Give me a break

[DWiley]

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

Yeah and just think, virtually all those loans were based on/backed by appraisals. Ooops

 

[DWiley]

I for one don't trust your AVMs and the stated goal to break apart & hybridize the traditional appraisal

Where is that stated as a goal? I am unaware of any documents or statements saying that is a goal. It is something being tested - big difference. Again, like an appraiser, the answer on hybrids will be driven y data, not emotion. Personally, I don’t care how it turns out. I am neither for it or against it. I only care whether or not it will provide adequate risk management, and that will not be analyzed until there is enough data for meaningful results

 

[Mike Ault]

Yeah and just think, virtually all those loans were based on/backed by appraisals. Ooops

A substantial portion of them ordered by "risk managers" who knew which AMC to use…

 

[Mike Ault]

A substantial portion of them ordered by "risk managers" who knew which AMC to use…

By the way Danny, I am sorry to come across this way with you. I appreciate you participating on this board and giving us your insights into the client-side of the industry. Please accept my apologies. This is just a particularly sore subject with me and you are on the "other side".

 

[djd09]

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.

you sound like the good ole broker. they would say "don't worry, we are keeping the loan". Well if they are why do they need me or the waiver?

 

[djd09]

Yeah and just think, virtually all those loans were based on/backed by appraisals. Ooops

now there was no hybrid valuations back then even though on hybrid threads you have said they have been using them for decades.

flip flop flip

 

[DWiley]

now there was no hybrid valuations back then even though on hybrid threads you have said they have been using them for decades.

flip flop flip

They have been around for decades - that is not the same as saying that they were used for origination.

 

[DWiley]

you sound like the good ole broker. they would say "don't worry, we are keeping the loan". Well if they are why do they need me or the waiver?

Ok - but you did not answer the question. Put me down as shocked, BTW

 

[DWiley]

By the way Danny, I am sorry to come across this way with you. I appreciate you participating on this board and giving us your insights into the client-side of the industry. Please accept my apologies. This is just a particularly sore subject with me and you are on the "other side".

No worries. My message has been consistent since the day I walked in the door. We want to use the very best tool available for the job. In the majority of cases, so far, the data shows that is an appraisal. As I said earlier, these threads that focus on waivers almost always overlooked the record volume of traditional appraisals ordered in 2020. If the GSE were not fans of appraisals, that would not have been the case. What seems really hard for some (appraisers) to swallow is that the data clearly shows that the GSE AVM is a better tool in certain situations. And, ironically enough, it is the easy ones where appraisers do not perform as well, even though they should be knocking them out of the park.

Ultimately I think a great tool would be one not yet available - one that uses more data, presents the analytics within the report, but is driven by an appraiser rather than an algorithm. We are way past the time when we should be using three comps and a cloud of ”trust me” fairy dust. You say that we should not trust the AVM. Why should we trust the appraiser when the report almost never contains any support for adjustments, even there are many tools available that would make it easy to include that in a report.

Would you venture to guess what percentage of adjustments in 1004s have actual data standing behind the adjustment rates? When one see adjustments of $40/SF on condos selling for $500/SF it does make one wonder.

 

[Mike Ault]

Would you venture to guess what percentage of adjustments in 1004s have actual data standing behind the adjustment rates? When one see adjustments of $40/SF on condos selling for $500/SF it does make one wonder.

You fix situations like that by ordering field reviews on a sufficient number of appraisals until everybody doing GSE work is doing it right. It wouldn't take that long, be that expensive nor as destructive to the transparency & independence of our financial system. The only thing we're going to ultimately be entitled to see out of your AVM is a cloud of "trust me fairy dust" as well. Or you could have a public facing AVM and a real AVM for inside people who really need to know. Lack of transparency and lack of accountability will ultimately lead to abuse of the public trust. You can trust that.