Appraisal Waiver (Explosion)

[djd09]

Prevalence of GSE appraisal waivers: August 2020 originations​

October 9, 2020


Key takeaways:

• The use of appraisal waivers at the GSEs more than doubled since January 2020.
  • August’s slight decline in share to 40% from 42% in July is due to product share shifts. Purchase loans were a larger portion of August volume.
• The use of cash-out waivers more than tripled since January 2020.
  • Waiver usage by loan purpose increased across the board in August, with each posting series’ highs. No cash-out is at 67%, cash-out at 30%, and purchase at 11%.

Prevalence of GSE Appraisal Waivers: August 2020 Originations

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

 

[Mejappz]

Prevalence of GSE appraisal waivers: August 2020 originations​

October 9, 2020


Key takeaways:

• The use of appraisal waivers at the GSEs more than doubled since January 2020.
  • August’s slight decline in share to 40% from 42% in July is due to product share shifts. Purchase loans were a larger portion of August volume.
• The use of cash-out waivers more than tripled since January 2020.
  • Waiver usage by loan purpose increased across the board in August, with each posting series’ highs. No cash-out is at 67%, cash-out at 30%, and purchase at 11%.

Prevalence of GSE Appraisal Waivers: August 2020 Originations

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

The perfect storm is brewing between Appraisal Waivers, the flat out insane corruption going on with AMCs, Lenders, and the GSEs. Add to the mix the new army of PAREA form-fillers, and an earthquake is brewing that will make 2008 look like a cakewalk.

 

[djd09]

Real Estate Round-Up: Appraisal – checkmate​

The median price of a detached home in Fallbrook in August was $622,500 which is 10.8% higher than August 2019. The average price of a detached home in Fallbrook in August was $686,318 which is 7.1% higher than August 2019. Prices are climbing and buyers are willing to pay the higher price. Supply and demand are a major component affecting these numbers.

Enter the appraiser. First the good news. We have had a few purchases where the lender has waived the appraisal. That is a good thing unless the buyer offered more than they really wanted to pay and was hoping that the appraisal would come in lower.

However, for most buyers and sellers this is great news. It is one less variable to contend with. Appraisals generally are performed on all purchases. With VA and FHA loans there is a document that the buyers and sellers sign stating that the buyers do not need to proceed with the purchase if the appraisal comes in below the agreed purchase price.

VA and FHA will only lend based on the appraised value. In all other cases, appraisal is a contingency for the buyers and provides a reason to not proceed with the transaction if the sellers and buyers cannot come up with a resolution on a low appraisal.

This is the thing; all appraisals are not created equal

Real Estate Round-Up: Appraisal – checkmate

The real estate transaction is complicated. There are multiple participants, there are multiple disclosures and reports, there are multiple points of negotiation, and there’s the appraisal. Appraisers are a bit like the wizard of oz. They have all the levers, they hide behind the curtain, and...

www.villagenews.com

four legs good two legs bad.