I am sitting at my computer this morning, checking the hot sheets...sending e-mails to potential clients...doing whatever it takes to generate some businees in this tough market. I am suddendly hit with a strong sense of "de ja vu".............it is no longer 2008......it is 1992...all over again. Property values are dropping like huge boulders. Foreclosures are way up. I am left pondering....if it wasn't fixed back then....and it's not fixed this time.....will I be sitting here in 2023 with the same sense of de ja vu?
Last time around, we had the savings and loan bailout. Anyone remember that? The RTC came in shut the banks down. The "buzz word" last time was "over-inflated appraisals" as the cause of all that mess. Funny....having been a state certified appraiser at that point, I can tell you that there would never be a reason for an appraiser to just go and inflate property values. This came from the banks pressuring the appraisers to "make the deal". Your punishment if you didn't? You lost the account...and probably all outstanding monies due, as well. But.....the loans went bad, and the banks pointed their fingers at the "bad" appraisers. The goverment stepped and smacked the appraisers around. We had to get licensed or certified. We needed education...and a lot of it. We needed high fees to renew our licenses every 2 years...and let's not forget about continuing education....that became mandatory, too. None of this was a bad idea....but while everyone was pointing their fingers at the appraisers....all the heat came off the banks. And while propety values plummetted, you either didn't sell your home, or if you did....you bought money to the closing table to make up any deficit......or the home was foreclosed on.
Flash forward to today. This time, the banks are pointing their fingers at the real estate agents. WE inflated the sales prices. WE made the appraisers come in high on their appraisals. It is ALL our fault. I am just wondering when the banks are going to be made accountable. Stated income loans? Great - for the customers they were intended for........lawyers, doctors, realtors, etc. Not for Joe Smith working 40 hours a week at a grocery store. No money down loans? Again....great....for someone with the financial ability to pay the loan....not for someone with no money available for closing costs. Once again, the banks point their fingers at everyone else.....get bailed out....and once the heat is off....they will go back to their old ways. And we will all be having this same conversation in 2023......and that should not be acceptable...........
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