GSE Waiver & Data Collection Data

[timd354]

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I don't like the expansion of appraisal waivers, but they are expanding and residential appraisers need to adjust their business models based on that reality, including finding sources of business other than mortgage lending or by finding sources of income outside of appraisals. It stinks, but unfortunately that is the reality of situation.

 

[CGinMN]

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Common misconceptions about property data collection costs…

Justin says he supposedly wants appraisers doing PDCs, but that the economic reality isn’t really Fannie’s concern. Yet here @Justinjla is selling product cost as an attribute of PDCs. You can’t have it both ways.

 

[djd09]

I don't like the expansion of appraisal waivers, but they are expanding and residential appraisers need to adjust their business models based on that reality, including finding sources of business other than mortgage lending or by finding sources of income outside of appraisals. It stinks, but unfortunately that is the reality of situation.

they are going to let the corrupt lead the greedy...what could go wrong

 

[Justinjla]

Common misconceptions about property data collection costs…

Justin says he supposedly wants appraisers doing PDCs, but that the economic reality isn’t really Fannie’s concern. Yet here @Justinjla is selling product cost as an attribute of PDCs. You can’t have it both ways.

I've spoke at three lender webinars/forums recently where some lenders told me they didn't want to do VA+PD because the cost of a PDC is the same and in some cases more than an appraisal. We've had other lender feedback saying they same thing. It's simply a false narrative. If clearing up a false narrative that exists in the industry is selling cost as an attribute of PDCs, then you would be 100% correct. You're 100% wrong though.

 

[CGinMN]

What am I 100% wrong about? You are selling cost as an attribute of data collection. You simultaneously encourage appraisers to do data collection, but no AMC will pay an appraiser the fees demanded in the market, and if they did it would hurt your cause. You cant be in favor of both, unless you think appraisers should be paid uber driver fees.

 

[CGinMN]

I have a very simple, unambiguous perspective. Data collection should only be done by licensed appraisers. The cost would still be less than an appraisal, it would support the appraiser trainee model, and the lender would still get the benefits of the waiver, without having to send an unlicensed person into their customers home.

You have a very convoluted perspective. You want to grow the program and you are also selling cost as the primary benefit. You aren’t calculating reputational costs the costs of outsourcing data collection to vendors the lender hasn’t vetted. Meanwhile you simultaneously encourage appraisers to do data collection, but it’s hollow because it conflicts with your entire agenda.

What am I wrong about?

 

[Tim Hicks (Texas)]

I've spoke at three lender webinars/forums recently where some lenders told me they didn't want to do VA+PD because the cost of a PDC is the same and in some cases more than an appraisal. We've had other lender feedback saying they same thing. It's simply a false narrative. If clearing up a false narrative that exists in the industry is selling cost as an attribute of PDCs, then you would be 100% correct. You're 100% wrong though.

Did you play a part in the development of the PDC program?

 

[djd09]

I've spoke at three lender webinars/forums recently where some lenders told me they didn't want to do VA+PD because the cost of a PDC is the same and in some cases more than an appraisal. We've had other lender feedback saying they same thing. It's simply a false narrative. If clearing up a false narrative that exists in the industry is selling cost as an attribute of PDCs, then you would be 100% correct. You're 100% wrong though.

oh i didnt realize...shouldn't the gse's be worried...the mounting inventory is putting pressure on the obnoxious prices that their waiver system has created...do the broker appraisers have E&O?

 

[Justinjla]

I have a very simple, unambiguous perspective. Data collection should only be done by licensed appraisers. The cost would still be less than an appraisal, it would support the appraiser trainee model, and the lender would still get the benefits of the waiver, without having to send an unlicensed person into their customers home.

You have a very convoluted perspective. You want to grow the program and you are also selling cost as the primary benefit. You aren’t calculating reputational costs the costs of outsourcing data collection to vendors the lender hasn’t vetted. Meanwhile you simultaneously encourage appraisers to do data collection, but it’s hollow because it conflicts with your entire agenda.

What am I wrong about?

Ok, you're right. I will be making it clear to lenders who believe or have heard that a PDC is $600 or more that this is incorrect.

Cost is not the primary benefit. The lender and consumer knowing the value/collateral piece of the mortgage process is complete very early in the process is the primary benefit.

Lenders absolutely vet PDC vendors before they onboard them. Don't take my word for it, go ask any of them.

Of course we encourage appraisers to do PDCs. It's a natural fit. That said, completing a PDC doesn't require an appraiser skillset. The process is objective and free from opinion; it’s about capturing observable property facts using mobile technology that guides the user through a standardized data collection process. We’ve seen no meaningful difference in PDC data quality between appraisers, realtors, insurance inspectors, and others. Additionally, when we compare property characteristics in a PDC to a prior appraisal on the same property, we also see very little difference. For a few characteristics like condition, the PDC is more accurate.

 

[chad hampton]

I’m not in favor of unlicensed people performing appraisal field services. So when this entire scam was first thought up of several years ago, I assumed it would be licensed appraisers doing the field work since that is what appraisal laws and regulations intended.

Once the talking heads for revaa and the GSE’s got together and started talking about unlicensed labor pools that would be acting as a field appraisers, I knew it was all about their friends running AMC’s making more money. And that has nothing to do with what the homeowner was being charged.