Fannie
Mae's 2004 URAR Test Form: From
Mr. Harrison's Summary
found on page 48: "While there is certainly room for updating and improvements which would make sense for the 6/93 URAR, this is not the way to do it. These so-called "test forms" are in reality a power grab [for whom?]. As of July 1st, Fannie Mae has announced publication of a complete series of 10 new forms. By the stroke of a pen, Fannie Mae is making a political move [for whom?] to take over residential lending appraising in this country. Without
significant input from professional appraisers and their representative
organizations, the resulting forms will redefine what an
appraisal is and what an appraiser does. By limiting what information is
important in making the value estimate that is at the heart of appraisal
practice, they will effectively change the nature of residential
appraising for mortgage lending purposes. As they stand now, these
forms will not help to improve appraisals, protect the public, or allow
informed and reliable underwriting decisions. I sincerely hope that
Fannie Mae will rethink this unilateral action." --
Henry S. Harrison EDITOR'S
COMMENTS About REV... and Sir Henry of Harrison... See
Also: URAR
Assassination Planned! Real Estate Valuation Magazine is Henry S. Harrison's trade magazine for realty appraisers, and has only just been taken to the Internet, with this as the 5th issue on-line. All previous issues on-line are available. The quote above is from Author Harrison's Summary on page 47. The whole issue begins with the Author's Pandora's Box Editorial... which, in and of itself, is frightening, when one is on the inside of the industry. The rest of the magazine discusses the various changes to the War Horse URAR 1004 Residential Appraisal Report Form, which is officially titled the Universal Residential Appraisal Report for single family residential properties. It's been around since the early 1990s. In each section of the new form, Harrison shows the caveats as to what Fannie Mae is trying to hoodwink on an entire Nation. I sped read the whole issue on line, paying mainly attention to the Author's Comments, for the real meat and taters of the changes, since I am in the valuation profession. The whole issue is a must read for Realtors, Brokers, Valuation Practitioners, Mortgage Loan Folks, and Investors in Realty, including mortgaged-backed securities, as well as REIT mutuals. Folks who like to go long and short [i.e, FNM, FRE, or your favorite homebuilder or REIT, et cetera], and play on Wall Street, may find some great material here as well. Just keep in mind, that Henry's Advertisements, which are numerous on the website, although annoying, make both the magazine and the website free to all! One may turn a lot of pages to follow the total critique of the new Fannie Mae Mumbo Jumbo, but the read is worth it, in our view. Sir Henry of Harrison is the ultimate guru for how to fill out properly all form residential appraisal reports, and has over 30 books authored on the subject. He is the Ultimate Residential Valuation Guru in our view, and both he and his Kitty Kat, are most respected in the industry! He is a National Treasure! Analysis or the Meat and Taters... Author Harrison takes a jab at Fannie Mae by going back to USPAP, or Universal Standards of Professional Appraisal Practice -- in a general consensus that Fannie Mae just re-wrote USPAP from my take on it. Well, they have! In his opening editorial, Pandora's Box, Author Harrison wryly states: My prediction is that Fannie Mae will rue the day it decided to try to unilaterally take over the Uniform Residential Appraisal Report (URAR) and change it to meet their own perceived needs. They have opened up a Pandora’s Box. If that opener doesn't Frost your Pumpkin, Dear Reader, one may need to have their blood pressure checked to verify that one is still alive! Fannie Mae most likely is having a few loan loss reserve problems with the mortgage and appraisal fraud in their portfolios in the game of bundled loans sold as mortgage-backed securities in the game of two-tiered structured finance. I have dossiers on five properties, and five separate appraisers in the Central Missouri Region where I suspect mortgage and appraisal fraud were committed. Fannie Mae in most of the examples was at the top of the lender pipe food chain, as well as a few of the other Big Boys. Generally, when a property goes belly flop to foreclosure, the GSEs can go back on the originating lender to cover any losses they might incur. Revising the report forms [neutering them] makes it a lot easier to hide stuff in accounting footnotes in 10Q's, K's, and XYZ Affairs when a lot of your derivative book of business is offshore, or linked to other risky counter-party big bets. Next thing we'll all know, is that Fannie Mae rewrote the definition of "loss." Mr. Spitzer, the NY AG, will have fun with that one! However, with the loan to deposit ratio being at 1 or slightly over, instead of the 80% most folks in the banking business think it is, it won't take much for micro realty market lenders to quickly exhaust their loan loss reserves [especially if they have been pumping values and numbers!]. Hello! The trickle up effect in the game of the prime directive of total banking consolidation in a rigged realty market collapse [See: prime directive of the Federal Reserve, as identified by Larry Becraft, Jr., Constitutional Law, IRS, and Tax Attorney, in Memorandum of Law: The Money Issue. i.e., the Federal Reserve waging financial war on its own kind], is rather obvious, isn't it? If the local lenders blow through their loan loss reserves, the GSEs have to use theirs. Gee Whiz, would that impact the GSEs, who operate as a second tier of central banks under the Federal Reserve to begin with, to start printing their own money to cover their loan losses, before the global investors tank their stock prices? Instead of Federal Re$erve Notes, we have Franklin Raine$ Notes?!!! Nope... we didn't even mention the Bloated GSEs derivative book of business that is a rigged plutonium thermo-nuclear experiment [accident waiting to happen,?] on credit swaps, interest rate swings, global currency markets, and only the Good Lord knows what! Tulips, perhaps? Assignats, perhaps? One of the great quotes, from the Harrison Pandora's Box eye opener, is this succinct statement: It is not acceptable that FNMA claims to have worked on an “informal basis” with the Appraisal Foundation and the Appraisal Institute on the URAR revisions. They must include other appraisal organizations, lenders, Freddie Mac, government agencies and software vendors as well. We can rephrase that just a little. Author Harrison is too polite. Fannie Mae Fuehrer, told the Gestapo Goons and Storm Trooper Boys at The Appraisal Foundation and the Appraisal Institute exactly what they wanted [as the second central bank of the land with definitive links to the Big Boy banking cartel on, and playing to Wall Street], and these Goons and Storm Troopers knowing they were going to be making a potload of money on the big expense of software changes to the industry in companies that they own, as well the perks and kickbacks through the appraisal management company filters and pipes they control... it's nothing but a win-win big money making opportunity. If there is any resistance to the new Fannie Mae form, the appraisal management companies will crush the dissenters in the realty valuation gig, whether they are members of the AI, or not! Thus a further rigged fait accompli mandate of FIRREA 1989, the centralization and control of an industry, or trade group. This is what I call Steam Roller 101! I suggest Author Harrison add Congressman Ron Paul, MD from the Lone Star State to his list of other folks who need to be consulted -- one of the few Kool Kats in Congress who really understands The Money Issue at stake here, and probably how it relates to all those micro realty markets the Green Man says cannot be markets bubbles, since they are all local. Fait Accompli or Mission Impossible? I stand up and applaud Sir Henry of Harrison, giving a round of Woof! Woof!'s bursting into a Bass Chorus of "For He's a Jolly Good Fellow".... That, No One Can Deny! Now... ask yourself.... a power grab and political move, for whom? Answer the question! Grin! Ole
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