Waivers, huh?

[alebrewer]

Decimating a profession to save a segment of borrowers who are well-heeled a little money and a day or two off a closing is a bad trade, but if you think it was worth it, so be it.

I wonder if you really believe this stuff, or if you are just argumentative. I hope the latter... not all borrowers are 'well-heeled', J. In fact, as F/F have a mandate for affordable housing, the vast majority of borrowers using F/F for their loan are not 'well heeled'. Heck - I'm not even sure what that means, other than the fact that you're deflecting again. The intent is not to 'decimate a profession' - the intent is to manage risk in the most cost effective means possible (at least according to the F/F guru's). I don't disagree that there are some situations where waiving a manually generated valuation by a qualified professional is risky, but if automated valuations are statistically comparable to 'traditional' valuations (WRT accuracy), then it's not the waivers that are decimating the profession...

 

[djd09]

Appraisal waivers: faster, cheaper appraisals​

Eliminate the worry of a low appraisal value by using an accurate computer program rather than using human appraisers.

Appraisal waivers: faster, cheaper appraisals – 1st Alliance Mortgage LLC

www.1stalliancemortgage.com

those shilly shill shills...nothing more then your common snake oil salesmen

 

[alebrewer]

Question
Does anyone think that if AMCs were banned and banks had to create their own ordering department and vet appraisers themselves, that appraisers would not net higher fees while at the same time the BORROWER would pay LESS for the appraisal. The miniscule additional cost of managing a credit department or whatever you want to call it hardly justifies the sort of arbitrage an AMC is able to garner. After all, even using the AMC a bank will and does still have to process the request, review the reports, and vet the AMC as well as the appraisers. It's not like the AMC is free to the bank.

No doubt AMC's attempt to engage in usury. The fact that there has been significant consolidation over the past 2-3 years, however, would suggest they're not as profitable as some on the AF would like to think. Also - running an appraisal desk as a direct engagement lender is NOT a 'minuscule' additional cost. When I was at a mortgage lender, we bore the cost of myself (rather cheap looking back), 2 review appraisers and 3 customer service staff. Besides salaries, the costs for the staff included unemployment insurance, health benefits, 401k, etc. associated with maintaining a staff, AND we chose to eat the technology fee for our appraisers. The aggregate cost was anything but minuscule...

 

[djd09]

Appraisal Waivers Explained – Tips On How to Get One​

An appraisal waiver is like manna from heaven, finding money in your coat pocket, and winning the lottery – all combined. But you need to know what you’re doing to get them. I’m going to give you the inside scoop on appraisal waivers, so stay tuned.

Strategies to Help Get an Appraisal Waiver​

We can’t see the algorithm that Fannie and Freddie use, but they do give us some guidelines, and through trial and error we’ve picked up some tricks to help.

• For refinances, keep the home value below 1 million. Fannie nor Freddie will give the appraisal waiver if the home value is over that, so if your home is worth 1.3 million, we can change the home value (just for refinance purposes) to $999,000. The only caveat is if your loan to value goes down too much, it may affect your interest rate or other loan pricing. You can’t do this on a purchase because you have to use the purchase price.

But My Loan Officer Guaranteed That I Will Get an Appraisal Waiver​

I hope this was helpful. But if you want to increase your odds of getting an Appraisal waiver, start by using a loan officer that knows all the tricks to get you one **Cough cough – like me**

Appraisal Waivers Explained – Tips On How to Get One - Jesse Rivera | Prospect Lending

Appraisal waivers are like manna from heaven, finding money in your coat pocket, and winning the lottery – all combined. But you need to...

jesserivera.com

tricking the borg...not so complicated

 

[TerryRohrer]

VA didn't get a bailout. The VA Loan Guarantee is for our nation's Veterans and their dependents as a benefit they earn for serving the country. Not the same as Fannie and Freddie.

We have no clue regarding the costs of the VA program. We have what little the VA shares. You know, those folks who had that whole scheme that reflected wait times in minutes for Vets dying in the waiting room after waiting for months or years.

That there was not a headline screaming there were huge losses is no surprise when skilled, dedicated liars are involved. Some might lose their cushy life if the truth got out.

 

[George Hatch]

That is not the only kind of comment you make and is not at all why I object to some of your comments. We can all understand commenting on economic realities., which is neutral

But you have gone out of our way, over the years, including on this thread to belittle appraisers and make them look bad, a favorite is showing them up to be hypocrites - if the fee was higher, nobody would object to a hybrid - ( but you never point out the reverse, if the fee was higher, no AMC would order a hybrid) , calling appraisers who object to a waiver of other reduction of business as feeling entitled but not the profiteers as being entitled.

The valuation process des not go away in a waiver. An AVM is still done, the control offer it is out of any thrid party oversight. Does anyone get to see it ? Idks.

There is still a fee for a valuation from the borrower in many cases; only it never reached the appraiser now - if an AMC is used for a PDC collection, it goes to them. Why don't you call that out as an entitlement

Belittle? The only negative I have made is that you and others have cited "threat to the economy" of some of these alternatives when your primary concern is obviously and only the fee. Which I agree, you should be concerned about the fee. As for ordering appraisals or hybrids, the AMC isn't the party that makes that choice so I don't know why you're blaming them for that decision. Get a grip. The AMC works for the lender, not the other way around. They do what they're told; they don't dictate terms.

And the threat to the economy or even the RE market's that you're fretting is also being grossly overstated. It's no zero, but it's also not going to be significant from a lender's perspective. Their AVM data includes data from the appraisers so that's more than the other AVMs have. That means that when their internal reliability score is high enough to justify using it instead of another appraisal then basing a loan on 80% of that isn't going to result in a gross overencumbrance. Further, if enough of the buyers are bringing 20% or more of their own money to cover the gap in the LTV that's no different than what the all-cash sales are doing, and we don't tend to see a market-altering group of all-cash sales that are grossly overpriced relative to the high LTVs. So even that proposition is entirely speculative.

You've been appraising for a long time - have you ever been afraid of using sales that were financed with low LTVs before? No, you haven't. But now you are citing "the threat" because of the loss of business. I sympathize with the loss of business but not the use of the "threat" argument as cover for your primary concern.

Don't lose sight of the point that they're not using waivers on all 0-80% loans. Some of those are still being backed by appraisals despite the low LTVs.

 

[J Grant]

Belittle? The only negative I have made is that you and others have cited "threat to the economy" of some of these alternatives when your primary concern is obviously and only the fee. Which I agree, you should be concerned about the fee. As for ordering appraisals or hybrids, the AMC isn't the party that makes that choice so I don't know why you're blaming them for that decision. Get a grip. The AMC works for the lender, not the other way around. They do what they're told; they don't dictate terms.

And the threat to the economy or even the RE market's that you're fretting is also being grossly overstated. It's no zero, but it's also not going to be significant from a lender's perspective. Their AVM data includes data from the appraisers so that's more than the other AVMs have. That means that when their internal reliability score is high enough to justify using it instead of another appraisal then basing a loan on 80% of that isn't going to result in a gross overencumbrance. Further, if enough of the buyers are bringing 20% or more of their own money to cover the gap in the LTV that's no different than what the all-cash sales are doing, and we don't tend to see a market-altering group of all-cash sales that are grossly overpriced relative to the high LTVs. So even that proposition is entirely speculative.

You've been appraising for a long time - have you ever been afraid of using sales that were financed with low LTVs before? No, you haven't. But now you are citing "the threat" because of the loss of business. I sympathize with the loss of business but not the use of the "threat" argument as cover for your primary concern.

Don't lose sight of the point that they're not using waivers on all 0-80% loans. Some of those are still being backed by appraisals despite the low LTVs.

so what i they are not using waviers on all 0-80 % loans - they are using them for a lot.

You completely misunderstood me regarding LTV loans. It has nothing to do with comp choices - it is such an inane point I can't even respond to it.

I am not blaming AMC;s for taking the hybrid work out of the hands of the appraisers - Get a grip ! I am laying the accountability on Fannie and Freddie who deemed only an approved list of AMC's can do hybrids ( a lender cannot order one directly from an appriser ) , and the same wrt the PDC collection for a waiver - an approved list of AM's do them-talk about an entitlement -the

 

[George Hatch]

Appraisal Waivers Explained – Tips On How to Get One​

An appraisal waiver is like manna from heaven, finding money in your coat pocket, and winning the lottery – all combined. But you need to know what you’re doing to get them. I’m going to give you the inside scoop on appraisal waivers, so stay tuned.

Strategies to Help Get an Appraisal Waiver​

We can’t see the algorithm that Fannie and Freddie use, but they do give us some guidelines, and through trial and error we’ve picked up some tricks to help.

• For refinances, keep the home value below 1 million. Fannie nor Freddie will give the appraisal waiver if the home value is over that, so if your home is worth 1.3 million, we can change the home value (just for refinance purposes) to $999,000. The only caveat is if your loan to value goes down too much, it may affect your interest rate or other loan pricing. You can’t do this on a purchase because you have to use the purchase price.

But My Loan Officer Guaranteed That I Will Get an Appraisal Waiver​

I hope this was helpful. But if you want to increase your odds of getting an Appraisal waiver, start by using a loan officer that knows all the tricks to get you one **Cough cough – like me**

Appraisal Waivers Explained – Tips On How to Get One - Jesse Rivera | Prospect Lending

Appraisal waivers are like manna from heaven, finding money in your coat pocket, and winning the lottery – all combined. But you need to...

jesserivera.com

tricking the borg...not so complicated

That's how those LOs at Wells (?) got caught - they lowballed the value on sub 80% LTV deals in order to get past the waiver criteria. They obviously got caught at it because the pattern of the stated values came didn't line up with the GSE's AVM.

From the perspective of a lender or GSE, if the primary purpose of getting an appraisal is to avoid the gross overencumbrance of a property then a decision based off a lowballed value only improves their equity position. Not threatens it. Obviously as appraisers we seek the objective and fair valuation, but that's an arguably higher standard than what a lender seeks insofar as their intent to avoid a gross overencumbrance - from that perspective "not overvalued" is really all they actually need.

 

[J Grant]

That's how those LOs at Wells (?) got caught - they lowballed the value on sub 80% LTV deals in order to get past the waiver criteria. They obviously got caught at it because the pattern of the stated values came didn't line up with the GSE's AVM.

From the perspective of a lender or GSE, if the primary purpose of getting an appraisal is to avoid the gross overencumbrance of a property then a decision based off a lowballed value only improves their equity position. Not threatens it. Obviously as appraisers we seek the objective and fair valuation, but that's an arguably higher standard than what a lender seeks insofar as their intent to avoid a gross overencumbrance - from that perspective "not overvalued" is really all they actually need.

What a lender seeks - what a lender seeks-
IT IS NOT THE LENDERS' MONEY AT STAKE IT- since they usually do not lend their own funds on these mortgages - therefore the minimum of what the lenders seeks should not be the only decider and in fact was not the only decider until recently-
The users of the appraisal - the investors who buy the loan are usually not the lenders who order the loan and investors IMO should get a hgher standard then the profiteers do - the taxpayers back all of it for the lower interest rates and prefer terms of res mortgage so the public trust is a thing and the public trust is not always what the lender seeks to make a quick profit and on to the next loan

 

[djd09]

.
it is a good thing they cut the scum bag mortgage broker out of the loop...what a dum dum