Better Understanding of Underwriting

[J in Florida]

After 30 years in the biz, both as a loan originator as well as an appraiser, with a degree in RE & Urban Development from UF, having been married to a Chairman's Club producing wife (LO), her brother a branch manager (at Taylor Bean Whitaker), The mindset is "give me my number or I'll find someone who will". Underwriters are generally under the same pressure. 2008 was not an accident. Did I mention she is an ex-wife?

They know what is right from a legal and ethical standpoint, but far too many are under pressure for numbers so they give green lights on files that should never have closed because district and regional management are paid based on dollar amount production. I've been in the meetings, I've been to the functions, hell I've been to the kids birthday parties. So using LO logic, I clearly know nothing.

 

[Carnivore]

I think the larger issue is the difference between UW Rules across different Lenders. It seems when it comes to Appraisals they pick and choose whats important and not important. Maybe a better way to say this is when its filtered through the AMC's. I do see different AMC's focusing on different areas of the appraisal in front of them.

Common areas are Sale Date; Distance; across the board adjustments, Bracketing Top row of Sale Prices; Bracketing of GLA etc etc
OK, I get that a little bit if kept in the context of the Checklist Charlie has time constraints and a Get R Done Attitude. Charlie is conflicted because if he doesn't find something then he must not be doing his job!

The problem I have with this is each assignment is different in some way, at least for me. So I don't mind writing comments, because that's what we do. Anticipating some STIP of the Month is where I have a problem with the AMC's. Usually it is out of context of the entire report. Sometimes I swear they are OJT'ing some Checker Dude or Dudette and that individual brought something new to the table from their last job at XYZ AMC. Who knows why they select some individual item to focus on!

Truth is if they were halfway intelligent about the common FNMA Lending type Appraisal most of these STIPS would disappear.

First they must thoroughly familiarize themselves with the portions of the FNMA Selling Guide that pertains specifically to Appraisers AND stay current with that Guide.


Every AMC, checker dude and Appraiser should sign up: https://www.fanniemae.com/singlefamily/notification-center

You as an Appraiser are responsible for staying up and current with your Industry.

TO ZZGAMAZZ - If you didn't know about FNMA - maybe you don't know about these:

https://www.HUD.gov/program_offices/housing/sfh/handbook_4000-1

https://www.rd.usda.gov/files/3555-1chapter12.pdf

 

[ZZGAMAZZ]

I think the larger issue is the difference between UW Rules across different Lenders. It seems when it comes to Appraisals they pick and choose whats important and not important. Maybe a better way to say this is when its filtered through the AMC's. I do see different AMC's focusing on different areas of the appraisal in front of them.

Common areas are Sale Date; Distance; across the board adjustments, Bracketing Top row of Sale Prices; Bracketing of GLA etc etc
OK, I get that a little bit if kept in the context of the Checklist Charlie has time constraints and a Get R Done Attitude. Charlie is conflicted because if he doesn't find something then he must not be doing his job!

The problem I have with this is each assignment is different in some way, at least for me. So I don't mind writing comments, because that's what we do. Anticipating some STIP of the Month is where I have a problem with the AMC's. Usually it is out of context of the entire report. Sometimes I swear they are OJT'ing some Checker Dude or Dudette and that individual brought something new to the table from their last job at XYZ AMC. Who knows why they select some individual item to focus on!

Truth is if they were halfway intelligent about the common FNMA Lending type Appraisal most of these STIPS would disappear.

First they must thoroughly familiarize themselves with the portions of the FNMA Selling Guide that pertains specifically to Appraisers AND stay current with that Guide.


Every AMC, checker dude and Appraiser should sign up: https://www.fanniemae.com/singlefamily/notification-center

You as an Appraiser are responsible for staying up and current with your Industry.

TO ZZGAMAZZ - If you didn't know about FNMA - maybe you don't know about these:

https://www.HUD.gov/program_offices/housing/sfh/handbook_4000-1

https://www.rd.usda.gov/files/3555-1chapter12.pdf

Thanks very much; just realized that although there is no excuse for failing to be aware of one's environment, all of my endeavors during the past 14 years were private, legal assignments' amd the industry (as well as the world) changed a bit during that period of time, although the UAD/MISMO learning curve was much flatter than I thought possible. Question: Is the Chapter 12 attachment from HUD 4000.1? Is HUD the "Agency" referred to throughout the document--encountered in response to my 1st word search, for "modular"?

 

[J in Florida]

UW Stip: "Appraiser to explain how value was arrived at"

Me: RTFR you freaking rookie

LO: We'll never use you again

Me: Don't do me any favors

Good riddance to bad rubbish.

 

[Renee Healion]

After 30 years in the biz, both as a loan originator as well as an appraiser, with a degree in RE & Urban Development from UF, having been married to a Chairman's Club producing wife (LO), her brother a branch manager (at Taylor Bean Whitaker), The mindset is "give me my number or I'll find someone who will". Underwriters are generally under the same pressure. 2008 was not an accident. Did I mention she is an ex-wife?

They know what is right from a legal and ethical standpoint, but far too many are under pressure for numbers so they give green lights on files that should never have closed because district and regional management are paid based on dollar amount production. I've been in the meetings, I've been to the functions, hell I've been to the kids birthday parties. So using LO logic, I clearly know nothing.

I remember reading of their mortgages here in the commercial trade paper and then the entire documents in the land records and deciding never to take any work connected to them. Some things just never look right from the start. Or smell right. As a local, you certainly had a front row seat to those highrollers until it all ended.

 

[ucbruin]

@J in Florida

Just a heads up....
There's a new member with the screen name Florida Jay....
Is this your alter ego???

Welcome to the new Jay....

 

[Elliott]

In the long run, the appraisal/mortgage process is trying to reduce risk. Unfortunately, there is limited data, less than competent appraisers, and the motivation for profit by lenders. Ferreting out the truth and reducing risk is the goal so investors can correctly evaluate the value of portfolios, but it is far, far from being an efficient and fair system. Mikstakes, bias, and fraud happen. Good appraisers get unfairly maligned and bad appraisers skip on down the road. At the end of the day, an appraiser can only be responsible for the work they take on and what assignments they avoid that are likely to be problematic. As is often said on this forum, 'get better clients.'

 

[J in Florida]

I remember reading of their mortgages here in the commercial trade paper and then the entire documents in the land records and deciding never to take any work connected to them. Some things just never look right from the start. Or smell right. As a local, you certainly had a front row seat to those highrollers until it all ended.

"American Greed" Lee Farkas/Taylor Bean & Whitaker (TV Episode 2012) ⭐ 8.0 | Documentary, Crime

44m | TV-PG

www.imdb.com

If you haven't seen it, it's worth the watch, either for professional education or entertainment purposes. Load up the cooler and pop the popcorn, it's really good. The ex-brother in law worked there when the FBI raid went down in little old Ocala Florida.

 

[ZZGAMAZZ]

In the long run, the appraisal/mortgage process is trying to reduce risk. Unfortunately, there is limited data, less than competent appraisers, and the motivation for profit by lenders. Ferreting out the truth and reducing risk is the goal so investors can correctly evaluate the value of portfolios, but it is far, far from being an efficient and fair system. Mikstakes, bias, and fraud happen. Good appraisers get unfairly maligned and bad appraisers skip on down the road. At the end of the day, an appraiser can only be responsible for the work they take on and what assignments they avoid that are likely to be problematic. As is often said on this forum, 'get better clients.'

---
Where does FNMAE obtain data used to determined potential alternative comps in the C.U. report? Although this is a brand new concept to me, I'm wondering whether a mandatory data cell could be added to each MLS listing that would require realtors to describe current condition in the UAD context, there being no reason to presume that a realtor would be any less competent than an appraiser to categorize a property into a standardized Condition category.

 

[Overimprovement]

@J in Florida

Just a heads up....
There's a new member with the screen name Florida Jay....

He's a scrub...(Florida joke)