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June 24, 2009

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RPB

Anyone who has done any serious research into housing knows the NAR statistics are created through magic tricks and their statements are puff pieces. The MBA is always way off too, but the NAR has successfully defended their title in horrible economic reporting countless times.

anon

It’s pointing to thousands of delayed or canceled transactions,” Lawrence Yun, chief economist of the Chicago- based Realtors group, said in an interview. “We’ve had a massive inundation from members saying this is a big problem.”

Hello! National Association of Realtors? This is an organization that has nothing to be gained from conservative appraisals. Appraisals are meant to protect the lender against the PUT exercised by the home owner when he defaults on his/her obligation. If the National Association of Realtors thinks the appraisals are too low perhaps they should get into the lending business. And if the buyer doesn't want an appraisal. PAY CASH!

Isn't this how it used to be done?
On January 7, 1993 HUD issued Mortgagee Letter 93-2, Mandatory Direct Endorsement Processing gave authority to the Homebuilder owned lenders like KB Mortgage and affiliate lenders like Countrywide independence to approve their own loans. Without oversight of the industry by HUD, loan approval for single family direct endorsement, Cisneros officially put the foxes in charge of the henhouse.

Then on November 7, 1994 HUD Secretary Henry Cisneros approved Mortgagee Letter 94-54 that allowed lenders to select their own appraisers. As stated: “The Department (HUD) will rely upon lenders to assure that only knowledgeable appraisers are chosen to perform HUD appraisals and will rely on the integrity of each individual appraiser.”

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