Better Hit That Number!

[Non Sequitur]

It's just comical at this point, in a black comedy sort of way. This article popped up in my feed today, here's a quote: "Freddie Mac said in a Thursday housing outlook report. "These high interest rates will prompt prospective buyers to readjust their housing expectations, but we anticipate housing demand to remain high due to favorable demographics, particularly in the starter home segment."

Try including "favorable demographics" and/or "starter home segment" in a report going to Freddie, and then watch the fireworks.

Economic, Housing and Mortgage Market Outlook – May 2024 | Spotlight: Rate Dispersion by Generation

Mortgage rates rose above 7% in April and these higher rates slowed the housing market with declines in home sales and new construction.

www.freddiemac.com

Will mortgage rates fall in 2024? Here's what Freddie Mac predicts.

Demand for buying a home will remain strong in 2024 even though mortgage rates have been around 7% this year.

finance.yahoo.com

 

[Non Sequitur]

 

[djd09]

NFHA Applauds Appointment of Nikitra Bailey to FHFA’s Inaugural Federal Advisory Committee on Affordable, Equitable, and Sustainable Housing​

FOR IMMEDIATE RELEASE
June 27, 2024
CONTACT: Janelle Brevard | jbrevard@nationalfairhousing.org
NFHA Applauds Appointment of Nikitra Bailey to FHFA’s Inaugural Federal Advisory Committee on Affordable, Equitable, and Sustainable Housing
Washington, D.C. – The National Fair Housing Alliance® (NFHA™) released the following statement congratulating Executive Vice President Nikitra Bailey on her appointment to the Federal Housing Finance Agency’s (FHFA) Advisory Committee on Affordable, Equitable, and Sustainable Housing (ACAESH). This inaugural committee is tasked with advising FHFA on strategies to enhance access to housing finance and community investment through entities like Fannie Mae, Freddie Mac, and the Federal Home Loan Banks.
“Nikitra Bailey is a well-regarded fair housing and lending expert and her selection to ACAESH is a testament to her expertise and longstanding commitment to advancing innovative and transformational housing opportunities for all Americans. With her extensive leadership of advocating for fair housing and lending policies along with equitable community development initiatives, Nikitra will undoubtedly bring valuable insights to the committee. Her leadership will help ensure that FHFA’s regulated entities serve as reliable sources of liquidity and funding for both single-family and multifamily housing, fostering inclusive and sustainable communities nationwide.
We are immensely proud of Nikitra Bailey for being appointed to the FHFA Advisory Committee. Her passion and dedication to achieving fair housing and expanding access to affordable housing will be invaluable in guiding FHFA’s efforts. We look forward to her contributions in promoting equitable and sustainable housing solutions that benefit underserved communities.
NFHA remains committed to its mission of eliminating housing discrimination and ensuring equal access to housing opportunities for everyone. Nikitra Bailey’s appointment is a significant step towards advancing these goals and creating positive change within the housing finance sector.”

NFHA Applauds Appointment of Nikitra Bailey to FHFA’s Inaugural Federal Advisory Committee on Affordable, Equitable, and Sustainable Housing - NFHA

FOR IMMEDIATE RELEASEJune 27, 2024CONTACT: Janelle Brevard | jbrevard@nationalfairhousing.org NFHA Applauds Appointment of Nikitra Bailey to FHFA’s Inaugural Federal Advisory Committee on Affordable, Equitable, and Sustainable Housing Washington, D.C. – The National Fair Housing Alliance®...

nationalfairhousing.org

 

[Tom D]

As a group here, how many have had to answer how many rovs. Not many, especially the last few years. Is fannie anticipating a higer level of off sale prices in an upcoming downturn.

However, I know of no profession that attacks it's members. Politicians, government agencies, lawyers and banksters seem to never be found guilty of anything. Those rov comments sound like your dealing with constantly bad & systemic people.

I write appraiser death spiral in terns of volumn, but our future just got closer to Dante's inferno.

 

[Dublin ohio]

As a group here, how many have had to answer how many rovs.

To be honest. I can't remember the last time I had an ROV. I have had a few lenders ask me about a sale they found in a "third party source". But they have alway turned out to be either a different style of home or out of the neighborhood.

 

[shrubberyvaluation]

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.

So the million dollar question is why would anyone "lowball" an appraisal due to the skin color of someone involved in the transaction? I don't believe there are these super racist appraisers that prefer this scrutiny to be racist.

 

[shrubberyvaluation]

To be honest. I can't remember the last time I had an ROV. I have had a few lenders ask me about a sale they found in a "third party source". But they have alway turned out to be either a different style of home or out of the neighborhood.

Last ROV I had all of the comps were on the same street and very similar. ROV sales were new construction (subject not new construction).

 

[RCA]

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.

Nearly everything Fannie Mae and Freddie Mac do is based on false valuation, poor logic, and sloppy thinking.

For many years, these organizations have come to believe they are some kind of expert on valuation. They absolutely are not experts. They want to bring in attorneys as statements of fact, but attorneys are also not valuation experts. They are biased in favor of their client, and if they bring in so-called expert appraisers, their views are invariably flawed by archaic methods.

Unfortunately, appraisers and appraisal organizations have little defense against GSEs' idiotic policies, which are usually worse than many of the appraisers' methods they criticize. It's important to continue highlighting these flaws to ensure the valuation process improves over time.

No one in the appraisal establishment is competent at valuation based on sales comparison. The lack of knowledge, education, and training is universal in appraisal organizations and GSEs.

We need new oversight by valuation engineers, oversight that will randomly audit the practices of all organizations, including the GSEs.

 

[The Bob]

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.

I don't mind an ROV. In fact they're kinda of fun to shoot down, which usually takes me less than 1 hour. Maybe I'm lucky but I get maybe one a year and they are never credible. One complained my GLA was off 4sf from the assessor. Another wanted me to use all 3BR sales from a different neighborhood for a 2BR. I'm sure others here see the same things. That said, now you can be looking at a HUD complaint for bias, simply for "coming in low". The few cases that have been posted here were about one appraisal coming in lower than another. That was the entire basis for the complaint. The complaints say the appraiser was biased, but the only proof they offer is the higher appraisal.

 

[Mark K]

So that's the number they were talking about!!!