We need to clean up FNMA and Freddy

[JimRuffner]

I live and work in Virginia. I have a democrat congressman and senator. Have no voice. We need to let Trump Administration know of the mess at FNMA and Freddy. Woke has got to end and action against innocent appraisers has to end. Also FHA and HUD. We need to clean house and get back to doing good quality and honest appraisals without fear. Also, the AMC's need to go. Charging full price for appraisals and then seeking the low bid. They are parasites.

 

[alebrewer]

Hey, Jim! So, in your opinion, what needs to be cleaned up? I'm not disagreeing at all - just curious what your pain points are with F/F? Is it the waivers? The move to bifurcated assignments?

 

[CGinMN]

Here is my wishlist:
-HUD must stop providing grants to fair housing organizations that are used to ensure appraisers in bogus investigations.
-HUD must clear the backlog of pending investigations against appraisers and stop blackballing FOIA requests seeking more information on these complaints.
-FHFA must return to the previously established LTV ratios for appraisal waivers.
-FHFA must study disparate impacts of GSE appraisal waiver programs on minority borrowers.
-FHFA must study whether sales that were granted waivers have created self-reinforcing pricing trends (e.g. “data cancer), resulting in reduced housing affordability.
-FHFA and the GSEs need to revise their research on appraisal disparities and appraisal gaps to accurately account for seller concessions and overzealous bidding by first-time homebuyers.
-PAVE must be dismantled. Whatever effort was made by the government to erode public trust in appraisals must be countered with efforts to restore the public trust.

 

[RCA]

Here is my wishlist:
-HUD must stop providing grants to fair housing organizations that are used to ensure appraisers in bogus investigations.
-HUD must clear the backlog of pending investigations against appraisers and stop blackballing FOIA requests seeking more information on these complaints.
-FHFA must return to the previously established LTV ratios for appraisal waivers.
-FHFA must study disparate impacts of GSE appraisal waiver programs on minority borrowers.
-FHFA must study whether sales that were granted waivers have created self-reinforcing pricing trends (e.g. “data cancer), resulting in reduced housing affordability.
-FHFA and the GSEs need to revise their research on appraisal disparities and appraisal gaps to accurately account for seller concessions and overzealous bidding by first-time homebuyers.
-PAVE must be dismantled. Whatever effort was made by the government to erode public trust in appraisals must be countered with efforts to restore the public trust.

Or rather "PAVE" needs to be replaced with something that makes sense.

 

[alebrewer]

I'd add:
- Allow appraisers an abbreviated view of CU - or, at the very least, a synopsis of the CU findings (maybe the SSR's?) as part of a draft upload of the appraisal.
- FHFA to force investors (JPM, Flagstar, etc.) to provide appraisers an avenue to rebut placement on watch lists
- Better oversight of state appraiser boards to ensure consistent application of penalties and fines to appraisers for substandard performance

 

[Overimprovement]

I don't know what is being reported right now, but if I were an investor buying into a CMBS tranche, I would want to know how those properties were valued, if at all...

 

[alebrewer]

For anyone interested in tracking MBS and mortgage rates:

MBS Dashboard - MBS Prices, Treasuries and Analysis

View MBS prices and charts and follow the day's market activity with Micro News and Commentary.

www.mortgagenewsdaily.com

 

[Surf Cat]

Better oversight of state appraiser boards to ensure consistent application of penalties and fines to appraisers for substandard performance

^^^^ The bad actors, bottom of the barrel AMC slags, with their shortcutting analysis, nonsensical boilerplate BS, did inspect signatures, need to step up or lose their licenses.

But no, the AMC's want the cheap, uneducated newbies to control, so as not to slow down their rubber stamping conveyor belts.

It's disheartening to see CE courses advertised to improve your skills when in reality, they don't do what they're intended to do..... Advance your career. At least not in the gse sense.

 

[alebrewer]

^^^^ The bad actors, bottom of the barrel AMC slags, with their shortcutting analysis, nonsensical boilerplate BS, did inspect signatures, need to step up or lose their licenses.

But no, the AMC's want the cheap, uneducated newbies to control, so as not to slow down their rubber stamping conveyor belts.

It's disheartening to see CE courses advertised to improve your skills when in reality, they don't do what they're intended to do..... Advance your career. At least not in the gse sense.

I don't disagree - I'm just not sure how to implement some of those ideas. IMO, doesn't matter if it's a newbie or a 40 year veteran - bad appraisal is bad appraisal, so I'm not sure I'd want to tie years of having held a credential to any SLA. Heck - there are newbies that are WAY better than some of the 40 year veterans. Also not sure about capping margins. Seems pretty straightforward, but that's about as anti-market as you can get. Maybe holding AMC's to a standardized set of appraiser selection metrics? Holding AMC's responsible for poor appraiser performance? Those seem to me to maybe address the 'select the low fee provider' mantra used by so many of the (especially) nationwide AMC's...

 

[CGinMN]

Cap individual appraiser submissions to the GSEs at 260 per year. Get rid of the 2-3/day appraisers and force them to compete on quality not quantity.