Better Hit That Number!

[Non Sequitur]

FHFA Announces Enterprise Reconsideration of Value Policies | FEDERAL HOUSING FINANCE AGENCY

Washington, D.C. – The Federal Housing Finance Agency (FHFA) today announced that Fannie Mae and Freddie Mac (the Enterprises) published new Reconsideration of Value (RO

www.fhfa.gov

Freddie Mac Single-Family Seller/Servicer Guide

The new, user friendly Seller/Servicer Guide will make it significantly easier for you and your team to find, understand and share critical information.

guide.freddiemac.com

This update also requires the Seller to:

• Forward the appraisal report, along with a summary of findings, to the appropriate appraisal licensing agency or regulatory board if material deficiencies are identified in the appraisal report that are not corrected or addressed by the appraiser upon request or if there is evidence of unacceptable appraisal practices. In addition, if there are suspected overt violations of antidiscrimination laws, the Seller must report them to the proper local, State or federal agency.

 

[alebrewer]

The beatings will stop when morale improves.

 

[Bob Ipock]

Bring it on.

 

[CGinMN]

"Dear appraiser, the appraisal in its current form is materially deficient. Please address our concerns [in a manner we see fit], or be advised we are obligated to report these deficiencies to your state board."

 

[J Grant]

FHFA Announces Enterprise Reconsideration of Value Policies | FEDERAL HOUSING FINANCE AGENCY

Washington, D.C. – The Federal Housing Finance Agency (FHFA) today announced that Fannie Mae and Freddie Mac (the Enterprises) published new Reconsideration of Value (RO

www.fhfa.gov

Freddie Mac Single-Family Seller/Servicer Guide

The new, user friendly Seller/Servicer Guide will make it significantly easier for you and your team to find, understand and share critical information.

guide.freddiemac.com

This update also requires the Seller to:

• Forward the appraisal report, along with a summary of findings, to the appropriate appraisal licensing agency or regulatory board if material deficiencies are identified in the appraisal report that are not corrected or addressed by the appraiser upon request or if there is evidence of unacceptable appraisal practices. In addition, if there are suspected overt violations of antidiscrimination laws, the Seller must report them to the proper local, State or federal agency.

An appraisal that hits the SC number or gets a high refi value can have the worst comps, no credible support, and a so-called bias (if there is such a thing), and nobody will care - the appraisal gets accepted.

Whereas if the number is not hit, in comes the ROV, an effort to back door "get" an appraiser the message that failing to deliver the desired $ make the deal work value will result in hours and days of unpaid work and harassment of the ROV, which was always the case, but now they are adding a board complaint as well. Like Pavlov's dog, the appraiser gets the message that they will be left alone and not get an ROV as long as the higher price or refi value comes in. As was always the case, but now the consequences for getting an ROV through no fault of the appraiser are severe.

The entities have now entered the punishment phase with a threat of reporting to an agency as part of the ROV procedure, which usually triggered by an appraiser failing to hit the number—the vast majority of ROVs occur when a SC price is not hit or a refinance value is too low to make the deal work.

ROV s are not paid for as an additional service, they are very stressful and time-consuming and can turn into harassment of the appraiser by any of the parties involved and.or the client.

 

[Bob Ipock]

"Dear appraiser, the appraisal in its current form is materially deficient. Please address our concerns [in a manner we see fit], or be advised we are obligated to report these deficiencies to your state board."

Who said that? You have it inside quotation marks. Who exactly said "in a manner we see fit "?

 

[Bob Ipock]

Who said that? You have it inside quotation marks. Who exactly said "in a manner we see fit "?

 

[Mejappz]

Dear appraiser, I see you came in $10,000 below the contract price please rubber stamp the value. If your rubber stamper is low on ink, our friendly underwriter will happily issue you a fresh supply of ink at a low cost. Thank you for your continued partnership! Lol

 

[J Grant]

"Dear appraiser, the appraisal in its current form is materially deficient. Please address our concerns [in a manner we see fit], or be advised we are obligated to report these deficiencies to your state board."

Deficient in what way? They can make anything up and say it was deficient - lack of enough commentary, the support for some little adjustment - a measnruement 5 feet off -anything.. USPAP says perfecto is not possible. Yet there is no punishment for abusive ROV based on the number was not hit nor any standard of what a deficiency is to make a complaint.

We all know, that the ROV mainly triggers for not hitting the number. Combined with the FF policy of letting UBER drivers inspect, and the loan officers write in their desired value ( as long as it is in the AVM range ), the antics make the Big Short movie look like HS. All this draconian on the appraiser and inducement of pressure while the rest of the valuation is a free-for-all now, with non-licensed people inspecting and loan officers estimating the value in a waiver/value acceptance ( as long as it is in the AVM range for those who pounce on that ).

 

[TerryRohrer]

New AMC requirement of panel appraisers: "All panel members must have an active Signal account so that we may more efficiently convey critical targets and "preferred" addendum commentary to our partners." (in crime)