werd
Ron Paul in my opinion is partially correct. You can lower interest rates, give loans at 100% but if the appraised value is lower than the asking price the loan either (A) does not go through, or (B) the sale price gets lowered.
Most appraisers have been very creative in "coming to value", as the bank/brokers are unfortunately talking with the appraiser prior to the appraisal to come up with a value the lender seeks. This is unethical and illegal and it is where the snowball started.
As I stated in a post a month ago, it is unethical appraisers, greedy lenders/brokers, and irresponsible Americans that caused this crunch. The interest rates will always spike up and down, it is the ethics of the parties involved that may or may not continue this disastrous trend.
If the ethics of the appraiser continues to go unchecked this system may not change. Why? Because Americans will always be irresponsible. As far as the lending agencies are concerned I do not know their ethic codes nor do I know the process well enough to comment on. I just have a good idea where the snowball started.
