AmcAppraisalsinc.com

"According to a recent analysis by the Federal Housing Finance Agency’s inspector general, $37 million alone was spent defending three former Fannie Mae executives against claims of securities fraud."

Even though it lacks the chain-of-lakes backdrop that has helped establish Isleworth as Central Florida's premier home for pro athletes and entertainers, Golden Oak has perks that appeal to high-end buyers with young family members. Extras include years' worth of passes to Disney theme parks, early and late hours in the parks, and VIP transportation.

With guards, gates and old-world architecture, Golden Oak in no way resembles Disney's earlier entry in the housing market: Celebration, a community built in the 1990s that was marketed as more town than resort. Disney touted Celebration worldwide but has been more quiet about Golden Oak. 

Estate lots in Golden Oak thread around the 18-hole championship golf course designed by Tom Fazio for the Four Seasons. Homeowners could end up playing on other Disney golf courses, though, because Four Seasons guests have tee-time priority over residents. 

In addition to the amenities down the street at the Four Seasons, residents will have access to the Golden Oak Summerhouse, which is under construction and will feature a pool; yoga room; children's entertainment areas; and temperature-controlled storage for wine and other liqueurs. Membership in the club, mandatory for homebuyers, is $5,000 a year.

I have been getting these solicitations lately from "Synergy Real Estate Solutions".  At first glance, it looks promising right?  FHA work and URAR rates at $425-$550 ?  That is better than standard rates in my local market!   But beware.....be sure with whom you are getting into business with. 

One thing that stands out, is the website - bessitle.com, NOT Synergy Real Estate Solutions.   One should know, there is a reputable company known as Synergy Appraisal Services, which is based in Colorado.  BessTitle.com is NOT affiliated with the more reputable company out there.

He admittedly purchased, along with others, a residential property but failed to disclose to the mortgage lender that US Appraisal had handled the appraisal.

 

Mortgage Fraud Blog - Appraiser Admits Role in Mortgage Fraud Scheme http://bit.ly/vzt69G

 

A recent article indicating that FHFA is taking action against some lending institutions, should get you thinking.  Are any of these lenders listed in the article below YOUR clients (present or past)?   And if some examinations of the appraisals done in the portfolios should make their way to any you have done, do you have a well documented workfile to withstand an investigation?

FHFA Sues 17 Banks to Recoup Mortgage Losses

The Federal Housing Finance Agency announced Sept. 2 that it filed suit against 17 of the nation’s largest financial institutions to recoup billions in losses from the sale of soured mortgage-backed securities to Fannie Mae and Freddie Mac.

The complaints, which were filed in federal courts in New York and Connecticut and in state court in New York, alleged violations of federal securities law and common law in the sale of residential private-label mortgage-backed securities to the two government-sponsored enterprises, the FHFA reported. FHFA is conservator of Fannie Mae and Freddie Mac.

The FHFA alleged that portions of the losses that Freddie and Fannie incurred on private-label mortgage-backed securities were attributable to misrepresentation and improper actions by banks, namely that the characteristics and descriptions of the loans were different and riskier than what was contained in the banks’ marketing and sales materials. 

The complaints also alleged that loans were made to look less risky through inflated appraisals. Mortgage originators, among others, are alleged to have pressured appraisers to furnish inflated loan-to-value ratios that overvalued properties. Inflated appraisals were reported to be especially pervasive when originators packaged mortgages to be sold for securitization, which resulted in lower LTV ratios and therefore appeared less risky

The complaints seek damages, civil penalties and compensatory damages for negligent misrepresentation. The amount the FHFA seeks to recover, however, is not expected to equal the amount the GSEs paid for the MBS.

The suit is similar to one the FHFA filed against UBS Americas on July 27. In that case, the FHFA alleged the bank made false statements about 16 mortgage-backed securities it sold to Fannie and Freddie between 2005 and 2007. FHFA is seeking $900 million in damages in the UBS.

To date, the U.S. has spent $141 billion to shore up Fannie and Freddie, and has recovered about $18 billion from banks since the beginning of 2010, the FHFA reported.

Institutions named in the Sept. 2 complaint and how much the GSEs bought from each:

• 1. 
•      JPMorgan Chase: $33 billion
• 2. 
•      Royal Bank of Scotland: $30.4 billion
• 3. 
•      Countrywide Financial Corp.: $26.6 billion
• 4. 
•      Merrill Lynch: $24.8 billion
• 5. 
•      Deutsche Bank: $14.2 billion
• 6. 
•      Credit Suisse: $14.1 billion
• 7. 
•      Goldman Sachs: $11.1 billion
• 8. 
•      Morgan Stanley: $10.5 billion
• 9. 
•      HSBC: $6.2 billion
• 10. 
•   Bank of America: $6 billion
• 11. 
•   Barclays: $4.9 billion
• 12. 
•   Citigroup: $3.5 billion
• 13. 
•   Nomura: $2 billion
• 14. 
•   Société Générale: $1.3 billion
• 15. 
•   First Horizon: $883 million
• 16. 
•   Ally Financial: N/A
• 17. 
•   General Electric Co.: N/A.

There is an implied pressure on any provider (in any industry) whenever that field is dominated by so few players. Witness the LSI's and CoreLogic's Valuation Services of the world choosing to maintain their pricing model to appraisers in the face of Dodd-Frank's bright line. They operate on the 'law of large numbers'. The amount of money they can make in the time it takes any regulatory agency to find them at fault will vastly exceed any potential fine they may incur. One could argue that HVCC was created to protect appraisers from bank pressure when, in my opinion, it was a vehicle to enhance capture rate for lenders and seed control over the appraisal process - a goal of large lenders for decades.

Case in point, CoreLogic's "standard' single family appraisal fee is $200 to the appraiser.  A "moderately complex" assignment gets a whopping $25 more!  But what is "moderately complex"?  Something over 4,000 sf, a mansion on a 3 acre lake front parcel?

It should not be the case that some appraisers have adopted the "you'll get what you pay for" view on new assignments.  But I DO understand the frustrations!  In a time where many appraisers were hoping to put an end to the constant battle for regular fees, the tide only swept back out underneath their feet again!

I remember back in 2004 during the housing BOOM - there was a huge need for appraisers.  There was an abundance of new loans, and not enough appraisers to do them.  So supply and demand created scenarios where appraisers were booked up 2 weeks out, and fees climbed to around $450 for a single family home.

My real question is this.  Do the management companies and lenders show the actual fee to the homeowner?  Does the homeowner still get charged $450 for an appraisal and how would they feel if they knew the man or woman who spent an hour at their home was only getting $200?  Or maybe the appraiser, fed up with all the tensions, didn't even measure the home, snapped a few photos, zipped in and out in 10 minutes because they felt, "the lender is getting what they are paying for".

I have heard many of the latter from homeowners who told me "the last guy was only here for 10 minutes!!" while I explain that I plan to measure the home's interior and exterior, do a full floor plan, photograph, interview them for updates, etc.   In the end, the homeowner's express to me that now THEY feel they are getting what THEY are paying for.

It's an ugly climate out there.  The tensions and negative attitudes are only growing.  Appraisers are electing to retire rather than put up with the new requirements, low fees, and increased pressure for fee and turn time.  And few are entering the profession.

Perhaps in a few years, we will see another upswing of need for appraisals and then very few appraisers left standing to provide the services.  Who will determine what is 'customary and reasonable' then?

A recent report from the Florida Realtors site today, reported Orlando as one of the top 11 ‘combacks’ for 2011!!

I also heard the ads on the radio, sponsored by the Orlando Realtor’s association – about how NOW is a great time to buy!

I would have to agree with them too!  Judging from the recent absorption rates in Orlando, it seems like trends may be turning!  There is still some uncertainty with the “shadow inventory” we hear about – but depending on if that is a trickle or a DUMP into the market – we may see a bottom on the market this year!  (FINALLY!)

Although my workload is still not seeing much by way of refinance or purchases (except REO purchases) – but then again, some of the ‘cheaper/faster’ appraisers out there may be interpreting “Customary and Reasonable” fees in a wholly lower fashion than I do!

Good luck Orlando!

If you have ever wondered if big corporations are playing fair…..you SO have to watch this clip from CBS’ 60 Minutes.

http://tv.yahoo.com/60-minutes/show/28491/videos/24782614

All one can say is…..WOW.

Now, after you pick your jaw off the floor – GET EMPOWERED!   If you are facing foreclosure…..FIGHT!

I just read a recent article on a fight between neighbors which ended in an arrest – all over the lack of lawn maintenance!  

http://www.realtor.org/RMODaily.nsf/pages/News2011031506?OpenDocument

I have some weeds growing in my lawn these days – hope my retired neighbor doesn’t take me to task like this!

But this does reflect on a growing tension for many in today’s economy, including appraisers who are talking more and more about fees, AMCs and the changes in the government regulations guiding our industry.  I am hearing more and more appraisers talking about going to work for WalMart, or opening a hot dog stand!  I can understand as we are finally beginning to understand the dollar per hour expectations of the AMC + Appraiser relationship!    

There are no easy answers yet.  But  let’s be sure that when we react – we do so without getting ourselves in trouble as well!  

If you are going to take on your neighbor – do so with a sober mind!  J