PrincessLeia
Junior Member
- Joined
- May 24, 2010
- Professional Status
- Certified Residential Appraiser
- State
- Wyoming
I guess I should be glad I don't work for Rocket Mortgage.
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Modernization Petition
- Thread starter OHApp
- Start date
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PrincessLeia
Junior Member
- Joined
- May 24, 2010
- Professional Status
- Certified Residential Appraiser
- State
- Wyoming
"Eligible Transactions:
"One-unit properties, including condominiums
"Limited cash-out refinance transactions:
"-Principal residences and second homes up to 90% LTV/CLTV"
WHAT?!?!?!?!!!! THE?!??!!?? ACTUAL??!?!?! F??!?!?
Seriously?
But here's my question... the flier says:
"Value acceptance (appraisal waivers) are Fannie Mae’s offer to accept the lender-submitted value (with no appraisal requirement) for eligible transactions. Value acceptance offers are issued through Desktop Underwriter® (DU®) using Fannie Mae’s database of more than 61 million appraisal reports in combination with proprietary analytics from Collateral Underwriter® (CU®)."
So, what happens when waivers account for 90% of the transactions in CU and there are few, if any appraisals..... how credible will their data be then....? This is not a sustainable approach.
We know that. And I'm sure, THEY know that. Is the plan to just play fast and loose with the real estate economy until it all comes crashing down? then what?
shrubberyvaluation
Elite Member
- Joined
- May 2, 2012
- Professional Status
- Appraiser Trainee
- State
- Maryland
They just need a plan when the economy heats up and AMCs can't find enough appraisers to do 24hr TAT fir $150 1004.
PrincessLeia
Junior Member
- Joined
- May 24, 2010
- Professional Status
- Certified Residential Appraiser
- State
- Wyoming
I see your Sat night is as exciting as mine 
J Grant
Elite Member
- Joined
- Dec 9, 2003
- Professional Status
- Certified Residential Appraiser
- State
- Florida
"Is the plan to just play fast and loose with the real estate economy until it all comes crashing down? then what?"
Then what?
Then the stakeholders and power players reward themselves or their cronies by being able to buy properties cheap as investments. I believe at this point they want market crashes. Some people see pain and loss from them, but others profit from them. If things go south, the stakeholders design another "correction" for it, which they will control and profit from. Like they did with the AMC changes they lobbied for, and won, which corrupted the prior HVCC and Dodd Frank effort to correct things.
J Grant
Elite Member
- Joined
- Dec 9, 2003
- Professional Status
- Certified Residential Appraiser
- State
- Florida
For those who say, "Well appraisals did not prevent the last market crash/never prevents it"
1) The mortgage brokers selector method, which appraisers tried to warn about, reduced the efficacy appraisals could have had
2) Appraisals are designed to be an effective as-of-date value. They are not designed as life of the loan/ future mitigation value. If "they" want to prevent market crashes or mitigate market price volatility with appraisals, then they should ask for a different, and specific for that purpose type of valuation to address it.
for example, a value opinion, as an average over a decade,(with no recent market conditions adjustments) or an opinion HC on a future interest rate rise or economic downturn. They could also order the effective date market value option appraisal, and compare them. It could be whatever they want it to be for whatever purpose they want...
But they don't ask for the type of valuation, which might help prevent a crash. And yet we see them blame the Market value appraisal for not solving a problem, that it is not designed to solve.
It is like saying it is my lawn mower's fault because it does not run as fast as my car and I can't drive it to work. That is because a lawn mower was not designed to run like a car. Buy a car if that is what you want or need. Though you can't mow your lawn with a car either.
Products are designed for a certain purpose and if you expect them to perform for a purpose they were not designed for, whose fault is that? MV appraisals are a specific date and purpose product, and not designed for the other purposes folks try to overlay on them. The same will apply to appraisal waivers. They sure as heck won't prevent a market crash either.
1) The mortgage brokers selector method, which appraisers tried to warn about, reduced the efficacy appraisals could have had
2) Appraisals are designed to be an effective as-of-date value. They are not designed as life of the loan/ future mitigation value. If "they" want to prevent market crashes or mitigate market price volatility with appraisals, then they should ask for a different, and specific for that purpose type of valuation to address it.
for example, a value opinion, as an average over a decade,(with no recent market conditions adjustments) or an opinion HC on a future interest rate rise or economic downturn. They could also order the effective date market value option appraisal, and compare them. It could be whatever they want it to be for whatever purpose they want...
But they don't ask for the type of valuation, which might help prevent a crash. And yet we see them blame the Market value appraisal for not solving a problem, that it is not designed to solve.
It is like saying it is my lawn mower's fault because it does not run as fast as my car and I can't drive it to work. That is because a lawn mower was not designed to run like a car. Buy a car if that is what you want or need. Though you can't mow your lawn with a car either.
Products are designed for a certain purpose and if you expect them to perform for a purpose they were not designed for, whose fault is that? MV appraisals are a specific date and purpose product, and not designed for the other purposes folks try to overlay on them. The same will apply to appraisal waivers. They sure as heck won't prevent a market crash either.
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- Joined
- Feb 14, 2002
- Professional Status
- Certified Residential Appraiser
- State
- Louisiana
More than a few on FB have responded that work has dropped to near zero for Rocket.
A lot of what’s going on with PDCs, waivers, etc. is still uneven depending on the client. Not all banks and mortgage lenders sell their GSE loans directly to the GSEs, many sell through wholesalers who deal directly with them. So a large lender like Rocket that sells directly pushes the easy button every chance it gets and moves on to the next loan. Others don’t because of the unknown of the “who” they will broker the loan through, so the default is get the appraisal, similar to ding-dong AMCs and their 20 page engagement letters that cover every client and every scenario. Basically, the future is here it’s just not evenly distributed.
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shrubberyvaluation
Elite Member
- Joined
- May 2, 2012
- Professional Status
- Appraiser Trainee
- State
- Maryland
They don't donate to politicians for nothing. What do you think PAVE is for?
shrubberyvaluation
Elite Member
- Joined
- May 2, 2012
- Professional Status
- Appraiser Trainee
- State
- Maryland
I would correct that to shouldn't be. Some have got sued for future events such as another appraiser appraising the property significantly higher.
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