PAREA Update

[CGinMN]

Now this - I can get on board with. I have absolutely no doubt there is corruption at the highest levels. Not to preclude minorities and women from access to our industry, but to preclude smaller organizations from having a seat at the table.

I wouldn’t go so far as to say it’s corruption. It’s just par for the course in our system, where larger groups have outsized influence. Those with the most to gain financially work hard to make sure their interests are represented, meanwhile working stiffs don’t have the time or resources to represent themselves.

Unless you know of some specific examples of corruption, in which case I’d love to hear about it and my DMs are open.

 

[TerryRohrer]

Hybrids will become the norm if they meet the testing criteria, things like:
Do they provide risk management that equals or exceeds that of the traditional appraisal process?
Do they provide more accurate, more consistent and/or more transparent results?
Do they help mitigate potential bias?
Do they increase the efficiency of the mortgage process?

When the decision is made, it will be based on actual data and results, not feelings.

So how is mitigation of potential bias measured?

 

[DWiley]

So how is mitigation of potential bias measured?

If the appraiser has no interaction with the owner/borrower it would be pretty difficult to claim that such interaction influenced the appraiser's result. There are also mathematical measures that can be applied.

 

[TerryRohrer]

If the appraiser has no interaction with the owner/borrower it would be pretty difficult to claim that such interaction influenced the appraiser's result. There are also mathematical measures that can be applied.

So more like a feeling than actual data, right?

What mathematical measures? Like an "appraisal gap"?

 

[DWiley]

So more like a feeling than actual data, right?

What mathematical measures? Like an "appraisal gap"?

Data, not feelings.
I mentioned some of that data a few weeks ago at the MBA and some here got all riled up about it Bias can manifest in many ways. Racial bias is only one type of bias.

 

[TerryRohrer]

I mentioned some of that data a few weeks ago at the MBA and some here got all riled up about it

Missed them both. I guess if its all well hidden, I need not worry about it!

 

[glenn walker]

Data, not feelings.
I mentioned some of that data a few weeks ago at the MBA and some here got all riled up about it Bias can manifest in many ways. Racial bias is only one type of bias.

I will say over the years I have been blown away with some of what i will call Property biases stated by some posters. They didnt like the floor plan, or the color of the house or so many mundane personal feelings which I have no doubt effected their final values.

 

[DWiley]

Missed them both. I guess if its all well hidden, I need not worry about it!

I stated that the data shows that when appraisers base the condition rating on information provided by a third party the rating is more in line with the actual C1-C6 definitions than the ratings that are applied based on an appraiser's personal inspection. Both GSEs have said that they have this kind of data, and third parties involved in the hybrid testing have observed the same thing. There are already several pages here on the topic.

I am out. I hope everyone is able to enjoy time with folks you love over the next few days

 

[djd09]

the most bias group will test if appraisers are racist i cant stop laughing

 

[chad hampton]

I suspect someone is an expert at manipulating data.