3 ms·

Yikes regarding the low appraisal waiver... This is the entire point of appraisals - to protect the bank from over-lending and the taxpayer from the moral hazar

Yikes regarding the low appraisal waiver... This is the entire point of appraisals - to protect the bank from over-lending and the taxpayer from the moral hazard of having to bail out poorly run banks.

SilasX 4y ago
Without knowing the details of why it got waived, it's hard to know whether that was reckless or not. And remember, it wasn't (unrecovered) mortgage defaults that sank FRC.
- cpursley 4y ago
  Do you think the mortgage originators working on commission trying to push deals through are able to assess if waving an appraisal reckless or not? Why even have appraisals?
  - SilasX 4y ago
    No, I didn’t argue that straw man.