Appraisal Bias

[alebrewer]

od or bad?​

April 6, 2021 By Ryan Lundquist 56 Comments

Appraisal waivers have really exploded in recent years – especially during the pandemic. But how many are there exactly? Let’s look at actual numbers to walk away with some perspective. These stats are from January 2021 from AEI.
QUICK SUMMARY:

• 47.4% of all Freddie Mac loans had a waiver
• 44.5% of all Fannie Mae loans had a waiver
• Waivers are far more common during refinances
• Only 10-12% of purchases had an appraisal waiver in January
• Non cash-out refinances have the most waivers (67-69%)
• The higher your loan-to-value, the lower your chance of a waiver
• Waivers have seen a dramatic increase during the pandemic

During the period you're describing, appraisal volume was at an all time high.

The CURRENT appraisal volume decline, however, is NOT due to appraisal waivers and value range proponents. It is due to a rise in the interest rates. You've built a straw man that only you believe in, J.

 

[Terrel L. Shields]

The appraisal asks for a market value opinion. It does not ask for a mathematical value opinion.

why are they mutually exclusive?

The CURRENT appraisal volume decline, however, is NOT due to appraisal waivers

It relates solely to the volume of sales and refinancing... Regarding same, had a commercial property to look at. On market for 3 years or more for $700k. Finally auctioned for just over $400k. On the way I noted the number of "for sale" signs and there are quite a few. It is not the availability of listings that is the issue. It is the lack of buyer traffic here.

your advocating to eliminate point values

Still on that subject are we?

 

[J Grant]

Waivers are currently like 8% Freddie, 18% Fannie. That is obviously old data and you know better, or you should.

No , the article said recent look at the date on it.

 

[J Grant]

During the period you're describing, appraisal volume was at an all time high.

The CURRENT appraisal volume decline, however, is NOT due to appraisal waivers and value range proponents. It is due to a rise in the interest rates. You've built a straw man that only you believe in, J.

The volume is also down due to interest rates, but waivers still make up a large percent of orders, now, as they did when it was busier. What part of that reality do you not understand?

 

[J Grant]

Waivers are currently like 8% Freddie, 18% Fannie. That is obviously old data and you know better, or you should.

where did you get that info from?

other sournces say much higher. The article was from 2021 and since then the waiver program has expanded.

 

[Fernando]

Waivers are currently like 8% Freddie, 18% Fannie. That is obviously old data and you know better, or you should.

I wasn't aware waivers were that high.

 

[CGinMN]

 

[Fernando]

During year 2020-2021, there were many waivers. We were lucky that prices increased since then. If big downturn comes, we'll see if waivers back then was a mistake.

 

[alebrewer]

The volume is also down due to interest rates, but waivers still make up a large percent of orders, now, as they did when it was busier. What part of that reality do you not understand?

See, why did you have to add that last dig? It served no purpose, other than to expose your incorrectness to an even greater extent. To see waiver volume SINCE 2021 (which is where you googled your source), I'll refer you to CG's graph in post #307.

 

[CGinMN]

Also, these posts I made which she read.

Interesting waiver article

https://www.workingre.com/massive-expansion-of-appraisal-waivers/#:~:text=Across%20loan%20types%2C%20nearly%2070,the%20final%20months%20of%202020. Lots of good back story and information PS , for those blaming Biden, this has been going on for years now. It just reached an apex now.

appraisersforum.com

Interesting waiver article

Yes, it is very likely that Artificial Intelligence will replace most of our Lender Work. This is why I said earlier that a Residential Appraiser needs other Revenue streams. Years ago before licensing it was not uncommon in my area for Appraisers to be associated with a RE Sales company...

appraisersforum.com