Waivers, huh?

[J Grant]

Anyone that thinks the % of waivers will decrease in the coming years is fooling themselves.

Waivers are being used frequently, especially the low LTV loans. Soon they'll point at the low rate of default on those and they'll start moving the goalposts and will be granting waivers on the higher LTV loans. What they won't acknowledge is the fact that low LTV borrowers have always had very low default rates; having skin in the game works wonders.

They'll grant waivers to marginally qualified borrowers for mortgages with high LTV based on AVM's. What can possibly go wrong?

Anything to keep the real estate and mortgage train on the tracks. If it derails, the US economy crashes, again.

Agree; the data they use to justify their decisions is stacked against appraisals-

With waivers granted on loans of conforming nice properties and to solid credit and higher LTV equity borrowers, it leaves appraisers to do the weird, worse condition /problem properties and for more marginal borrowers wrt income , credit and an LTV less equity - naturally the default and delinquency is higher on those loans, and then they will point to appraisals being "higher risk"

 

[djd09]

i think every appraiser should write a thank you note to CU and ACE..hip hip hooray waivers

 

[TerryRohrer]

Imagine how much power three guys getting together in a GSE boardroom and tinkering with the collateral valuation model has over the US economy?

And their own "performance" based salaries, perks, and retirement accounts.

 

[djd09]

just think about how they analyzed the no doc loans...trust them

 

[Terrel L. Shields]

relegated to appraising higher-risk properties and borrowers....leaves appraisers to do the weird,...

No problem if they simply paid well enough to justify that additional risk. If I could get $1,500 for a cookie cutter house, then I could justify taking a lot of extra time to CYA and double check my data and adjustments. And you could take a lot less assignments to make a living. Both tactics would reduce our risk profile. As it stands, they want the reports CHEAP, QUICK, and EXCELLENT QUALITY. As if the old pick two of the three isn't a given.

Please don't BS me about "Oh, I've seen cheap reports that were excellent, and 72 hour turn times" or "Oh, the most expensive reports are often the worst." Blah blah blah. Exceptions do not prove the rule.

FNMA used waivers 40.7% of the time for purchases in CTLV of 76-80%, and FHLMC 36.5%.

No problem....like we didn't see home prices fall by 50% for a time -especially older housing - during 2008-11.

especially the low LTV loans.

I see no problem when the LTV is 50% or less.... but, who determines the original Value? Inquiring minds want to know. Is it actually 50% or more like 75% - and who is in the position to inflate or deflate the number?

 

[George Hatch]

I have spaned zero about risk profiles of 70-80% LTV. Since it is our livelihood and profession at stake, appraisers on a bulletin board "fretting" about appraisers going broke is appropriate.

Fannie and Freddie chose to use waivers, knowing it would have that effect on appraisers. The waiver program also is de, Part of the $ that used to go to appraisers go now to AMC's who are approved to do the onsite inspection ( data collection ) for the waivers that need an inspection. That was Fannie/Freddie's choice, too.

According to you, we are somehow not supposed to react since you gaslight it by calling it "fretting". It should at least be called out for what it is; if we are going to have our livelihood stolen, realize it was by deliberate choice, not the fault of technology - what is high tech about a mortgage lender writing the value they need to make the deal in a waiver? Nothing. What is high tech about an in house AVM to see if the mortgate' lenders' value choice fits in the range the AVM develops? Nothing.

"Stolen" implies the GSEs took a possession away from appraisers. As if the assignments upon which those appraisers are so dependent belonged to the appraisers. As if the GSEs or the lenders took business away from the appraisers without their permission.

I don't know how much more entitlement you could possibly load into your role as a self-employed fee appraiser.

But IRL the lenders originated those loan transactions, control the engagement for those appraisal (and other valuation) assignments, and take possession of the workproduct once the appraisers meets the terms of those assignments.

You could say the lenders are the ones who own those assignments. In fact, I am saying the lenders are the ones who own those assignments. Not the appraisers. Those lenders are taking their business elsewhere or are diverting engagement/management to their agents. As self-employed workers it is on us to identify our various alternatives and to act in our own interest; not wait for the lenders or the govt to hand over some entitlement to which we are owed.

 

[George Hatch]

I see no problem when the LTV is 50% or less.... but, who determines the original Value? Inquiring minds want to know. Is it actually 50% or more like 75% - and who is in the position to inflate or deflate the number?

They might as well have said "granted contingent upon the results of their AVM review". Similar to when they accept an appraisal contingent upon the results of their AVM review.

 

[Fernando]

When GSE's allow lenders to use waivers and hybrids to bypass appraisers, I can't blame lenders in using them.
Lenders using appraisers have more risks (more cost) in buying back the loans when there are "deficiencies" in the appraisals.
Clients have to do better vetting of competent and unbiased appraisers and using waivers are easier and less costly when GSE let them do it.

 

[J Grant]

"Stolen" implies the GSEs took a possession away from appraisers. As if the assignments upon which those appraisers are so dependent belonged to the appraisers. As if the GSEs or the lenders took business away from the appraisers without their permission.

I don't know how much more entitlement you could possibly load into your role as a self-employed fee appraiser.

But IRL the lenders originated those loan transactions, control the engagement for those appraisal (and other valuation) assignments, and take possession of the workproduct once the appraisers meets the terms of those assignments.

You could say the lenders are the ones who own those assignments. In fact, I am saying the lenders are the ones who own those assignments. Not the appraisers. Those lenders are taking their business elsewhere or are diverting engagement/management to their agents. As self-employed workers it is on us to identify our various alternatives and to act in our own interest; not wait for the lenders or the govt to hand over some entitlement to which we are owed.

You always call appraisers as wanting entitlement, but the lenders are doing the same thing and you think that is fine..

You have the view that the profiteers can and should do whatever they want because they want to in a circular argument, and if an appraiser speaks out, they are entitled, a socialist, a hypocrite etc

If it were the lender's own money, with no taxpayer backing, then yes, they could do whatever they want. But it's not their money; it's the investors' money, and the taxpayers back it. And yes, they are taking possession away from licensed, trained third parties with nothing to gain from the deal appraisers and claiming it for themselves as a way to increase profits and get control over the values.

.

 

[J Grant]

"Stolen" implies the GSEs took a possession away from appraisers. As if the assignments upon which those appraisers are so dependent belonged to the appraisers. As if the GSEs or the lenders took business away from the appraisers without their permission.


But IRL the lenders originated those loan transactions, control the engagement for those appraisal (and other valuation) assignments, and take possession of the workproduct once the appraisers meets the terms of those assignments.

You could say the lenders are the ones who own those assignments.

The lenders don't own the assignments because it is NOT THEIR OWN MONEY USED FOR THE LOANS.

The lenders are nothing but pawn brokers; dressed in suits, using collateral they con't own to make a loan - but pawn brokers are better since it is their own money put up to back the collateral.

You chose which side to denigrate ( appraisers ) for being entitled, and calling us out as hypocrites if we mention public trust, idk why but it is a pattern-