Interesting Thoughts for July 7th

There has been quite a bit of upset over the latest HUD and State of California rulings that are intended to place a barrier around appraisers from 'undue influences' by realtors and lenders. You've probably heard about this from friends and family who were unable to obtain financing because the property couldn't carry the value in today's marketplace, or may have experienced it yourself.

Realtors are particularly impacted, and as of July 1st lenders are also affected. The situation now is that in our efforts to know the market and what has sold, we have been denied access to the very information we use to compile CMA (Client Market Analysis) and provide BPO (Broker Price Opinion) which are the mainstay of property valuation to the market. The job of a realtor is to list a property 'at market value' and then conduct Marketing activities to get it sold. That has now been made ever more difficult...and that is undesirable for the consumer.

Below are two good articles you can link to that give some insight into the situation.

Letter to Change Current (New) Appraisal Act

How California is Screwing Up the Foreclosure Situation

Both of these actions by government and regulatory officials to 'protect' the public are a bit like closing the barn door after the horses got out. Perhaps it reflects more on their notion of CYA (you know...cover your arse) and placing themselves in the public's eye for future elections.

However, the practical applications are onerous at best, and at odds with the proclaimed intention of President Obama, FHA and HUD to clear up the foreclosure mess.

On a more positive note, interest rates have stayed level these past several days and it is a good time to refinance, or purchase a home. Take a look at the Ten Year Treasury's to get a sense of what the 30 yr. interest rate ebb-and-flow has been at www.bigcharts.com (Ten Year Treasury)