Appraisal Scoop

Cuomo caused mortgage meltdown, now he wants to be New York's governor?

Source:  Washington Examiner

After leaving HUD, Cuomo went on to become New York's attorney general and now, like his famous father before him, he is all but officially seeking to be the Empire State's governor. That job has in the past been a springboard to much bigger things, and Cuomo has until recently seemed a shoe-in to take this next big step.

But people are beginning to focus now on Cuomo's record in a much more detailed way and what they are finding is not going to do him any good. As an example, CNBC's Maria Bartiromo interviewed Wall Street analyst Dick Bove, who makes a devastating case that Cuomo's decisions as HUD secretary led directly to the economic meltdown in 2008:

"One of the key reasons why [Fannie Mae and Freddie Mac are] bankrupt today, and why the government is spending hundreds of millions of dollars in supporting them, is because of the edicts pushed through by Mr. Cuomo," Bove told Bartiromo.

"It's also thought by many that the hundreds of thousands of people who are losing their homes, are [doing so] to a great degree because of the actions taken by Mr. Cuomo at HUD," he said.

Bove warned that Cuomo would likely take actions as governor to "attack the most important industry in the state," Wall Street, and that this would cause numerous high-income individuals and corporations that are critical to the state's tax base to leave for friendlier climes, such as Florida, where Bove, a native New Yorker, now resides and works for Rochdale Securities.

You can watch the entire CNBC interview here:

Read more at the Washington Examiner: http://www.washingtonexaminer.com/opinion/blogs/Cuomo-caused-mortgage-meltdown-now-he-wants-to-be-New-Yorks-governor-86560587.html#ixzz0hh5FLG9G

HVCC Appraiser Talkback Survey: What’s Really Going On?

According to David Brauner, Editor, WRE and Senior Broker, OREP, The HVCC Appraiser Talkback Survey has been posted about two weeks and so far appraisers have provided some pretty interesting results (see below).

"Our Survey Says (so far) In our Working RE/OREP Appraiser Talkback Blog (and elsewhere), many appraisers predict that the profession can not continue to attract competent professionals, capable of producing reliable reports, given the relentless pressure for lower fees and faster turn times from appraiser management companies (AMCs): the most competent and talented will migrate to professions that are more profitable and satisfying, goes the prediction"

Do most appraisers really believe that there is no future for them in this profession? And if so, what does this portend for the future of honest lending? 

Here are some early results:

• 57 percent who responded say they expect to be appraising full time five years from now. What do you say?
• Over 65 percent respond that they are satisfied working with appraiser management companies (AMCs) at least some of the time (35 percent respond “never” satisfied).
• Over 79 percent of respondents report that, at least some of the time, pressure for a fast turn around time results in a product that is less reliable for the end user, compared to a report where adequate time had been allowed (only 21 percent say this never happens).
• 85 percent say being able to copyright or register ownership of the intellectual property contained in their appraisal reports is an important issue. Isn’t this interesting?

What’s your experience? Complete the survey and let us know.

Lenders, as well as the regulators who are charged with protecting the public, might be interested to know what percentage of appraisers feel that low fees and fast turn times make their reports less reliable.

Discouraged appraisers might be interested to learn whether a silent majority of their colleagues have figured out how to make a profitable and satisfying living from AMC work without the hassles associated with mortgage brokers. Maybe we all can learn something from the survey and follow up stories in Working RE Magazine.

Why is it important for you to participate?

First, the absence of comprehensive survey data makes it impossible for industry leaders to formulate and promote the appraiser-friendly agenda that is long overdue. Lobbyists will tell you that finding a consensus on anything among appraisers has long been a stumbling block to progress. A much stronger case can be made to regulators with hard data in hand.

The absence of feedback from colleagues also makes it impossible to assess your own experience relative to others and to learn from their mistakes and successes. Fill out the survey and we’ll bring you the stories.

Finally, there is this:  Appraisers predicted the lending collapse years before it happened; those who complained about reckless lending, inflated values, lender pressure and the imprudent use of AVMs, were labeled anti-progress, shortsighted, incompetent…and worse.

No one paid much attention to the “Chicken Little” appraisers, except to mock them, but this time, the sky really did fall.

Here’s a chance for appraisers to come together as a group, speak with one voice and be heard. If you've already taken the survey, you may want to go back to weigh in on several new questions suggested by readers (Additional Questions Suggested by Survey Takers).

You can find a link to the HVCC Appraisers Talkback Survey at www.orep.org  or www.workingre.com  or click: www.surveymonkey.com/s.aspx?sm=1drQU6WrYbQ73E4wH2vKVw_3d_3d   

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