Waivers, huh?

[djd09]

if it is all honest and truthful...they would release all the data...every waived property...bet they wont

 

[George Hatch]

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

Slow down. Breathe-in/breathe-out. Calm yourself. Think it through. Use your words.

"..manipulate the data to to show that the value of the property is below the 80% thresshold.."
of an AVM which the lender doesn't own and which they don't control and in which they have no input. It's the GSEs AVM they have to get past, not an AVM that they control.

As I understand it, the GSE's waiver program is limited to values of $1M or less. That means they're not putting out more than $800k. Your broker has a property thats worth $1.2M but they lowballed the value because they don't want to wait for the appraisal. Even if they can get away with swerving the requirements of the waiver program by calling this a $1M home, all they've done at most is secure a 67% LTV instead of an actual 80% LTV. Do you even math, bro? ($800k loan / $1,200,000 value = 67% LTV) The LENDERS position is more secure than if the property really was only worth $1M.

^^^ That's not a good outcome insofar as the valuation itself is concerned, but that's actually a SAFER play from the lender's perspective other than the point they don't want to do waivers on homes in excess of $1M.

 

[George Hatch]

if it is all honest and truthful...they would release all the data...every waived property...bet they wont

If you were a lender and it was your proprietary info I highly doubt you would cooperate with the appraisers. Why would you? Why should you? What you do as a lender is literally none of their business. What difference would it make to you what the appraisers thought about your program? If you're a lender then the appraisers are not your peers and they're not your valued partners regardless of any BS you might mouth in order to shut them up. Their opinion on your loan programs mean nothing to you.

 

[djd09]

and yet you cannot provide one address of any waived property...

 

[George Hatch]

Even if I had one, what good would it do you? How would you be able to use it? What could you say about it that would change anyone's minds on the issue?

If your want to find purchase transactions that were financed off a waiver then just start looking for low LTV financing among the sales in your MLS and start making phone calls to the brokers to chat them up about how that sale was financed. I dunno what having those examples will do for you, but feel free to knock yourself out.

 

[Fernando]

From my experience with home prices during the Great Recession, I know which neighborhoods are more vulnerable to down turns (usually not the high end areas).
Based on differences in how much prices decline during that time, I can predict when next recession comes which areas would be harder hit and how values go down percentage wise more.
I'm not a computer but based on my knowledge and experience, I can intuitively give waivers for certain neighborhoods and situations.

 

[djd09]

put up or shut up...

 

[djd09]

Our Commitment to Reducing Appraisal Bias​

September 9, 2021

Jake Williamson
Senior Vice President, Single-Family Collateral Risk Management



News media reports alleging racial bias in home appraisals have turned a spotlight on the appraisal process in the mortgage industry. Fannie Mae is committed to racial equity in housing, and we take these allegations seriously. As one of the largest consumers of residential appraisals in the United States, we've asked ourselves whether we are doing all we can to identify and help prevent it.

Our longstanding policy explicitly states that unacceptable appraisal practices include "…development of a valuation conclusion based on factors that local, state, or federal law designate as discriminatory, and thus, prohibited." We additionally state that it is unacceptable for an appraiser to develop a valuation conclusion "based either partially or completely on the sex, race, color, religion, handicap [disability], national origin, familial status, or other protected classes of either the prospective owners or occupants of the subject property or the present owners or occupants of the properties in the vicinity of the subject property."

To help our lender partners identify potential issues with appraisals – which could include bias – we provide our Collateral Underwriter® (CU®) tool to support research and analysis. CU has a robust set of risk flags and messages, including triggers for potential over-valuation risk, appraisal quality risk, and property eligibility risk. CU routinely undergoes fair lending reviews by Fannie Mae’s Fair Lending team, and we hope to enhance CU in 2022 with a new message for undervaluation risk that will help lenders address potential bias issues early in the process.

Our Commitment to Reducing Appraisal Bias | Fannie Mae

Fannie Mae is firmly committed to doing everything in our power to promote racial equity in housing, including helping all homeowners receive a fair and impartial appraisal.

www.fanniemae.com

solution...how about a waiver...too risky, eh? oink oink oink

 

[CGinMN]

From the referenced 2020 waiver thread, exchange between Ale and DW:

Actually, I am comparing apples to apples. As you note, waivers are only offered on low risk loans. So, comparing the performance of waivers to the general population is an unfair comparison, as that would always favor the waivers because they are the lower risk loans to start with.

I am talking about looking specifically at loans within the same credit box. If you look at loans that are waiver eligible, but the waiver was not accepted, the ones with waivers still perform better.

Some thoughts/questions- If I am reading this right, it’s still not apples to apples, even if the comparison is based on the waiver and appraisal being in the same credit bucket. Both buckets are still waiver eligible, the only difference being the consumer wanted to pay out of pocket for an appraisal for some unknown reason. Why could that be? Possibly they knew something the GSEs didn’t about the collateral and they wanted the appraisers take.

Also, if the waiver supposedly performs better in certain scenarios, why do the GSEs default to the appraisal in cases where a waiver was granted but an appraisal was ordered? Seems counterintuitive. Is it because the appraisal is going to have more up to date subject info that the waiver might not be aware of?

 

[CGinMN]

I’d like to know, during periods of rapidly increasing property values (20-21), if waiver issued comps were utilized similar/more/less in appraisals than the other comps, and also if they adjusted to indicate values that are same/more/less than other comps utilized. Then we can find out if there’s “data cancer.”