Are Appraisals Really Relevant?

[djd09]

oh i remember when the mortgage brokers would tell me...dont worry they have great credit...that is some 2004 drivel

 

[Joyce Potts]

oh i remember when the mortgage brokers would tell me...dont worry they have great credit...that is some 2004 drivel

The collateral didn't default, the borrower did. The values didn't take a nose dive until the GSE's flooded the market with short sale and foreclosure inventory.

 

[Non Sequitur]

The collateral didn't default, the borrower did. The values didn't take a nose dive until the GSE's flooded the market with short sale and foreclosure inventory.

Exactly. And if the GSEs were regional the contagion may have been isolated to the 4 states it started in.

 

[djd09]

if the investor uses their own money for these loans...then they can make the appraisal irrelevant

 

[Joyce Potts]

if the investor uses their own money for these loans...then they can make the appraisal irrelevant

I honestly don't understand why you think that's so rofl? For crying out loud, the GSE's started the waivers. If a lender is not selling to the secondary market, who cares what they do in terms of an appraisal?

 

[djd09]

If a lender is not selling to the secondary market, who cares what they do in terms of an appraisal?

isn't that what i just said...

 

[djd09]

isn't that what i just said...

no really you are going to troll me then leave...it is rofl

 

[Joyce Potts]

no really you are going to troll me then leave...it is rofl

Because for some reason, you think it's hysterical.

 

[alebrewer]

If an loan applicant has a stellar credit score, history and net worth, what more could a lender ask for. Maybe a $50 Door Dash inspection? <shrug>

No one EVER needs an appraisal - until the loan goes south. 100% chance the loan will be paid off according to terms? Absolutely ZERO need for an appraisal. Ur dumb if you buy one. 100% chance the loan will be a FPD? Appraisal is very valuable indeed - assuming it is accurate.

 

[alebrewer]

Alternative valuations don't have to be better than what an appraiser can provide, they just have to be good enough for the end users needs.

They don't even have to be that - the users just have to perceive they're as good...