Dastardly Real Estate Lobbying Letters
By Barry Ritholtz - June 25th, 2009, 1:00PM
Our critique yesterday of the lobbying efforts of the commission sales people’s organization (Realtors and Mortgage brokers) included letters from these groups to their members and public officials.
Be sure to see these Lobbying Letters from the NAMB and the NAR here:
NAR Urges 18 Month Moratorium on Appraisal Reform
June 25th, 2009 at 1:22 pm
Dastardly?
Been watching old “Wacky Races” reruns lately, Cranky?
I had a crush on Penelope Pitstop myself.
June 25th, 2009 at 2:00 pm
Maybe they were “Sons of Bachelors” as old Herman Melville said in Moby Dick…
June 25th, 2009 at 2:19 pm
As I’ve mentioned before, illegal appraisals by licensed appraisers is one of the two problems that caused the entire mess.
June 25th, 2009 at 2:55 pm
More reasons not to believe the NAR
http://themessthatgreenspanmade.blogspot.com/2009/06/more-reasons-to-disbelieve-nar.html
June 25th, 2009 at 3:12 pm
because their mouth is moving?
June 25th, 2009 at 8:34 pm
The NAR and it’s members will become obsolete over time as people realize they are not needed as much in a digital world.
June 26th, 2009 at 3:18 pm
[...] it seemed as though Yun was just upset about mark-to-market pricing for houses, and we jumped on Barry Ritholtz’ bandwagon of attacking the NAR for opposing new [...]
June 26th, 2009 at 3:48 pm
What have we here? CNBC is pushing the reform of the new appraisal law. http://www.cnbc.com/id/31529887
“By: Diana Olick
CNBC Real Estate Reporter
I want to thank everyone for the emails into the RealtyCheck@cnbc.com regarding the Home Valuation Code of Conduct.
Hundreds of mortgage industry representatives, from small and large shops, sent in stories of botched appraisals, of allegedly negligent appraisal management companies, and of lost deals that are so necessary to recovery in this fragile housing market.
Very very few of you argued the opposing side. ” …
Diana goes on to say “I’m staying on this of course, as I happen to know there will be a huge push on Capitol Hill in the coming months to change the HVCC. Thanks again for your emails and reports.”
June 27th, 2009 at 11:35 pm
Sorry to rain your parade, but everyone has a dog in this fight. I have read the comments to BR’s previous article, and I find there is a lack of information regarding the fact that the new appraisal rules arose out of an out of court settlement brokered by NY’s Attorney General Andrew M Cuomo with Fannie and Freddie. The lawsuit centered around an appraisal management company owned by Washington Mutual, and pressure put upon appraisers to bring the appraisal in at the target price. So a question that has not yet been answered, is why did Cuomo agree to an out of court settlement?
Cuomo’s solution contained the hair of the dog, ie appraisals are now exclusively ordered through appraisal management companies owned by banks. Appraisers have not raised their fees in over 10 years, but all of a sudden the introduction of appraisal management companies have instigated an increased appraisal cost of 20% to 40%, that has to be passed onto the borrower.
We do need reform of the appraisal process, but could we attempt to get a process that solves the problem, instead of making it worse?
Rumors are that Cuomo is interested in positioning himself for a political office, and this notoriety is something that he is seeking. So, it seems a safe assumption that all parties on both sides of this issue have a bias to whatever they feel needs to be done.