Elliott & Company Appraisers



December 2007	A Publication of ELLIOTT® & Company Appraisers

LACK OF INSURANCE IS TRUE DAMAGE FROM FIRES
Now that the devastating inferno that struck southern California has been extinguished and the ashes of property it destroyed are now cold, the true damage of the fires are being revealed. According to the California Department of Insurance, about 40% of those who lost homes during October’s fire did not have enough insurance coverage to pay their replacement costs. The problem of underinsured homes is not restricted to California. Experts estimate that nationally 60%-70% of homeowners do not have enough insurance to rebuild their homes due to the fact that construction costs have increased so dramatically in recent years. "Most Americans still think that full coverage means full coverage," said Douglas Heller, executive director of the Foundation for Taxpayer and Consumer Rights. "Insurance companies know otherwise."

MERRY CHRISTMAS FROM ELLIOTT® & COMPANY APPRAISERS

All of us at ELLIOTT® & Company Appraisers wish you a Merry Christmas and a Happy New Year. During this holiday season, we would like to take a step back and express our appreciation for the business we have received from our long-time clients, as well as the ones who have started doing business with us this year.

Our office will be closed on Tuesday, December 25, and Tuesday, January 1, for the holidays. We will be open all other weekdays during the holiday season, including Monday, December 24, Wednesday, December 26, and Monday, December 31, offering appraisal service in all 50 states.

FANNIE MAE AND FREDDIE MAC RESPOND TO CUOMO SUBPOENAES

GSEs Fannie Mae and Freddie Mac have each issued statements in lieu of New York Attorney General Andrew Cuomo’s announcement that they have been subpoenaed to testify in the upcoming court case brought on by Cuomo’s lawsuit against eAppraiseIT. According to Cuomo’s suit, First American eAppraiseIT agreed with Washington Mutual Inc. to only use "proven appraisers," who could be counted on to inflate appraisal values.

"If true, the appraisal practices described in the complaint would violate Fannie Mae’s requirements for loans we purchase from lenders or securities," said Brian Faith, Fannie Mae’s managing director of communications. "It is against our interest to purchase or guarantee mortgages with inflated appraisals, and so it is in Fannie Mae’s interest that these appraisal practices be investigated."

Management at Freddie Mac seemed to feel the same way.

"Accurate appraisals are fundamental to our effective credit-risk management, as well as the long-term success of the home buyers we are chartered to serve," read a statement issued by Freddie Mac.

Cuomo has requested an independent examiner to look at the appraisals in question.

Faith at Fannie Mae welcomed the idea, as he said, "If the examiner determines we own or guarantee mortgages with inflated appraisals, our guide states that the lender must buy back the loans that do not meet our standard and requirements."

QUOTES OF WIT & WISDOM

"We make a living by what we get. We make a life by what we give."
                                                              -- Sir Winston Churchill

"Genius may have its limitations, but stupidity is not thus handicapped."
                                                                            -- Elbert Hubbard

"In the absence of clearly defined goals, we become strangely loyal to performing daily trivia until we ultimately become enslaved by it."
                                                                 -- Robert Heinlein

"Go through your phone book, call people and ask them to drive you to the airport. The ones who will drive you are your true friends. The rest aren’t bad people; they’re just acquaintances." -- Jay Leno

"Self reliance is the only road to true freedom, and being one’s own person is its ultimate reward."
                                                                                                             -- Patricia Sampson

"It’s easier to forgive an enemy than to forgive a friend." -- William Blake

"You can discover what your enemy fears most by observing the means he uses to frighten you."
                                                                                                                     -- Eric Hoffer

"Nothing will benefit human health and increase the chances for survival of life on earth as much as the evolution to a vegetarian diet." -- Albert Einstein

"Part of the secret of success in life is to eat what you like and let the food fight it out inside."
                                                                                                                 -- Mark Twain

"Selfishness is not living as one wishes to live; it is asking others to live as one wishes to live."
                                                                                                                 -- Oscar Wilde


For previous newsletters or columns written by Charlie Elliott, MAI, SRA, president of ELLIOTT® & Company Appraisers, for mortgage publications visit our Web site at www.appraisalsanywhere.com.



CONTACT US
Newsletter Editor: kevin@elliottco.com	Web Site: www.appraisalsanywhere.com
3316-A Battleground Avenue • Greensboro, NC 27410