Comments on: Fed cuts rates to 2% http://blownmortgage.com/2008/04/30/fed-cuts-rates-to-2/ #1 Free Home Loan Modification & Debt Relief Help For US Home Owners - Truths, Facts & News About the Mortgage Industry Sat, 21 Nov 2009 12:13:18 -0700 http://wordpress.org/?v=2.8.3 hourly 1 By: morganb http://blownmortgage.com/2008/04/30/fed-cuts-rates-to-2/comment-page-1/#comment-12768 morganb Thu, 01 May 2008 01:11:03 +0000 http://blownmortgage.com/?p=1021#comment-12768 Ann - I think one of the top 3 culprits in this mess is the appraisal<br>issue. I think all appraisals should be done by a disinterested third<br>party without pressure from brokerages (or direct lenders, a la WaMu).<br> The 1) lack of regulatory oversight and 2) insane product options and<br>3) the appraisal fraud rampant in the industry and driven by cash<br>hungry borrowers and loan officers is what got us here. #2 took care<br>of itself pretty quickly, 3 is coming and so is 1.<br><br>I agree with you on the fresh blood. It has been what many people<br>have speculated - the pushing on a string theory where Fed policy is<br>exceptionally limited in these instances in terms of solving the<br>problem. There needs to be more and the Fed is not the agency in the<br>position to do it. Ann – I think one of the top 3 culprits in this mess is the appraisal
issue. I think all appraisals should be done by a disinterested third
party without pressure from brokerages (or direct lenders, a la WaMu).
The 1) lack of regulatory oversight and 2) insane product options and
3) the appraisal fraud rampant in the industry and driven by cash
hungry borrowers and loan officers is what got us here. #2 took care
of itself pretty quickly, 3 is coming and so is 1.

I agree with you on the fresh blood. It has been what many people
have speculated – the pushing on a string theory where Fed policy is
exceptionally limited in these instances in terms of solving the
problem. There needs to be more and the Fed is not the agency in the
position to do it.

]]> By: ann http://blownmortgage.com/2008/04/30/fed-cuts-rates-to-2/comment-page-1/#comment-12767 ann Thu, 01 May 2008 00:34:19 +0000 http://blownmortgage.com/?p=1021#comment-12767 Once again the Fed plays into Wall Street and the end result...will be the same as it has been over the last group of cuts..NOTHING!!...The Fed needs some new blood and insight on how to stablize a housing market that was been the backbone of America's spending habit...We for the first time in a long time have nothing to fall back on(such as how the housing market picked up from the DotCom stage and continued)...A recession is here even if the FED doesn't want to utter a "dirty" word...Fine we know that..the MILLION DOLLAR QUESTION..How do we get out of this mess???<br><br>Morgan, I know you haven't brought that up in your blog, but how do you feel about the new proposal to have brokers barred from the appraisal arena? Good, Bad? Once again the Fed plays into Wall Street and the end result…will be the same as it has been over the last group of cuts..NOTHING!!…The Fed needs some new blood and insight on how to stablize a housing market that was been the backbone of America's spending habit…We for the first time in a long time have nothing to fall back on(such as how the housing market picked up from the DotCom stage and continued)…A recession is here even if the FED doesn't want to utter a “dirty” word…Fine we know that..the MILLION DOLLAR QUESTION..How do we get out of this mess???

Morgan, I know you haven't brought that up in your blog, but how do you feel about the new proposal to have brokers barred from the appraisal arena? Good, Bad?

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