Appraisal Waiver (Explosion)

[Mejappz]

Agreed - the issue of transparency is a valid concern insofar as appraisers aren't even allowed access to the model that their appraisals are being judged by, and that their appraisals helped to feed. The 'pat' response I've gotten when I've asked about that lack of transparency is that the agencies don't want appraisers 'appraising to the model'. Fairly lame, IMO, but nonetheless - that is the definition of lack of transparency.

I don’t want to know the CU score or what adjustments or comps their model considered. What I would like to do is export our sales from a particular market area and analyze it. Appraiser data with whatever flaws it may have is still superior to any data source out there. Better data, better value conclusions. Simple common sense.

 

[djd09]

"There’s a fine joke about bowling balls and tennis balls and golf balls which I won’t repeat here, but let’s go down the scale of “numerical magnitude.” Today, the NY Federal Reserve Trade Desk is set to surpass $1 trillion (with a “T”) in MBS purchases since the restart of QE on March 16. "

Jumbo, Servicing Products; Webinars; After 12 Years of Conservatorship, Agencies are Very Much in the News

There’s a fine joke about bowling balls and tennis balls and golf balls which I won’t repeat here, but let’s go down the scale of “numerical magnitude.” Today, the NY Federal Reserve Trade Desk is set to surpass $1 trillion (with a “T”) in MBS purchases since the restart of QE on March 16. (By...

www.mortgagenewsdaily.com

lenders calculating risk is "a joke".

qe forever is the new motto. or the same one.

 

[Zoe]

Well, as the title of this very OP notes, an appraisal is not always used. So, that is not trickery - just reality. An appraisal is used the majority of the time, but not always. Other methods are used in the cases where the data shows that other tools perform better.

BTW, you going to answer the question posed about transparency?

I can think of several examples. Separation of Fees, HUD disclosures, appraiser competency, CU, UAD. Can you add to my list?

 

[Dublin ohio]

Separation of Fees, HUD disclosures

Irrelavent. Nobody but appraisers care about seperation of fees. Borrower only cares about bottom line. Could care less how much appraiser gets vs how much AMC gets.

 

[Zoe]

BTW, VA does 100% on many loans and has the least loss ratio of any program. Food for thought.

 

[Zoe]

VA didn't need bailout.

 

[alebrewer]

BTW, VA does 100% on many loans and has the least loss ratio of any program. Food for thouoght.

actually 102% with DTI's up to 41%. You're not quite right about the least loss ratio, though. Per a white paper from last year, default rate(s) for VA were around ~ 2-4%, which is about the same as Conforming loans (e.g. agency). FHA was just a bit higher at 3-5%.

 

[Zoe]

actually 102% with DTI's up to 41%. You're not quite right about the least loss ratio, though. Per a white paper from last year, default rate(s) for VA were around ~ 2-4%, which is about the same as Conforming loans (e.g. agency). FHA was just a bit higher at 3-5%.

Can you post that paper? How far back does it go?

 

[alebrewer]

Can you post that paper? How far back does it go?

I want to say it was between 2015 and 2017... hang on - I'll see if I can track it down. I will say, though, that VA does a MUCH better job at loss mitigation that either of the other groups do, meaning that foreclosure inventory is lower for VA.

 

[alebrewer]

https://www.VA.gov/oig/pubs/VAOIG-18-03979-204.pdf