Three days in a row. Different GLA than advertised.

[Mike Ault]

So, how are we going to square this circle for these new hybrids?

 

[timd354]

Waivers were for folks who owned their home free and clear and wanted to open a 25k line of credit. It wasn't until recently that regulators went to sleep and allowed the GSE to expand their use to when they currently are.

Like I said, waiver and hybrids current use was intended for wuhan flexibilities. They should have ended that in 2021. They weren't meant to be long term nor were they meant for the ltv's we are seeing them used for.

You have no idea what you are talking about. Waivers had been in use by the GSEs for many year prior to COVID. However, it is true the use of waivers has been expanded in the past few years.

 

[chad hampton]

You have no idea what you are talking about. Waivers had been in use by the GSEs for many year prior to COVID. However, it is true the use of waivers has been expanded in the past few years.

Right, so exactly what I said?

Go tell the waiver king. If he doesn't believe you, you can have him go call up calabria.

 

[ZZGAMAZZ]

Saying that we can expand the use of waivers on purchases because purchase appraisals come in at the sales price anyway is some seriously flawed logic. You only know that because you have 1/2 of the equation. if you remove 1/2 of the equation, are you still able to make that comment a year from now, five years from now, 10 years from now?

All real estate agents price things with the idea that it might not appraise in the back of their mind. That plays a big part in having price discussions with buyers and sellers. So having appraisals come in at sales price 95% of the time at least is a safety net that the market is working somewhat. An appraisal is a very cheap safeguard to keep markets in balance.

You’re seeing more and more of the wild West, as more agents realize there’s a shot they will get a waiver, you see them rolling the dice more.

Yet still someone will come on here and try to argue that the market isn’t juiced because of these things.

Do waivers include a range of acceptable values for borrower X who then shops accordingly? Do waivers include a stop-gap to ensure that the $$ being borrower is well spent ? Does a waiver commonality exist among lenders, or does each lender create a proprietary waiver protocol? Seems that a system that removes the human element that is the boots-on-the-ground internal control against iMproprietary would be rife with the potential for fraud...

Seriously, are factors like these taken into consideration on a macroeconomic level? Betcha our Pres would certainly look into it if the ussues ever reach his office...

 

[Fernando]

Waivers are all USPAP fault.
As I remember when USPAP first came out, I thought there was an exception to the rule in getting an appraisal. Something like if under $50,000 loan, no need for appraisal.
It didn't sound right to me because why have a limit. Is the reason because having such a small loan amount, no need to get an appraisal?
USPAP allowing this loophole to be used is now haunting us.

 

[Dublin ohio]

Waivers are all USPAP fault.
As I remember when USPAP first came out, I thought there was an exception to the rule in getting an appraisal. Something like if under $50,000 loan, no need for appraisal.
It didn't sound right to me because why have a limit. Is the reason because having such a small loan amount, no need to get an appraisal?
USPAP allowing this loophole to be used is now haunting us.

USPAP has absolutely nothing to do with what you are referring to

 

[Fernando]

USPAP has absolutely nothing to do with what you are referring to

You're right. I always blame everything bad on USPAP.
CoPilot said the $50,000 de minimis threshold came from federal banking regulations.
That was back in early 1990s. USPAP should have put a stop to it.
Then in 1994, increased to $250,000.
Then in 2018, raised again to $400,000 for residential real estate transactions.
See, it's all USPAP fault.

$400,000 threshold is too low here. Thus few waivers for Silicon Valley homes in which loans are typically over $1 million.

 

[Terrel L. Shields]

USPAP allowing this loophole to be used is now haunting us.

Bank rule. But the creation of evaluators and the de minimus was a sop to get the banks to support the creation of regulated appraisers and USPAP. The original claim was that small banks couldn't afford or did not have access to appraisers therefore the de minimus and evaluations were created. And almost immediately jumped to $100k and now it's what? $400k? That's no great stretch of imagination, really. Outside the coasts and trophy properties, few states have average RE prices exceeding $400k.

 

[J Grant]

Appraisal Waivers: The Future is Here

“One of the best courses that I have had in 17 years!” -Amy H >> OREP E&O ★★★★★ “They are knowledgeable, professional, and understand urgency.” – Joe Thweatt Editor’s Note: Take the NEW 2021 Appraiser Fee Survey online now at WorkingRE.com/2021survey. Appraisal Waivers: The Future is Here by...

www.workingre.com

An excellent article on WAIVERS, well researched and fact-based, with opinions from high-level participants adding perspective.

 

[DWiley]

Remember, regulators only approved them for the wuhan flexibilities.

Actually, what you said is posted above. As the AEI analysis that JG posted shows, waivers existed well before the pandemic.

Yes, waiver use was much higher during the pandemic. Of course, appraisal volume during the pandemic was also about double the volume that was normal for the decade preceding the pandemic. So, while waiver use was at its highest, at the same time appraisers were seeing the highest volume of appraisal reports they had ever seen.

Look at where waivers are used most often, non-cash out refinances, and see what AEI says about that.