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Appraisal Waivers Saved over $2B since 2017 - Per Freddie

If your stated goal is liquidity and home affordability, why wouldn't you tout that you saved borrowers billions?
 
If it saved the borrower billions, it cost the appraisers the same billions in lost income.

IT sounds so impressive - saved the borrowers billions- in reality, a Waiver saves a borrower $500 (n avg appraisal cost ) without a PDC collection - but now more WAIVES use a PDC collection, which I assume a borrower pays $200 and up for since the AMC has to add profit in -so a borrower saves $300.

A few hundred $ is not life-changing a borrower, and if the borrower overpaid in a purchase or overborrowed in a refinance due to the WAIVER, it will cost the person big time in lost equity.

AND let us not forget that as fannie and Freddie tout savings to borrowers, a WAIVER can cost the taxpayers, because the mortgage lenders are not responsible for reps and warrnites ( meaning the lender does not have to buy back the loan ) for collateral value issues with a WAIVER - the taxpayer bears the burden.
 
alebrewer said:
If your stated goal is liquidity and home affordability, why wouldn't you tout that you saved borrowers billions?
Click to expand...
A borrower saving a few hundred dollars using a WAIVER instead of an appraiser does not make homes more affordable.

How does it increase liquidity? ( and to whom?)
 
I didn't read it but most of that amount likely came from the pandemic waivers. It probably breaks out to like $1.5 billion between 2000 and 2022. Rest of it spread out over the other years since 2017 excluding 2000-2022.
 
Waivers save time and emotional stress on everyone involved in the transactions and that's a cost that can't be quantified in dollars. When we don't have to deal with goofy appraisers our lifes and mental health are significantly improved.

The last old VA appraiser I had to let into a property was a bad dream nightmare and I was wondering if he would not F up anything or die inside the house.

I swear if he had died I was going to drag his body outside dial 911 so I didn't have to disclose a death in the house. Lmaooooo
 
Any business would tend to look more prosperous if they could sell a third of their product to the FED and not acknowledge the impact that a doubling of interest rates had on their portfolio of mostly fixed rate financial assets that always lose value when rates rise. I can't find in the OP article where Freddie provides any inkling of the risk born by taxpayers.
 
glenn walker said:
Waivers save time and emotional stress on everyone involved in the transactions and that's a cost that can't be quantified in dollars. When we don't have to deal with goofy appraisers our lifes and mental health are significantly improved.

The last old VA appraiser I had to let into a property was a bad dream nightmare and I was wondering if he would not F up anything or die inside the house.

I swear if he had died I was going to drag his body outside dial 911 so I didn't have to disclose a death in the house. Lmaooooo
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Who cares if predatory lenders have less stress due to not having an appraisal done?

The WAIVER is a mortgage lender wet dream - even in the old days , the best the mortgage brokers could do was try to pressure the appraiser -now the mortgage lender writes the target value they need for the loan !! ( as long as it fitsi n the secret fannie or Freddie AVM range - nobody sees it outside their own realm, correct?)
 
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