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All right let's say the housing being -- a national story it's a lot of people's minds the tumbling home price is not just hurting homeowners.
It is also hurting those people whose job it is to appraise.
David -- chairman of the mortgage bankers.
Association and he joins us now David we -- -- every.
We spared no we've gone we've talked about realtors banks brokers mortgage lenders you know we've we've been grill and everybody.
All right so so a lot of people that -- funny when will we sort of went after realtors they said a lot of -- -- -- -- appraisers.
It's a lot of this school autonomy is is there what it how.
How do we factor in the appraisers role and everything that's happening.
Well the most important piece of collateral is the real state that's what we land on -- we have to have an accurate value it's also good for the customer to know exactly what they are buying.
Or the value when -- refinancing.
So there is a national.
Appraiser standards board and we need to make sure as lenders or brokers.
Then we look at that appraisal that they -- the rules.
But what we really need is there's a whole bunch of appraisal fraud going on right now or mortgage fraud and appraisals are piece of it.
We need to be able to talk to each -- lenders if I refinanced your home six months ago Brian in your coming back to another lender right now.
They can't have the information on the first -- appraisal we need better transparency in our business and we need to follow the rules.
So much talked about pressure on the appraisers to.
Put pushed the price is up during the boom times and now today are you seeing pressure by the banks for them to I guess.
Give -- kind of what.
That what the lowest ball price that they can come up with -- -- our banks looking for the save their but price when you're refinancing or given a mortgage.
Well what we're looking for is the real value you know if you coming get a refinance the appraiser comes in gives you a true value based on -- -- sales.
It is always amazed me that the appraiser gets a copy of the purchase agreement so they know what the individuals -- realtor and the buyer and -- looking for on -- purchase transaction.
Now they need to know when the contract.
If there's any sales concessions because that's part of -- thing they approve or Freddie Mac approval.
But there's no need for -- for an appraiser to know what the value is when we're going to appraisal purchase.
We need accurate values that establishes the proper collateral for us to make the loan and restores confidence in the mark.
But OK for the -- -- it is it too easy to become an appraiser you're dealing with people's lives right someone's making a value estimate a lot less than they -- they'd -- of most of them good people working as hard as they can't.
But they're making a pretty big jump right if they if it did.
What they say can determine whether or not somebody gets a mortgage to buy their dream home.
Now stock analysts get their CFA years of sex education after college and testing.
No there -- we should we increase the standards.
For -- yes we -- standards out there but what we need is this is controlled by the states the states need more funding.
To send people out to make sure that the appraisers are doing their job he did a -- are pretty appraiser.
Well you knew what we have people that regulate our business and we have people that regulate the stock market -- -- says we need somebody is.
It's already out there to regulate appraisers they just need more money in the states to help -- and -- check.
David how are the appraisals change and I've seen it firsthand I had somebody come by my house and go through the house seat in his -- walk around.
He went -- sit down in the basement and walked around the house.
I don't like -- out of there David hey I do a fair assessment.
Well remember two things happened back a few years ago we started doing somewhat you know the gold dropped by -- people were only refinancing and not taking cash out.
The industry led an -- -- and establish that the value had not decreased and they weren't doing a full appraisal.
We are back to full appraisals going in measuring square footage that's what we're demanding -- lenders these days again we're making the best loans we've made in fifteen years.
And that includes the collateral piece on the average.
-- Yeah you know we we got did you hear the piece we just did where we're sort of debating -- -- the hope for homeowners numbers right with a Hud secretary yesterday and then we brought up the numbers for our viewers see today.
I have a response on that if you like I'd love to -- Yeah well when you do a loan modification once we modify the -- -- then sent to -- for the endorsement.
So the numbers -- you have a discrepancy on the numbers because if there is a huge delay between actually modifying loans.
And getting Hud to -- it -- that the issue that the way is within.
I don't mean to point a finger but that well.
Listen you know we did David I mean you know and I wasn't trying to put -- on the spot I assume he would agree to the numbers and say yeah here's what we've got to move on because the numbers came.
From Hud directly I mean I I got that email from -- Hope for homeowners appears to be flawed and a number of ways and part of -- I guess would also be that people don't want to share the upside of any gains today.
Well that that may be true but I'll tell you did mention hope now which more the Mortgage Bankers Association helped to establish.
Faith Schwartz and her team over there have done a fabulous job on loan modifications.
And helping borrowers through this really tough time so you can see that is the difference in numbers and they've done a remarkably better job -- the program.
Are you suggesting David that the private sector can be a little more efficient than the public sector.
Happy Easter -- from mobile conducted.
A policy Gabi or no obviate a new track and spark a talking bluegrass speedway in September so I've been -- should come to remember three weeks from this Saturday -- the Kentucky Derby -- -- you look good the great big derby.
Yeah -- enough place -- OK and then you know Mortgage Bankers Association mobile thank you very much Dave.
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