Bernard Laffer

In a desperate attempt to correct the failings of a lending system that gave the world wide real estate collapse, the powers that be invoked  a series of rules that were designed to protect lenders from themselves. For the past 18 months banks, mortgage brokers, processors,etc were forbidden from communicating directly with appraisers 9. No longer were lenders able to call up their favorite appraiser, provide them with the details of  a particular loan.  .  Clearing houses were created that were designed to assign jobs to appraisers randomly off a list.  THE WHOLE IDEA WAS TO REMOVE THE INFLUENCE OF THE LENDER FROM THE EQUATION. The problem was that the appraisers were not properly screened and the resulting valuations were not accurate  Attempts have been made to correct the system but it is still faulted. The  end result is that the whole process has been slowed down to the point where you can not accurately predict when a property is going to close. I have observed highly qualified mortgage brokers frustrated at that lack of communication between the appraiser, the clearing house, the underwriter and the loan agent. Add to this the boom in refis and we have a lending world that has no great commitment to completing a home purchase on time. I am presently waiting for docs on 3 transactions that are being handled by very experienced mortgage brokers. They are all late. I was involved in a transaction where Wells Fargo was providing a loan for an employee. The loan was being handled by an in house lender. They were a month. The end result is that the changes although well intentioned   did not work. Congress has debated tabling the law that was responsible for this confusion.  I hope that they have the character to admit its failings , reevaluate the system and make effective chnges.