Data Cancer found....

[Surf Cat]

how the F do they know it is a market value sale if they are lending 97%? I mean what benchmark gives them the value? This is like lending 1975 when you vetted the borrower without a serious clue as to the value of the collateral.

Answer; The lenders don't give a $hit.

Lenders are moving away from traditional (residential) appraisals for several reasons:

1. Cost and Speed: Eliminating appraisals can reduce costs and speed up the loan process, appealing to both lenders and consumers.
   https://sacramentoappraisalblog.com/2018/11/26/get-rid-of-appraisers-while-nobodys-looking/
   https://appraisersblogs.com/no-appraisals-may-b-required-n-the-end-of-appraisers/
2. Reliance on AMCs: Appraisal Management Companies (AMCs) often prioritize cost savings over quality, leading to lower appraisal standards and diminished trust in the profession.
   https://millersamuel.com/the-low-appraisal-hassle-is-a-symptom-of-a-broken-mortgage-process/
   https://appraisersblogs.com/its-a-great-time-2-leave-the-appraisal-profession/
3. Technological Alternatives: Automated Valuation Models (AVMs) and "evaluations" are being promoted as faster, cheaper alternatives, sidelining appraisers.
   https://sacramentoappraisalblog.com/2018/11/26/get-rid-of-appraisers-while-nobodys-looking/
   https://appraisersblogs.com/no-appraisals-may-b-required-n-the-end-of-appraisers/
4. Regulatory Changes: Proposals to raise thresholds for requiring appraisals (e.g., loans under $400,000) reduce their necessity.
   https://sacramentoappraisalblog.com/2018/11/26/get-rid-of-appraisers-while-nobodys-looking/

 

[Surf Cat]

The above is a simple AI answer that many appraisers simply haven't come to terms with....including me.

What do you do when you put soooo much time into something and it's no longer valid?

USPAP, Fannie Mae, Appraising Real Estate 4th edition.... whatever....none of that matters anymore.

 

[Joyce Potts]

In foreclosure and mortgage fraud world........, FBI camped out in memphis a long time. FDIC, etc.etc.

That was no doc loans that FNMA had to take back. All kinds of fraud on the mortgage documents.

Don't know of any bankers or mortgage brokers that got punished much.

Former Bank Executive Sentenced for Mortgage Fraud

archives.fbi.gov

You're welcome.

 

[J Grant]

how the F do they know it is a market value sale if they are lending 97%? I mean what benchmark gives them the value? This is like lending 1975 when you vetted the borrower without a serious clue as to the value of the collateral.

There is no benchmark -the value depends on whether it is A) refinance or B a sale,...the value is A) an estimate from the lender or B) the sale contract price ( providing either falls within the Fannei or freddie AVM, which nobody outside the entity sees, as far as I know)

I don't know if they call it market value. The label is "Value Acceptance " ( replaced the level of WAIVER, though we still refer to it as that )

 

[Zoe]

On a purchase with a spread of that amount, it would more than likely result in a full appraisal being required

Is that what you want if your house had a market value of $80,000 and the waiver went from $40,000 to $120,000? Would you want that value put on your house?

 

[Zoe]

I can expand it. Even if the house had a market value of $500K. I would not want a waiver of $400K to $600K on my house. I don't care how good my credit was.

BTW I do have very good (excellent) credit score. That is beside the point in the market.

 

[Zoe]

If you don't see the impact how the waiver is swaying the market? Well I can't help you.

I feel the backlash coming from consumers in the mortgage market and I have seen it before.

GSE and bankers will walk scott free.

Public trust is at the heart. What is the value the waiver puts on it? Are they held to a higher level of public trust?

A biased party held to a higher level of public trust? Seriously?

 

[Zoe]

Joan Trice are you still alive? I want to talk to you girl.

I know you don't want to talk to me. I did enjoy the interaction none the less.

 

[Surf Cat]

It has to be too much Tennessee eggnog.....

 

[George Hatch]

how the F do they know it is a market value sale if they are lending 97%? I mean what benchmark gives them the value? This is like lending 1975 when you vetted the borrower without a serious clue as to the value of the collateral.

We'll soon see how common or rare those waiver + high LTV mortgages end up being. There's apparently a fair more to getting a waiver than the value of the property (stated or otherwise).

If/when the GSE AVM is way wrong its going to mostly be because the appraisers' data made them wrong. Nobody here in this thread even wants to touch upon the ramifications of that.

In a toxic and perverse way we should HOPE the GSEs AVM greatly outperforms the commercial AVMs which don't have access to what the appraisers have said about these properties over the years.