While things continue to lag congress has added more laws to make it difficult for consumers to get loans. According to TBWS Daily it is more difficult for brokers to get adequate compensation on loans. They are not going to be able to compete with the big banks and consumers are going to suffer in pricing and interest rates. If we lose the smaller brokers the big banks are going to take over. This will have fees on the rise, rates on the rise and big banks cornering the market. Hey, thanks again congress....way to take care of middle America!!
Appraisers are feeling the lag in sales across the Sacramento Area. I've called several colleagues all with similar comments. Fewer appraisals are being order by the AMC's meaning slower sales, fewer financed sales and basically still a lack of activity in the market. Seems like even REO appraisals are slowing. This is partly due to the banks ordering more BPO's in the hopes of saving a buck. Unfortunately, they may save a buck on the appraisal, but the BPO's are reducing the listing prices for the homes in the area and adding to the double dip. Ooops, hopefully the banks will get back on board with appraisals before this continues.
Won't be much longer and this will all be behind us. We are going into year 6 and these trends typically run 7 years. I look forward to getting to the top of this mountain. Hey look at the stories we get to tell our grandkids right....