1004mc Soon Not To Be Required By Fannie Mae

[timd354]

"I see incompetent appraisal reports from both AMC ordered and direct ordered appraisals...."

I'm not arguing this comment....
I'm ignorant as to the inner workings of any PMI company...
Just curious though....
What percentage of mortgages does your company reject based on "incompetent" appraisals???
And what happens to the rejected mortgages????

I know exactly what percentage of loans we reject due to appraisal issues but cannot tell you as that is proprietary information. What happens to those mortgages is that we do not insure them. Presumably, many of those mortgages do not close, but it is possible that some of those mortgages do close because either the borrower puts down more money or (more likely) the lender sends the loan to another mortgage insurer who approves it....how often that happens, I cannot tell you, but I do know it happens on occasion.

 

[timd354]

OK. Prior to the 1004MC they were working on a program but until recently had no way to aggregate the data you mention from the tens of millions of appraisals they had in their possession?

Prior to the introduction of the UAD in 2012, the GSE's had no way of aggregating appraisal data for their loans with the exception of the appraised value amount and the sales price and that was it (although having the appraised value and sales price from tens of millions of loans is pretty useful). In fact, prior to the UAD, the GSE's did not even see the appraisals for most of the loans they purchased as they operated on a rep & warrant system, which means that they did not even have the loan file for almost all of the loans that they purchased. The only time that they obtained the loan file was if the loan defaulted (which meant that the loan would be QA'd by Fannie) or if the loan was one of the small percentage of non-defaulted loans that they pulled in their QA samples.

 

[gregb]

Data mining Fannie portfolio (suggested for number-nerds)

http://pages.jh.edu/jrer/papers/pdf/past/vol39n02/9873-04.235_262.pdf

 

[TRESinc]

I have never, not once, had someone want more information or clarification on the MC.

Drop MC....so you still have to do a MC search to fill in the top of Page 2. So instead of spending 15 minutes on the MC, it will be 14 minutes. Are they going to drop 2-listings too? I'd knock $50 off for not having to have 2-listings.

i agree with the first part. only response i have ever had form a client was letting me know i missed checking a box. it is still a useful tool provided there is enough data available in the neighborhood.

as far as the second line... since when did FNMA ever require listings? that is news to me.

Well with most GSE appraisals going through large AMCs I say AMCs enable non meaningful market analysis. Maybe even promote it with their fee policy.

so you are saying fee dictates the level of professionalism appraisers use? so using your logic if i were to drop my fees i would not have to put as much effort into a report as i currently do and all would be right in the world as i could place the blame on my clients for my lack of performance??

 

[Joe Flacco]

so you are saying fee dictates the level of professionalism appraisers use? so using your logic if i were to drop my fees i would not have to put as much effort into a report as i currently do and all would be right in the world as i could place the blame on my clients for my lack of performance??

I am saying there is a reason why some are able to charge lower fees. They spend less time on the appraisal. In this thread, the example is they do not analyze market conditions. AMC's gravitate towards those appraisers because their fees are lower.

By your logic the AMC has no role or responsibility in engaging competent appraisers. I don't know why you defend AMC practice of engagement based on fee. WTF is wrong with you?

 

[TRESinc]

I am saying there is a reason why some are able to charge lower fees. They spend less time on the appraisal. In this thread, the example is they do not analyze market conditions. AMC's gravitate towards those appraisers because their fees are lower.

By your logic the AMC has no role or responsibility in engaging competent appraisers. I don't know why you defend AMC practice of engagement based on fee. WTF is wrong with you?

WTF is wrong with you to suggest that fee dictates professionalism? you have no respect for your profession? those who have access to thousands of appraisals by thousands of appraisers have posted there is no discernible difference in quality between AMC and non-AMC appraisals and there was a study published that showed the same thing and/or minimal differences at best. you sure have a bad outlook on our profession, and since you attest to it happening you must be one of those who subscribe to that mentality. where else would you have any basis for proof of that? i have yet to see any study/concrete evidence supporting your position, but if you have some by all means post it so we can all be enlightened.

i personally put in the same effort if i am doing a $400 report or a $700 report or a report for client A or client B. i don't know why you assume something that is inherently untrue - i have never defended any AMC for hiring based upon the fee paid and have done quite the opposite, and i have never commented on AMCs engaging incompetent appraisers, but if that is your takeaway then that is all that needs to be said.

it's just like the C&R zombies who scream about it all the time and how unfair it is. it's pretty simple - i set C&R for my company, no one else. i set the level of professionalism used in my reports, no one else and certainly not the fee paid.

 

[djd09]

"...instruction on the difference between an average vs a median"

Had appraisers only known the difference between the two....
Would have prevented the last meltdown!!!!

Fannie doesn't understand the word 'average'.

Estimating market conditions in the early-mid 2000's would require a column for fraud. In Cleveland they would have needed two columns.

 

[ucbruin]

i personally put in the same effort if i am doing a $400 report or a $700 report or a report for client A or client B.

BFD!!!!

So do I...

 

[Joe Flacco]

WTF is wrong with you to suggest that fee dictates professionalism? you have no respect for your profession? those who have access to thousands of appraisals by thousands of appraisers have posted there is no discernible difference in quality between AMC and non-AMC appraisals and there was a study published that showed the same thing and/or minimal differences at best. you sure have a bad outlook on our profession, and since you attest to it happening you must be one of those who subscribe to that mentality. where else would you have any basis for proof of that? i have yet to see any study/concrete evidence supporting your position, but if you have some by all means post it so we can all be enlightened.

i personally put in the same effort if i am doing a $400 report or a $700 report or a report for client A or client B. i don't know why you assume something that is inherently untrue - i have never defended any AMC for hiring based upon the fee paid and have done quite the opposite, and i have never commented on AMCs engaging incompetent appraisers, but if that is your takeaway then that is all that needs to be said.

it's just like the C&R zombies who scream about it all the time and how unfair it is. it's pretty simple - i set C&R for my company, no one else. i set the level of professionalism used in my reports, no one else and certainly not the fee paid.

LOL

What is appraisal quality? You must be one of those idiots that believe having all the boilerplate in the report is what determines quality. There is no study or evidence because actual appraisal quality is assumed.

I never said there should be a C&R. I said AMC's should not be engaging appraisers that do not analyze market conditions in unstable markets which they do because they are fee focused. What kind of moron thinks that appraisers that charge half price do the same level of research and analysis as the person that charges full price? You lacking common sense.

 

[TRESinc]

BFD!!!!

So do I...

thanks for proving my point. you should be just as offended as i am since according to joe lower fee orders = lesser quality appraisals.

LOL

What is appraisal quality? You must be one of those idiots that believe having all the boilerplate in the report is what determines quality. There is no study or evidence because actual appraisal quality is assumed.

I never said there should be a C&R. I said AMC's should not be engaging appraisers that do not analyze market conditions in unstable markets which they do because they are fee focused. What kind of moron thinks that appraisers that charge half price do the same level of research and analysis as the person that charges full price? You lacking common sense.

you sure do like to make assumptions that make you look foolish, or in your own words an idiot. you were the one who posted that the lower fees translate into "non meaningful market analysis", thus causing the overall quality of the report to be diminished, not me. if employing "non meaningful market analysis" does not lower the quality of a report then what does it do?

i never said a thing about any commentary by you on C&R, it was a simile.