Three days in a row. Different GLA than advertised.

[Zoe]

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.

I'll play you because I like you. Do you see any inherent possible failures in the waiver program you support?

 

[J Grant]

Though waivers were used before the pandemic, it seems their use was limited and did not displace an appraisal being done for a purchase or refinance. wrt used for originatoin loans?
WAIVERS expanded during covid, perhaps for good reason, but instead of scaling back after COVID, their use is expanding with more lenient UW of the borrower and the property.

The article was very informative and gave a realistic view, imo, of the benefits and risks. The results are unknown wrt how the ELOANS will perform or any influence on markets of the recent round of Value Acceptance loans with higher LTV/lower down payment - it can take years to see the result.

 

[timd354]

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.

That is not what you said, but it does not really matter. In any case, the latest expansion of Appraisal Waivers did not happen during COVID, but was implemented well after COVID had ended. While I certainly am not in favor of the expansion of appraisal waivers to purcahse transactions above an 80% LTV, I have yet to see any evidence that loans with appraisal waivers perform any worse than loans with appraisals (or have defaluts with worse severity), but it is still pretty early in the process and it may turn out that those loans do perform worse (or better)...we shall see.

 

[J Grant]

Appraisers benefited from the volume and the fees relative, for a brief time, of S/D during the pandemic. Those days are over, and what remains going forward is a reduction in volume from Value Acceptance ( by how much, idk - I would estimate 30-40 % fwiw) That is a big reduction in volume. Even if in some areas it is 20%, that is a significant reduction.

Adding the cutting up of assignments in a hybrid where the appraiser might do half of an assignment for a lower fee, adds to the bleak outlook. I personally do not do AMC work, so do not feel it -yet. But I paid heavily to get to that point, and when I did AMC worked in the past; the fees were horrible and seem to be getting worse. The problem is not on the list of items to be solved to keep the appraisal profession healthy; therefore, it is hard to take seriously stakeholders' saying they are interested in preserving the profession.

The fact remains that the AMCs get their compensation from a fee split of the borrower-paid appraisal fee (instead of the lender paying as a cost ), fuels the need for an AMC to fee shop beyond normal, keeping costs reasonable. The AMC profit is linked to how low a fee they can procure for an appraisal. That puts pressure on all residential license appraisers as an existential threat.

 

[djd09]

they cannot name one address that has received a waiver...the lack of transparency is the key of their continuous lies

 

[djd09]

Property is Power!When ZIP Codes Dictate Worth Appraisal Gaps in Black Neighborhoods

By Dr. Anthony O. Kellum

In America, a home is not simply a place to live, it is a statement of value. It reflects how society measures worth, stability, and belonging. Yet, for far too many Black homeowners, that value is discounted the moment the address is entered into a database.

Homes in majority-Black neighborhoods are routinely undervalued, even when comparable in structure, square footage, and amenities to those in white neighborhoods. The Brookings Institution found that homes in majority-Black areas are appraised at an average of $48,000 less than similar homes in non-Black neighborhoods, a cumulative loss exceeding $156 billion nationwide. That figure represents more than lost dollars. It is the extraction of equity, the quiet theft of intergenerational wealth, and the economic marginalization of entire communities.

The Historical Architecture of Devaluation

To understand the present disparity, one must look at how property valuation itself evolved.

During the New Deal era, federal housing maps color-coded neighborhoods by “risk.” Predominantly Black communities were outlined in red “hazardous” and denied mortgage capital. Over time, those same maps shaped urban investment patterns, steering private capital away while concentrating poverty and disinvestment.

Even as redlining was outlawed, its logic persisted. Appraisers continued to use “comparable sales” drawn from racially homogeneous neighborhoods, embedding bias into the very algorithm of valuation. Thus, devaluation is not incidental it is inherited. The same institutional frameworks that once banned Black buyers from neighborhoods now systematically reduce the value of the neighborhoods they built.

How Undervaluation Shapes the Black Wealth Gap

Appraisal bias does not end at closing; it compounds over time. Lower valuations limit a homeowner’s ability to refinance, invest in home improvements, or leverage equity to start a business or fund education. When the time comes to sell, the return is smaller, curbing the ability to move upward or assist the next generation in purchasing their own property.

This is how the wealth gap reproduces itself. According to the Center for American Progress, even after adjusting for education and income, Black families hold roughly one-fifth of the median wealth of white families. Much of that gap is rooted in home equity or the absence of it. The tragedy is not that Black families fail to buy homes, but that the market fails to recognize the full value of what they own.

The Psychology of Place

Appraisal disparity is not only economic; it is psychological. It signals to homeowners that their neighborhoods, their lives, histories, and aspirations are worth less. This message erodes confidence, fuels disinvestment, and distorts public perception. Over time, it becomes a feedback loop: undervaluation discourages improvement, which in turn reinforces the perception of low worth. In this way, property becomes a mirror of societal bias not an expression of intrinsic value, but of external prejudice. The price tag attached to a home becomes a proxy for how much a community is respected.

Reclaiming the True Value of Black Neighborhoods

1. Reforming the Appraisal Process

Federal agencies and professional associations must enforce stronger oversight and transparency. Random audits of appraisal reports, algorithmic bias testing, and community participation in valuation standards are essential. A home’s worth should reflect its features not the race of its neighbors.

2. Building Black Appraisal Power

Representation matters. Increasing the number of Black appraisers and valuation professionals can disrupt the cycle of inherited bias. Training and certifying new appraisers from historically Black colleges and universities (HBCUs) or community pipelines is a direct form of economic resistance.

3. Leveraging Policy and Community Action

Local governments can incentivize reinvestment in undervalued communities through tax credits, equity-based lending, and fair-appraisal programs. Community development financial institutions (CDFIs) and mission-driven lenders can bridge gaps left by traditional finance.

4. Educating and Empowering Homeowners

Black homeowners must be informed of their rights and empowered to challenge low appraisals. Knowing how to request a reconsideration of value, submit comparables, or file fair housing complaints transforms passive frustration into active agency.

The Deeper Truth

Property is Power!When ZIP Codes Dictate Worth Appraisal Gaps in Black Neighborhoods

Property is Power!When ZIP Codes Dictate Worth Appraisal Gaps in Black Neighborhoods

michiganchronicle.com

they aint waiving no east cleveland properties...go ahead tell them waiver king...they are too risky

 

[chad hampton]

You guys are something else. OK, the expanded use of waivers was only approved during the Wuhan flexibilities. Is that better? Pretty sure everyone understood that.

I assume that those flexibilities have now been scaled back to their original uses?

 

[chad hampton]

they cannot name one address that has received a waiver...the lack of transparency is the key of their continuous lies

It’s easy for an appraiser to figure out which homes in your market got waivers. Search the MLS for sales that seem ridiculously high, see which ones are marked conventional loans. Those are your waivers.

 

[ZZGAMAZZ]

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.

Great info. Sure would be a good time for the magazine to publish an update that could be used to demonstrate accuracy of the info, and the current impact on our profession...

 

[Terrel L. Shields]

Homes in majority-Black neighborhoods are routinely undervalued, even when comparable in structure, square footage, and amenities to those in white neighborhoods.

Well... gee, I don't need to know the racial makeup of Beverly Hills to suspect the property values there are different from those in North Long Beach.