC doesn’t live up to its advertised objectives, I do agree that it enhanced the appraisal mess. Maybe the observed decrease in complaints is something else. Like appraisals are not being ordered.
There is SO much to say about this, but like most appraisers, I’ve decided to bite my tongue.
I sure hope they will let good old Jack Geoghan out before Fannie and Freddie get around to creating the IVPI. Otherwise, well…
Bless you for biting your tongue. I on the other hand like a raving lunatic am shouting from the roof tops, somewhat to my peril since so much I am shouting about takes place out of sight. Its only evidence being the lumps under the covers.
The value of appraising for the national lending industry is as a scapegoat.
I don’t hear appraisers telling the national lenders what to do. I insist the converse come true immediately.
Formula For Calculating Andrew Cuomo’s IQ
Total number of employees working for IVPI divided by the actual stock value of FNMA Squared