GSE Waiver & Data Collection Data

[CGinMN]

Getting the C rating wrong is an error, but it is an error that might not affect risk if the same error is made in rating the comps.

Omitting/missing/not reporting repairs/inspections. That is a different story.

Agree. The extent of Fannie's direction to appraisers is to describe physical deficiencies that could affect a property’s safety, soundness, or structural integrity. No examples, wide open to interpretation. So the licensed home inspector PDC identified twice as many "needed repairs" that the appraiser looked past. Never once have I heard the GSEs call for appraisers to make more appraisals subject to repairs or that this was really on their radar as a significant collateral risk issue. They could have made a much bigger deal about it if they wanted to. Also, Fannie could get a little more specific in their guide, if they care to resolve this problem. Freddie is more specific, which is good.

 

[CGinMN]

We just canned something we had been developing/testing for over 5 years. It about the results and the impact on risk management. Period.

Say more. I know you canned requiring data collection on cash out refis. Is that what you're referring to?

This is good. Debate is good and it clears the air. I hope you agree.

 

[shrubberyvaluation]

Agree. The extent of Fannie's direction to appraisers is to describe physical deficiencies that could affect a property’s safety, soundness, or structural integrity. No examples, wide open to interpretation. So the licensed home inspector PDC identified twice as many "needed repairs" that the appraiser looked past. Never once have I heard the GSEs call for an appraiser to make more appraisals subject to repairs or that this was really on their radar as a significant collateral risk issue. They could have made a much bigger deal about it if they wanted to. Also, Fannie could get a little more specific in their guide, if they care to resolve this problem. Freddie is more specific, which is good.

FNMA won't talk to appraisers if they have a question. They will only talk to lenders. So how are appraisers supposed to find out what FNMA is wanting?

 

[CGinMN]

FNMA won't talk to appraisers if they have a question. They will only talk to lenders. So how are appraisers supposed to find out what FNMA is wanting?

Yes, and meanwhile during the pilot programs they have weekly calls with the AMCs to make sure they're getting exactly what is needed.

 

[DWiley]

Agree. The extent of Fannie's direction to appraisers is to describe physical deficiencies that could affect a property’s safety, soundness, or structural integrity. No examples, wide open to interpretation. So the licensed home inspector PDC identified twice as many "needed repairs" that the appraiser looked past. Never once have I heard the GSEs call for an appraiser to make more appraisals subject to repairs or that this was really on their radar as a significant collateral risk issue. They could have made a much bigger deal about it if they wanted to. Also, Fannie could get a little more specific in their guide, if they care to resolve this problem. Freddie is more specific, which is good.

Missed repairs/inspection is one of THE most common repurchase issues.

Freddie Mac Single-Family Seller/Servicer Guide

The new, user friendly Seller/Servicer Guide will make it significantly easier for you and your team to find, understand and share critical information.

guide.freddiemac.com

 

[Non Sequitur]

Ever notice how boots on the ground appraisers have never done anything right per the GSEs?

What are appraisers doing right? Turn times? Nope, we need waivers and hybrids. Time/market condition adjustments? Nope, we need non-linear adjustments sensitized too seasonal fluctuations. Condition ratings? Nope, we need third party PDCs. See a pattern yet?

 

[CGinMN]

How much of that is the lender not getting the 1004D or a third-party inspection?

 

[Mejappz]

Missed repairs/inspection is one of THE most common repurchase issues.

Freddie Mac Single-Family Seller/Servicer Guide

The new, user friendly Seller/Servicer Guide will make it significantly easier for you and your team to find, understand and share critical information.

guide.freddiemac.com

View attachment 98022

That's what a “ licensed” home inspector is for.

 

[George Hatch]

Maybe I'm just looking at this all wrong but what surprises me is that these errors and omissions apparently involve the subject property. Where the appraiser saw it all; they don't involve the comps because the PDCs aren't selecting or inspecting or rating those.

Normally when we think of an appraiser dorking ratings in an SC in order to tighten up the adjusted range we assume it's the comps that they're dorking, not the attributes of the subject they're appraising. When tweaking a quality or condition rating on a comparable the appraiser can at least claim some plausible deniability because they didn't get in; but that dodge doesn't work when its the subject property which they personally inspected.

This is messing with my head.

 

[CGinMN]

George, it is simple. The PDCs call for twice as much as the appraiser. They're often home inspectors so their scope of inspection is different and their tolerance for calling stuff out is different. The window screen was torn? That's a repair. The cement staircase is heaving and not level? That's a repair.