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Intimidation....I Will Not Be Silenced

Hybrid Appraisal with PDR Data Collection and Repurchase Risk​

A hybrid appraisal that uses a Property Data Collection (PDC) report — such as a recent PDR — is not subject to repurchase by the lender if it meets the required standards and is properly documented

(Please correct me if the above is wrong, provided by AI Copilot search. I use AI because I do not have hours to go through each possible source online)
A hybrid using data collection is not subject to repurchase by the lender. Yet the reason given for the GSE dropping the appraiser inspection was supposed to be that data collection reveals inspection issues the appraiser did identify, and repairs are the main reason for repurchase demands. Since a hybrid apprasial using a PDR collection is not subject to repurchase, that decision is made before the appraisal goes through the system, with the typical years it might take for a repair issue to even be seen if that was what led to a repurchase demand.

It used to be that the main reason for a repurchase was overvaluation. Now it is repairs not reported. I did hundreds of reviews on bad appraisals, often with loans in default. The main problems in the vast majority of them were overvaluation, usually from cherry-picked comps or weird adjustments. The other problems were ignoring site differences or some other adverse impact on value. In the files I was given, lack of reporting repairs was not the issue. Though of course that might be present in other files. But at the time, there was a lot of talk about what led to the market crash, and most of it on the collateral side was the overvaluation.

I appreciate D. Wiley's participation. I try not to overload him with direct questions by using AI to search or not asking a question (sorry for any rudeness on my part. )
 
J Grant said:

Hybrid Appraisal with PDR Data Collection and Repurchase Risk​

A hybrid appraisal that uses a Property Data Collection (PDC) report — such as a recent PDR — is not subject to repurchase by the lender if it meets the required standards and is properly documented

(Please correct me if the above is wrong, provided by AI Copilot search. I use AI because I do not have hours to go through each possible source online)
A hybrid using data collection is not subject to repurchase by the lender. Yet the reason given for the GSE dropping the appraiser inspection was supposed to be that data collection reveals inspection issues the appraiser did identify, and repairs are the main reason for repurchase demands. Since a hybrid apprasial using a PDR collection is not subject to repurchase, that decision is made before the appraisal goes through the system, with the typical years it might take for a repair issue to even be seen if that was what led to a repurchase demand.

It used to be that the main reason for a repurchase was overvaluation. Now it is repairs not reported. I did hundreds of reviews on bad appraisals, often with loans in default. The main problems in the vast majority of them were overvaluation, usually from cherry-picked comps or weird adjustments. The other problems were ignoring site differences or some other adverse impact on value. In the files I was given, lack of reporting repairs was not the issue. Though of course that might be present in other files. But at the time, there was a lot of talk about what led to the market crash, and most of it on the collateral side was the overvaluation.

I appreciate D. Wiley's participation. I try not to overload him with direct questions by using AI to search or not asking a question (sorry for any rudeness on my part. )
Click to expand...
Also from Copilot

A Fannie Mae hybrid appraisal is not automatically subject to repurchase simply because it is a hybrid appraisal. Fannie Mae’s repurchase rules apply to mortgage loans that fail certain contractual representations and warranties related to underwriting and eligibility, such as inaccurate property value, incomplete documentation, or failure to meet Fannie Mae’s quality control standards Fannie Mae Selling+1.

How hybrid appraisals work​

A hybrid appraisal is an enhanced desktop appraisal that includes property data collected by a trained, vetted third party (e.g., real estate agent, insurance inspector, or appraiser) before the final appraiser develops the opinion of value Fannie Mae+1. The third-party data is submitted to Fannie Mae’s Property Data API and used by the appraiser to support the valuation.

Repurchase triggers​

Fannie Mae can initiate a repurchase if:

  • The loan’s appraisal value is found to be inaccurate or unsupported.
  • The property data used in the appraisal is incomplete, unreliable, or fails quality control checks.
  • The loan fails other representations and warranties in the lender contract, such as proper documentation or compliance with underwriting standards Fannie Mae Selling+1.
Because a hybrid appraisal uses third-party data, it can still be subject to the same quality control and valuation standards as other appraisals. If the hybrid appraisal’s data or final valuation is found to be defective, Fannie Mae can require a make-whole payment or repurchase under its servicing rules Fannie Mae Servicing+1.

Bottom line​

A hybrid appraisal is not inherently repurchase-prone. It is only subject to repurchase if the loan’s appraisal (including the hybrid appraisal) fails Fannie Mae’s value acceptance criteria or other contractual requirements. Lenders and servicers must ensure that the hybrid appraisal’s data and final valuation meet Fannie Mae’s standards to avoid repurchase risk.
 
It's not that I would distrust a PDR data collection per se. (non of my clients are ordering a hybrid, so far) . If a PDR photo shows a brick facade, then I trust that it is brick. Would it be enough to use for a credible opinion? That would be on a case-by-case basis. When PDR data is relied on, I would call it a "qualified credible opinion ". There is always an element of unknown when an appraiser did not visit the property. Imo, it makes it harder to defend a value if an ROV or other challenge comes.
 
J Grant said:

Hybrid Appraisal with PDR Data Collection and Repurchase Risk​

A hybrid appraisal that uses a Property Data Collection (PDC) report — such as a recent PDR — is not subject to repurchase by the lender if it meets the required standards and is properly documented

(Please correct me if the above is wrong, provided by AI Copilot search. I use AI because I do not have hours to go through each possible source online)
A hybrid using data collection is not subject to repurchase by the lender. Yet the reason given for the GSE dropping the appraiser inspection was supposed to be that data collection reveals inspection issues the appraiser did identify, and repairs are the main reason for repurchase demands. Since a hybrid apprasial using a PDR collection is not subject to repurchase, that decision is made before the appraisal goes through the system, with the typical years it might take for a repair issue to even be seen if that was what led to a repurchase demand.

It used to be that the main reason for a repurchase was overvaluation. Now it is repairs not reported. I did hundreds of reviews on bad appraisals, often with loans in default. The main problems in the vast majority of them were overvaluation, usually from cherry-picked comps or weird adjustments. The other problems were ignoring site differences or some other adverse impact on value. In the files I was given, lack of reporting repairs was not the issue. Though of course that might be present in other files. But at the time, there was a lot of talk about what led to the market crash, and most of it on the collateral side was the overvaluation.

I appreciate D. Wiley's participation. I try not to overload him with direct questions by using AI to search or not asking a question (sorry for any rudeness on my part. )
Click to expand...
The use of a PDR to facilitate a hybrid appraisal has nothing to do with exemption from repurchase risk.

One problem with AI is that it is based on the “wisdom of crowds.” If enough people post incorrect info, the AI treats it as correct, because X number of people said it.
 
DWiley said:
The use of a PDR to facilitate a hybrid appraisal has nothing to do with exemption from repurchase risk.

One problem with AI is that it is based on the “wisdom of crowds.” If enough people post incorrect info, the AI treats it as correct, because X number of people said it.
Click to expand...
Just to be clear, then, the use of a PDR to facilitate a hybrid appraisal has nothing to do with exemption from repurchase risk.

The above noted, is it correct, or not correct , that a hybrid using a PDR exempts a lender from repurchase risk? It seems like it might be a different answer to two different questions.

I am no AI expert - pretty fascinating stuff. It is good for humans not to fully trust it for reasons as you said. Though I have found that its answers often contain a number of facts/aka truth. However, AI will answer a similar but slightly differently worded question on a topic with different answers.
In my lay opinion, it is because though we think of it as "intelligent", AI is not really conversing with us, and it has no context other than the exact form and verbiage we use when we pose a question to it.
 
DWiley said:
The use of a PDR to facilitate a hybrid appraisal has nothing to do with exemption from repurchase risk.

One problem with AI is that it is based on the “wisdom of crowds.” If enough people post incorrect info, the AI treats it as correct, because X number of people said it.
Click to expand...
Copilot is inconsistent at the best. It also depends on how you phrase your inquiry. I was a little lazy when I asked it my question and it resulted in the answer format I posted. If I had been a little more "descriptive" the answer would be in a different format but same results that I already knew the answer to. Loans made with hybrid appraisals are not exempt from repurchase
 
The issue is when USPAP removed the mandatory requirement for appraisers to drive by comps sales.

This gave way to hybrids and waivers.
 
Surf Cat said:
I don't think photos from a property data collector are sufficient to produce the most accurate results. I feel the appraiser should be inspecting the subject property. But what do I know. Credible? Sure... it'll be within the range of the most similar sales.
Click to expand...
I look at MLS photos and still wished their were better and more photos of what I'm looking for. Can I request additional photos from data collector?
As long as I'm not liable for insufficient photos in my appraisal, I can work with that.
Surf Cat said:
To be up front, I've never completed a hybrid appraisal. However, I've completed many drive-bys. On those drive-bys, I "never" reconciled to the top end of the gross sales prices or the adjusted range. Why? Because I didn't do the inspection myself.
Click to expand...
I put many comments to protect myself on limited information available in doing a driveby. I would do that if data collector was involved.
Problem is really the client in not getting an accurate view of subject from appraiser's eyes.
Sometimes it's just not the physical characteristics of subject but the overall view of the location which an appraiser can see the advantages and disadvantages in comparing to comps.
Surf Cat said:
I did however, do everything that I would in a regular full appraisal in which I did the inspection. Chose the most recent, and proximate sales, covered all the components of brackening, equality, and similarity. I reconciled and gave weight to the sales that "appeared" to be the most relevant and similar based on the data I had for the subject. I never pushed it though, I never felt I had to.

If the client really wanted me to identify subtle condition issues, quality variations, and unique features that significantly impact market value.... they would have ordered the whole enchilada and sent me out there.

This is what I feel the modern appraisal is coming to, it just has to be "good enough".

I'm keeping an eye on and watching
all the AI, Hocus Pocus platforms out there, for which vendor rises to the top. Because that's where I think this is all going. The appraiser remains at the desk, goes into their chosen vendor, AI all-in-one platform, and does the assignment. No more software vendor like a la mode. No need to be signed up with the MLS or have access to public records. All of that is included from what I'm reading.

What I think is going to be really interesting, is when a client sends an ROV after completing a UAD 3.6 assignment
(designed for less revision requests, remember?) from one of these AI appraisal providers.

What are you sending me this for? I completed the assignment with AI, Hocus Pocus appraisals... it picked the very best comps, with dead balls on accurate linear regression adjustments.... it's perfect. And..... it's been certified and bona fide by the GSEs.
Click to expand...
It took me decades to this point with few ROV and revisions. I will have to start over with 3.6 and figure out how to outsmart it.
 
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