Give me a break

[DWiley]

On properties in the sales range Bert is working on. I would call that sales chasing.

Thanks. I really appreciate that answer because it means that I won the bet in my prediction of your answer. .

 

[J Grant]

Risk management if a user puts that as their measure, appraisals were not designed to be done for the purpose of "risk management " ( even if a client piggy backs that use on to an apparisal )

Appraisals are done to evaluate/value the property , and also provide information about the property and neighborhood so users/clients can make decisions relating to the as of effective date. How a loan taken out on that property "performs" is not within the SOW of the appraisal.

Are the words performance, loan performance, risk analysis in USPAP pertaining to appraisals?

What a client or users do with their AVM's or if they satisfy a goal or risk management is their business...

 

[djd09]

condition does not equal risk. how convenient.

 

[djd09]

no really, they are so happy. saving time and money for the borrower. the best part is towards the end. will we still need appraisers? of course they say. not like a broker has ever lied before.

 

[DWiley]

condition does not equal risk. how convenient.

LOL. That is not what I said - not even a decent dodge, even for you. What I said was that if the lender already has an existing loan, then they already ”own” the risk related to condition, and a new appraisal report won’t change that. So, for example, if my roof is really bad and my kitchen floor needs to be replaced, then the lender who holds my mortgage already owns the risk associated with that.

 

[DWiley]

Risk management if a user puts that as their measure, appraisals were not designed to be done for the purpose of "risk management " ( even if a client piggy backs that use on to an apparisal )

Appraisals are done to evaluate/value the property , and also provide information about the property and neighborhood so users/clients can make decisions relating to the as of effective date. How a loan taken out on that property "performs" is not within the SOW of the appraisal.

Are the words performance, loan performance, risk analysis in USPAP pertaining to appraisals?

What a client or users do with their AVM's or if they satisfy a goal or risk management is their business...

LOL. Risk management is the only reason that lenders are required to get appraisals. You can try to spin it any way you want, but that is the bottom line. Waivers are granted in situations where it has been determined that risk management does not require an appraisal. Why else would a lender ever order an appraisal, if not for risk management?.

 

[Mejappz]

So says the person who says it's OK for Uber and GrubHub drivers to complete appraisal inspections.

 

[djd09]

dang, some think i missed the financial crisis. How much taxpayer bailout money did the GSE's require?

 

[DWiley]

So says the person who says it's OK for Uber and GrubHub drivers to complete appraisal inspections.

Who has said that? I sincerely hope that you are not attributing that position to me. For our test and learns we have training requirements, and getting the training to an acceptable level has proven to be a meaningful hurdle

 

[Mike Ault]

LOL. Risk management is the only reason that lenders are required to get appraisals. You can try to spin it any way you want, but that is the bottom line. Waivers are granted in situations where it has been determined that risk management does not require an appraisal. Why else would a lender ever order an appraisal, if not for risk management?.

They could and should order appraisals for the same reason that publicly traded companies are required to be audited by independent third parties. "trust but verify" as Reagan used to say. The problem lies with the fact that these GSE's are selling securities to the public. I for one don't trust your AVMs and the stated goal to break apart & hybridize the traditional appraisal. Efficiency usually boils down to essentially control from the top, much easier to replace one recalcitrant "risk manager" than 50,000 independent appraisers. Risk managers seem to feel at least as "entitled" to control the mortgage process as appraisers when actually it's a matter of public trust. Pension fund managers and other "ultimate investors" in the loan need to be (and given GSE receivership I would go so far as to say they have the right to be) more involved with how those loans are securitized and subsequently sold on the bond market, not just presented with "take it or leave it" black box investments backed by AVMs.