Gynell Stalford - Texas Cert. Appraiser *****FHA & FLAGSTAR APPROVED*****

An Appraiser speaks out regarding what went on at Washington Mutual (WaMu). Graham Albertini is a Certified Residential Appraisersince 1988 and has a SRA designation from the Appraisal Institute. SRA is a designation the Appraisal Institute boasts, hold Appraisers to a much higher standard than the certification requirements of the State and is held by less than 1% of appraisers.  He was hired by Washington Mutual as a review appraiser from 1999 to 2006 and the scene he describes regarding their practices sheds greater light on the problem with the HVCC and the Mortgage Crisis we are in today.

Here's a few of his answers:

What did you do in your job?

I reviewed appraisals that had been flagged. If I reviewed them and they complied with bank guidelines, (then) the appraisal was deemed acceptable for the loan.

How many were you supposed to review?

Originally, it was two appraisals a day. It went up to four in 2004. They expected me to verify everything an appraiser did in a couple of hours. In 2006, they wanted me to do eight a day. I was getting appraisals for properties in New Mexico and Alaska , so it was impossible to have time to do field reviews. Most of the time, the appraisals were so bad, you couldn't believe it.

Did you feel pressure to approve bad appraisals?

Not directly, but they didn't pay you for the appraisals you rejected. So the people who did the best quality of work were getting paid the least, the people with the worst quality of work were getting paid the most. They had a poster in the office that said: Cheaper, better, faster. (WaMu) was rewarding us for production, not quality. You can see the result.

Lots of loans that were approved that never should have qualified?

It's not just that. It was the entire system. They used technology in a bad way: to process more and more applications faster and faster. The computers weren't flagging any appraisal that was less than $600,000. So there's probably millions of loans where the appraisals weren't looked at by anybody. The appraisers aren't stupid, they had figured this out. By that time, they could submit any type of appraisal and it would be accepted.

Why did you leave?

It was all about cutting costs and processing more loans. By 2006, they didn't need staff appraisers. They sent us an e-mail and we got a good severance package and were let go. They outsourced the appraising to management companies that use cheaper employees. The fees are really bad, so they get the worst appraisers.

You can read the article in its entirety at  http://genie96.newsvine.com/_news/2008/12/10/2198248-an-appraiser-describes-the-happenings-at-wamu

There are so many key factors that jump out of this article, greed, corrupt management, Appraiser coercion, fees for approved appraisals only.Cheaper but faster,but at what cost ? Are you kidding me? Ethics, ethics, ethics. It highlights the problems with Appraisal Management Companies. Each of these warrants a blog of its own.

It is as overwhelming as as the basis of our economic crisis.

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I have not been a fan of gift cards. I don't like receiving them or giving. Simply because it is the most impersonal gift you can give. "Here I didn't put much thought into a present for you" or "It was easier to just buy a stack of these" or "I just don't really know much about you or your life". Anyways, point being, I haven't liked gift cards in the past. But today I found a great site. The company is right here in Frisco and was featured on Oprah's O Magazine. It is truly the coolest thing. I was so excited on discovering it I had to come write a blog before I go back and place my order. The website is www.giftcardlab.com. You can select backgrounds, upload pictures, personalize it with their name and a message. You get to design a very personal gift card. Now that's nifty. It is a great idea for anyone on your list. Frisco is a very cool place to live :)))))))))

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So the news is bleak. The unemployment rate is currently at 6.7 percent and expected to reach 8.5 percent before this already record long recession since post war period, is over. Are you financially insulated to ride out another ten months, which is what some experts predict will be the remainder of this recession? What's the plan? Most Americans are stressed right now with financing the holidays, job loss or even worse the anticipation or possible job loss, declining home values, heavy mortgage burdens and depleting 401K's and other nest eggs, all this in addition to life's daily stresses. Is there a light at the end of this 10 month long tunnel? Yes, the light is the end of the recession and a better economy. Plus the added strength and wisdom we are to gain from surviving this struggle.  Every experience is a learning experience. It is not my intention to minimize the stress on each of our lives caused by the current economic crisis but it is important to find the good in all this. When situations get complicated, Simplify. And with Christmas around the corner I think it's a great time to focus on just that.

It may not be possible to solve all our problems at once but there are steps to take to move forward, more secure and positive. It is important to remember this too shall pass and it is up to each of us how we want to come out of it.  As with other occasions in our life this is once again a time to re-focus, take stock and plan and follow through for our future. Evaluate, Plan and follow through. It is as simple as it sounds. Do not allow yourself to complicate the problem. 

Start with evaluating, your lifestyle, household, debt, and needs.  It is not being pessimistic to deal with a distressing economy. It is realistic and important to your family. Ask yourself some realistic questions and be honest with yourself. Is your job secure? Are you able to maintain your lifestyle should something happen? Is it better to downsize now as opposed to suddenly being thrown out on your fanny? There is no need to go to bed with a thousand worries each night. If you're too stressed to sleep, write your concerns down. Wake up the next day and evaluate it in a new light.

Planning eliminates worry. Find the solution for you and give yourself options. I talked to one lady who told me at their thanksgiving dinner, her family which is spread out around the country, talked about if any of them gets hit hard they would be welcome at a relatives home in another part of the country. That's an exit strategy, and also peace of mind. In times such as these it is time to exercise some creative thinking. Give yourself options. Is it time to back to school? In this global economy its time to think globally. What is best for your family? Can you consider a job internationally?

Get it done. Don't procrastinate. Look at the bigger picture. Some of the immediate fixes may not be so pleasant but if it gets you to a better place then get it done. Peace of mind is worth it. Stress free living for you and your family is worth it. Being able to smile and laugh and enjoy the holidays with your children is something you will cherish forever.

Seed Newsvine

So the news is bleak. The unemployment rate is currently at 6.7 percent and expected to reach 8.5 percent before this already record long recession since post war period, is over. Are you financially insulated to ride out another ten months, which is what some experts predict will be the remainder of this recession? What's the plan? Most Americans are stressed right now with financing the holidays, job loss or even worse the anticipation or possible job loss, declining home values, heavy mortgage burdens and depleting 401K's and other nest eggs, all this in addition to life's daily stresses. Is there a light at the end of this 10 month long tunnel? Yes, the light is the end of the recession and a better economy. Plus the added strength and wisdom we are to gain from surviving this struggle.  Every experience is a learning experience. It is not my intention to minimize the stress on each of our lives caused by the current economic crisis but it is important to find the good in all this. When situations get complicated, Simplify. And with Christmas around the corner I think it's a great time to focus on just that.

It may not be possible to solve all our problems at once but there are steps to take to move forward, more secure and positive. It is important to remember this too shall pass and it is up to each of us how we want to come out of it.  As with other occasions in our life this is once again a time to re-focus, take stock and plan and follow through for our future. Evaluate, Plan and follow through. It is as simple as it sounds. Do not allow yourself to complicate the problem. 

Start with evaluating, your lifestyle, household, debt, and needs.  It is not being pessimistic to deal with a distressing economy. It is realistic and important to your family. Ask yourself some realistic questions and be honest with yourself. Is your job secure? Are you able to maintain your lifestyle should something happen? Is it better to downsize now as opposed to suddenly being thrown out on your fanny? There is no need to go to bed with a thousand worries each night. If you're too stressed to sleep, write your concerns down. Wake up the next day and evaluate it in a new light.

Planning eliminates worry. Find the solution for you and give yourself options. I talked to one lady who told me at their thanksgiving dinner, her family which is spread out around the country, talked about if any of them gets hit hard they would be welcome at a relatives home in another part of the country. That's an exit strategy, and also peace of mind. In times such as these it is time to exercise some creative thinking. Give yourself options. Is it time to back to school? In this global economy its time to think globally. What is best for your family? Can you consider a job internationally?

Get it done. Don't procrastinate. Look at the bigger picture. Some of the immediate fixes may not be so pleasant but if it gets you to a better place then get it done. Peace of mind is worth it. Stress free living for you and your family is worth it. Being able to smile and laugh and enjoy the holidays with your children is something you will cherish forever.

Seed Newsvine

I recieved an email today and times previous I'm sure from Dave Biggers regarding Ala Mode's Mercury Network. I was wondering if any appraisers here subscribe to it and find it beneficial. I percieve Ala Mode to have about the largest network of appraisers and that being so how much work can one appraiser realistically expect to recieve from them. I don't have an Xsite but I'm curious as to its benefits.

Any thoughts on this would be sincerely appreciated.

gynell

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