Be the Driver, rather than just a passenger of your appraisal practice

[Zoe]

One more point. Look how VA has lowest loss ratio of any program. Does a GSE want to compete with VA on their loss ratio?

 

[Zoe]

Correct me if I am wrong,-
But far as I know, in the above scenario, if the lender gets a waiver-it is a new new refi rate/term loan, (even though the the lender already had the loan. Now, with the new refi loan, because they used a Waiver, the lender has no liability for a buy back if the borrower defaults.

But If the borrower defaults on that same refi loan done with an appraisal, the lender can be liable for a buy back if turns out the appraisal was an over valuation/flawed.

I don't know. Danny should know. But that is more on administrative side than where Danny works.

Idk. Maybe Danny can recommend this loan be bought back. I have no idea on buy back authority by GSE's.

 

[glenn walker]

Okay, no, it does not change the fact you have the loan.

If you can do a rate/term refi and lower payment, and property has now gone to crap for all the influences on MV. You tell me for all the reasons you know very well on MV appraisals how it does not increase risk to GSE, lender, borrower?

Put sun glasses on borrower?

Appraisals are only good the day they are signed, and often even then they are worthless 40-Page Paper Weights. It's all about Credit and Employment and it always has been

 

[Zoe]

Okay, a little further, What is volume of buy backs from GSE's and what are major reasons? Show me that chart on graph.

 

[Zoe]

Appraisals are only good the day they are signed, and often even then they are worthless 40-Page Paper Weights. It's all about Credit and Employment and it always has been

Very good point. They are very important on the effective date.

Your slower than I thought on mortgage fraud and whatever other dream land you live in. You are a trip.

 

[glenn walker]

One more point. Look how VA has lowest loss ratio of any program. Does a GSE want to compete with VA on their loss ratio?

Zoe traditionally VA has been less than 2.5 percent of the mortgage market BUT - During the last big Real Estate Boom we just went through VA became about 9% to 105 of some markets .But Again VA funding are dropping back to Historical Levels and as low as predicted for year 2023. E or Bank Loan a Veteran can often stave off a Foreclosure for two years or more as Veterans Department offers many options to get a Vet out of his or her loan. MY POINT is comparing VA loans to GSE and Bank loans is simply not Apples to Apples.

 

[DWiley]

Correct me if I am wrong,-
But far as I know, in the above scenario, if the lender gets a waiver-it is a new new refi rate/term loan, (even though the the lender already had the loan. Now, with the new refi loan, because they used a Waiver, the lender has no liability for a buy back if the borrower defaults.

But If the borrower defaults on that same refi loan done with an appraisal, the lender can be liable for a buy back if turns out the appraisal was an over valuation/flawed.

So, you are arguing that appraisals should be used just so there is recourse in case that appraisal is bad?

 

[glenn walker]

Very good point. They AI did re very important on the effective date.

Your slower than I thought on mortgage fraud and whatever other dream land you live in. You are a trip.

I did years of forensic review appraisals for the Mighty Chaser Bank between 2008 and 2012 working with legal department on loan fraud cases, and with forensic underwriters who knew how fraud is done. BUT 99% of all defaulted loans are not fraud, just people who lost their jobs, got sick or died and add a declining market values into the mix and all ships start to leak or sink

 

[TerryRohrer]

So, you are arguing that appraisals should be used just so there is recourse in case that appraisal is bad?

There doesn't appear to be an answer in that response. Nor do I see the argument you are claiming within JGrant's post. Maybe your deflection is an indication that taxpayers are really about to get royally screwed.

 

[J Grant]

Appraisals are only good the day they are signed, and often even then they are worthless 40-Page Paper Weights. It's all about Credit and Employment and it always has been

BS, if it was always all about the Credit and Employment there would be no collateral and no valuation of that collateral

The collateral of the property is the reason why rates and terms for FF backed mortgages are so favorable. Whether the valuation is done by an appraisal or other method, but the appraisal was considered the most reliable -

The worth of a valuation is that it anchors the favorable loan terms, vs just good for one day /a worthless paper weight.