Waivers, huh?

[Terrel L. Shields]

they're not as profitable as some on the AF would like to think.

Incompetent management upon the part of an AMC who has underbid with a fixed price isn't a problem for me nor the bank. It's the management of stupid AMC owners thinking all properties are cookie cutters.

 

[Zoe]

Incompetent management upon the part of an AMC who has underbid with a fixed price isn't a problem for me nor the bank. It's the management of stupid AMC owners thinking all properties are cookie cutters.

We are not speaking profitability here. We are speaking public trust and separation of fees on truth in lending disclosures.

God, I hope CFPB jumps in after all these hearings.

 

[Zoe]

Public trust vs fastest and cheapest is the catalyst for change. It is sad nobody wants grab bull board by the horns.

 

[Zoe]

Appraisal Institute has totally failed imho. They can't do it because many members are on opposing side of independent fee appraisers.

 

[George Hatch]

Incompetent management upon the part of an AMC who has underbid with a fixed price isn't a problem for me nor the bank. It's the management of stupid AMC owners thinking all properties are cookie cutters.

WRT base fees, sooner or later something will have to give. The increase in the average level of complexity coming through these pipelines will wreak havoc on the feasibility of working off a base fee. They're eventually going to have to figure out how to break these appraisal problems down by difficulty. No appraiser is going to want to be fielding 6-10 individuals bids a week.

 

[Zoe]

My prediction is Govt will take over independent fee appraisers and they will engage them.

You may think I am crazy. But I do believe it. The govt that guarantees the mortgage will engage the appraiser on single family and possibly commercial assignments also.

 

[Zoe]

The govt not only guarantees the mortgage, they have also shown they guarantee the lender. Very obvious.

 

[djd09]

Their conduct notwithstanding, you got your facts wrong with how the decisions are being made with these waivers. Which when considering the first posts of this thread show how they're doing it means you have no excuse for trying to pimp the untruth of it.

say you have an neighborhood where the sales are typically 200,000...with a few 'waived' sales of 250,000 to 300,000 the new price has been set...you are clueless

 

[djd09]

and of course these honest unethical stakeholders wouldn't manipulate the data to show that all their waivers are under this so called 80% LTV threshold...and there were wmd's in iraq, banksters are too big to fail, and epstien hung himself...suckers

 

[George Hatch]

say you have an neighborhood where the sales are typically 200,000...with a few 'waived' sales of 250,000 to 300,000 the new price has been set...you are clueless

Have you thought through how the scenario you raise could even happen? If not then maybe you might consider putting 5 minutes of original thinking into this discussion The waivers for purchases apparently stop dead at a maximum of 80%. The GSEs aren't using waivers for 90% or 95% LTVs.

If the GSEs already have the majority of the appraisals in their database which have ever been done in the area they can figure out whether or not their AVMs results are usable. In some neighborhoods that will work and in others where there's too much variety they probably won't so they'll end up going with the appraisal instead. Their collection of the dated appraisals going back 10+ years don't indicate to the current value, but the descriptions therein can be used to identify the neighborhood boundaries and prevailing sizes and quality and such. Besides that it will be common for the GSEs to have a prior appraisal for the subject of a purchase transaction, so with those they can already see what a prior appraiser told them about that property.

If their confidence score is high enough to issue an 80% mortgage then that means the borrower is bringing in the other 20%. So exactly how do you think that transaction can even get to a gross overvaluation, let alone a gross overencumbrance for the lender?

People buy homes without any financing - they bring in all-cash. Do you commonly see low LTV and all-cash sales paying way too much for those homes? Or is an overvaluation perhaps more common among the 95% and 100% LTVs wherein the borrower has little/no skin in the game?

The name of the game for an appraiser is to get the value right. But the name of the game for a lender is to avoid the gross overencumbrance of the property. These are different measures of the utility of the appraisal.