GSE Waiver & Data Collection Data

[George Hatch]

One other comment I would add for consideration is that whatever the actual ratio is between desktop+PDC vs conventional 1004, the hybrid combo doesn't have to be equal to the 1004 to justify a user's choice to use it. Doesn't need to be superior to, either. From their perspective as a lender and using their measure of utility a given alternative only has to be "close enough" for their usage, which has also applied to their usage of the imperfect 1004s.

How inaccurate in GLA or interior quality or condition does a "subject summary" have to be to incur significantly higher risks to a lender. Public records says 1900sf, appraisal or PDC says 2100sf - is that enough of an overstatement to lead to a significantly riskier loan decision for a lender. In a $500k market what's the adjustment factor?

 

[shrubberyvaluation]

One other comment I would add for consideration is that whatever the actual ratio is between desktop+PDC vs conventional 1004, the hybrid combo doesn't have to be equal to the 1004 to justify a user's choice to use it. Doesn't need to be superior to, either. From their perspective as a lender and using their measure of utility a given alternative only has to be "close enough" for their usage, which has also applied to their usage of the imperfect 1004s.

How inaccurate in GLA or interior quality or condition does a "subject summary" have to be to incur significantly higher risks to a lender. Public records says 1900sf, appraisal or PDC says 2100sf - is that enough of an overstatement to lead to a significantly riskier loan decision for a lender. In a $500k market what's the adjustment factor?

Well they seem to freak out if the OMV is $1,000,000 and the contract price is $1,000,500. Instead of just approving the loan it will be why didn't the appraiser not push it up.

 

[Surf Cat]

IMO the way forward for appraisers has always been to work closer to our competency and to not cut too many corners.

I believe this is a big problem for AMC appraisers and why I stopped working for them.

They accept this complex assignment for $225 and feel jilted.... so they use boilerplate, pull from behind adjustments and cut as many corners as possible to save time. The problem is those pesky certifications, USPAP, and lender guidelines. If you Rose your hand and accept it, you have to follow those no matter the fee. Many lose sight of that.

The bad ruin it for the good.

 

[glenn walker]

We've all seen these reports.... they should have been rejected and the offenders made to take continuing education to get their stuff together.... or lose their license. I remember taking my son to the DMV for his driving test to get his driver's license. We were waiting in line for our turn and there was this girl that got out of a car, head in hands crying. Obviously, she failed the test and did not get her license that day. That should have been happening to many licensed appraisers....

But the lenders accepted those poorly supported, boiler commentary, reports and are now accepting inspections from non-licensed PDC's. The Bad Apples spoiled the good ones.... the lenders "are done" with the traditional, old school appraisers and are ready to move on to the next chapter of Real Estate valuation.

If we had rejected them based on your perception of quality then only 10 out of 1,000 would have been funded.

The biggest risk in lending behind loose Underwriting Guidelines in the last 25 years may have been the appraisals.

 

[Surf Cat]

How would a single fee appraiser working alone know what other appraisers were doing on inspections or in the field ?

Sometimes you get the former appraisal from the borrower. Sometimes from the lender. And sometimes from your Associates with a note that states "OMG, look at this!"

 

[TerryRohrer]

If we had rejected them based on your perception of quality then only 10 out of 1,000 would have been funded.

The biggest risk in lending behind loose Underwriting Guidelines in the last 25 years may have been the appraisals.

Well, many appraisers share your commitment to facilitating the deal regardless of facts and data in order to ensure a call to the next assignment.

 

[glenn walker]

Again looking at one bad report tells you nothing. But you can't fix it as long as there are independent fee Appraisers because each was trained and mentored and honestly believes his own bad habits create good reports. Until the herd is forced by manditory check boxes and technology it can't get better.

 

[TerryRohrer]

Again looking at one bad report tells you nothing. But you can't fix it as long as there are independent fee Appraisers because each was trained and mentored and honestly believes his own bad habits create good reports. Until the herd is forced by manditory check boxes and technology it can't get better.

If all you know how to do is look at the number and see if the deal will fly, how do you know you are looking at a good or bad report? And if the deal flies, and you don't care whether it is a good or bad report, what needs "fixed"? The system has been built "fixed".

 

[glenn walker]

Well they seem to freak out if the OMV is $1,000,000 and the contract price is $1,000,500. Instead of just approving the loan it will be why didn't the appraiser not push it up.

Because that $500 requires the paperwork to be amended and if there was an appraisal contingency it gave the borrower a right to cancellation of the loan and transaction.

Frankly if the appraisers data won't support the extra $500 bucks it should have come in lower than the $1,000,000 or higher. That's a report i would have reviewed.

 

[djd09]

if it was a honest system...there would be transparency...since there is not then deals are done in darkness...jfk said in an open and free society secrets are repugnant