Appraisal Waiver (Explosion)

[djd09]

so the scum bag broker inserts a number and the borg approves or disapproves the number. If the borg disapproves, can they keep inserting new numbers?

 

[djd09]

But not everyone in the industry sees this step as one to be concerned about. In fact, one expert explained this is a step in the right direction, and that appraisers should embrace the expanding technology.

“We as an appraisal industry need to embrace those changes and explore ways in which we can leverage technology to make us smarter and more efficient in the job that we do,” said Rudy Zabran, chief operating officer of Consolidated Analytics, a real estate management and collateral valuation servicer to the financial industry.

Some HousingWire commenters agreed, saying this was a smart move for the industry.

Ken Carn commented, “A home buyer with a real job, a huge credit score and 30 percent down should not need an appraisal. Well played fannie-freddie.”

Both of the GSEs explained their appraisal-free purchase mortgage programs will only cover about 5% of the purchase market, and that it will not push appraisers out of the market.

Appraisers raise concerns over Fannie, Freddie automated appraisals

Fannie Mae and Freddie Mac announced their new appraisal-free purchase mortgage products, which could save some borrowers an estimated 10 days at closing and about $500. However, the appraisal industry is not fully on board with the latest step toward automation.

www.housingwire.com

We who?

 

[djd09]

President of The Appraisal Foundation David S. Bunton stated, “We were extremely pleased to provide this forum as part of our mission to preserve public trust in the valuation profession. We believe this unique opportunity to hear from key stakeholders about these new developments was warmly received by the attendees.”

Press Release National Appraisal Forum to Discuss Appraisal Waivers and Hybrid Appraisals

www.appraisalfoundation.org

El Presidente catering to his new clientele.

 

[ramrcdk]

President of The Appraisal Foundation David S. Bunton stated, “We were extremely pleased to provide this forum as part of our mission to preserve public trust in the valuation profession. We believe this unique opportunity to hear from key stakeholders about these new developments was warmly received by the attendees.”

Press Release National Appraisal Forum to Discuss Appraisal Waivers and Hybrid Appraisals

www.appraisalfoundation.org

El Presidente catering to his new clientele.

Any input we should/could have provided ended on the 8th.

 

[James Mpls]

Appraisal Waiver: Home Purchases and Refinances Can Now Forget the Appraisal

Appraisal Waiver: Forget the Appraisal for Next Home Buy or Refinance

Frannie Mae and Freddie Mac have announced a new appraisal waiver that will save time and home money on home purchases and refinances with the Eusea Team.

loanfit.us

she is so happy.

“It’s great to say...hey, let’s loosen things up a bit!”. Yeah she sure is quite happy and chipper with that. Once the REOs start to roll in more (and they will in about a year), let’s see how much lenders want to “loosen things up” when it comes to valuations of their collateral.

 

[KYLECODY]

The sky is falling, the sky is falling..Still and again..Supposedly all these waivers but nearly everyone on here is as busy as can be since April..Typical slow season will start around November, everyone will complain its the waivers that took work away..and then in the Spring everyone will be "saved" and super busy again..Rinse, repeat, yes.

The only way to get lenders to ever care about legitimate values is if they actually have to fund and hold the loans and not ship them off to FF. If you're playing with your own money its a different set of rules.

 

[DWiley]

“It’s great to say...hey, let’s loosen things up a bit!”. Yeah she sure is quite happy and chipper with that. Once the REOs start to roll in more (and they will in about a year), let’s see how much lenders want to “loosen things up” when it comes to valuations of their collateral.

Performance data on loans with waivers indicates better performance than similar loans with appraisals. Lower default rate, and lower cost when they do default. Not what some want to hear, but it is what the data shows.

 

[Joe Flacco]

Performance data on loans with waivers indicates better performance than similar loans with appraisals. Lower default rate, and lower cost when they do default. Not what some want to hear, but it is what the data shows.

I don't think it really matters what the data shows until there is a decline of 10% or more in values. What is the performance when you get a 10% or 20% decline in values? That is really the only data that matters. When prices are increasing nothing is going to show bad performance. It doesn't really matter right now. 80% LTV loans using waivers are potentially 70% LTV a few years from now and if those valuations are 10% too high at origination then will be 80% in a few years.

 

[Joe Flacco]

Good performance of waivers during a period of favorable market conditions shouldn't be used as support for more aggressive use of waivers. If it was up to me I would probably do all rate / term refis with waivers but require appraisals for all cash out refis regardless of LTV. If prices decline at some point then pause waivers for rate / term refis.

 

[alebrewer]

Performance data on loans with waivers indicates better performance than similar loans with appraisals. Lower default rate, and lower cost when they do default. Not what some want to hear, but it is what the data shows.

yes, but.... you're not really comparing apples to apples, are you? (a) of course performance data related to delinquencies is going to be better for loans with PIW's - the LTV's are lower, the credit scores are higher, and the assets are greater. It's a 'credit' risk decision - not a 'collateral' risk decision. Kind of like a signature loan, right? (b) a better measure of whether the PIW is good or bad for business would be measuring the amount of the delinquencies from PIW loans relative to loans with appraisals, no?