Appraisal Waiver (Explosion)

[djd09]

8. CU analyzes the market area differently.
CU breaks down a market area based on a sub-division of the census tract.

"CU is a risk-analysis tool that the GSEs are using to reduce their purchase of "risky loans" "

Collateral Underwriter

Last Friday, in San Francisco, I was part of my local AI Chapter's Fall Conference event (65th year). This is a daylong event that is divided into a general session, and then break-out sessions lasting 1.5 hours each. I moderated a panel on CU and had two guest speakers, both work for banks...

appraisersforum.com

risk review tool.

 

[djd09]

Collateral Underwriter – Garbage In, Garbage Out (GIGO)

FNMA has a fascination for first patenting garbage, & then implementing it as policy! FNMA simply LIED! Collateral Underwriter IS an automated ‘appraisal review’ despite disclaimers. It was never intended as anything else. Read the patent application below.

Before I get into the details, I want to ask each reader to forward this to every appraiser you know. This concerns FNMA’s patent of the seriously flawed techniques and underlying support for their Collateral Underwriter (CU) Risk Rating “System”.

It’s time for appraisers to take action against the unreliable system which is unfairly hurting appraisers, and misleading consumers and taxpayers into a false sense of being protected from the next crash.

Reference: United States Patent Application Publication Obrecht et al.

Before I go any further. NOT ONE of the “inventors” currently holds a valid appraisal license from any state or jurisdiction according to the Appraisal Subcommittees Federal Registry. NOT ONE!

Collateral Underwriter, What’s Under the Hood? - AppraisersBlogs

FNMA has a fascination for patenting garbage, & implementing it as policy! FNMA simply LIED! Collateral Underwriter IS an automated ‘appraisal review’.

appraisersblogs.com

 

[alebrewer]

Collateral Underwriter – Garbage In, Garbage Out (GIGO)

FNMA has a fascination for first patenting garbage, & then implementing it as policy! FNMA simply LIED! Collateral Underwriter IS an automated ‘appraisal review’ despite disclaimers. It was never intended as anything else. Read the patent application below.

Before I get into the details, I want to ask each reader to forward this to every appraiser you know. This concerns FNMA’s patent of the seriously flawed techniques and underlying support for their Collateral Underwriter (CU) Risk Rating “System”.

It’s time for appraisers to take action against the unreliable system which is unfairly hurting appraisers, and misleading consumers and taxpayers into a false sense of being protected from the next crash.

Reference: United States Patent Application Publication Obrecht et al.

Before I go any further. NOT ONE of the “inventors” currently holds a valid appraisal license from any state or jurisdiction according to the Appraisal Subcommittees Federal Registry. NOT ONE!

Collateral Underwriter, What’s Under the Hood? - AppraisersBlogs

FNMA has a fascination for patenting garbage, & implementing it as policy! FNMA simply LIED! Collateral Underwriter IS an automated ‘appraisal review’.

appraisersblogs.com

And we all know that Michael Ford doesn't have an axe to grind...

 

[djd09]

Next up, let’s talk about the CURE. No, not the 1980’s English rock band, but Computershare Loan Services (CLS) newest valuation tool. As the industry continues to surprise us with record low interest rates, lenders need to turn loans faster in order to keep up. The CURE Report is an innovative new appraisal solution that incorporates the Collateral Underwriter’s results directly into the appraisal review to address appraisal deficiencies, resulting in higher quality appraisal reports, improved CU scores, and faster overall turn times. CLS’ commitment to innovation and focus on exceptional client experience gets your borrowers to the closing table faster! Valuations services are performed by Computershare’s licensed appraisal management company, Computershare Valuations Services. Contact CLS today to see how the CURE Report fits into your valuations program!

Sales, Valuation, Rehab Products; Non-QM Moves in Primary and Secondary; Capital Markets

People can accomplish a lot in a day. And lenders are continuing to hire like mad dogs (if mad dogs had HR departments), especially non-bank lenders. The Mortgage Bankers Association reports that nonbank mortgage bankers and brokers’ collective payrolls expanded by nearly 2% on a...

www.mortgagenewsdaily.com

they aren't even paying you for that data. thievery in my book.

 

[djd09]

And we all know that Michael Ford doesn't have an axe to grind...

fannie is your friend, they will help you standardize their appraisal reports so the AMC reviewer can make sure the banker client is happy.

 

[alebrewer]

fannie is your friend, they will help you standardize their appraisal reports so the AMC reviewer can make sure the banker client is happy.

And Michael is a sweet Santa Claus type fella who just loves everyone...

 

[Terrel L. Shields]

sub-division of the census tract.

Here a census tract is about as useful as lipstick on a pig. It has absolutely nothing to do with the demographics. In my part of Oklahoma, they don't even have tracts, just block numbers and as a result, you are taking up a quarter of the county without regard to the fact part of it is in agricultural area and part of it expensive Lakeside property.

 

[djd09]

the total lack of transparency by the waiver program says it all.

"secrecy is an open society is repugnant." jfk

 

[DWiley]

the total lack of transparency by the waiver program says it all.

What is it, exactly, that you want to know that you think is not transparent?

 

[J Grant]

Why are appraisals ( or waivers/alt valuations) tied to loan performance ? The appraisal (or AVM/waiver valuation) evaluates the collateral, nothing more . The collateral does not "perform", it sits there , anchoring the loan, and that anchor is the reason the terms and interest rates are favorable.

The answer seems to be is all the lenders care about is risk. Well the investors care about the collateral, because that is what they are left with if the risk turns bad. And the risk/borrower performance has nothing to do with the collateral - though an inflated value or lending on over priced properties has a higher probability of putting a borrower underwater and thus into a possible default or short sale if need to sell. Other than that, I fail to see any correlation between the valuation of the collateral and loan performance.