Freddie Mac vs Appraiser Bias

[Sadie]

For the GSEs, no change would be necessary. They already allow trainee inspections, and have for many years. And, as I said above, that has been often communicated to lenders.

They allow trainees, but if a lender requires a report to be uploaded as a MISMO or MXL format, the report will be rejected. Result is the same as if the trainee were not allowed to sign.

 

[DWiley]

They allow trainees, but if a lender requires a report to be uploaded as a MISMO or MXL format, the report will be rejected. Result is the same as if the trainee were not allowed to sign.

That is totally dependent on the upload system the lender uses.

 

[djd09]

Q28. What is the appraiser’s responsibility for reporting property condition and quality?

The appraiser is responsible for considering all factors that have an impact on value in the development of his/her
opinion of market value for the subject property. Fannie Mae requires the appraiser to describe the condition and
quality of the property on its appraisal report forms. The appraiser must report the condition and quality of the
property in factual, specific terms. Fannie Mae required the appraiser to describe the condition and quality of the
property on its appraisal report forms. The appraiser must report the condition and quality of the property in
factual specific terms utilizing the UAD ratings as described in Selling Guide section B4-1.3-06, Property Condition
and Quality of Construction of the Improvements. An accurate description of the physical condition and quality
of the subject property is a critical element in arriving at a supportable opinion of market value, as well as in the
prudent underwriting of a mortgage loan

USPAP doesnt think the inspection is critical but the clients do ask countrywide

 

[djd09]

Q31. What is expected with regard to the appraiser’s inspection of a property?

Fannie Mae requires that the appraiser conduct a complete visual inspection of the accessible areas of the interior
and exterior of the property. The appraiser is responsible for noting in his/her report any adverse conditions (such
as, but not limited to, needed repairs; deterioration; or the presence of hazardous wastes, toxic substances, or
adverse environmental conditions) that were apparent during the inspection of the property or that he/she
became aware of during the research involved in performing the appraisal

 

[glenn walker]

It's all about confirmation biases..that's what was reported earlier in the year.

 

[Sadie]

That is totally dependent on the upload system the lender uses.

MISMO and XML, which the majority of lenders use, does not allow for trainee signatures. If the lender requires that format then a trainee cannot sign. I do have first hand experience with this. Only my smaller lender who would accept a pdf would accept my trainee's signature. So allow it to happen and it actually happening are two different things.

 

[George Hatch]

May 2022

https://singlefamily.fanniemae.com/media/23561/display

 

[djd09]

next they will whine about the comparable sale selection and they will provide selected sales to you which they can because its not in USPAP

 

[DWiley]

MISMO and XML, which the majority of lenders use, does not allow for trainee signatures. If the lender requires that format then a trainee cannot sign. I do have first hand experience with this. Only my smaller lender who would accept a pdf would accept my trainee's signature. So allow it to happen and it actually happening are two different things.

Again, that is system dependent. The system I had could take an XML file with a trainee signature with no problem. It is not about the use of XML, it is about the system rules that analyze the XML content. There are lots of XML files in the UCDP with trainee signatures. Several dozen have been submitted today.

 

[George Hatch]

next they will whine about the comparable sale selection and they will provide selected sales to you which they can because its not in USPAP​

IRL Fannie/Freddie could have done this 30 years ago and it still wouldn't have been in conflict with USPAP. You should probably send them flowers and a thank-you card for not taking full advantage of their alternatives earlier.