A continuation from part one of this post. Max (the appraiser)and I had a lively discussion about HR 3126, the Consumer Financial Protection Act of 2009. The first post was getting long so it was time to break the conversation into two parts.
The response from Max:
"Until you know how to appraise you have no way of knowing what is best related to this issue. Yes, this rules help some (banks) and screws others like borrowers, appraisers and others! First of all, all they needed to do was ENFORCE the rules and NOBODY did that. I think that would be a great place to start! Second, in order to change something you got to get the top professionals who are ethical in each field and together come up with a new solution and not just decide behind closed doors like the moron Cuomo did, to give his friends in the banking industry another revenue to screw everyone! All they did was kill a lot of small business and gave it the big banks basically! You are talking about putting somebody in the middle, how is the management company in a better position to order appraisals when they are owned by the banks?? See a little conflict of interest there? ENFORCE the rules and hold everyone accountable, should have been a good way to start! Instead they screwed the hard working average Joe and closed down a lot of small businesses, nice way to go!"
Summary:
There's always more than one side to a story. Appraisers, many of whom were innocent of any wrongdoings, went out of business because of HR3126. Consumers -- who for the most part only knew what their realtor told them about home values -- had an added level of protection against overpriced homes. And of course, it was now much more difficult for people who actually wanted to perpetrate loan fraud to get away with it. However, as Max pointed out, over regulating an industry can cause financial hardship with the average small business.
What are your thoughts?
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