GSE Waiver & Data Collection Data

[chad hampton]

It’s pretty rich that a GSE rep complains about quality when they support a system and companies that pay fees that start in the twos. You’re living in fantasy land if you expect good quality. It’s just not possible when you have to knock out four reports a day to make a living.

You can’t go to McDonald’s and then ***** about the quality. You know what you’re getting.

 

[CGinMN]

GSEs are 100% responsible for the level residential appraisal quality, as they are the primary user of appraisal services. What today they call unacceptable or misleading; tomorrow is securitized and sold.

 

[George Hatch]

Maybe not 100% responsible. Just responsible for whatever percentage of the transactions they are engaging in.

 

[CGinMN]

More than that. They’re the reason you get divorce appraisals on a 1004, and Q3/C4 ratings on IRS valuations. What the GSEs are willing to accept becomes the professional standard, and it determines the actions of appraisers in the marketplace for all residential services.

 

[George Hatch]

I have had clients who demanded more than the GSEs required. I'm sure you have, too. I've also had clients who demanded less than the GSEs, so that's also a thing.

 

[Surf Cat]

Appraiser's overlooking and/or omitting material deficiencies when they "check it out" is a problem.

Really? Based on lenders, home owners? Is there a source or some sort of documentation outlining the problem that appraisers are omitting material deficiencies during the subject inspection?

Or, is the appraiser the problem with evaluations significantly impacting the "perceived value" of a property due to calling out condition, deferred maintenance, functional obsolescence, health and safety concerns?

Let's not forget part of the observation of the subject property is delineating the subject neighborhood. Determining the neighborhood characteristics and quality. Location of the subject within the neighborhood that affects value....

Just admit that you guys want to fast track the loan process and get the speed bump appraiser out of the way. Don't feed us the PDC / deskbound appraiser system is more accurate malarkey....

 

[glenn walker]

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.

Actually many Uber Driver's out here make more money than appraisers.
You need a new example.

 

[George Hatch]

Really? Based on lenders, home owners? Is there a source or some sort of documentation outlining the problem that appraisers are omitting material deficiencies during the subject inspection?

Or, is the appraiser the problem with evaluations significantly impacting the "perceived value" of a property due to calling out condition, deferred maintenance, functional obsolescence, health and safety concerns?

Let's not forget part of the observation of the subject property is delineating the subject neighborhood. Determining the neighborhood characteristics and quality. Location of the subject within the neighborhood that affects value....

Just admit that you guys want to fast track the loan process and get the speed bump appraiser out of the way. Don't feed us the PDC / deskbound appraiser system is more accurate malarkey....

I think it's possible for them to want both things at the same time. One does not necessarily preclude the other.

Whether they come out and either admit or deny the suspicions is just about irrelevant. The harsh reality is that the appraisers have no say in what (beyond our minimums) ANY power user thinks is sufficient for their usage. Much less the 800# GSE gorilla.

Even if the lenders and the GSEs DID come out and say "we're out to get you", then what? Then nothing, that's what. Unfortunately.

"We must fight, we must resist" is a very appealing message to appraisers. It's definitely what they want to hear. No doubt about it. But aside from writing chain-letters to the politicians I don't see what other means appraisers have at hand that will get them any closer to what they want. That's the part nobody wants to hear. Or to give serious consideration.

It's raining. Sooner or later most of us are probably going to get wet. Me included. I wish it wasn't so but that wishful thinking doesn't stop me from considering my own possible alternatives. My own REL probably isn't but a couple years behind the SFR appraisers.

 

[Tim Hicks (Texas)]

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.

Is it more accurate by room or by the overall property. A remodeled home can have some frayed carpet in a couple of rooms from a pet, but still be considered overall a C3.

I am just curious if the grading of these systems are done by the developers of these systems to help facilitate their new system.

 

[George Hatch]

If appraisers are doing differently between when they personally inspect vs when they're using a PDR that is an objectively quantifiable difference to be taking note of. Regardless of which group is "more accurate".

Condition ratings in did-inspect appraisals varied from each other by Y%
Condition ratings in no-look appraisals varied from each other by Z%

Y% - Z% = #%

If you were a decision maker and you knew for a fact that the No-Look Desktop was overstating or understating condition 10% of the time you could tweak your underwriting to compensate. It's the consistent relationship factor that would be more relevant to that decision, moreso than the actual precision factor itself.

We complain about what our peers do often enough that it shouldn't come as some shock to the system to hear that the GSEs don't consider appraiser performance to be monolithic in consistency.