Freddie Mac vs Appraiser Bias

[Carnivore]

Pushing values to make contract sales and refi target directions work are whats called POSITIVE Biases and that is approved by everyone. It's Low Values that are created due to negative Biases.

I generally don’t like Leftists, but Mike Ault and Jgrant they're both not so bad.

 

[jay trotta]

Still waiting patiently how an appraiser can be biased and a Property Inspector for the purpose of a Desk top not be biased?

I think I can answer my own question. If the Property Inspector is only Describing the Property in Factual Terms. Then bias would not be a problem.

OTOH if he describing the property condition then that can be a problem. You could stretch this to Quality and its possible.

So just for S&G we have done some DT's - to see what a problem may be, you can request better photo's. The third party has the opportunity to offer comments, such as within 1/4 mi of high-tension wires/poles etc. Except when doing a Q&A of the provider it was discovered the third-party photo guy/gal, did not provide those comments, it was the AMC/UW whomever, but not the field person.
Have tested other AMC's third-party reps, who took incorrect photo's etc., per due diligence.

IMO- best results is from a; Qualified, Experienced boots on the ground, Certified appraiser. After all, IF the Lender wants to maintain as low a Risk as possible, why is the Qualified, Experienced Appraiser Not being used to their full capacity??
What is the purpose of "Continuing Education" and "Field Experience", if it's not being used to its fullest potential??
If you find one (appraiser) that doesn't perform to your (Lender) expectations don't use them.
Truly not the fastest & cheapest way to go is the best way.

 

[glenn walker]

So just for S&G we have done some DT's - to see what a problem may be, you can request better photo's. The third party has the opportunity to offer comments, such as within 1/4 mi of high-tension wires/poles etc. Except when doing a Q&A of the provider it was discovered the third-party photo guy/gal, did not provide those comments, it was the AMC/UW whomever, but not the field person.
Have tested other AMC's third-party reps, who took incorrect photo's etc., per due diligence.

IMO- best results is from a; Qualified, Experienced boots on the ground, Certified appraiser. After all, IF the Lender wants to maintain as low a Risk as possible, why is the Qualified, Experienced Appraiser Not being used to their full capacity??
What is the purpose of "Continuing Education" and "Field Experience", if it's not being used to its fullest potential??
If you find one (appraiser) that doesn't perform to your (Lender) expectations don't use them.
Truly not the fastest & cheapest way to go is the best way.

Dont disagree with you but I think right now they are in BETA Mode-The long term plan is to have appraisers not going to houses

 

[J Grant]

I generally don’t like Leftists, but Mike Ault and Jgrant they're both not so bad.

You're not so bad yourself!
I cant' stand Glenn's political views but he is a decent human ( just tries to hide it lol )

 

[NC Appraising]

I thought the third party does not make condition ratings? ( because a condition rating is an opinion)

My understanding is the third party reports in photos and notes or a checklist what they observe at the property and the appraiser determines a condition rating from the information.

You are misreading it.

They are comparing:
1. desktops with third party inspections to
2. traditional 1004's URAR.

“The data tells us we actually get more accurate condition ratings with a third party inspection,” said Wiley. “I don’t think people see that as potentially something to help with the bias but the data clearly shows that that is a contributor to improving our results and getting less bias in those condition ratings.”

IE, when a desktop is used, the appraiser makes a more accurate property condition rating based on the data from a third party source.

I have to agree with Danny and George on this one.

Why is this? Read Georges post for one view side.

1. The UAD is poorly written.
2. Appraisers are lazy and do not read the UAD and "do it their way".
3. Lenders and the GSE's. Yep. Perfect example is when the UAD came out, Q5.....would not lend. So what did appraisers do? They bumped tract built cookie cutter homes from Q5 to Q4. Also, everything had become C3 for "average". THE LENDERS are to blame for the most part. I could go on and on. Just mention something...the UW goes nuts and wants us to explain....so afraid of buybacks.
4. To juice the value. An appraiser can just leave it out or not mention it. **BUT, why are lenders using these Skippy appraisers for $$$$$$?

I have never seen a property condition report from a third party inspector.... The question to ask is this: how long will it take for the lenders and the AMCs to stop using certian third party inspection firms for telling the truth when they start killing deals or for providing too much information? IE, they are killing to many deals, use another third party inspection firm. There are 100,000 hungry re agents in NC.

Lastly, the only issue that I have with Danny on this is the fact that he does not ever offer any solutions except for using third party inspectors. It seems like in every article that I read, it reads the same as above. Praising the desktop with a third-party inspection, but not offering on how they are working with appraisers to fix the so called problem.

He never offers a solution to the problem. Why not say something like "Freddie Mac is currently working with appraisers to better improve on how the rate properties". We are sending letters, making online courses/content and sending out emails, etc.

 

[glenn walker]

You're not so bad yourself!
I cant' stand Glenn's political views but he is a decent human ( just tries to hide it lol )

Thank You I now have have a reason to live LOL

 

[glenn walker]

You are misreading it.

They are comparing:
1. desktops with third party inspections to
2. traditional 1004's URAR.

“The data tells us we actually get more accurate condition ratings with a third party inspection,” said Wiley. “I don’t think people see that as potentially something to help with the bias but the data clearly shows that that is a contributor to improving our results and getting less bias in those condition ratings.”

IE, when a desktop is used, the appraiser makes a more accurate property condition rating based on the data from a third party source.

I have to agree with Danny and George on this one.

Why is this? Read Georges post for one view side.

1. The UAD is poorly written.
2. Appraisers are lazy and do not read the UAD and "do it their way".
3. Lenders and the GSE's. Yep. Perfect example is when the UAD came out, Q5.....would not lend. So what did appraisers do? They bumped tract built cookie cutter homes from Q5 to Q4. Also, everything had become C3 for "average". THE LENDERS are to blame for the most part. I could go on and on. Just mention something...the UW goes nuts and wants us to explain....so afraid of buybacks.
4. To juice the value. An appraiser can just leave it out or not mention it. **BUT, why are lenders using these Skippy appraisers for $$$$$$?

I have never seen a property condition report from a third party inspector.... The question to ask is this: how long will it take for the lenders and the AMCs to stop using these third party inspection firms for telling the truth when they start killing deals or for providing too much information?

Lastly, the only issue that I have with Danny on this is the fact that he does not ever offer any solutions except for using third part inspectors. It seems like in every article that I read, it reads the same as above. Praising the desktop with a third-party inspection.

He never offers a solution. Why not say something like "Freddie Mac is currently working with appraisers to better improve on how the rate properties". We are sending letters, making online courses/content and sending out emails, etc.

Danny does not lie and it may be disingenuous for him or anyone at Freddie to state they are working with appraisers to better improve on how properties are rated. Also you may want to consider maybe they gave up on appraisers opinions as its rare appraisers offer any real solutions as they want things to stay the same way .

 

[NC Appraising]

Here is proof that my peers are on crack:

Go to Zillow and do some research for yourself.

Q3 quality home WTH? Q5 if we were allowed to rate this home that way by the lenders LOL. Q4 to avoid lender stips and rejections.

 

[J Grant]

Here is proof that my peers are on crack:

Go to Zillow and do some research for yourself.

Q3 quality home WTH? Q5 if we were allowed to rate this home that way by the lenders LOL. Q4 to avoid lender stips and rejections.

View attachment 69026

Does not look like a Q5 to me. Looks like a Q4 but if some call it Q3, who cares...as long as they use a similar rating for the similar construction comps.

 

[glenn walker]

Here is proof that my peers are on crack:

Go to Zillow and do some research for yourself.

Q3 quality home WTH? Q5 if we were allowed to rate this home that way by the lenders LOL. Q4 to avoid lender stips and rejections.

View attachment 69026

Here is proof that my peers are on crack:

Go to Zillow and do some research for yourself.

Q3 quality home WTH? Q5 if we were allowed to rate this home that way by the lenders LOL. Q4 to avoid lender stips and rejections.

View attachment 69026

I am missing your Point ! Please Clarify