By TA Webster

Did we not have enough land left in
America to keep a decent supply of homes on hand for ‘working people’
at ‘working people’ prices?

Was it excessive land-use
regulations, perhaps? Greed and profit, maybe. Media and government
propaganda blaring ‘record gains’ all over the damn country – could be.
Appraisal regulation (or lack thereof) – you’re getting warmer!

wasn’t anyone warning American homebuyers about the potential for an
overheated real estate market until it was way too late? Where was the
media’s objective eye? Why weren’t government officials ringing the
alarm bell, they are the authority on lending and appriasal regs aren’t

Typically an investor loan requires a minimum of 10% down
– the little white lie in all of this was someone telling the lender
they would be an ‘owner occupant’, turning on a utility bill or two in
their name and slipping under the radar to achieve 100%+LTV without
coming out of pocket for the typical investor down payment. This was
the profile for many subprime borrowers who flipped and sold before the
crash. Subprime mortgages served many investors and made ‘flipping’
easier. A majority of the sub-prime borrowers were not low-income

Many people I’ve talked to who purchased a new home
within the last several years never even received an appraisal. Buyers
who financed through builder owned mortgage companies assumed the real
estate appraisal (that they paid for) was done with their best interest

Lenders had carte blanche for doling
out ‘overvalued’ loans during the big run up in housing costs while
simultaneously avoiding or blackballing/blacklisting the honest real
estate appraisers… or wasn’t anyone in the banking world aware that
comps were being jacked up by speculators, AMC’s and AVM’s. Valuation
and data portals are owned/rigged by political/corporate pirranah – how
much ownership of the data portals lies in the hands of our country’s

AVM’s don’t know market dynamics – they are
computer generated algorithms and do not think like a human appraiser
would. Bottom line is that numbers can be skewed to suit the need of
the appraisal client BUT A REAL LIVE APPRAISER knows the market and the
market dynamics. What we need is legislation that protects the citizens
of the United States of America from sh**ty wasteful legislation(s)
endorsed by FNMA & FHLMC, Treasury Dept., etc. that is laden with
‘accounting irregularities’ and is nowhere near the best interest of

Think about it, if I screw up on ‘my’ job to the
tune of billions of dollars – I GET FIRED! Look at what happens to guys
like Angelo Mozillo, Richard Fuld, Frank Raines, James Cayne, etc. etc.