The federal financial regulatory agencies are seeking comment on the proposed Statement on Subprime Mortgage Lending (Subprime Statement). The Subprime Statement addresses the risks and emerging issues relating to subprime mortgage lending practices, most notably certain adjustable-rate mortgage (ARM) lending products. Comments are due by May 7, 2007.
Dan Tosh [mailto:[email protected]] took this opportunity to address some of his concerns regarding advocacy and client blacklisting. The following has been taken from the FDIC web site:
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The biggest problem with this industry is that the "appraiser" has no advocacy. If a lender, broker, loan originator, loan processor, underwriter, homeowner or any other third party doesn't like the results of a market study conclusion, they threaten you with reprisal.
I believe that the "blacklist" otherwise known as a "exclusionary list" is a violation of my constitutional rights. I have a right to work in my chosen profession and if I have a bad mindset (ethics) or a poor skill set (competency), my license should be in jeopardy. The regulatory agencies that govern appraisers have the power to revoke or limit my license if I do not perform my duties correctly. That is the correct thing to do. The individual lenders that don't make public policy have no right to prevent me from providing for my family.
I am on 3 do not use lists, one for Merrill Lynch because they said we (our company) was rude; we couldn't complete an appraisal assignment without the purchase agreement, since there were four different reported sales prices and the VP at Merrill Lynch indicated that he did not want us to see it. We politely declined after doing the inspection and all the analysis at no charge to them, although I paid my field appraiser; but we were rude.
Coldwell Banker put us on the do not use list after we came in low on two deals, we have the e-mail from them to prove it.
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Citi Financial is the worst, we are on the do not use list and nothing we do can change it. I have spoken to the chief appraiser and the woman in charge in California, several times and they don't care at all. She said that she didn't like the comment that I had in the report about video tapping the interior for supervisor's use in training only. I explained to her that when I take a trainee appraiser to an assignment with me that I would video tape the interior to replay it later in the office as we do the input. I added the comment in the report, since I did not want the homeowner to feel uncomfortable with the process and it assured them that we would not share the tape and it would be erased after the appraisal was completed. We no longer have trainees and do not use the method any more, however, they decided to keep me on the list.
I have lost much business and have lost 5 appraisers and 2 staff assistants already. These companies, except for Merrill Lynch, share the list with everyone and we are declined new work. I could not get on the list for Countrywide's management company "Landsafe", even after several requests from brokers, because my name was on the Coldwell Banker's "do not use list".
The bottom line is "Why do we have regulatory agencies if they are going to be circumvented at every turn? Sure there are bad appraisers but there are also good honest hardworking appraisers. I absolutely guarantee that I can find something wrong with any appraisal if I search hard enough "it is an opinion" and we are humans prone to make mistakes. But a mistake here and there is not dishonest and we need to let our system work properly. WE NEED ADVOCACY and protection under the law from these would be threats.
I've said my 2 cents worth, thanks for reading my rant,
Dr. Dan Tosh, PhD, JD, MSA, SCREA
Cell 925-437-3530
Office 925-634-7514 x 204
www.toshandassociates.com
www.appraisalcourse.com
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