Data Cancer Due to Waivers

[Zoe]

Watch George Hatch tag me here on intended use and user.

 

[J Grant]

The simplicity is a given. The point is, if that's the way the MARKET works, why dismiss it entirely?

Because it produces prices that do not always correlate to MV and it is misleading to buyers.

The trained mechanic does not imitate what the do-it-yourself home person does to screw up their own car, and a doctor does not try to replicate the idiot treatment his or her person was using on themselves; that';s why . We are professional valuators; RE agents are professional salespeople. That's why.

We are stuck consieing it every day in the whacky prices out erhe

Now I see the value of USPAP peer practice rogue or stubborn appraisers can do whatever the heck they want , but the USPAP standard of peer practice is a thing -peers as a group are subject to so many reviews, and the methods have to be applicable and credible over a period of time.

Peers aree not using this salesman RE agent method, If we did, our product would be a replication what the sale people do -

 

[Fernando]

When there's a waiver, does it go through AVM and spits out a value. Thus agents have no influence and they don't like that.
Or Waivers mean no appraisals and just based on income and LTV?
Don't understand why NAR would be against Waivers.

 

[J Grant]

When there's a waiver, does it go through AVM and spits out a value. Thus agents have no influence and they don't like that.
Or Waivers mean no appraisals and just based on income and LTV?
Don't understand why NAR would be against Waivers.

As far as I know, NAR is not against Waivers -

There is a thing called the INTERNET.

You can find out where the value for a waiver comes from by typing the word appraisal WAIVER in a keyword search ,

The summary search : the value of the property in a waiver is the sale contract price in a purchase appraisal, and in a refinance it is whatever value the lender estimates - as long as in both case, the value fell within an AVM range run by Fannie or Freddie,

 

[Fernando]

As far as I know, NAR is not against Waivers -

There is a thing called the INTERNET.

You can find out where the value for a waiver comes from by typing the word appraisal WAIVER in a keyword search ,

The summary search : the value of the property in a waiver is the sale contract price in a purchase appraisal, and in a refinance it is whatever value the lender estimates - as long as in both case, the value fell within an AVM range run by Fannie or Freddie,

I don't trust the internet. I can't get answers that I'm looking for.
In regard to appraisal issues, I like insight of appraisers.
Thanks for clarifying what waivers are.

Given that, it was inevitable that Fannie with all the data collected from the unassuming appraisers especially with UAD now can have a computer model to decide which properties can have waivers.
And with ANSI, that was the nail in the coffin to secure enough data to have power of waivers.

 

[Dublin ohio]

As far as I know, NAR is not against Waivers -

Well they are not exactly in favor of them

https://narfocus.com/file/7463

 

[Dublin ohio]

Everybody screaming about waivers inflating prices but have little or no proof. How about during the most recent boom. How many offer 5,10,15% above list did you see. How many appraisals did you do with appraisal gap coverage and how many of those came in below contract and the borrower brought 5,10,15% cash to cover the "appraisal gap". Those type of sales were more common than not in many of my areas. How did you treat those sales?

 

[Fernando]

My master thesis using basic regression model with Lotus 123 was to predict home values in a neighborhood.
Using characteristics given by assessor like bedroom, bathroom, GLA, lot size and given over time, my correlation was less than .6 which I knew was not accurate enough for practical purposes.

If I had the mass of data which Fannie can quantify and with supercomputing, computers can be more accurate in determining values. Better than Zillow which doesn't have the precious data that Fannie has. And if there is a waiver and borrower wants an appraisal to compare, yes that is Gold Data. Comparing the two and seeing the discrepancy, Fannie can fine tune its computer model and become even more precise.

 

[George Hatch]

Everybody screaming about waivers inflating prices but have little or no proof. How about during the most recent boom. How many offer 5,10,15% above list did you see. How many appraisals did you do with appraisal gap coverage and how many of those came in below contract and the borrower brought 5,10,15% cash to cover the "appraisal gap". Those type of sales were more common than not in many of my areas. How did you treat those sales?

So far what we have are some appraiser anecdotes that they are common and are overvalued (not undervalued); and we have Freddie saying they're coming in slightly lower than appraisals.

Needs more study.

 

[shrubberyvaluation]

The simplicity is a given. The point is, if that's the way the MARKET works, why dismiss it entirely?

Maybe some markets it works that way or close to it, not in my markets, so I dismiss it. Do you ever grid a property and only consider the square footage and ignore everything else?