Revision request from Lender. -remove/replace the term "walking distance".

[Dale Floyd]

I am far more concerned with the "appraiser's are racists" narrative that was most heavily fueled and fanned by the Freddie Research Note and Press Release crowing about the problem having been identified than I am about anything I have ever written anywhere. It seems the motivation to "research" the matter ended once maximum damage had been accomplished.

Bingo!!

I was deeply offended by that nonsense, which was baseless. I've made my concerns very vocal about it, especially to Fred.

And with respect, it was defended by those over there who knew better.

 

[Zoe]

Danny has explained GSE cannot lobby. I am not sure I understand that. However it is what it is.

I understand a little because taxpayer dollars bailed them out. I don't understand much else.

 

[Deleted member 142783]

Just say approximate distance in feet

 

[Surf Cat]

Also, for lenders appraisal reports are risk management tools (its not just about the value), and one of the risks is litigation risk related to the content in the appraisal report.

So, the lender assumes full risk when they do a waiver? I understand there's no risk in using subjective language due to no report being written however, how are the comparables from collateral underwriter (if that's the way it's done) determined and reconciled? Who determines which comparables are the most similar to the subject property getting the waiver?

 

[ucbruin]

So, the lender assumes full risk when they do a waiver? I understand there's no risk in using subjective language due to no report being written however, how are the comparables from collateral underwriter (if that's the way it's done) determined and reconciled? Who determines which comparables are the most similar to the subject property getting the waiver?

When I 1st started appraising....
Refi/equity loan appraisal requests came with the value needed to make the loan work....
I remember telling my manager that recent sales data strongly indicated that the appraised value would fall short....
I asked why couldn't we save the borrower the appraisal fee by canceling the appraisal before starting....
He told me, no can do....
The bank had to complete the appraisal process in order to show no bias....

 

[Tom D]

So, the lender assumes full risk when they do a waiver? I understand there's no risk in using subjective language due to no report being written however, how are the comparables from collateral underwriter (if that's the way it's done) determined and reconciled? Who determines which comparables are the most similar to the subject property getting the waiver?

The lender gets safe harbour with a waiver since value was done by the brilliant fannie. Every time you send in your appraisal CU has every appraisal done with everything to confirm your value is good or bad. Now i will say that CU is the smartest comp picker, but if the ltv is low with a great borrower, do they really need a human done appraisal.

 

[ucbruin]

"...if the ltv is low with a great borrower, do they really need a human done appraisal."


This has probably been the clients' opinion since the creation of mortgage appraisals....

 

[J Grant]

So, the lender assumes full risk when they do a waiver? I understand there's no risk in using subjective language due to no report being written however, how are the comparables from collateral underwriter (if that's the way it's done) determined and reconciled? Who determines which comparables are the most similar to the subject property getting the waiver?

The lender assumes NO risk with the WAIVER - the GSEs frame it as the lender is relieved of reps and warranties for the collateral value of the loan with a WAIVER. The GSE's do not assume the risk either - the US TAXPAYER ASSUMES THE RISK 100%. Unlike when an appraisal is used, where the lender must buy back the loan for a faulty or inlfated value, with a WAIVER, the lender gets a pass on having to buy back the loan -, the lender estimates the value (why the heck should they be responsible for it lol ) or the Sale price is teh value in a WAIVER - providing the value falls within a GSE range determined by an AVM.

I have no idea how the AVM chooses sales, or if it uses that as a methodology. Would love to see one and love to know!

 

[djd09]

the word police are hilarious...they can ask you to change it but there can be no law

 

[ZZGAMAZZ]

"Please review the following update from Freddie Mac regarding certain words and phrases: https://sf.freddiemac.com/articles/...-phrases-for-more-objective-appraisal-reports

Please review the appraisal to remove/replace the term “walking distance”. (Neighborhood Description, page 1)"

Original text: "Walking distance of 5-25 minutes to schools, shopping..."

Correction "Non-driving distance of 5-25 minutes to schools, shopping..."

YOU THINK THAT IS UNREASONABLE? HOW ABOUT THIS CONDITION JUST RECEIVED:

"appraisal needs to be revised for consistency....the appraiser lists rents as $4500 in one section and $4200 in another. Please ensure that the rental amount is consistent."

Hmmm....well now I understand the condition: My reviewe revealed that the "inconsistency" is because the current subject rent is reported as $4,200, although the Opinion of Market Rent is reported as $4,550!!!!!

Is it possible that the lender representative doesn't understand the difference??????? And No, I didn't address the basis for the variance because if so I would have said, "The market rents are higher than the subject's actual rents because the market rents are higher, or to be more concise, the variance exists because the subject rents are lesss than the Market Rent."

Wondering if peers ever get fed up and respond in a signed response using verbiage that isn't very cordial.....which is simply a "business decision" that one must make at certain times, whether it defines one's career success or not.....