Appraisal Bias

[J Grant]

I think everyone should copy and paste the full text of FNMA's Quality and Condition ratings descriptions in a text addendum so that all the scanners will get a crack at them. A partial list of their subjective terms includes: usually, unique, typically, exceptionally, refinements, highly, high or very high, above-standard, significant, well, acceptable standards, stock, adequate, some, may, economy, basic, main, plain, readily, minimal, limited, minimum, inexpensive, lower, may, often, simple, unskilled, minimal, substandard, non-conforming, recently, rehabilitated, remanufactured, like-new, significant, extended, little, virtually, recently, refinished, outdated, updated, current, almost, similar, well, renovated, limited, normal, some, not every, short-lived, estimated, majority, need, useable, exceeded.

Their URAR still says, "Summary appraisal report" on the top.

 

[Dublin ohio]

One thing you can be sure of. The list will continue to grow.

 

[J Grant]

One thing you can be sure of. The list will continue to grow.

 

[PhysicalDepreciation]

I just received an email from one of my best lending clients that listed 77 words that will cause an appraisal to be sent back for revision if found in the report. A lot of them make sense but included in the list are:
Illegal
Good
Average
Fair
Poor
Homogenous
House of Worship (if you can't say church, mosque, temple, synagogue or house of worship, what are you supposed to say when the subject abuts one?)
Young
Mature
Old
High
Low
Strong
Weak
Rapid
Slow
Fast
Diverse
Context is VERY important. IMHO, outright banning these words is completely ridiculous. If you looked at every appraisal I've written in the last 35 years I would guess you would find one or more of these words in 99% of them but not used in a way that indicates bias. I don't want to lose the client but we're going to have a problem if they send back every report that has any of these words used in a context that has nothing to do with bias.

Yup, got the same email from the same client. Terrible!!

 

[Overimprovement]

As I've said before, they need to change the form to this:

We want to lend X on 123 Elm St. Are we good? Y/N. If N is chosen, please re-read the question, and consider changing your answer. Please include your E&O information and sign in triplicate.

 

[Elliott]

homogeneous

hō″mə-jē′nē-əs, -jēn′yəs

adjective​

1. Consisting of parts that are the same; uniform in structure or composition:
2. Of the same or similar nature or kind.
3. Consisting of terms of the same degree or elements of the same dimension.

I'd like to know 'why' it is not appropriate. I mentioned this last week that I was looking at the first course I took from AI, and the text for course's neighborhood section uses the word 'homogeneous' a dozen times.

 

[Tiffany Gibbons]

I just received an email from one of my best lending clients that listed 77 words that will cause an appraisal to be sent back for revision if found in the report. A lot of them make sense but included in the list are:
Illegal
Good
Average
Fair
Poor
Homogenous
House of Worship (if you can't say church, mosque, temple, synagogue or house of worship, what are you supposed to say when the subject abuts one?)
Young
Mature
Old
High
Low
Strong
Weak
Rapid
Slow
Fast
Diverse
Context is VERY important. IMHO, outright banning these words is completely ridiculous. If you looked at every appraisal I've written in the last 35 years I would guess you would find one or more of these words in 99% of them but not used in a way that indicates bias. I don't want to lose the client but we're going to have a problem if they send back every report that has any of these words used in a context that has nothing to do with bias.

Meanwhile, MAIs all over the US will continue to use old narrartive templates and analytics from 5 years ago (Before COVID) with no updated census information, no up to date analysis. and everything will be fine on those. No worries, no problem at all.

 

[Dublin ohio]

homogeneous

hō″mə-jē′nē-əs, -jēn′yəs

adjective​

1. Consisting of parts that are the same; uniform in structure or composition:
2. Of the same or similar nature or kind.
3. Consisting of terms of the same degree or elements of the same dimension.

I'd like to know 'why' it is not appropriate. I mentioned this last week that I was looking at the first course I took from AI, and the text for course's neighborhood section uses the word 'homogeneous' a dozen times.

Milk is homogenized. Milk is white.

 

[jay trotta]

Less writing is better, Time to get back to basics, use their language (drop downs etc) only, do not expand (your thoughts) .

What they are seeking is a return to the original process, seems logical to me - No more splanin, it's apparently Bias

PS: does anyone remember the days when you sent in a report and it was completed?? AMC's are time wasters only, they add nothing to the process

 

[Tom D]

can i use the word 'flavor' for describing a neighborhood? i like the list in the prior comment. never thought of some of those words. that list had some good flavors.