Freddie Mac vs Appraiser Bias

[CGinMN]

Danny, please correct me if I'm wrong, because I don't want to be spreading any myths, but the GSEs are at the forefront of automating processes, including but not limited to valuations, in order to save mortgage originators time/money.

So appraisal modernization isn't just about "we don't have enough appraisers to meet demand" it is also about "we want to limit and/or eliminate third party valuation operations as much as possible in order to speed up your loan cycle time." You are competing against Fannie Mae in this because the market is demanding it.

 

[ucbruin]

Surely you jest?? No appraiser has ever admitted to that on this forum

MCG did on several occasions....

 

[Tiffany Gibbons]

The problem with S/D for mortgage lenders (and appraisers ) is the supply of appraisers is fixed, while the demand cycles of busy , medium and slow lending volume changes. In a slow period there is a surplus of appraisers relative to the orders. In very busy lending cycles, there is a shortage of appraisers relative to the order volume

Imo, a reasonable solution would be to use hybrids/desktops as an option to full appraisals during the very busy cycles to keep turn times on track, and the rest of time stick with traditional appraiser does inspect product

Maybe where you are, but not in my rural areas in Middle Tennessee. Definitely not old houses with septic tank issues, non permitted additions, acreage, lead based paint, Barndominiums, etc. The public data quality is very inaccurate and there seems to be plenty of appraisers here too.

 

[chad hampton]

I believe that the bottle neck occurs at the point of inspection....
Most, if not all, appraisers want to bundle as many inspections in the same place on the same day...
So they'll put off an inspection until they can bundle 2 or more inspections....

I can only speak for the three cities that I’ve lived in, I did inspections on all parts of towns in the same day. I never really considered the location. I have a beltway that gets me anywhere I need to be in about 40 minutes.

The inspection is a pretty critical part of the process. Turning that process over to unlicensed, untrained individuals shouldn’t have made it out of the first meeting when it was discussed.

 

[DWiley]

The inspection is a pretty critical part of the process.

Critical? So critical that USPAP has never required it, and formal training on property inspection has never been a requirement for licensing/certification.
You have data that shows that personal inspection by the appraiser is critical? Or, just a belief?

 

[djd09]

Connecting to the Uniform Collateral Data Portal​

Veros is proud to have been selected as the technology provider for the Uniform Collateral Data Portal® (UCDP®), a joint effort between Fannie Mae™ and Freddie Mac™. Veros is responsible for building, maintaining and supporting the UCDP system as well as managing all lender connectivity to UCDP.

The Regulatory Impact of UCDP​

UCDP is a single joint portal for the electronic submission of appraisal data files to Freddie Mac and Fannie Mae (GSEs). It facilitates the electronic collection of appraisal report data prior to loan delivery for conventional mortgages delivered to the GSEs.
UCDP is part of a larger initiative known as the Uniform Mortgage Data ProgramSM (UMDPSM) and is a joint program created under the direction of the GSEs’ regulator, the Federal Housing Finance Agency (FHFA) to provide common requirements for appraisal and loan delivery data. In addition to UCDP, the UMDP includes two related programs:

• Uniform Appraisal Dataset (UAD): Standardizes key appraisal data elements and enhances data quality it also introduces quality and condition responses with prescribed definitions.
• Uniform Loan Delivery Dataset (ULDD): Leverages the industry-recognized MISMO Version 3.0 standard.

*Please refer to Fannie Mae and Freddie Mac for specific deadlines and requirements.

Use Veros to Connect​

Veros provides interface and data delivery access to UCDP through a variety of solutions. These solutions are designed to accommodate multiple client types from direct and correspondent lenders to AMCs and technology companies, each with a unique range of loan delivery volume and integration requirements.
Veros’ newest and most adaptable valuation management platform, Sapphire, offers a complete and efficient solution to UCDP connection needs. Entities delivering small and mid-sized volumes should consider utilizing PATHWAY for seamless integration points with minimal technology integration. Organizations looking for a comprehensive yet scalable approach to automate the order, routing, review and data delivery management should consider Sapphire’s varied platform editions and flexible modules including the UCDP Suite. Sapphire’s UCDP Suite includes:

• UAD/UCDP Preview
• UCDP Hard Stop Override
• UCDP Submission
• PDF Conversion

veros is selling the risk review tool

 

[J Grant]

Critical? So critical that USPAP has never required it, and formal training on property inspection has never been a requirement for licensing/certification.
You have data that shows that personal inspection by the appraiser is critical? Or, just a belief?

A belief from experience, my own 30 years experience , and seems the GSE's held this same belief for decades as well.

There is formal training wrt inspections, the two years plus of working with a mentor who inspects with the trainee or critiques their inspection results.

An inspection is not about just the rote aspect of measuring or taking a photo, (which anyone can do ) the value of the appraiser inspecting is the personal onsite observations that better inform an appraiser about the subject , site, and neighborhood as well as its relation to competition in the market for that type of property.

 

[chad hampton]

Yes, I have a lot of data. But I don’t let anybody see my data either.

 

[chad hampton]

And a QE class in North Carolina did involve a visit to a house to go over what inspection involves. It was 20 years ago, no idea if it still does. Hopefully they do

 

[chad hampton]

Critical? So critical that USPAP has never required it,

I can’t speak about the failures of USPAP. Didn’t you say that was your department?