GSE Waiver & Data Collection Data

[Mejappz]

A licensed home inspector would never accept the fees being offered to “PDCs.” This situation is fraudulent. It is partly related to Fannie Mae and Freddie Mac being in serious jeopardy of receiving the DOGE treatment. Many individuals within these questionable organizations may soon have to look for real jobs for the first time in a while.

 

[shrubberyvaluation]

I don't find it reassuring that when I asked why FNMA choose to partner with companies like Clear Capital the rebuke was they use a different form and scope of work with them. It would be like me partnering with Bernie Madoff and if anyone asks why I partnered with him, I say the product I have with Bernie isn't a ponzi scheme so why do you care.

 

[Mejappz]

I don't find it reassuring that when I asked why FNMA choose to partner with companies like Clear Capital the rebuke was they use a different form and scope of work with them. It would be like me partnering with Bernie Madoff and if anyone asks why I partnered with him, I say the product I have with Bernie isn't a ponzi scheme so why do you care.

Birds of the same feather flock together.

 

[shrubberyvaluation]

A licensed home inspector would never accept the fees being offered to “PDCs.” This situation is fraudulent. It is partly related to Fannie Mae and Freddie Mac being in serious jeopardy of receiving the DOGE treatment. Many individuals within these questionable organizations may soon have to look for real jobs for the first time in a while.

I also find it hard to believe for $25 or whatever they doing some in depth inspection looking for repairs even if they have the expertise.

 

[TerryRohrer]

There are ways to present data that can either elucidate or obfuscate. We know with certainty that the GSEs present data to sensationalize their message. As an example, if you wanted to show what might be a "significant" difference in error rates, you might say one group was correct 98.2% of the time while the other was correct 99.4% of the time (ignoring the fact that we are dealing with real estate here, and supposedly all data are opinions). So, you might be able to convince some that a 1.2% difference error rates was significant. But if it really were not significant and you had a narrative to advance, you would claim that the first group was wrong 200% more often than the first. Same numbers, vastly different spin.

 

[Mejappz]

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

I have yet to encounter a PDC who is a licensed home inspector. At least, not in my state, and I’ve seen quite a few of those reports. PDC is just a euphemism the GSEs use for Realtors or Uber drivers.

 

[DWiley]

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?

Appraisers are VERY good at comp selection.

 

[DWiley]

They're often home inspectors ...

Actually, that is pretty rare. The majority are agents.

 

[CGinMN]

DW it seems like you're interested in engaging with this topic, so here are some very pointed questions that remain unanswered.

Why did Freddie Mac take down your 2022 research note update? Why did it not account for seller concessions as a confounding variable?

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

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

 

[Non Sequitur]

Actually, that is pretty rare. The majority are agents.

With the exception of Mueller using insurance inspectors (if they are still in the game) I agree that real estate agents complete most of the PDCs I have come across.

Appraisers are VERY good at comp selection.

I appreciate the response. If that is the case everything else is downhill. So why are GSEs hell bent on pounding on boots on the ground appraisers? Pound on AMCs and national firms for a change.