Give me a break

[djd09]

Why Home Appraisals Are So Important​

“In a fast market, like the one we are seeing now, it is more important than ever to be aware of the appraisal process,” says Julie Busby, a Chicago broker with Compass. “In a nutshell, banks hire appraisers to tell them that the value of a property matches what the buyer is willing to pay.”

Of course, homes can also appraise for more than the selling price. In that case, you’ve got “instant equity,” says Nicole Wilhelm, a realtor in the San Francisco Bay Area. Don't sweat this step in the process too much, however: “More commonly than not, homes will appraise for the purchase price,” Wilhelm says.

Why Home Appraisals Are So Important (and How to Prep)

Plus just how much one costs

www.housebeautiful.com

risk what risk

 

[Mejappz]

Why Home Appraisals Are So Important​

“In a fast market, like the one we are seeing now, it is more important than ever to be aware of the appraisal process,” says Julie Busby, a Chicago broker with Compass. “In a nutshell, banks hire appraisers to tell them that the value of a property matches what the buyer is willing to pay.”

Of course, homes can also appraise for more than the selling price. In that case, you’ve got “instant equity,” says Nicole Wilhelm, a realtor in the San Francisco Bay Area. Don't sweat this step in the process too much, however: “More commonly than not, homes will appraise for the purchase price,” Wilhelm says.

Why Home Appraisals Are So Important (and How to Prep)

Plus just how much one costs

www.housebeautiful.com

risk what risk

So much for the HVCC.

 

[djd09]

About 17.1% of loans in this transaction were underwritten through Freddie Mac's Automated Collateral Evaluation (ACE) program. Under ACE program, Freddie Mac assesses whether the estimate of value or sales price of a mortgaged property, as submitted by the seller, is acceptable as the basis for the underwriting of the mortgage loan. If a loan is assessed as eligible for appraisal waiver, the seller will not be required to obtain an appraisal and will be relieved from R&Ws related to value, condition and marketability of the property. A loan originated without a full appraisal will lack details about the property's condition. We consider ACE loans weaker than loans with full appraisal. Specifically, for refinance loans, seller estimated value, which is the basis for calculating LTV, may be biased where there is no arms-length transaction information. Although such value is validated against Freddie Mac's in-house HVE model, there's still possibility for over valuations subject to Freddie Mac's tolerance levels.

The third-party diligence provider also reviewed property valuation on 1,500 loans in the sample pool (1,479 loans were reviewed for credit/valuation plus 21 loans were reviewed for both credit/valuation and compliance). 34 loans received final valuation grades of "C". 33 of the 34 loans are ACE loans and had Appraisal Desktop with Inspections (ADI) which did not support the original appraised value within the 10% tolerance. The valuation result is in line withthe prior STACR transaction in terms of percentage of TPR sample. We didn't make additional adjustment based on this result given we have already made property value haircuts to all ACE loans in the reference pool

Moody's assigns provisional ratings to credit risk transfer notes issued by Freddie Mac STACR REMIC TRUST 2021-HQA1

Rating Action: Moody's assigns provisional ratings to credit risk transfer notes issued by Freddie Mac STACR REMIC TRUST 2021-HQA1Global Credit Research - 11 Feb 2021New York, February 11, 2021 -- Moody's Investors Service, ("Moody's") has assigned provisional ratings to 28 classes of credit...

finance.yahoo.com

 

[TerryRohrer]

"the seller will not be required to obtain an appraisal and will be relieved from R&Ws related to value, condition and marketability of the property."

That big 'ol vacuum sucking funds out of taxpayer's pockets is just getting warmed up! But, I expect the salaries, perks, and bennies for Freddie and Fannie employees are not threatened in any way.

 

[DWiley]

About 17.1% of loans in this transaction were underwritten through Freddie Mac's Automated Collateral Evaluation (ACE) program. Under ACE program, Freddie Mac assesses whether the estimate of value or sales price of a mortgaged property, as submitted by the seller, is acceptable as the basis for the underwriting of the mortgage loan. If a loan is assessed as eligible for appraisal waiver, the seller will not be required to obtain an appraisal and will be relieved from R&Ws related to value, condition and marketability of the property. A loan originated without a full appraisal will lack details about the property's condition. We consider ACE loans weaker than loans with full appraisal. Specifically, for refinance loans, seller estimated value, which is the basis for calculating LTV, may be biased where there is no arms-length transaction information. Although such value is validated against Freddie Mac's in-house HVE model, there's still possibility for over valuations subject to Freddie Mac's tolerance levels.

The third-party diligence provider also reviewed property valuation on 1,500 loans in the sample pool (1,479 loans were reviewed for credit/valuation plus 21 loans were reviewed for both credit/valuation and compliance). 34 loans received final valuation grades of "C". 33 of the 34 loans are ACE loans and had Appraisal Desktop with Inspections (ADI) which did not support the original appraised value within the 10% tolerance. The valuation result is in line withthe prior STACR transaction in terms of percentage of TPR sample. We didn't make additional adjustment based on this result given we have already made property value haircuts to all ACE loans in the reference pool

Moody's assigns provisional ratings to credit risk transfer notes issued by Freddie Mac STACR REMIC TRUST 2021-HQA1

Rating Action: Moody's assigns provisional ratings to credit risk transfer notes issued by Freddie Mac STACR REMIC TRUST 2021-HQA1Global Credit Research - 11 Feb 2021New York, February 11, 2021 -- Moody's Investors Service, ("Moody's") has assigned provisional ratings to 28 classes of credit...

finance.yahoo.com

Let me see if I understand this correctly - you are not supportive of hybrid appraisals, unless, of course, the hybrid (API) is used to discredit an AVM result, then it is equal to the Gospel of John. Did I get that right? ROFLMAO.

 

[Mejappz]

About 17.1% of loans in this transaction were underwritten through Freddie Mac's Automated Collateral Evaluation (ACE) program. Under ACE program, Freddie Mac assesses whether the estimate of value or sales price of a mortgaged property, as submitted by the seller, is acceptable as the basis for the underwriting of the mortgage loan. If a loan is assessed as eligible for appraisal waiver, the seller will not be required to obtain an appraisal and will be relieved from R&Ws related to value, condition and marketability of the property. A loan originated without a full appraisal will lack details about the property's condition. We consider ACE loans weaker than loans with full appraisal. Specifically, for refinance loans, seller estimated value, which is the basis for calculating LTV, may be biased where there is no arms-length transaction information. Although such value is validated against Freddie Mac's in-house HVE model, there's still possibility for over valuations subject to Freddie Mac's tolerance levels.

The third-party diligence provider also reviewed property valuation on 1,500 loans in the sample pool (1,479 loans were reviewed for credit/valuation plus 21 loans were reviewed for both credit/valuation and compliance). 34 loans received final valuation grades of "C". 33 of the 34 loans are ACE loans and had Appraisal Desktop with Inspections (ADI) which did not support the original appraised value within the 10% tolerance. The valuation result is in line withthe prior STACR transaction in terms of percentage of TPR sample. We didn't make additional adjustment based on this result given we have already made property value haircuts to all ACE loans in the reference pool

Moody's assigns provisional ratings to credit risk transfer notes issued by Freddie Mac STACR REMIC TRUST 2021-HQA1

Rating Action: Moody's assigns provisional ratings to credit risk transfer notes issued by Freddie Mac STACR REMIC TRUST 2021-HQA1Global Credit Research - 11 Feb 2021New York, February 11, 2021 -- Moody's Investors Service, ("Moody's") has assigned provisional ratings to 28 classes of credit...

finance.yahoo.com

Wow caught redhanded! Looks like Freddie’s flux capacitor is in need of a major tune up.

 

[glenn walker]

Lets face it this issue with appraisers is all about the fees or lack of. Prior to Covid-19 waivers allowing exterior only reports, most on forum swore on there dead mothers graves that they did not do exterior only because they were inaccurate or high liability. Then suddenly as rates dropped into the twos , a mad rush of refinances and many lenders paying the same $400-$450 they had been paying for a full 1004 interior-exterior. Suddenly there was no issues about quality, then as the ( RLP ) Residential Loan Production Appraisers-realized how profitable it was many now never want to go back to the full report.

As lenders started moving back more towards the full 1004 -the same cry baby's started talking about they were fearful of there lives going inside a house. I am like "dude" its vacant or has one 80 year old guy inside , and that long line at Grocery store doesn't seem to scare you. What the Covid-19 did do was allow the-major lenders and GSEs to use a 10 month window-period or test period to see how exterior and desktops would pan out. Moving forward I can see the 1004 -Interior-exterior, being used less and less. The problem the RLP appraiser will have in late 2021 may be the lenders will not be willing to pay the higher temporary pandemic fees. The AMC's in California will have no problem finding guys and gals all day long at $200 bucks a pop.

 

[RCA]

The system today actually works similar to that. If the appraisal report is “less than ideal” the lender is not granted rep and warrant relief. That means that if the loan goes south, the lender gets to repurchase that loan. Not a small thing

As I noted (and you agreed), enforcement is primarily a state issue. The problem is that the states are all over the board. I have personally seen both ends of the spectrum, especially during my AMC days.

In one case, an appraiser admitted (in front of several witnesses) that he was sending runners out and not doing the inspections himself and then certifying that he had inspected. When we sent the evidence to the state. They did nothing - explaining to us that the person who handled those kinds of cases had retired. I kid you not

In another case we had an appraiser get his certification suspended for three months which the sole citation being that he did not put his prior service disclosure in the report. The client was well aware that he had appraised the subject before - that is why they called him. And it was noted in the LOE He just forgot to put it in the report. 3 months out of work for that. Insane.

I certainly don’t have all the answers. And, the pandemic last year meant that we had to pivot and focus on some other things, but improved AQM is something we are working on. But it does remind me a little bit of the mandatory reporting laws that some lobbied for with AMCs. Many were for it, until they got turned in.

There are certain things that the board wants to be able to rely to in an attempt to streamline its work. That is to say, certain things they want 100% probability are going to be taken care of in the report. I can see that disclosing prior appraisal on the subject as one of those. So, you have to give them that right. Also consider, the appraiser said "he just forgot". But, for the board to verify that, they would have to check his past appraisals. You know how much work that would be for them? They are probably not even set up for that:

1. They have to get a list of all appraisals the appraiser has done over at least the past 4-6 years (min past 1 year plus another 3 years).
2. They have to somehow verify that the appraiser has not done any other appraisals in that time (I don't know how, is his signature enough? ).
3. They find any instances where he has appraised the same property more than once.
4. Then they have to check the give reports to see whether he stated prior work on the given properties.

Maybe it would be simpler just to prohibit him/her from doing appraisals for 3 months.

I think appraisers should have to report all appraisals to the board when they do them. That would take care of the problem, most likely. Just get online and report the appraisal when it is completed.

 

[djd09]

Let me see if I understand this correctly - you are not supportive of hybrid appraisals, unless, of course, the hybrid (API) is used to discredit an AVM result, then it is equal to the Gospel of John. Did I get that right? ROFLMAO.

did i write that article? sorry try again

 

[djd09]

Wow caught redhanded! Looks like Freddie’s flux capacitor is in need of a major tune up.

maybe it is just filled with cheap gas