Well. Hold on just a moment. There are a lot of problems and many people who’s full time jobs used to revolve around dealing with mortgage lenders, they have some important information and data you may want to incorporate into your arguments in the future. Those people, myself included; Licensed real estate appraisers.
I wrote a detailed post earlier on this issue of the twins. And have included many rich and educational articles which were hand written by very knowledgeable appraisers over the years in this below post. Please if you have a minute take the time to read this.
People say a lot about conservatorship and removing the taxpayer back stop. Would lenders operate with such risk and disregard for consumer protection principals if not for the bail out and bail in guarantees? I got news for you, the governments investment in mortgage backed securities is at historical levels. The fix is already in. Privatizing the twins is not going to do a dang thing in terms of alleviating the risk or forcing a more honest system. Not until the government divests from mbs instruments. Which means a substantial price discovery period and market deflation. Instead we’ve got everyone cheer leading artificially low mortgage rates again. This is just going to make the problem of housing affordability crisis that much worse.
Appraisers are the bellwether, the bulwark, the last line of defense of consumer protection principals in mortgage lending. And we’re being sidelined right now. The appraisal industry is poised to lose tens of thousands of licensees soon, and about a hundred thousand never came into existence over the past twenty years due to the long term strategy to remove independent checks and balances from the GSE systems.