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Yes, I know they signed the agreement. But it isn't a done deal yet. Trust me.
Not only are there legal issues with this "agreement" (such as the state of NY does not have control over the whole country). There is at least 1 state that has already decided this agreement is illegal.
And then we have the issue of AMCs. In my experience, an AMC is just as prone to put pressure on an appraiser on behalf of their client as a lender would.
Just stay tuned. With a little luck this AGreement will go away. It is a bad deal for everybody involved.
FNMA/FHLMC agreed to it...so it's already 'written in stone'
Hoping that they change it is another story.
Quote:
Originally Posted by Schousse
Yes, I know they signed the agreement. But it isn't a done deal yet. Trust me.
Not only are there legal issues with this "agreement" (such as the state of NY does not have control over the whole country). There is at least 1 state that has already decided this agreement is illegal.
And then we have the issue of AMCs. In my experience, an AMC is just as prone to put pressure on an appraiser on behalf of their client as a lender would.
Just stay tuned. With a little luck this AGreement will go away. It is a bad deal for everybody involved.
If the brokers won't be able to order appraisals, do you think this implies that the borrower will order the appraisal or that more loans will be done without appraisals in the near future? I think the current system of borrower paying for but broker owning the appraisal is very flawed. But, I could see borrower ordered appraisals being ones that encouraged a downward pressure on prices.
It means only direct lenders/wholesale lenders would be doing the orders.
Borrowers will still not be able to order appraisals.
Quote:
Originally Posted by weartoomanyhats
If the brokers won't be able to order appraisals, do you think this implies that the borrower will order the appraisal or that more loans will be done without appraisals in the near future? I think the current system of borrower paying for but broker owning the appraisal is very flawed. But, I could see borrower ordered appraisals being ones that encouraged a downward pressure on prices.
If the brokers won't be able to order appraisals, do you think this implies that the borrower will order the appraisal or that more loans will be done without appraisals in the near future? I think the current system of borrower paying for but broker owning the appraisal is very flawed. But, I could see borrower ordered appraisals being ones that encouraged a downward pressure on prices.
I agree with you. That system IS very flawed.
The thought behind it was that it was assumed that a LO/MB would be professional enough NOT to put pressure on an appraiser and that a borrower would be more likely to do that.
We all know how that worked out. Sadly, there are appraisers who will bow to that kind of pressure when promised 20 orders a month from a particualt LO.
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