An AVM Tale

[timd354]

The last time I had a lender questioned one my appraisals because of an AVM, once I pointed out that all of the properties listed by the AVM were 1 unit properties, while the subject property was a legal 3 unit small residential income property, that ended tht pretty quickly and the lender actually apologized for wasting my time.....I think that they were pretty embarassed about the whole thing.....lol

 

[Mark to market]

My bold and you are right on. I left an AVM company when they started talking about "tweaking the model". I still don't understand why appraisers are being thrown under the bus (well, many should be) while the "tweakers" get a free ride.

Tweaking for dollars may have been 100 times more destructive than dialing for them. Nobody knows the answer, but the regulators running Indy may get a damn good idea real soon.

Considering there are accusations that the CEO of Indy asked the Chief Appraiser to manipulate data, you may well be correct in your estimation.

Your insight has been very illuminating.

 

[Jonsey]

Considering there are accusations that the CEO of Indy asked the Chief Appraiser to manipulate data, you may well be correct in your estimation.

http://www.octoberstore.com/AVM_Nation_Compact_Disc_p/er092606.htm?click=122

Note - the 3rd "expert"

 

[Bama Bayou]

Wasn't it Mark Twain that said "there are liars, damn liars, and then there's statistics"?

 

[OCApp]

"Yup, gotta give credit to those smart lenders who decided to save a buck or two and use an AVM instead of boots on the ground. The lender got EXACTLY what they paid for - garbage."

The lender may have gotten garbage, but they did get what they wanted. A high value which enabled them to make their loan. Lenders make money charging fees and loan points. If they don't make the loan, they don't make any money. And as long as the market was going up in value, most didn't care what the AVM came in at or how accurate it was because they securitized the loan and got rid of it.

But now that values are going down in most areas of the country....

 

[Elliott]

MB: Let's see, use an AVM, get a 3% loan fee, move to another company
if things start backing up on me, or, have my borrower, who I protect with
my life and swear on the bible of consumerism, pay an exorbitant appraisal fee
of not more than $175, and then it will net me 20% less loan fee....I don't think so.

AVMs have those disclosure statements that say, well, we tried really hard
to get the value right, we used lots of data, analazed the geegesus out of
it, used advanced mathmatical formuli, and big computers, and we have a
cool website but sometimes we miss it by a little, sometimes by a mile, if we
missed it by a mile, hey, we aren't liable, but you as the user loved the result,
so were pretty good, aren't we. Did we mention we are a LLC and hold no licenses,
and values are only for the amusement of the user.

 

[INSPECTOR]

Now that's funny

MB: Let's see, use an AVM, get a 3% loan fee, move to another company
if things start backing up on me, or, have my borrower, who I protect with
my life and swear on the bible of consumerism, pay an exorbitant appraisal fee
of not more than $175, and then it will net me 20% less loan fee....I don't think so.

AVMs have those disclosure statements that say, well, we tried really hard
to get the value right, we used lots of data, analazed the geegesus out of
it, used advanced mathmatical formuli, and big computers, and we have a
cool website but sometimes we miss it by a little, sometimes by a mile, if we
missed it by a mile, hey, we aren't liable, but you as the user loved the result,
so were pretty good, aren't we. Did we mention we are a LLC and hold no licenses,
and values are only for the amusement of the user.

STOP IT

Your killing me!