Reply #96: We don't learn...

[jtuck004]

From the article -

Spokesman Walter Molony of the National Association of Realtors (NAR)...

What else can be done? Mr. Molony says there are two important factors...banks have tightened their credit terms...

However, a second problem gumming up the works is the implementation of new regulations governing home appraisals. Among other reasons, Mr. Molony says, mortgage issuers now frequently use appraisers who are not local, not familiar with the markets, and who tend to err on the side of caution.

...NAR thinks that if the industry were allowed to return to normal sales, underwriting and appraisal standards, housing sales would rise by 15-20%.

...if the White House wants to help, it can toss the new regulations on appraisals – preferably tomorrow.

So if we return to appraisals who throw caution to the wind, everything will work out? Maybe we can get AIG to sell insurance on bad loans, using bad loans as reserves. Again.

They don't really give a damn about people, about jobs or schools or bridges. Just throw all the regs out and let them make money, perhaps on the backs of widows and orphans, the most gullible, and anyone who they can convince the future is going to be bright enough to pay whatever they can borrow.

I wonder if Mr. Molony would be comfortable with a provision that requires them to inform the buyer that economic conditions and current sales indicate a very good probability that the house will be worth a bit less in 3 years than they are buying it for today?


Thank you for the post