From one extreme to the other!

To say, "Our industry is in an uproar!",  is an absolute understatement.  I have spoken before about perspective of the market conditions and the like, but I feel I need to address the ridiculousness of our standards and protocols for operations. 

The sub-prime lending practices that contributed to the mess we are in right now were so lax that it created a mess that needs cleaning up and desperately so, however, now that everyone is aware of this necessity they are jumping off the deep end in the other direction.  Don’t get me wrong, I believe standards need tightening, but sometimes a little of something is better that a lot of everything.  The new appraisal requirements and education requirements for not only lenders, but borrowers and real estate professionals are good in theory.  I do not have any arguments about the necessity of educating the masses with respect to real property purchasing.  It is obviously necessary.  That much has been proven.  The primary issue I have is with the new requirements for the ordering of appraisals.  Those requirements have tightened so much that it is impractical to function.  I realize many questionable appraisals have been performed and submitted, but tightening the belt to the point where no one knows who is to do what and limiting the order to a very select few is not necessarily the best option. 

I agree with tightening the belt, but come on folks jumping in the complete opposite direction is carrying things a bit far.  Moderation and small steps are the keys to a successful transition period.  I hope all those involved in the policy shifts remember that and we, as professionals, need to speak up and give our advice to those involved.