Appraisal Reprisal
The National Association of Realtors’ economist Lawrence Yun is anxious about the new appraisal rules.
He talks to CNBC’s Diana Olick about how appraisals are hurting home sales.
We can’t resist running the Barry Ritholz commentary on Yun’s appraisal assessment in a The Big Picture blog post referred to below.
Consider: The NAR remained notably silent during the appraisal corruption during the boom; Home sales based on loans to people who couldn’t afford them that drove prices higher were fair basis for appraisal comparables — but when these same homes are sold — inevitably through forclosure auctions, REOs or distressed sales — they should be ignored? Only up, not down?
Even worse, they seem to be calling for a return to “local” (i.e., friendlier) appraisals — like the good ole’ days. You remember the “friendlier” era of corrupt appraisals that were rife during the credit bubble?
Am I reading this correctly? It looks like code for USE APPRAISERS (i.e., CORRUPTIBLE) WHOM YOU KNOW.
I thought I was inured to the idiocy of the NAR and the fetid stank of corruption that their press releases come with, but even I am astonished by the filth emanating from their offices today. Shame on you . . .
Comments
Leave a Reply