Freddie Mac vs Appraiser Bias

[glenn walker]

Probably built it from VA appraisal data since Veros is their automatic underwriting tool. It gives "high alerts" if the square footage varies from public records, I've noticed. But the SARs know the public data is unreliable so they don't question the appraiser about it (anymore). Noticed the foundation is pushing information for Veterans becoming appraisers and "resources for Veterans".

Fannie and Freddy use Veros systems thats one who assisted with valuation waivers

 

[ramrcdk]

I think this is the simplest explanation. ... They're not just making the ratings, they're making the ratings with the intention of using those ratings. The 3rd party inspectors aren't doing that - they're not users of their own observations.

The level of inconsistency among the appraisers doesn't even have to be significant in amount or frequency to translate into different outcomes.

YEP. UAD Rating System, GSE Form Report: mandated to be Used By Appraisers
Seemed to have been a GOOD idea for years & decades.
Until now, THE Years of the Bias, appraiser shortage (cough), appraisers are bad, slow (cough) & (choke) too expensive.

Since the Fannie Mae UAD Rating system (used by the appraiser) has been found to be corrupt:
Question: Why would the GSE decide NOW is a Great Time to release the System Data (secret data) to the Public ??
And why not years-ago to -present to the Appraisers for Use : with the Ultimate Goal of: "consistency & better understanding" of the use of the Rating System?

Via the Post, Through research it has been determined ::: Appraisers can't correctly use Ratings and
they are : Biased via intention ?
Question: Why has it taken so long to "Judge" the UAD system ratings? The Rating System started when?
Feels Like: 1) A Better Way"... for the GSE takes forever. 2) Meanwhile, Boots on Ground means a Bad Biased Appraiser.
3) If it weren't for our signatures. 4) we'd be extinct.

Since it has been determined A Main Problem with Bias-in-Use is within the GSE System and given the lack of quicker resolutions for better-ideas and obvious limited education,
years of knowingly allowing appraisers to fail,
lack-of clearer-understanding of instructions through Fannie Mae Website Letters,
and GSE's knowingly continued use of a Biased-corrupted UAD-Rating System:
Question: WHY weren't appraisers Helped? After all...it is Fannie Mae (GSEs) that owns The Forms. Even Big G' demands "recalls" for lemons.

Question: Has the GSE stopped use of the UAD Rating System given the biased-data input that is known to be corrupt?
Will the GSE flush the system & start over with 3rd Party Stepford Inspector data?
And: why would the GSE make the decision to release the data "to the uneducated emotional bias-likely" public
since it is Wrong-Biased-and Bad Information?

_________________________________________________________
As an appraiser, I never received one Ding from The Rating System. Remember, we were suppose to get Dinged, per instructions if we did anything bad.
My choices of my-non-biased ratings that were perfectly acceptable were obviously ALSO a PEER-approved Rating.
Were we ALL wrong? And All this Time? What does this mean to the Individual Appraiser that is deemed Guilty in Mass?

IF you want to continue to provide GSE lending services YOU have NO choice but to welcome the Stepford process & lower Fees with likely,
same day services.
As per a Post: They only have to break enough appraisers, a certain percentage across each town, USA.
Shortage = Waiver.
It has Taken Quite a While but seems the GSE finally has it ALL figured out.
Please take a Few Minutes to Calculate All Expenses from DBA an Appraiser. Then perhaps check with your E&O Carrier for use of
using a Complete Unknown, Not Contactable Third Party.

 

[TerryRohrer]

Probably built it from VA appraisal data since Veros is their automatic underwriting tool. It gives "high alerts" if the square footage varies from public records, I've noticed. But the SARs know the public data is unreliable so they don't question the appraiser about it (anymore). Noticed the foundation is pushing information for Veterans becoming appraisers and "resources for Veterans".

I don't understand how a "correct" value can be established. but I think Veros is operated much more broadly than for the VA. The article above promotes a process "resulting in first-rate accuracy." What is "accuracy" in valuation? To measure an "undervaluation" or an "overvaluation", a "correct" value has to be established to compare estimates against. Since that implies there is a single, actual value of every property at all times during all market conditions, why doesn't everyone just use that? No bias, no reconsideration, no disputes! Because there is no such thing. These folks are selling garbage as if it is gold.

Of course, the gseS have concluded that the contract price is "the" value, and deviations from that (below only) are errors.

 

[Carnivore]

I have a question: If they GSE or anybody has historical data to create a non-human(no bias) Valuation.

How do they know what data is tainted with bias and what data is not tainted with biased?

If they eliminate all Human Appraiser inputted data to remove bias. How much data do they have that is useful.

 

[glenn walker]

I have a question: If they GSE or anybody has historical data to create a non-human(no bias) Valuation.

How do they know what data is tainted with bias and what data is not tainted with biased?

If they eliminate all Human Appraiser inputted data to remove bias. How much data do they have that is useful.

I biases statistic does not have to be rooted in any facts .

 

[DWiley]

YEP. Rating System GSE Form Report: mandated to be Used By Appraisers
Seemed to have been a GOOD idea for years & decades. Until now.

Why then would the GSE decide to release the UAD (secret data) to the Public ??
And when Appraisers asked for the data AND for "consistency & better understanding" for decades.

So now and through much research it has been determined ::: Appraisers can't correctly use the rating by definition
OR they are what? ... Biased via intention ?

IF appraiser's were doing such a BAD job for decades, what has taken so long?

The main Problem with Bias-in-Use seems to be within GSE ideas,
Forms, inept via releasing instructions, updates, education, & knowingly ... the continued use of a known-corrupted UAD-rating system/data.

Question: Would then "all of that UAD Data" be ...biased? AND: Will the GSE flush the system & start over?
And why would the GSE make the decision to release the data "to the uneducated emotional bias-likely" public since it is Wrong-Biased-and Bad Information?

Given the multiple references to "decades" of use of the condition rating system in the UAD, you might want to research how long that system has actually been in place
And, as far as I know, no one has said that the majority of the data is incorrect.

 

[ramrcdk]

Given the multiple references to "decades" of use of the condition rating system in the UAD, you might want to research how long that system has actually been in place
And, as far as I know, no one has said that the majority of the data is incorrect.

At the direction of the Federal Housing Finance Agency (FHFA), Fannie Mae and Freddie Mac (GSEs) jointly developed the first UAD in 2010 using the Mortgage Industry Standards Maintenance Organization (MISMO®) Reference Model 2.6, providing consistent data standards for the loans the GSEs purchase. USE BEGAN: 2011.

1) Seems like decades but I will edit the word to "years and years".

2) Not a Majority & Not Incorrect: If not, then why do we need THE THIRD Party? WHY NOT just ...Better Communication...like Education?

In Review: 1 + 2 = 3): so you have made A GREAT Point: FHFA, GSE just want a NEW Cheaper Way
BUT must Blame Shame the Appraiser INTO using the Inspection Data & Form.

Will the Form's Cert' Pages specifically "legally indemnify and hold harmless" an appraiser INCLUDING paying for expenses during the investigation?

 

[DWiley]

2) If not, then why do we need THE THIRD Party? WHY NOT just ...Better Communication...like Education?

How would that address the capacity issued that surfaced in 2020 and 2021?

 

[Tiffany Gibbons]

How would that address the capacity issued that surfaced in 2020 and 2021?

I'm sorry, WHAT?

 

[DWiley]

I'm sorry, WHAT?

https://sf.freddiemac.com/content/_assets/resources/pdf/report/appraiser_capacity.pdf