Mary Cummins, Real Estate Appraiser, Animal Advocates, Los Angeles, California

Mary Cummins, Real Estate Appraiser, Animal Advocates, Los Angeles, California
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Showing posts with label fico. Show all posts
Showing posts with label fico. Show all posts

Friday, April 21, 2023

Tucker Carlson speaks the truth about real estate appraisals now?! Last show. by Mary Cummins

tucker carlson, tucker carlson tonight, joe biden, kamala harris, marcia fudge, mary cummins, real estate appraiser, real estate appraisal, bias, racist, white supremacist, fico, credit
Tucker Carlson: The Biden admin is punishing Americans with high credit scores. Fox News host Tucker Carlson reacts to a new Biden administration rule that will punish Americans with good credit on 'Tucker Carlson Tonight.' tucker carlson, tucker carlson tonight, joe biden, kamala harris, marcia fudge, mary cummins, real estate appraiser, real estate appraisal, bias, racist, white supremacist, fico, credit, fox news @tuckercarlson

UPDATE: And a couple of days later he's gone from FOX News. This was his last story, show. Of all stories to be his last! He was let go Monday morning. https://www.tmz.com/2023/04/24/tucker-carlson-leaving-fox-news/

ORIGINAL: Some Facebook appraisal groups are sharing this video of Tucker Carlson talking about Democrats trying to get the vote. In the video he talks about Joe Biden, Kamala Harris and Marcia Fudge lying and stating that all appraisers are white supremacists who are racists against black people and devalue their homes. Tucker Carlson states they provided no evidence that this is true. While I prayed to God for a savior in the media to spread the truth about the issue Tucker Carlson sure as hell would not have been my first choice. Was there no one else available, dear Lord?!

SHOW: "Tucker Carlson: The Biden admin is punishing Americans with high credit scores. Fox News host Tucker Carlson reacts to a new Biden administration rule that will punish Americans with good credit on 'Tucker Carlson Tonight.' " April 21, 2023 https://www.foxnews.com/video/6325545406112 Real issue starts at 2:15 min into it. Text https://www.foxnews.com/opinion/tucker-carlson-biden-admins-new-rule-punish-people-high-credit-scores

Carlson says Marcia Fudge says home appraisers are white racists who lowball black homeowners. Even HUD's own data shows this is false. AEI did independent research on HUD's data and proved there is no racism in home appraisal values, see link below. He shows a clip of the CNN August 2022 interview which I wrote about. Fudge says black people have lost great wealth through the appraisal process. No, they have not. Again, AEI research ( https://www.aei.org/research-products/report/comments-on-the-pave-report/ ) proved this to the PAVE task force by debunking Andre Perry's non-peer reviewed, non-published paper ( https://www.aei.org/wp-content/uploads/2021/12/AEI-Housing-Center-Response-to-Perry-and-Rothwell-2021-final.pdf?x91208 ) . The difference in value between white and black, brown owned homes is caused by the income gap. Whites make more money so they have more money and buy more expensive homes in more expensive areas. That's it! It's the income gap, stupid!

Marcia Fudge again offers the false anecdote about her home being worth less than her neighbor's only because she is black and the neighbor is allegedly white. This has been debunked here previously ( https://mary--cummins.blogspot.com/2022/03/pave-task-force-action-plan-from-white.html scroll to "I live in an all" ). Fudge's home is much older, of average quality and sits on the main highway. The homes across the street are new, of very good quality and in a private development off the main highway. That's why the newer homes are worth more. We don't know the color of the owners of the new homes. If Fudge doesn't understand this, she should not be the head of HUD. She also shouldn't be believing Zillow Zestimates of value. We all know they are not accurate.

Carlson said Kamala Harris in March 2022 was talking about the Home Appraisal Workforce (she meant PAVE task force ). She said appraisers are mainly white and biased. She said appraisers now must take training on fair housing and bias because of her and PAVE. False. We've been taking this training since at least 1989. You have to take it to get your license. There are new training hours which will take effect this year. It's more of the same exact training that we've taken since the 1990's. They are just divvying up the number of credits differently. It's the same total hours with the same topics.

Carlson then talked about the false accusations that all appraisers are white supremacists, "There is zero evidence of that. It's a slur upon home appraisers. Why do they deserve this abuse?" "They're using fake allegations of racism as the pretext of a political plan. They're doing it for votes." I totally agree. Can't believe I just agreed with Tucker Carlson! I feel gross but what he said is true. Why is Carlson speaking the truth now? Is he trying to change his MO after the huge defamation lawsuit loss because of his lies? I knew one day probably near election time GOP would pick up on Biden's false narrative about appraisers. I just didn't think it'd be Tucker. Anyway here is the research which proves that appraisals are not racially biased. https://www.aei.org/how-common-is-appraiser-racial-bias/ Real estate appraisals are a math formula. We don't even know the color of the owners of all the homes we appraise and use as comparable sales.

Biden just introduced a rule about credit scores and fees effective May 1, 2023. People with FICO of 740 or above will pay $40 more a month. People with low credit scores will get a discount of 1.75%. I personally believe this is unconstitutional. The purpose of credit scores is to reward people for working hard, saving money and paying bills on time. They are lower risk borrowers so their loans costs less. The better your score, the less you pay for credit because the risk of default is lower. Carlson said black people have average credit scores under 680. He says he doesn't know why. I do. It's because of the income gap. Whites make more than blacks and browns. It's because of socioeconomic factors and not color. Whites are also more likely to be married. It's cheaper to live as a married couple than two separate households. Whites less likely to have multiple children under the age of 18 than blacks, browns. Again, AEI proved this with independent data based on government data, see above. Fix the income gap and other factors if you want things to be more equal. Don't go blaming appraisers just because it's easier and good for votes.

This new program won't even help poor people. It will help them get stuck in an over priced home in a depreciating market. They will be paying higher interest rates on their mortgage which they can't easily afford. They are more likely to not be able to afford their mortgage while the economy contracts and some lose their jobs. As their home value depreciates they will end up under water. Thanks, Biden, Harris, Fudge! The Gov did the same before the great recession. Why don't they learn their lessons? Because politics and getting votes. They don't really care about helping poor people but getting their vote. It really is a sad situation.

FTR I'm a Democrat who voted for Biden. I agree with most of his positions except the false narrative of the "racist appraiser" and mass "appraiser bias" in appraisal values. This started during the last campaign cycle. Both Harris and Biden as candidates for President promised to "finally" help lower income black and brown people. If they really want to help, fix the income gap!




Mary Cummins of Cummins Real Estate is a certified residential licensed appraiser in Los Angeles, California. Mary Cummins is licensed by the California Bureau of Real Estate appraisers and has over 35 years of experience.


Mary Cummins, Mary K. Cummins, Mary Katherine Cummins, Mary, Cummins, #marycummins #animaladvocates #losangeles #california #wildlife #wildliferehabilitation #wildliferehabilitator #realestate #realestateappraiser #realestateappraisal #lawsuit real estate, appraiser, appraisal, instructor, teacher, Los Angeles, Santa Monica, Beverly Hills, Pasadena, Brentwood, Bel Air, California, licensed, permitted, certified, single family, condo, condominium, pud, hud, fannie mae, freddie mac, fha, uspap, certified, residential, certified resident, apartment building, multi-family, commercial, industrial, expert witness, civil, criminal, orea, dre, brea insurance, bonded, experienced, bilingual, spanish, english, form, 1004, 2055, 1073, land, raw, acreage, vacant, insurance, cost, income approach, market analysis, comparative, theory, appraisal theory, cost approach, sales, matched pairs, plot, plat, map, diagram, photo, photographs, photography, rear, front, street, subject, comparable, sold, listed, active, pending, expired, cancelled, listing, mls, multiple listing service, claw, themls, historical appraisal, facebook, linkedin DISCLAIMER: https://mary--cummins.blogspot.com/p/disclaimer-privacy-policy-for-blogs-by.html
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Sunday, July 4, 2021

Main reasons home loans, mortgages are denied. It's not the appraiser. - by Mary Cummins

main reasons mortgage home loans denied, mary cummins, los angeles, california, real estate, home loan, 

Here are the main reasons mortgage loans are denied. It's not the appraiser or appraisal. 

1. Debt to income ratio (37.2% denial rate).

Your debt to income ratio (DTI ratio) should be no great than 43%. You can improve this by paying off debt, reducing interest rate on debt or renegotiating debt to lower the monthly debt payments. Your net assets (total assets minus liabilities) still factor into the loan so make sure the debt balance doesn't increase too much when you lower the rate or payment. 

Another thing they consider is your monthly housing cost ratio which is (monthly housing costs / monthly income). "The top ratio is calculated by dividing your new monthly mortgage payment by your monthly gross income. Typically, this ratio should not exceed 28%. The bottom ratio is equal to your new monthly mortgage payment plus your monthly debt divided by your gross income per month. Typically, this ratio should not exceed 36%." 

As a rule of thumb your monthly rent, utilities or mortgage, taxes, insurance, home maintenance, utilities should not exceed 30% of your gross monthly income. If your housing cost is over 30%, you are considered cost burdened and have a high risk of not being able to pay your rent or mortgage. All poor people, people making minimum wage, moderate earners are cost burdened paying over 50-70% of housing costs if they live in Los Angeles or similar areas. Median rent for an average one bedroom is $2,100/month here. Two minimum wage earners working full time can barely afford that if they don't eat much. You should not be buying a home at the moment. Work on increasing your income. I know it's a "let them eat cake" thing to say and I agree. It's not easy for most people.

2. Credit history 34.8%. 

You need a FICO score of 580 to 620 absolute minimum to get a home loan. You can improve this by always paying your bills on time. Make sure you have some little loans like a small balance on a credit card, gas card, department store card...to build credit. Start that at least two years before you try to buy a home. Start with one card only and make payments. After a year add another. Don't apply for a lot all at once. You'll be denied and end up with many inquiries on your credit report which is a big red flag for denial. And remember, the lower your FICO score, the higher the risk to the lender and the higher borrowing rate for you. Get your score as high as possible so you can save money. It's doesn't make sense that poor people pay higher interest rates but it's related to the higher risk for the lender. 

3. Collateral 19.7%. 

Generally the home is the collateral for the loan. You can also use other real estate or assets such as bonds, life insurance or investments. Your parents could cross collateralize their home for your home loan if they love you more than life itself. The total loan to value ratio should be about 80%. This would be about a 20% down payment. If you want to only put down 5%, the risk and cost goes up and you're much more likely to be denied. 

It's possible that the issue was not the appraised value but the fact it needs repairs, has broken windows, is in a flood, wildfire, landslide, hurricane, tsunami ... zone, has unpermitted additions, is over 150 years old, is next door to an oil refinery... If you are doing a low down payment loan, don't buy a fixer. You're more likely to be rejected because you'll need down payment money and the money to fix it. 

4. Other 12.9%

Everything other than what is listed here. The lender just can't discriminate against you based on race, religion, gender... The lender can deny you the loan based on credit, income, assets, liabilities and everything else in this article. That is legal. 

5. Credit application incomplete 8.9%

You'd think this would be a no brainer but it's not. People either don't want to complete the application or just don't. This is only for loan applications which were submitted and not for loan applications which were started but never submitted.

6. Unverifiable information 6.7%

Unverifiable information arises from inaccuracies in an applicant’s employment history or tax records or discrepancies between the application and credit report. This could be from unreported income that doesn't show up on taxes, tax returns which show no real income for years, bank statements which don't match stated income, a loan you paid off which isn't on your credit report, bills you paid which weren't reported or the person is just plain lying on the application or their taxes or both. 

7. Insufficient cash 4.0%

You must have sufficient funds to cover the down payment and closing costs and fees or lenders may deny their application. You generally can't borrow the down payment or fees. Research has shown if someone can't even save for a down payment, they are not credit worthy and there's a higher chance of the loan going under. If you haven't saved enough for a down payment, you're not ready to buy a home. Work on your debts, budget, income and save some money. You should have a 20% down payment and six months worth of monthly expenses saved before you buy a home. You should also meet all the other requirements I've listed here.

8. Employment history 1.8%

Lenders want to see that applicants have worked in the same job for at least two years. They want a stable, steady earner. This also means you can't just get your Uncle Benny to lie and state you worked for him for two years. They need an independent way to verify it usually with W2s, 1099's, bank statements, cashed checks, verifiable tax returns... In the 1980's to 2009 mortgage brokers actually forged tax returns, W2s, 1099's and bank statements or they did no document loans which didn't require them. Those are a few reasons we had three real estate busts during that time. Thanks to Obama and Dodd Frank we are less likely to have another bust because the borrowers are more creditworthy today due to independent verification. 

9. Mortgage insurance denied .1%

"Mortgage insurance protects the lender and allows borrowers making a down payment of less than 20% to still qualify for a home loan. Applicants who are denied mortgage insurance that need it are also likely to be declined for their loan." Mortgage insurance is insurance to pay the monthly Principle Interest Taxes Insurance (PITI) payment if the borrower can't make the payment. It's added to the monthly mortgage payment. As it is mortgage insurance is for high risk borrowers. To be denied that means you are a super crazy high risk borrower. If you're denied mortgage insurance, you are not credit worthy or ready to buy a home. Go work on yourself. Work to increase your income, reduce your budget and expenses, increase your savings and try again much later. 

https://constructioncoverage.com/research/top-reasons-mortgage-loans-are-denied-2021

Mary Cummins of Animal Advocates is a wildlife rehabilitator licensed by the California Department of Fish and Game and the USDA. Mary Cummins is also a licensed real estate appraiser in Los Angeles, California.


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