Remember back during the housing boom, when all of the corrupt real estate appraisers were busy pumping up local comparables, and helping to drive prices higher?
Do you recall how the National Association of Realtors swung into action, and being in the vanguard of responsible behavior: 1) Were the first to spot these problems; 2) Demanded their membership identify these corrupt appraisers and mortgage brokers; 3) Proposed fixes for this widespread corruption and presented them to Congress
My thoughts came back to that this week, when I was catching up with some missed research and economic reports. I was traveling to and from Vancouver, so I missed the June Existing Home Sales data. In finally reading June’s EHS, I couldn’t help but notice this doozy in the 4th paragraph of the National Association of Realtors release:
“A June survey of NAR members shows 37 percent experienced at least one lost sale as a result of the new Home Valuation Code of Conduct, with seven out of 10 reporting an increased use of out-of-area appraisers. Seventy percent of NAR appraiser members said consumers were paying higher fees, while 85 percent report a perceived reduction in appraisal quality.”
What contemptible bilge.
Where TF were these concerned citizens at the NAR when appraisers were engaging in all sorts of funny business, driving prices skyward? They were AWOL. You do not recall any commentary during the boom about the artificial number of sales, or the increased prices that appraisers were causing, because somehow, the greatest bout of Appraisal fraud, predatory lending, and irresponsible mortgage underwriting standards the world has ever known managed to escape these ethicsless weasels’ notice.
NEVER FORGET THIS: The NAR is a trade group, not a legitimate source of independent data. They are biased, not credible, and to be blunt, essentiually behave as PR flacks who will say ANYTHING if they think it will help their members make a quick buck. They are not a credible economic organization, they are not legitimate researchers, they are nothing more than hired guns pushing their members’ agenda — even when it is destructive to America.
I am the son of a Real Estate Agent, and growing up, the worst behavior of the people working in the RE industry were dinner table fodder. The stuff my mom used to talk about — Outrageous! she would say — seems downright quaint compared to the un-f&^%-believable garbage that goes on now.
Not only does the worst of the Real Estate industry have proper representation in their trade group . . . they seem to be running it.
Existing Home Sales, Non Seasonally Adjusted, Explained (March 25th, 2008)
Existing-Home Sales Up Again
NAR, July 23, 2009
Realtors cry foul over low-ball appraisals
CNN/Money, July 21, 2009 5:07 pm