Appraisal Waiver (Explosion)

[J Grant]

https://www.housingwire.com/article...second-appraisal-on-select-reverse-mortgages/

lol FHA had to require a second appraisal here too !! read their reasons why - lender select is such a winner ( sarcasm )

 

[alebrewer]

FHA to require second appraisal on select reverse mortgages

The Federal Housing Administration announced Friday that it will require reverse mortgage lenders to provide a second property appraisal on loans flagged by FHA as potentially having an inflated property valuation. The agency said the move is intended to reduce risk to the Mutual Mortgage...

www.housingwire.com

lol FHA had to require a second appraisal here too !! read their reasons why - lender select is such a winner ( sarcasm )

You continue to make unfounded leaps. The reason for the 2nd appraisals is this:

" The Federal Housing Administration announced Friday that it will require reverse mortgage lenders to provide a second property appraisal on loans flagged by FHA as potentially having an inflated property valuation. The requirement will take effect Oct. 1, 2018. "

This is very typical in the mortgage lending world. You continue to imply that appraisal quality has declined since lender select, yet the substance of your proof is simply good underwriting guidelines? You make no sense, J... this policy was enacted in 2018, yet HUD moved away from the CHUMS system in 1996? Could be wrong about that date - basing it off when my father retired. Assuming that is around the right year, it took 22 years for HUD to figure out the lender select system is in shambles?...

 

[J Grant]

" The Federal Housing Administration announced Friday that it will require reverse mortgage lenders to provide a second property appraisal on loans flagged by FHA as potentially having an inflated property valuation. The requirement will take effect Oct. 1, 2018. "

Just like they had to do before that with flips and not allowing lenders to value shop for a second - yeah keep telling yourself it is an unfounded leap, none of it was necessary back in the old RR panel - UW and regulations are reactive rather than proactive so it happened in all cases years after CHUMS - change - you can look up what year FHA required 2 appraisals in a flip or requiring the original appraisal accompany a loan for X months -

 

[alebrewer]

none of it was necessary back in the old RR panel

You mean back when appraisers weren't even a certified profession... yeah - I've seen the quality of some of those reports. You're spot on!

 

[J Grant]

You mean back when appraisers weren't even a certified profession... yeah - I've seen the quality of some of those reports. You're spot on!

Where is your documentation about the quality of those reports ??

(ha ha giving you tatse of own medicine ) !!

 

[alebrewer]

Where is your documentation about the quality of those reports ??

(ha ha giving you tatse of own medicine ) !!

um.... my father, who lost his certification is one. At least 3 others who I knew personally, and were appraisers prior to certification - that subsequently lost their certs once they were regulated (all four were CHUMS appraisers). Remember - I was an investigator for my state...

But wait - now you're implying that quality was higher prior to certification... what a waste of time all this education and experience has been.

 

[J Grant]

um.... my father, who lost his certification is one. At least 3 others who I knew personally, and were appraisers prior to certification - that subsequently lost their certs once they were regulated (all four were CHUMS appraisers). Remember - I was an investigator for my state...

But wait - now you're implying that quality was higher prior to certification... what a waste of time all this education and experience has been.

I am sure there were some stinky appraises prior to certification. Which is not the same as my ever implying quality was higher prior to certification . (which I never said or implied )
I Did say that FHA did not need the kind of protocols they had to enact in the old RR panel and which they did enact post lender select.

 

[alebrewer]

Did say that FHA did not need the kind of protocols they had to enact in the old RR panel and which they did enact post lender select.

Cool. So since you're not implying that quality went down after 1991 (certification), and you're not implying that FHA appraisal quality went down after lender select, the fact that FHA enacted additional layers of risk mitigation may have nothing to do with whether they had a CHUMS system or lender select system. It may, then, be attributable to something entirely different - loose lending practices for instance?

 

[djd09]

“It’s great to say...hey, let’s loosen things up a bit!”. Yeah she sure is quite happy and chipper with that.

define loosen?

2004 had higher standards.

but back then it was the appraisers fault. but how could that be seeing the junk appraising practices as of today.

the taxpayer(s) have their back, forever.

 

[Jayjay25]

Had a loan officer call me today. The processor accidentally ordered a full appraisal even though the $300k sale was approved for a P.I.W. The lender had to use my appraisal which came in at $285k because one was ordered and on file. Property inspection waivers should not be allowed for purchases unless they are excluded from the future use as comparable sales for other transactions.