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This woman's letter to the editor in Sunday's Star Tribune April 27, 2008 Says it all!

Real Estate Agent with BayShore Realty, LLC

It could be the homes mentioned in "From boom to bust" never really had the value the borrowers believed was there. Loan officers routinely put pressure on appraisers to meet whatever "value" they determine for a property or they will fail to send them more business.

In large developments, such as those described, it only takes one or two properties to sell to establish value by providing comparable properties for future sales. At the height of the "boom," some borrowers were encouraged to borrow up to 100 percent or more of their home's value and appraisers were told to do whatever they needed to do to make the loan work.

Until the appraisal function becomes completely separated from the loan function for mortgage brokers as well as federally regulated banks, it can be argued any valuation of a property is open to suspicion.





Scott Benson
Geneva Real Estate and Finance - Santa Monica, CA

I think it all comes down to the judgement of the loan officer, the underwriter, and compliance to take the time to do a reality check on the values,

Apr 28, 2008 03:48 AM
Becky Respess
Broker/Associate Century 21 Judge Fite Co - Cedar Hill, TX


Great post! The appraisals done on some homes have been horrible. I really hate when an appraiser does an appraisal on a home in an area he is not at all familiar with. Then they call us for the comps.

Apr 28, 2008 03:59 AM
Endea Thibodeaux
Lanham, MD
Solar Energy Consultant, CDPE, CLHMS
Valuation is really suspect when you have Countrywide listing shortsales, providing the loans and doing the appraisals.  There are plenty of shortsales and bank owned properties listed in our MLS which offer incentives for using Countrywide loans or they say must be approved by Countrywide lender.
Apr 28, 2008 04:01 AM