Twenty Seven Billion Buck Risk...You

[djd09]

‘The Hidden $27 Billion Lending Risk’​

White paper details how AI is helping expose flaws in home appraisals
There’s a significant blind spot in the real estate appraisal process — one that could be costing lenders over $27 billion annually in repurchase risk. That’s according to a new white paper from AI-driven computer vision firm Restb.AI, “The Impact of Condition and Quality on Appraisal Accuracy.”

Appraisers traditionally assess a property's condition and quality using the Uniform Appraisal Dataset (UAD) 6-point scale. But that method often leads to clustering of homes in the middle categories — 86.1% of properties were rated as C3 or C4 for condition, and 97.0% as Q3 or Q4 for quality, Restb.AI found.

Such “clustering” can obscure meaningful differences between properties. Further, inconsistencies arise when adjustments are made even when both the subject and comparable properties share the same condition or quality ratings.

The study found that appraisers still applied condition adjustments in 11.8% of such cases and quality adjustments in 5.3%, raising questions about the consistency and transparency of these evaluations.

Financial Implications: A $27 Billion Risk​

By analyzing 1,271 appraisals and 6,495 comparable properties, Restb.AI identified that 33.6% of appraisals had a “high risk” of inadequate or missing adjustments, leading to potential repurchase risks exceeding $27 billion annually. What’s more, 73.9% of appraisals exhibited a medium risk, suggesting that the issue is actually more widespread and systemic.

‘The Hidden $27 Billion Lending Risk’

There’s a significant blind spot in the real estate appraisal process — one that could be costing lenders over $27 billion annually in repurchase risk. That’s according to a new white paper from AI-driven computer vision firm Restb.AI, “The Impact of Condition and Quality on Appraisal Accuracy.”

nationalmortgageprofessional.com

C3 and C4 = Average

 

[glenn walker]

Bad insufficient sized data pool of
1,271 appraisals reviewed. No way sensationalisn at best. Lol

 

[Digger88]

2026: Corelogic unveils new tool “The Impact of Condition and Quality on Appraisal Accuracy” for appraisers at only $49.99 per file analyze your reports for compliance

 

[glenn walker]

2026: Corelogic unveils new tool “The Impact of Condition and Quality on Appraisal Accuracy” for appraisers at only $49.99 per file analyze your reports for compliance

Per file ? Is that per report or a number of reports?

 

[chad hampton]

Heard their chief appraiser talk at a conference. What a condescending piece of **** he was. No **** 86% are c3/c4. I’d guess 10% are c1 and the last 4% c2. If you work in the real world, that’s exactly what I would expect.

These guys are all part of the breakfast club. Buddies at the gses footing the bill for bull**** studies that shockingly support some new product they’re pushing. Keep that gravy train rolling.

 

[glenn walker]

Heard their chief appraiser talk at a conference. What a condescending piece of **** he was. No **** 86% are c3/c4. I’d guess 10% are c1 and the last 4% c2. If you work in the real world, that’s exactly what I would expect.

These guys are all part of the breakfast club. Buddies at the gses footing the bill for bull**** studies that shockingly support some new product they’re pushing. Keep that gravy train rolling.

C-1 Is brand new never been occupied.
C-2 Is normally newer or virtually a upgraded home physically not cosmetics. Most homes not updated in average shape C-4..C-3 good condition having regular maintenance and upgraded kitchens baths etc. SO YES 85% plus of homes are going to be C-4 and C-3 what's schocking about that ? Fannie doesn't purchase most C-5 and no C-6 those won't even show up in the jack wagons data there hard money.

 

[Elliott]

Fannie Mae to sell over $200 million in non-performing loans​

According to a news release, the latest offering includes two major loan pools consisting of approximately 1,119 deeply delinquent loans with a combined UPB of $198.6 million. Also included is the twenty-sixth Community Impact Pool (CIP), made up of approximately 40 loans totaling $7.2 million in UPB. The CIP is concentrated in Florida and is part of a broader initiative to target neighborhoods with higher proportions of delinquent loans and potential for borrower assistance.


Qualified bidders may submit bids for the two larger pools by May 15, 2025. Bids for the CIP are due by May 27, 2025. The sale is being marketed in partnership with BofA Securities, Inc. and First Financial Network, Inc.

Fannie Mae to sell over $200 million in non-performing loans

Over 1,000 delinquent mortgages hit the market in latest sale

www.mpamag.com

..................

What's your bid?? I wonder what the MV of the pool is.

 

[glenn walker]

Fannie Mae to sell over $200 million in non-performing loans​

According to a news release, the latest offering includes two major loan pools consisting of approximately 1,119 deeply delinquent loans with a combined UPB of $198.6 million. Also included is the twenty-sixth Community Impact Pool (CIP), made up of approximately 40 loans totaling $7.2 million in UPB. The CIP is concentrated in Florida and is part of a broader initiative to target neighborhoods with higher proportions of delinquent loans and potential for borrower assistance.


Qualified bidders may submit bids for the two larger pools by May 15, 2025. Bids for the CIP are due by May 27, 2025. The sale is being marketed in partnership with BofA Securities, Inc. and First Financial Network, Inc.

Fannie Mae to sell over $200 million in non-performing loans

Over 1,000 delinquent mortgages hit the market in latest sale

www.mpamag.com

..................

What's your bid?? I wonder what the MV of the pool is.

Those pools ? Bidders will be coming in at 25 cents on a dollar. We've seen as low as 20 cents rarely more than 30% but that was 5 years ago. mostly portfolio managers not individuals. BlackRock's guys will be bidding...lmao

 

[glenn walker]

Individuals don't get deals from the GSEs anymore or rarely when its on a Pos outlier in the middle of Montana 200 miles from the nearest shopping....lmao

 

[Fernando]

‘The Hidden $27 Billion Lending Risk’​

White paper details how AI is helping expose flaws in home appraisals
There’s a significant blind spot in the real estate appraisal process — one that could be costing lenders over $27 billion annually in repurchase risk. That’s according to a new white paper from AI-driven computer vision firm Restb.AI, “The Impact of Condition and Quality on Appraisal Accuracy.”

Appraisers traditionally assess a property's condition and quality using the Uniform Appraisal Dataset (UAD) 6-point scale. But that method often leads to clustering of homes in the middle categories — 86.1% of properties were rated as C3 or C4 for condition, and 97.0% as Q3 or Q4 for quality, Restb.AI found.

Such “clustering” can obscure meaningful differences between properties. Further, inconsistencies arise when adjustments are made even when both the subject and comparable properties share the same condition or quality ratings.

The study found that appraisers still applied condition adjustments in 11.8% of such cases and quality adjustments in 5.3%, raising questions about the consistency and transparency of these evaluations.

Financial Implications: A $27 Billion Risk​

By analyzing 1,271 appraisals and 6,495 comparable properties, Restb.AI identified that 33.6% of appraisals had a “high risk” of inadequate or missing adjustments, leading to potential repurchase risks exceeding $27 billion annually. What’s more, 73.9% of appraisals exhibited a medium risk, suggesting that the issue is actually more widespread and systemic.

‘The Hidden $27 Billion Lending Risk’

There’s a significant blind spot in the real estate appraisal process — one that could be costing lenders over $27 billion annually in repurchase risk. That’s according to a new white paper from AI-driven computer vision firm Restb.AI, “The Impact of Condition and Quality on Appraisal Accuracy.”

nationalmortgageprofessional.com

C3 and C4 = Average

Reaffirm my faith that AI won't be able to take over human appraisers for now.
AI doesn't know how to do Fannie Mae appraisals.