Appraisal Waiver (Explosion)

[glenn walker]

That data goes back about 20 years

Danny 20 years ago F & F and the Money Center Banks were trying to lay the blame on appraisers for over-inflating when in reality we all knew it was NINJA Loans and loose as a goose Underwriting Standards, and ones done with limited appraisals or no appraisals, had no CU data bank to collect from, they just sold those loans to the MBS guys , who later dumped a bunch on F & F during the mortgage meltdown, or were acquired when smaller banks were liquidated or taken over. SO those were not like today's waivers which use a CU data base which shows both the physical characteristics based on a previous appraisal of the property, and also a value range based on comparables and other sources.

 

[Terrel L. Shields]

I do find it interesting that there is all this focus on appraisal waivers right now, at a time when traditional appraisal volume is at record levels.

And will that reliance upon waivers change should the appraisal volume be dramatically reduced...which it will be at some point?

 

[DWiley]

And will that reliance upon waivers change should the appraisal volume be dramatically reduced...which it will be at some point?

I am not sure I understand the question. Whether or not an appraisal waiver is offered or not is not predicated on the level of appraisal volume.

What is primarily driving the current levels of volume, both for waivers and appraisals, is the low rates and the resulting flood of rate/term refis and purchases.

 

[J Grant]

That is your opinion of what happened... you've offered absolutely no documentation to support your opinion.

No documentation? The FHA requirement for two appraisals in a flip happened AFTER the FHA panel was disbanded, same for no new appraisal for X Days or months ( unless first was found deficient )

 

[alebrewer]

No documentation? The FHA requirement for two appraisals in a flip happened AFTER the FHA panel was disbanded, same for no new appraisal for X Days or months ( unless first was found deficient )

And you're basing your opinion that FHA appraisal quality is crap based on that policy?... there is the very real possiblity that those two issues are mutually exclusive. IOW, the policy change may (and probably does) have nothing to do with FHA moving to lender select... ever thought about the possibility that it is simply a result of a change in risk management decisioning?

 

[J Grant]

And you're basing your opinion that FHA appraisal quality is crap based on that policy?... there is the very real possiblity that those two issues are mutually exclusive. IOW, the policy change may (and probably does) have nothing to do with FHA moving to lender select... ever thought about the possibility that it is simply a result of a change in risk management decisioning?

I never said all FHA "qulaity
is crap as there are many good appraisals done for FHA. But anyone can follow the dots ( except you .lol ) as to why FHA needed to enact the discussed changes after panel disbanded and t went to lender select and anyone who does appraisals can see the inflated value flips or appraisals done for FHA since lender select

 

[alebrewer]

I never said all FHA "qulaity
is crap as there are many good appraisals done for FHA. But anyone can follow the dots ( except you .lol ) as to why FHA needed to enact the discussed changes after panel disbanded and t went to lender select and anyone who does appraisals can see the inflated value flips or appraisals done for FHA since lender select

So, just more J rant without any documentation at all... carry on.

 

[J Grant]

So, just more J rant without any documentation at all... carry on.

Where is YOUR documentation ( none ). Mine was in what took place as fact - the fact that FHA changed their policy about needing a second appraisal for a flip and not allowing a second value shopping lol appraisal until after X months - but don't let facts get in the way !

SInce there is a bulletin board rule and not an appraisal, it means there is no rule for every word or statement be accompanied by "documentation " such demands are straw dog nonsense - if each of us had to "document" every word or utterance would take a day to make a single post and we would have to give up working...

 

[alebrewer]

Where is YOUR documentation ( none ). Mine was in what took place as fact - the fact that FHA changed their policy about needing a second appraisal for a flip and not allowing a second value shopping lol appraisal until after X months - but don't let facts get in the way !

SInce there is a bulletin board rule and not an appraisal, it means there is no rule for every word or statement be accompanied by "documentation " such demands are straw dog nonsense - if each of us had to "document" every word or utterance would take a day to make a single post and we would have to give up working...

My documentation for what? What hypothesis did I proffer without any documentation? You're asserting that FHA appraisal quality has declined since lender select, and you offer - as proof of that assertion - the fact that FHA now requires 2nd appraisals on flips (which has been in place since 2003, BTW). (a) there is absolutely no basis for making that leap, and (b) you've still offered no quantitative substance showing that FHA appraisal quality has declined, other than your 'gut' feeling. I'm not saying that it has, or that it hasn't. I'm just asking you what you base your hypothesis on, and so far - it's nothing but vacuous space...

 

[J Grant]

You are just wasting my time now, the evidence IS the change of FHA policy, why they needed to enact cautions on two fronts AFTER lender select replaced the panel. Pointless trying to respond to an endless stream of nonsense demands for "documentation" -though you might want to read what I actually write! (or stop rephrasing what I wrote ) I never wrote FHA quality declined, I wrote that t FHA became the new go to loan toy for Flippers and high values re sales, result is the FHA made changes in flips and resales within X days after their change to lender select. oatY