Appraisal Waiver (Explosion)

[djd09]

It's an advertisement,

isn't that the point?

wonder how the home value explorer supports it's adjustments?

 

[J Grant]

The most ironic thing abut the waiver valuations is that the AVM or other evaluation centers on a value target $ number, opposite of the URAR certs and what an appraiser is prohibited from doing .

The target amount is the sales price in a purchase loan, or loan officer's value estimate for a refi, green lighted as long as falls within the value range developed by the fannie AVM. How funny is that?

 

[djd09]

hypocrisy at it's finest. those bad mortgage brokers are now the ones in full control. eat cake.

 

[J Grant]

hypocrisy at it's finest. those bad mortgage brokers are now the ones in full control. eat cake.

I know, they used to prohibit comp checks /accepting an appraisal assignment around a pre determined value, yet here they are doing that very same thing ! With the caveat it's okay because it is lower risk because of borrower strength - but the valuation is still compromised...

Let's see how strong some of these borrowers are if they lose their business or livelihood from Covid 19 aftermath, since layoffs and business closures are just starting -but loan performance or borrowers are still not the valuation of the collateral and they are doing valuations for the waiver around a target $ amount. No need to go inside or see the property either, all is well since the borrower is so wonderful...

 

[glenn walker]

Does history repeat itself ? Not exactly , this time some legitimate and some playing games but the battle cry will be I lost my home due to Covid-19. As far as appraisers defense, it was all good and then Covid-19 wiped out my bullet proof appraisals. I suggest that every appraiser have C-19 included in their file numbers so two years from now the appraiser can use the C-19 defense. Those no good lenders knew darn well, if this thing went on for more than 12 months it was going to be all over with and now they have a Ten Trillion of upside down properties on their hands. As far as the commercial , it's like here Mr Chaser Bank, take my $10,000,000 loan and shove it

 

[ucbruin]

I know, they used to prohibit comp checks /accepting an appraisal assignment around a pre determined value, yet here they are doing that very same thing ! With the caveat it's okay because it is lower risk because of borrower strength - but the valuation is still compromised...

Let's see how strong some of these borrowers are if they lose their business or livelihood from Covid 19 aftermath, since layoffs and business closures are just starting -but loan performance or borrowers are still not the valuation of the collateral and they are doing valuations for the waiver around a target $ amount. No need to go inside or see the property either, all is well since the borrower is so wonderful...

Aren't you glad appraising is just a snap shot on the effective date????
Except for those appraisers who believe in the "floating" effective date....
Things could be different for them....

 

[djd09]

it is just a risk review tool. so they will fix it, at the next expo or summit in sunny san diego.

 

[ZZGAMAZZ]

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.

Please explain the following comment:

While automated appraisal waivers may lower costs and expedite closing timelines, this will be at the risk of helping reinforce boom-induced home price increases and quickly pushing them through to refinance loans, where, by definition, there is no arm’s length market transaction.

 

[djd09]

What does PIW or ACE Mean?

mozilo really missed out.

 

[djd09]

In the Competitive Coronavirus Housing Market, This Loophole Is Making It Easier to Buy a House​

According to a September report from the public policy think tank American Enterprise Institute, appraisals were waived on 42% of all government-sponsored purchase and refinance mortgages in July, up from roughly 20% in December.

Appraisal waivers completely remove this step. Borrowers don’t have to apply for an appraisal waiver — lenders evaluate every loan application and issue waivers automatically to those whose loans qualify. Loan officers don’t decide who qualifies for an appraisal waiver. “That’s up to Fannie Mae and Freddie Mac’s automated underwriting systems, which 99.9% of lenders use,” says Donald Frommeyer, a loan officer at CIBM Mortgage in Indianapolis. Both announced earlier this year that they’re offering more flexible requirements for appraisal waivers due to the coronavirus.

In the Competitive Coronavirus Housing Market, This Loophole Is Making It Easier to Buy a House

More loans are going through without appraisals.

money.com

inflating the market one waiver at a time.