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14850 Highway 4 0 Suite #A326 Disco overy Bay, California 94505 Bus) 925-513 3-3231 (Fax) 925-513 3-8465 Mann & Asso M ociate – Appraise & Co es ers onsultan nts Providing Fair and Trustworthy V ng Tr Valuations sin 1983 ince www.mannappraisa sal.com STAT TEMENT O OF KAREN N J. MANN, SRA, A ASA, MRICS TO THE T FINANCIA F AL CRISIS INQUIRY Y COMMI ISSION Septem mber 23, 2010 Good morning Mr. Chairman, Vice Chairman, and m members of the Comm f mission. Th hank you for the opportu t unity to testi today regarding my opinions, analysis an personal ify y nd conclusi ions regard ding the fina ancial crisis of the Sac s cramento ar and the factors rea e affecting single fam residential real est g mily tate market t. Before I commence with the re e esponse to the questio posed to me, you should be o ons aware of a significa stateme which ha caused my increas awareness and ant ent as sed sensitivity to the ch hanges in th marketplace. FNMA represen he ntatives wer guest re speaker at the Appraisal Inst rs titute conference in 19 994. The re epresentativ for FNMA ve told about 400 of us appraiser that we should be p rs s prepared. F FNMA then outlined th hat their nee of “live” appraisers will diminis in the ne future du to the an ed sh ear ue nticipated increase use of st ed tatistical valuation met thods. Sin that day I’ve come to realize that nce y, e the futur of residential lending could cha re ange – and that to sur d rvive the va aluation indu ustry I must continue to expand my valuation services. e s at xperience in the mort tgage mark and ap ket ppraisal ind dustry and my 1. Wha is my ex pers spective on how thes sectors have evolv of the past decad includi n se ved de, ing, but not limited to, the reg n d gulation of appraisal f ls. My training began as a real estate appraiser in 1980, du M b e uring the pe eriod of 13% % 18% interest rates. It became clear early in m career t b my that the mo success ore sful and respecte valuation professio ed onals had de esignations from the p s primary ganizations For the residential a s. r appraiser th choices were the he appraisal org SRA/RM and the ASA. S ecoming ac ctive with the two prima apprais organiza ary sal ations o By be (Appr raisal Institu and Am ute merican Soc ciety of App praisers) I w able to was obtain mentoring and continuing educ n g cation which resulted in the increa h n ased obser rvation of th market and the tren therein. he a nds In 1987 The Appraisal Foundation was forme by 8 maj appraisa n n ed jor al organization to help re ns egulate the appraisal p profession w within the U United State es. As mandated by federa law, The FIRREA ac of 1989 e A al ct established the Apprai isal Subcommittee who are charged with oversee S e w eing the fou undation. 1 o In 1994, the FRB, OCC, FDIC and OTS proposed a rule change that would increase the de minimus appraisal threshold from $100,000 to $250,000, exempting more real estate loans from requiring an appraisal by a licensed/certified professional. The regulators contended that the proposed rule change would reduce regulatory burdening, improve credit availability and serve federal financial and public policy interest without threatening the safety and soundness of financial institutions. This law was enacted to expedite home loan lending in spite of the vast concern conveyed by appraisers and appraisal organizations, reportedly for the protection of the consumer. This law allowed the mortgage loan to depend more on a borrower’s creditworthiness than the value of the collateral (the house). Under Title 11, lending institutions were not required to have a licensed or certified appraiser providing an on site inspection and valuation services for home loans less than $250,000. The products utilized to determine the worth of the collateral for the loan included; Broker Opinions of Value (BPO’s), on line statistical valuation services such as Zillow, and Evaluations (prepared by individuals who may or may not be real estate professionals). One of my neighbors is not a Realtor, and he has been preparing BPOs for lending institutions at $40 per assignment for the last 3 years. A perfect example of an evaluation being used in the lending industry versus a professional appraisal. Between 1994 – 2003. Bank Regulators referred the real estate appraisal oversight to the state regulatory agencies. Many states do not have an adequate means to oversee appraisers. It should be noted that the State of California does not have an oversight “appraisal board” in the office of Real Estate Appraisers, one of the few states which does not. This resulted in the influx of potentially fraudulent new licensees who’s training (required to mentor under a licensed or certified appraiser) may have overstated their experience. We had a vast increase of licensed appraisers in the State in spite of the lack of qualified/experienced trainers. (Quoted from the Office of Real Estate Appraisers “Effective January 1, 2005, affidavits are not acceptable for claiming appraisal education or work experience.”) o This means affidavits were acceptable prior to 2005 leading one to wonder how many affidavits were not a truthful document. 2 The OREA was understaffed and there was extensive backlogs for appraisers to obtain licenses as well as investigations which may reveal fraud or disciplinary action. Prior to licensing – the Appraisal Organizations (Appraisal Institute, American Society of Appraisers, ASMFRA and NAIFA) were the organizations that any appraiser needed to join and adhere to their Professional Practices. Rigorous education and peer review requirements – practicing appraisers needed to stay in line, or else the penalties and potential expulsion meant significantly decreased business opportunities. Since that time, the Banks and Lending institutions pretty much ignore the professional designations that appraisers worked so very hard to obtain. During the last couple of years the IRS has acknowledged the importance and preference of the professional appraiser with a professional designation as acknowledged by the industry. o 2003 – 2005. The Bank Regulators Release Independent Appraisal and Evaluation functions. It is acknowledged that similar reliance is given to an Evaluation (not prepared by a real estate professional) versus an Appraisal. The appraisal industry was outraged. The Regulators released the Frequently Asked Questions on the Appraisal Regulations and Interagency Statement on Independent Appraisal and Evaluation Functions. This document was in response to the questions from federally regulated institutions regarding clarification of existing standards to select an appraiser, proper ordering procedures, the procedures for accepting transferred appraisers from one institution to another, and other related topics. It would be curious to know the percentage of subprime loans which were Evaluations (the complete opposite of an appraisal in experience, professionalism, training and does not abide by ANY appraisal guidelines) versus Appraisal Reports as regulated by USPAP, the Appraisal Foundation, etc. o 2009 HVCC (Home Valuation Code of Conduct) was implemented with drastic and immediate effects to the appraisal industry. Long term clients (Mortgage brokers, Bankers, Mortgage Bankers) after 28 years of business development were severed. The creation of middlemen to “protect” the appraiser from getting pressure of value was changed to pressure of lowering your fee and an unreasonable turn around time. On a personal note, prior to HVCC – the customary and reasonable fees for my firm was between $400 and $450. In 3 the early to middle 1990’s our fees were in the $350 to $375 range. In the middle 1980’s our fees were $200 to $225. The Middlemen known as AMC (Appraisal Management Companies) are now in control of 80% - 90% of the lending institution appraisal assignments. The fee paid to residential appraisers is between $200 and $275 per report. The AMC retains the rest of the fee, although not disclosed on the consumers Loan Cost Discloser Statement that the Appraisal Fee is split between the Appraiser and the AMC. As a result, many experienced appraisers, like my firm, do not prefer to do this work and have concentrated on alternate types of valuation services. It has come to the attention of many that the unintended consequence of HVCC has driven the more qualified and more desirable appraisers away from the mortgage loan process, and the less qualified are performing these reports. The other issue which has come to attention is that some of the AMC’s were hiring appraisers from distances more than 7 hours or several states away from the property under appraisal. Resulting in less than reliable valuations. The HVCC is nicknamed the HAVOC Code and has driven many very capable and qualified appraisers from the business to other forms of employment. To quote Ann O’Rourke, MAI (author of Appraisal Today) “the one thing I know is that the dishonest appraiser will do fine as a result of the HVCC changes to the residential appraiser; the honest and diligent appraiser….well that remains to be seen” The good news is that appraisers are not being asked to “hit a certain value”. The bad news is that if the appraiser has a question in regards to how the lender wants an issue handled, the appraiser is prohibited from talking to anyone else but the clerk who ordered the appraisal. A very frustrating factor. In my opinion, the consumer is being ripped off and is not being provided the best practice nor safe lending by providing the most inexpensive or the quickest appraisal versus the most qualified appraiser for the assignment. 4 2. My assessment of which factors, if any, contributed to the run-u in home a h i o up e price and the collapse of the mort es o tgage mark includ ket, ding but no limited to ot o, inappropriate subprime lending, fla s l aws in the appraisal process and mortga age fraud d. d Approximate 80% of U.S. mortga A ely ages issued in recent years to su ubprime borrowers were adjusta w able-rate mortgages. o After U.S. house prices pe r eaked in mid d-2006 and began the steep d eir declin thereafte refinancing became more diffi ne er, e icult, if not i impossible. . o As ad djustable-ra mortgag began t reset at h ate ges to higher rates mortgage s, e delinq quencies so oared. o Securities backe with subprime mort ed tgages, widely held by financial firms, y lost most of their value. Th result ha been a la m r he as arge decline in the cap e pital of ma banks and U.S. go any a overnment s sponsored enterprises tightening s, g credit around the world. t e Using one of the publis U shed trends by the Nat s tional Association of R Realtors and the d US Social Security Adm U ministration, we can ob bserve the differential and the tre ends of wages versus home prices. We can see o the follow e on wing graph the two we ere ame between 1963 to 1973 (the c commence ement of the Oil Embargo e nearly the sa ssion). Bet tween 1975 until 1985 there was a gradual c 5 5 change with an h and a Reces a cession in th mid 198 he 80s. Between 1993 to 1999 the uptick after another rec median hom price exc m me ceeded the Average N National Wa age, but it re emained constant and the indice are parallel. The up d es pswing and the really began in 1 d 1990 5 ave and by 2005 it skyrocketed. This should ha been an indicator than something is “out of line s e”. Source: N National Ass sociation of Realtors, U.S S. Social Sec curity Administration 5 The Perfect Storm hit the market T t tplace in the Sacramento area. D to the p e Due prior shortage of supply, the extremely affordable interest rat and the very strong e tes e g demand, prices were in ncreasing up to 30% p years w the high u per with hest increas ses between 200 and 200 03 05. o It was between 2003 and 2005 my att s 2 2 tention beca ame at full alert. The word of FNMA in 1994 echoed in m head an I knew th trend co ds A my nd his ould not la for appra ast aisers nor for consume f ers. We ob bserved the decline du e uring 2005 and into 20 006, as dem monstrated by the follo owing published data a and confir rmed with our in house appraisal reports. O clients d not like the o e Our did fact th we were beginning to make d hat e g downward m market condition adjus stments for the change in the mar e rket conditio ons. The follow wing graph illustrates t average sales pric by County the e ce within the Sacramen Metropo e nto olitan area. The inclus sion of each of h the adjacent Countie was to d es demonstrate that the m e market within Sacramen was not abnormal based on t trends w were nto the we observing throughou the area. g ut Not to rely on just one source, the typical app N o s e praiser will review tren and nds compare the trends to our persona observat e o al tions in the individual n neighborho oods of properties we are ap s ppraising. For anothe unbiased sales grap er ph,(publishe ed m) ng y between 20 and 201 the 000 10, by Trulia.com illustratin the 10 year trend b ollowing gra aphs are re eviewed. fo 6 The above graphs as produced by Trulia.com illustrate the change which T g p y m e according to this source shows a median Sa le Price pea o e aking out a the end o at of 2005 and the beginning of 2006. Likewise, t he number of sales tra g r ansactions also ning in mid 2005. began declin o Even though published indicators sho a variatio the overall trend is ow on, s reflec ctive of the change of the market between 2005 and 20 and t 006 provid an unbiased report of the ma des arket trends s. The following graph wil demonstr T ll rate that for every dras increase of r stic appreciation the declin is just ar n, ne round the co orner – this is a trend of apprecia s ation ra ates for the Sacramen Metropo nto olitan area. o We can see the on the follo owing graph first increase and de h ecline from 1979-1980 – wit the declin between 1980 and 1984. th ne n o The la 1980 ha a very strong upsw ate ad wing to 20% but the de %, ecline was signif ficant and la asted from 1990 to 1995. o The next increas started out to be a g n se o gradual upt tick, howev the upw ver, ward trend lasted from m1998 to mid 2005. m o The current dow c wnturn has been the m b most severe noted perh haps since the Great Depressio t on. o It app pears we may have hit bottom in the 3rd qua t arter of 2009 However the 9. r, loss in appreciat tion was an aggregate 40% - quit significan n e te nt. 7 Since I appraise both residential homes and non-reside S r d ential prope erties ( I rem main vi igilant of the trends of pr e roposed land commercia and churche construc d, al es) ction in new w subdivisions At the ba of any new constr s. asis ruction is th cost of th land. Th he he he fo ollowing will illustrate the average pricing priior to, durin and after the financ t e ng r cial crisis. o The market area used for this depictiion is in the Towns of Elk Grove (just m as e south of Sacram h mento) and the Town o West Sac t of cramento, a also adjacent to Sacra amento. Raw w Land Sales, Purchased fo or potential Re esidential Subdivision: Elk G Grove & West Sacramento Period # Transactions # $/Acre A Average Change C $/SF Avg Da $ ays On Market 02 0 $98,510 $2.26 1999‐200 30 218 2003‐200 06 16 6 144% $223,614 5.13 120 2008‐201 10 11 1 ‐61% $88,241 $2.03 363 Period 02 1999‐200 2003‐200 06 2008‐201 10 les: Elk Grove & West Sacra amento Finished Lot, Subdivision Sal # Transactions # $/Acre A Average $/$F Avg Da $ ays On Market 3 $6.02 13 $262,389 218 1 $1,212,429 $ 122% 17.7 120 $266,721 ‐78% 3 $6.12 363 o Read should note the diff der n ference of d days on ma arket and th $/Acre he avera for the raw land sa age ales betwee 1999-20 and Cha en 002 ange of value of the following two periods e t s. Run up in prices nor n rmally resullts in Red F Flags by underwriters and/or rev viewers. In most case appraise have a d n es ers difficult if no ot impossibl task to va le aluate prop perties in su a scena and uch ario 8 typically do not deve d elop an app praisal whic would illu ch ustrate the actual sal price du to the lac of marke substanti les ue ck et iation. o Anoth source of observat her tion is the C California A Association of Realtors s Marke Outlook. The follow et wing outlook provides a comparis of the k son numb of resale the per ber e’s, rcentage of change, th Median P f he Price for the e State and what the current loan rates were. We will note th the t e hat adjus stable mortg gage rates between 20 and 20 were ex 003 005 xtremely low w, and lo ower than the following years as well. t o The observation of unsold resale (hom o n mes) invent tory is also known as t the absor rption rate. The follow wing periods were indic s cators as o obtained from my files and wer confirme with the C re ed California A Association of Realtors s. The shorter the unsold inve s entory, the more the supply is depleted whic ch result in the inc ts crease of pr rices. Period 2002 2003 2004 2005 2006 2007 Unsold in nventory (Absorpti ion Rate) 2.5 mo onths 1.5 mo onths 1.3 mo onths 2.7 mo onths 5.7 mo onths 9.1 mo onths The media encouraged the “feedin frenzy” o the historical low mortgage rat T e d ng of tes 9 o Many San Francisco Bay Area residents relocated and/or invested in homes in the Sacramento/Stockton areas at what they considered bargain prices. Housing prices in the Sacramento/Stockton area are typically 40% to 50% less than that found in the San Francisco Bay Area. 3. My assessment of the types of loans that entered the market and how these mortgage products affected the housing market. In two words I can describe the types of loans between 2000 and 2005. EASY MONEY! o The following graph will illustrate that the period between 2002 and 2005 had the lowest mortgage rates since 1964 – and we know how much the standard person likes a “sale” or discounted price. Therefore, the market was stimulated. The period of very low interest rates stimulated the construction industry, banking industry, finance and insurance industries, construction industries and other ancillary industries related to housing. Not only were interest rates low, but unemployment rates are under 6% which meant the public felt like they had money and security. When rates bumped up slightly in 2005/2006 it was barely felt, however, the financial crisis had already shown signs that the “glory days” were over. Mortgage Interest Rate 30 year loan financing 12 10 8 6 4 2 Jan‐09 Jan‐08 Jan‐07 Jan‐06 Jan‐05 Jan‐04 Jan‐03 Jan‐02 Jan‐01 Jan‐00 Jan‐99 Jan‐98 Jan‐97 Jan‐96 Jan‐95 Jan‐94 Jan‐93 Jan‐92 Jan‐91 Jan‐90 0 With the confidence of low interest rate trends and the easy underwriting practices; the Consumer, the Speculators/Developers and many of the Economists were lulled into complacency and 10 became reckless in observing the various market indicators which were approaching during 2005/2006. Loan products were predominately the adjustable rate mortgages which were starting out at 3.8% to 4.5%. Property owners were optimistic that these price increases would just continue into the future – after all Real Estate Never Goes Down in Value – does it? Some call it greed, some call it ignorance, frankly, I call this mess not a surprise. o Lenders & underwriters were qualifying the borrowers ONLY at the introductory rate of the loan (not the maximum the loan could be adjusted to) – Seems dishonest to the consumer to me (Poor lending guidelines) The volume of loan activity required the hiring and training of title & escrow officer, underwriters, loan processors, mortgage brokers (some who were not licensed) o Radio, TV, Internet and Newspaper ads were BLARING about obtaining loans which exceed 100% of the value of your home….Again – Easy Money! o When collateral/home prices are increasing up to 30% a year and the public or media thinks it’s going to just keep going up – we must wake up and realize that the Wild, Wild West of these lending practices would eventually catch up and haunt us. My firm was receiving an average of 15 – 20 appraisal requests a day via fax machine. Previously, our norm was 30 -50 per week, we increased 100 per week which resulted in the expansion of the firm to adequately process the reports. This was quite exhausting on all staff personnel. o Personally, in 2004 I began warning my friends, family and discussing with colleagues the fact that the faster and longer the prices rise unrealistically, the harder they will fall and that I was very concerned about the Banking Crisis which would result. Many of my colleagues agreed, others keep their head in the sand. My warnings came out as Seminars (Incredible Income Opportunities of Residential Appraisers, Profitable Appraising, Building New Skillsets for Appraisers, and Beat the Clock and Make More Money) of which I wrote and taught at various Appraisal Institute chapters across the nation. The Seminars were focused on alternate valuation services other than the mortgage lender (FNMA’s warning was still echoing in my head). I just did not want to see my colleagues or employees unprepared for when the demand for our services would wane due to the change of market forces. 11 4. The impact of the financial crisis on my business and family Our children have been raised to understand that real estate is a good and solid investment. Both of our kids saved adequate money to buy their first homes in their early 20’s when they each got married. o One of our children and spouse purchased a condominium in 2001, then upgraded to a 4 bedroom home with a pool and great tot lot for the 3 children to play a couple years later. Like most young couples they refinanced to take advantage of the lower rates and used an equity line during times of need and to make home improvements. By 2007, baby #4 was born, mom needed to be home with the baby, dads’ hours/pay got decreased and the homes in their neighborhood began declining. When it was near the time to re-adjust their mortgage rate according to the terms of their loan, the property value was approximately the same as the loan amount. They began the arduous process to obtain a loan modification to find out the lender may not consider them as viable candidates (they were never late on their mortgage) and would let them know in 4 months if they qualify. Meanwhile they investigated selling the house via short sale. A buyer was willing to pay a reasonable “market” price and which exceeded the value developed by the lending institution. After 6 months of the lender stall or ignorance - the lender declined the permission for the short sale. After a serious medical complication, the family of six (6) moved in with my husband and I for 7 months until they could get back on their feet. The children were relocated to new schools, and the adults dealt with the pain and emotional suffering while they were trying to rebuild their lives. The uncertainty of their housing caused them (and us) great stress – but as a family we endured and they were able to rent a condo for the six of them. The lender said it is to go to foreclosure…our kids would have tax obligations beyond their net worth, so they filed Bankruptcy, even though they had minimal debt in other areas. 2 months after the Bankruptcy , the lender called them and asked if they wanted to do a loan remodification. o Obviously the banking system does not have a clue what is going on intercompany departments I know of 3 transactions where the home was sold via short sale and was in the final days of escrow; only to have the house sold at a lower purchase price at the auction block than the short sale which was in the final stages of escrow (not a fiscally sound decision for a banker) o Not only does the banking system not have a clue but fiscally, their behavior needs to be re-examined because it is NOT sound lending practices nor sound business practices – consumer protection has been lost. 12 Please consider other owner occupants who have lost their homes via foreclosure. You can multiply our family’s experience by several million people (some 2.7 million families) in the United States who have gone through similar processes in the loss of their HOMES – not investment – but their “castle” is the place that is supposed to be safe and secure. In the Sacramento area, a review of REO data suggests that approximately 75% of homes that have gone through the foreclosure process thus far have been owner occupied (which is quite dismal when you consider the FAMILIES it has adversely affected). As I mentioned earlier, I have been a practicing appraiser since 1980 and have been either a co-owner of the owner of a firm since 1983 (27 years). I’ve had an office with 1 – 3 clerical help and 3 – 17 appraisers. As of 2004, I had 8 appraisers employed full time and 3 clerks. Once I realized the warning signs were in place for The Perfect Storm (aka Banking Crisis) I began warning my staff. Two appraisers paid attention and began learning commercial valuation, relocation valuation, and other areas where their services would be necessary in the future. The other 6 wanted to “make hay while the sun was shining” and did not expand their skill set. o On May 15th 2005 I went into my office and announced that based on the lack of a lackluster spring (appraisal orders had declined 30% to 40% during the prior three months). My gut told me the market has turned and that we need to take some drastic measures, to be prepared for a long and turbulent ride! I laid off the 3 clerks and 6 appraisers. They looked at me like Noah’s neighbors must have looked Him building that Ark. The decision stuck and it was fiscally a good decision as the year did not improve. o I knew my lease would end by 2008 so I hoped we would be able to hang in there, however, the change of the residential business resulted in the need to move out of my beloved office in 2007 and sub-lease it. My 3 remaining appraisers and I moved our offices to our homes, we set up an excellent system for intercompany communication and kept the business going strong. The sub-lessee paid 50% of the 1 year of his term, then he skipped and my unit was not really leasable for the remainder of the term so I had that expense anyway. We had a lease burning party in 2007! o It is now 2010 – it’s been a VERY VERY challenging time to be in business Nearly 30% of my colleagues have either retired, moved or found something else to do The AMC business (thanks to HVCC) has eliminated the relationships I developed and nurtured for 25 years (what happened to free enterprise?) Just because I spoke to my clients does not mean they pressured me for values or that I would even consider committing fraud for any of them 13 Many of the banks I used to work with on the non-residential side are now out of business Commercial lending is at a stand still Thankfully we do a lot of estate and dissolution valuations. The erosion of the business has also resulted in us remaining appraisers competing to obtain business so the fees are 25% lower (so we are working more and making less) My firms “rainy day” fund has shrunk substantially in the effort just to downsize and keep the firm operational (as expenses do not decline do they?) o What annoys me is that just like my kids did – I’ve done all the right things as a business owner – unfortunately the Banking Regulatory agencies and market forces just eliminated any visions of financial security for some time to come. 5. Other view and information regarding the impact of the financial crisis in the Sacramento Region According to the Sacramento Housing and Redevelopment Agency, in their April 11, 2008 “California Reinvestment Coalition” paper, the fiscal impact of the Mortgage Crisis will have the following effects; o Direct Effects Borrowers Costs: Homes, Equity, Credit rating declines, expenses, emotional impact, increased crime. Anticipated $53,798,000 o Indirect Effects Municipalities Costs: Administrative, legal, vacant & unsecured property costs, decreased tax revenue Anticipated Cost: $40,0345,000 Neighbors Decline of property values, increased crime, eyesore of unmaintained or burglarized properties Local businesses Decline of sales and revenues, anticipated closures Anticipated cost $7,427,168,000 o Social Cost of Foreclosures Decreased Economic spending Decreased job growth Decreased housing development Affecting ancillary construction or housing related businesses Increased violent crime, blight and disease The long range effects of this Banking/Financial Crisis could have been avoided if the lending institutions had been more organized and developed a plan to work with their homeowners 14 o Perha they did not need to modify lo aps d oans or hav as an ex ve xtensive forecl losure rate if the mortg gage terms could have been exte s e ended to 40 0 years or if the ad s djustable ra would adjust to an affordable rate. ate cts o The whole problem was ex w xacerbated by the effec of the c chaos in the e banki industry from hiring the least qualified ap ing y g ppraisers, d depending o on produ ucts less tha a full valuation (for example B an r Broker Opin nions of Value – BPO’s, statistica appraisals, etc.) to d al determine M Market Valu and fina ue, ally oordination of efforts to assist the public. e the co o The le ending institutions sho ould have d done everyt thing possib to prote ble ect their collateral by keeping the homes occupied and/or ren c s d negotiating the loan in some wa – BUT KEEP the ho i ay K omes occu upied. The presence of e vacan homes le nt eads even a good neig ghborhood to blight. T Then property value “tumble” or plummet even more rapidly. es e As of this wr A riting there are 2,400 homes in fo h oreclosure i the City o Elk Grove in of (6 of the homes in tow and 56 homes in foreclosu in the City of West 6% h wn) 61 ure Sacramento (5% of the homes in town). S o e o That also transla ates to 7,20 people in Elk Grove who were “unhomed 00 n e e d” and 1,683 peopl in West Sacramento who now lack home ownership 1 le S o p. When you put fa n aces on the people, they could be your family and/or ese r friend as well. ds Thank you for allow y wing me to share with you my tho oughts, opin nions and a analyses. It is t with sinc cere optimis and hop that you can find on or more solutions to this crisis as sm pe ne s a result of pinpointi the contributing fac ing ctors. tfully submitted, Respect Karen J. Ma State C K ann Certified Ge eneral Appr raiser 15 1485 Highway 4 50 Suite #A326 e Disc covery Bay, California 9450 05 Bu 925-513us) -3231 (Fa 925-513ax) -8465 Man & Associ nn A iates – App praise & ers Consultants C s Providing Fair and Trustworthy V ng Tr Valuations sin 1983 ince www.mannappraisa sal.com 16 17 18 19
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