Can you believe this?
“Bloomberg reports that Charlotte-based Bank of America (NYSE:BAC) has opened a unit in India to work on home-valuation paperwork.
Associate Editor/Online-Charlotte Business Journal
Bank of America Corp. (NYSE:BAC) has opened a unit in India to handle the work of reviewing home-valuation reports as the Charlotte-based bank tries to rebuild its share of the U.S. mortgage market at a lower cost, Bloomberg reports.
Workers in BofA’s new Bangalore, India, unit follow checklists to determine whether the appraisal paperwork — one of the biggest problems in the mortgage business, according to one independent banking consult — has been completed properly, according to the report.
The move comes as BofA eliminated U.S. positions in its appraisal division, according to Bloomberg. The bank also is working its way through a lengthy and expensive legal process to settle claims tied to bad mortgages and foreclosure practices.”
As if it was not bad enough that the mls is rigged, the appraisal system is also. We have been hearing for a long time that deals are falling through because of low appraisals. Now the consumer protection bureau wants to get involved. They want it to be law that you see:
1. all houses used
2.what kind of license the appraiser had
3. how much of your fee actually went to the appraiser
4.Is the appraiser local
5. Did they use a computer or actually saw the house
Its important to know this . The NAR reported that 33% of all appraisals were a problem. Because the appraisers are receiving such a small part of the fee, you get inexperienced appraisers who don’t the area and tend to count distressed sales as part of the comps.
In addition, many think the banks are purposely doing this to keep appraisals low so they can keep the loan low to protect themselves.
I am getting my sign and going out on Torrance Blvd to join the activists. Sometimes i wonder if it matters who wins the election.