This is why I got out of this profession

[djd09]

yeah sure CU was just a risk review tool...then just for a small fraction of refi's...what a gift for the scum bag mortgage brokers and GH is quiet

 

[Terrel L. Shields]

the Consumers a menu of other options including no appraisal at all.

That's great as long as the customer is buying insurance in lieu of an appraisal. And they generally are not. And who insures the insurer if they did?

 

[glenn walker]

That's great as long as the customer is buying insurance in lieu of an appraisal. And they generally are not. And who insures the insurer if they did?

The consumer was paying us $250.00 in 2020 if they opted to use the "Waiver" with no appraisal .
It would certainly be easy to create a one-time fee as insurance and offer to finance it into the loan which would only change the payment by a few dollars a month. Most borrowers would opt for that rather than allow some appraiser to show up at their home and ruin their day LMAO

 

[Terrel L. Shields]

t would certainly be easy to create a one-time fee as insurance

PMI - but wouldn't a PMI be at risk without an appraisal? Someone somewhere needs to have some idea what the asset was worth. Bankers used to lend on the strength of the cash flow - does the borrower have a job or income? But when layoffs were epidemic the regulators realized the flaw in that system. Divorce and job loss were almost always matched with foreclosure. And lending a million on a $200,000 house because the borrower made $100,000 a year doesn't account for job loss.

 

[djd09]

mortgage fraud comes in a variety of forms...just add inflated waivers to that list

 

[DWiley]

Danny-- Posted July 7 on AF -Freddie Mac Says We Need to Lower Appraisal Cost ( my note ) based on the posters propensity to post things which often are not found to be factual along with some attacking you personally. I will say this thread was bogus. Many on here have a agenda and the facts no longer matter as they just are running on emotions and going broke. ​

Oh, sorry - I should have been more clear. I saw that someone posted a claim that Freddie had stated that. However, I am not aware of anyone at Freddie actually saying it, and none of the articles I could find parroting that claim contained any actual citation of a Freddie source.

 

[chad hampton]

Hell, I thought glenn was an appraiser. Ok, this makes sense now.

Borrowers paid $250 for nothing?

 

[glenn walker]

PMI - but wouldn't a PMI be at risk without an appraisal? Someone somewhere needs to have some idea what the asset was worth. Bankers used to lend on the strength of the cash flow - does the borrower have a job or income? But when layoffs were epidemic the regulators realized the flaw in that system. Divorce and job loss were almost always matched with foreclosure. And lending a million on a $200,000 house because the borrower made $100,000 a year doesn't account for job loss.

No need for PMI as one thing we learned during the great meltdown was almost all filed bankruptcy and were insolvent .

It's all about credit and income stability . The typical Appraisal in residential loan production are only used to give a lender the Number to use to determine the loans LTV.

Appraisers have wrongly believed its a risk tool. Thats only on Rural and Complex and on residential cookie cutters like in my area, a waiver, desk top, or even Zillow will get you into a +/-5% variance.

Now the Appraisers are all crying that is all about physical condition, and someone needs to look at the home because what if it has a bad roof etc, OK fine then send a $150 .00 home inspector to do a real inspection. Let appraisers spend their time doing data research and valuations not out looking for peeling paint and smoke detectors

 

[glenn walker]

Oh, sorry - I should have been more clear. I saw that someone posted a claim that Freddie had stated that. However, I am not aware of anyone at Freddie actually saying it, and none of the articles I could find parroting that claim contained any actual citation of a Freddie source.

I googled it and found some guy on You Tube who was saying that it was true. Anyway few on here ever take the time to research what they post about. It's just a 24/7 Rants about AMCs- GSEs and why they are getting screwed under.

 

[DWiley]

I googled it and found some guy on You Tube who was saying that it was true. Anyway few on here ever take the time to research what they post about. It's just a 24/7 Rants about AMCs- GSEs and why they are getting screwed under.

I saw the same video. Then, when I googled the quote on the slide he had in the video, I found a mortgage-related article that appears to be the actual source quoted in the video. What I never found was any citation where anyone at Freddie ever actually said it.

It seems someone misquoted something, then someone else quoted the misquote. Then someone grabbed that and started a thread. It is the Internet - stuff like that happens every day. Some even dredge up articles from 2008 and 2011 and post them as if they are recent headlines.