Appraisal Waiver (Explosion)

[djd09]

Prevalence of appraisal waivers at the GSEs, including CLTV statistics

Table 1 and 2 (GSE appraisal waiver share and counts by product): The use of appraisal waivers at the GSEs has exploded in recent months and now accounts for 40% of all valuations (the other 60% consist of traditional appraisals).

The data sources are Fannie Mae and Freddie Mac, as tabulated by the Housing Center.

Prevalence of Appraisal Waivers at the GSEs, Including CLTV Statistics

The use of appraisal waivers at the GSEs has exploded in recent months and now accounts for 40% of all valuations (the other 60% consist of traditional appraisals).

www.aei.org

once they waived one, they can waive them all.

 

[glenn walker]

Interesting I had a lender a few weeks ago was telling me they were running at about 50% on Waivers, and 20% on drive byes and the rest full 1004's-- Looks like Rural appraisers will be the last guys standing

 

[alebrewer]

Did you notice, though, that the vast majority of waivers is from NCO refi's? Hasn't VA been doing that for decades? I wonder what the delinquency rate is for VA Streamline refi's?

 

[glenn walker]

Did you notice, though, that the vast majority of waivers is from NCO refi's? Hasn't VA been doing that for decades? I wonder what the delinquency rate is for VA Streamline refi's?

Yes many are NCO refinances but quite a few are also purchases where the homes info has been collected from a previous appraisal and its in the CU data base. As far as VA -FHA streamlines the borrower is getting a lower rate so in theory default should be less. 80% of all defaults are from job losses and or other crisis in peoples life's. As far as VA on a -0-down purchase they loan to value is actually at about 101 % and so its upside down from day one and its always been a high risk loan. Also VA reporting on defaults has always been skewed because they will work with a borrower in some cases for a year or two before they even record a NOD

 

[djd09]

Looks like Rural appraisers will be the last guys standing

Q18.How do rural high-needs appraisal waivers work?

As part of our FHFA Duty to Serve objectives, we are offering appraisal waivers in designated rural high-needs areas. The rural high-needs appraisal waiver is for low- to moderate-income borrowers purchasing homes in targeted rural areas and is contingent on obtaining a home inspection. The appraisal waiver logic functions in the same way as standard appraisal waivers with the following exceptions:

https://singlefamily.fanniemae.com/media/9456/display

 

[DWiley]

Is the glass half full or half empty Appraisal volume through the UCDP so far in 2020 is at historically high levels. The traditional appraisal report is still the most used tool for GSE analysis of collateral

 

[Joe Flacco]

40% is wow.

A big chunk of that is at 75%-80% LTV. I gotta believe that it is only a matter of time before the use of waivers gets bumped up into the 81%-90% LTV ranges.

 

[Mejappz]

The fraud in these appraisal waivers must be off the charts. Well, if the GSEs expect another taxpayer bailout, their in for a rude awakening.

 

[Joe Flacco]

I think waivers probably pretty low risk for now. But if they get more aggressive with it down the road towards the top of the cycle then that could end up being ugly. But that is probably not anytime soon.

 

[glenn walker]

The fraud in these appraisal waivers must be off the charts. Well, if the GSEs expect another taxpayer bailout, their in for a rude awakening.

A human or Lender cannot commit fraud when they use a waiver. The waiver is an-option giving by F & F to the lender, the Subject property has already had a previous appraisal and its information is stored in the CU data bank. A value range and loan amount is given based on a proprietary system and cannnot be manipulated by the lender. If the Lender runds their own AVM and or a borrower states the home has had improvements done since the last appraial was done , or if they need a larger loan then A full 1004 is ordered instead of using the waiver. In reality fraud is not possible because in order to commit fraud you need multiple players in orchestrating. Usually a seller-buyer, broker and appraiser all colluding to get end results that will benefit two or more people. A WAIVER WILL NOT DO THAT for a fraudster.