While we were resting by the pool this summer, dreaming of real estate of course, two of our Soapbox appraisal columnists were busy writing about valuation issues applicable to the Wall Street situation today. Their years of experience shows and its some of the best handiwork I have seen. Here are links to their recent efforts:
Fee Simplistic – Marty talks about the lack of underwriting that preceeded this mortgage crises and wonders if the same standards will be applied to underwriters as were appraisers during the S&L crises in: Move Over FIRREA-Make Way for FURREA: A Brief History of Real Estate Finance Follies
Straight From MacCrate – Jim talks about the problems with Wall Street valuation methodologies. Its one of the key issues with investors balking at subprime mortgages because they don’t understand the value of the collateral, and therefore the risks in: Wall Street’s Valuation Methodology – Is It Correct?