The
Blacklisting of the Realty Valuation Professional
So you are a guy or gal real estate valuation professional, in the realty valuation gig, either designated in a professional organization, or a regular state licensed guru.... and you are scratching your head why your lender clients appear to be so fickle. You are no longer getting as much work, or no work from long time customer sticks and bricks? I have some news for you Dear Sir, Mademoiselle, or Madam! You are on the Blacklist! Nope, the blacklist works both in the commercial and the residential valuation gigs, Folks! Get Real! One just might miss a lot in the Land of the Delphi Technique and Cognitive Dissonance!
The way it works is that the GSEs most likely oversee the blacklist and outfits like REAS and other appraisal management (mis-management) companies maintain the blacklist... as a kind of quality control for both the primary appraisal and loan process, as well as the review process, which Larry S. Levy describes in The Fraud of Appraisal Regulation, as "gift wrapping bundled loans." Professional realty valuation organization affiliation makes no difference, and certified appraisers with designations, and well as the regular non-designated state licensed realty valuation experts are subject to blacklisting by the banking cartel running the realty valuation industry and their affiliated Gestapo mis-management companies. Both commercial and residential appraisers are impacted by Blacklisting. If a local appraiser gets out of line, the local lender is informed to keep so and so on their "approved List", but we won't be taking any more of their appraisals or buying any more loan packages in which this firm or appraiser is used. If you want to use us or sell the paper to us, don't use him or her. The informant may be an appraisal management firm, someone from a GSE, or a big middleman lender in the lender pipe food chain. Blacklisting is a form of lender client coercion on the valuation industry. Delaying payment of fee, or refusing to pay the fee for completed valuation work is an overt tactic of lender client coercion. Blacklisting and the fear thereof, is a covert, silent, and even more powerful seductive and secretive tactic used by the proponents of Delphi and Cognitive Dissonance. All in a Days Work, Rocky Mountain High, or Hello Houston! -- We have a problem! What causes blacklisting of the realty appraiser? Any number of things can cause this to happen. An appraiser senses an overbuilt market, or a market topping out, and says so in the narrative comments of a report. An appraiser may include factual data about home construction, rates of sales, and MLS data a mile long to support his view of the market, usually as a way of covering his behind in a future general market downturn. Most of the realty valuation appraisers out there on the planet know that realty markets can go up, and can go down, and that it is impossible for them to go up all the time. Hello, Houston! We have a Problem! Hello, Denver! You all have a Rocky Mountain High in the Foreclosure Rate! This is not the type of information that gifts wraps bundled loans. An appraiser may refuse to do a drive by appraisal. An appraiser may refuse to edi or email reports, for the general fear that someone is going to instantly download his data into a national database, which eventually will put him out of business. An appraiser may refuse to do a comparable search as part of the enticement to get the appraisal order, usually from a lender or appraisal management company who has no idea what the appraiser's market may be. In these cases, giving away your data for free to folks who don't know how to use it to begin with, is a tip-off to the smart assets on the other end of the phone line, that this appraiser, is trouble for them. Refusing to drop all other work to complete the "dangled carrot" assignment, may be the reason (usually with the enticement of sending you thousands of appraisal assignments in your market!) Turn Time Fee or You Got Time for a Quickie, Pal? Many times it can be just the appraiser's fee for the work product, or the turn around time to complete and deliver the assignment. With lenders being cutthroat and highly competitive on commissions for closed loans, cheaper fees and quick turn times, no matter the quality of the work product, are high incentives in negotiating with proposed client borrowers for quick mortgage loans. In the review appraisal process, since it appears that many of the folks in the appraisal management and mortgage gigs are using the review appraisal process to further gift wrap bundled loans, an appraiser who says up front in a review appraisal assignment that there's trouble right here in River City, with the respective work product... can get the ax quite quickly, even before completing the field review assignment, or desk review assignment. An appraiser who refuses to use the AVM valuation models for instant valuations most likely gets placed at the top of the list, since that's where major appraisal management companies and professional realty valuation organizations who play to the GSEs, the GSE money pump, and Wall Street are eventually headed with both the residential and commercial valuation genres. No, commercial appraisers are not immune to the process either. Another form of blacklisting is the issue of fee. Appraiser A as been working for Lender Client XYZ for a number of years who provide a high percentage of Appraiser A's book of business. In waltzes Appraiser B, who promises Lender Client XYZ to do a good deal of Appraiser A's previous workload for a reduced fee, of say $25, $50, or $75 per report. How is it that the lenders want to dictate our fees, but we can't dictate that we want a 1% loan? Grin! Busy is as Busy Does and the Steering Committee Think you are immune from blacklisting because you have a great reputation and have been in the realty valuation business for 30 years! Hah! Fool! Dream on! Here's how it works! You have a repeat customer client who goes to Lender A who is either refinancing or buying a new home, or getting a swing loan, or building a new home from scratch. Your client tells Lender A that they want to use you, Sam Spade, Appraiser, as their realty valuation guru. The lender then, behind your back pulls these kinds of stunts, shuttling your repeat business to another appraiser or firm. Examples are the following. Gee whiz, borrower client, he's too busy, and can't get to it in time. Or, this is a really good one: He's retired from the business. Another cute backstab is: Well his fees are too high, and we don't use him anymore. Another cute one is: Well, he's qualified, but his reports are too thick, and we have a hard time handling all that paper work he gives us. Telling your borrower repeat customer that your turn around time is way to long for them, is also used quite a bit. Or, the lender can say: Gee Whiz! I can't find him on our approved appraiser list. Let me tell you, Folks -- In Boone County Missouri, anyone with a MAI, SRPA, SRA is qualified to appraise anything the local lenders are fool enough to loan money on in the Columbia Real Estate Gambling Casino. There are myriads of other excuses, but these are the ones that I have personally encountered.
Give Me that Ole Time Religion, or Who Needs Phone Book Advertising Anyway? An appraiser can also get blacklisted by old time sticks and bricks when they get merged or bought out by a larger entity, and especially when the sticks and bricks go to an appraisal management company arrangement. These rascals will intimidate you to drop your fees $100 for the Fannie Mae 1004 Universal Residential Appraisal Report, and if you won't perform the drive by's and the 2055 In/Out's for $175, you are history. A cheap fee makes for a fast loan, in a financial world were quality of the realty valuation work product is not considered in the fee charged by the realty valuation practitioner. One of my all time favorites from the commercial loan officer, when a local Realtor wanted me to appraise the condominium office building he was purchasing, was: Gee Whiz, I didn't know you and couldn't find you in the phone book, like I had just changed my name or something. The Realtor, with whom I sing in the church choir, gave this Kool Kat my phone number. By the time I had connected with this so and so, he had already given the assignment away. In the process of blacklisting, either the honest appraiser capitulates to their game, or he goes out of business. The fear of the purse string is part of the cognitive dissonance professional organizations and appraisal management companies use on the general body of realty appraisers, whether affiliated with a professional organization or not. It is part of the mechanism to control and keep real estate inflating in the primary side of mortgage lending, 125-150%+ home equity loan lending, as well as part of the gift wrapping in the expanding review process that Levy describes in The Fraud of Appraisal Regulation, in order to gift wrap bundled loans.
In the meantime, the FED is in the process of completing the destruction of our paper money system, and all this talk about inflation or deflation, is but a smoke and mirror. Every new FRN (Federal Reserve Note) added to the money supply destroys the value of our money, piling more debt service on real estate, which I personally don't believe will ever be paid back, given a meltdown in financial markets. The blacklisting process of the realty valuation expert, is part of the game of the banking cartel in the Global Lender Monopoly game of bundled loans using Blitzkrieg Financial Warfare. Blacklisting is a mechanism of control, an instrument of both mental and financial torture perpetrated on honest realty valuation appraisal gurus everywhere, in the game of two tiered structured finance gift wrapping bundled loans on the global markets. Neither residential, nor commercial appraisers are immune from the blacklisting process. The blacklisting process, and fear of it, is a mainstay financial warfare tactic used by the powerbrokers in the banking cartel loop. It is a fundamental tactic and weapon in the Art of the Delphi Technique and the practice of Cognitive Dissonance. The Blacklist Mechanism perpetrated on the realty valuation professional crushes the honesty, reputation, and professional integrity of the realty valuation practitioner, through a process of fear, intimidation, and financial destruction. Ole Bear © 2004 Ole Bear |
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GLOBAL
REAL ESTATE MARKETS FORUM
How
the Blacklist Works...
Conclusion
from Columbia, Missouri -- It's All Part
of the Game, Anywho!