Give me a break

[Mark K]

Frankly, when a waiver is offered it means that the property is of the type where the AVM has proven to provide a more reliable result.

Has the AVM proven to be more reliable or simply reliable enough for many loans? 50% LTV, borrower has a good job, low debt, 800+ FICO. Any computer generated number in the ballpark is sufficiently reliable; no appraisal necessary.

Personally, I doubt that the AVM will produce more reliable results (and I accept that your definition of "reliable" may vary from mine) but in a lot of cases an AVM is adequately reliable because the inherent risk for some loans is low from the start.

And to be honest, in the cases where the risk is high (usually due to the borrower, not the property), its not going to matter much whether an AVM or full appraisal renders a number. The best appraisal report in the world can't compensate for a high risk borrower when they walk away.

 

[djd09]

I wonder if they’re following standards rule1 and 2 and keeping there work files for five years.

Bankers and government bureaucrats completing appraisals.

makes you wonder why there was a hvcc in the first place. no more scum bag mortgage broker propaganda anymore. right, george?

 

[Mejappz]

The only thing the Hvcc has accomplished is to make appraisers broke.

 

[djd09]

divided the appraiser from
the client
the fee
independence
the inspection
whats left?

dividers like to divide, same story a different day

 

[Mejappz]

divided the appraiser from
the client
the fee
independence
the inspection
whats left?

dividers like to divide, same story a different day

You forgot to divide them from their data.

What's left is the ivory tower crowd complaining about poor quality appraisals and how AVMs are better. All the while inconveniently forgetting that they played a significant role in the mess we currently find ourselves in.

 

[George Hatch]

makes you wonder why there was a hvcc in the first place. no more scum bag mortgage broker propaganda anymore. right, george?

You're being dumb on this and I think it's deliberate because none of your sniveling makes any sense without the stupidity.


An appraisal is a subset of the broader category of services that we can call "valuations". All appraisals are valuations but most valuations are not appraisals. A BPO is a valuation. An AVM is a valuation. But they're not appraisals. Just because there's a number doesn't make it an appraisal. We don't expect BPOs to be unbiased, and really, there's no reason to assume an AVM is unbiased or credible just because its an AVM.

We assert our impartiality, and for what we do that assertion is the only thing that makes our work more marketable than, say, a BPO. Values are easy - everyone in the transaction does one. But THEIR values are not marketable because they are not assuming the role of the outside party and those value opinions are not expected to be unbiased.

And it is that role that FIRREA, the HVCC and D-F were all intended to support, to better enable the appraisers to do their thing without having to deal with the outright contingency-engagement and contingent compensation arrangements. These regs didn't completely SOLVE the problems but to the extent they reduced the effects the collateral damage they caused to the fee appraisers is completely justified 10x over.

Your fees and your desire to work with client types other than the AMCs are strictly subordinate to the point of being wholly irrelevant. Whatever appraisals are being completed need to be as free from coercion and threat of non-payment as is possible. And that cannot happen when the appraiser is working for an outside loan originator who doesn't get paid unless the deal closes.

Here's the bitter truth of it for you on this: If the choice came up again today the govt would redo these restrictions without a second thought. As is their right.

 

[Mejappz]

And how exactly has the HVCC made for better appraisals? Or better yet, removed AMC/Lender pressure from the equation.

 

[djd09]

yawn yawn yawn

your PR is slowing and boring

 

[DWiley]

Has the AVM proven to be more reliable or simply reliable enough for many loans? 50% LTV, borrower has a good job, low debt, 800+ FICO. Any computer generated number in the ballpark is sufficiently reliable; no appraisal necessary.

Personally, I doubt that the AVM will produce more reliable results (and I accept that your definition of "reliable" may vary from mine) but in a lot of cases an AVM is adequately reliable because the inherent risk for some loans is low from the start.

And to be honest, in the cases where the risk is high (usually due to the borrower, not the property), its not going to matter much whether an AVM or full appraisal renders a number. The best appraisal report in the world can't compensate for a high risk borrower when they walk away.

When we compare, we only compare within the same credit box. in every case, loans with waivers performed better than loans with the same risk profile (LTV, FICO, etc) the AVM does better. That is because, as I said before, we only use the AVM when we know it does better

 

[TC]

And how exactly has the HVCC made for better appraisals? Or better yet, removed AMC/Lender pressure from the equation.

It hasn't and the pressure is still there.