Data Cancer found....

[CGinMN]

I called on an outlier sale for details trying to figure out what was going on. I asked the agent what it appraiser for. Response. Waiver. I laughed out loud and stopped myself quickly.

I hear this often, but these comment never seem to come with an address. If appraisers want to elevate the conversation from speculation to proof, then I’d suggest they start to provide it.

10-15% of purchases are getting waivers, so there’s plenty of data out there to be analyzed. If waivers are creating data cancer we should be able to come up with some examples.

 

[RCA]

A must listen:

A good video, interesting. Wish I had the data.

 

[J Grant]

I hear this often, but these comment never seem to come with an address. If appraisers want to elevate the conversation from speculation to proof, then I’d suggest they start to provide it.

10-15% of purchases are getting waivers, so there’s plenty of data out there to be analyzed. If waivers are creating data cancer we should be able to come up with some examples.

Where would you find the "Data out there" be analyzed???

How would you find the waiver among 100 financed sales you bring up as an example? (since it is not disclosed) Would you call every RE agent on 100 sales to find out which had a waiver? And hope they respond and that they even know - and then devote a week or more to the pursuit.

If 10-15% of purchases are getting waivers, it is not disclosed on the closing docs nor on MLS. Except for a few examples where we personally find out about a waiver, we simply can not know, and I am not aware of folks having unlimited free time to call RE agents on a volume of sales to find out.

The data for which financed sales got a WAIVER is kept hidden from the public, which is wrong --WAIVER loans are 100% taxpayer-backed wrt the collateral value, whereas loans with an appraisal done have the lender responsible for a buyback.

 

[CGinMN]

People are already offering that they’ve found data cancer via verifying the sales. All I’m saying is put the address out there.

 

[J Grant]

People are already offering that they’ve found data cancer via verifying the sales. All I’m saying is put the address out there.

He chose not to divulge the address.

You are not addressing the problem that the WAIVER data is so hard to find that it makes it very difficult and in some cases not feasible to analyze, And not just for appraisers, for anybody

 

[CGinMN]

I attempt to speak with every agent on every comp transaction. If I have 5 comps with 8-10 different agents and 50% pick up the phone, that's a handful of 5-minute conversations from which I typically glean a bunch of useful info that helps me be a better appraiser. I don't know why every appraiser isn't doing this. If you are, then asking whether or not it got a waiver adds less than a minute of assignment time. Soon, you'll have a nice fat dataset to publish online that we can all dig through and come to some conclusions.

Or we can continue to speculate and let the GSEs control the narrative and continue to say nothing to see here.

 

[George Hatch]

Problem identification comes first. If we can suss out some examples of waiver creep being of effect on the overall pricing trends then that would support the requests to the MLS boards to add that field to their listings as a mandatory disclosure.

My MLS shows a Buyer Financing Field. Just add "Fannie Mae/Freddie Mac Value Acceptance" marker to the list on the right and make the financing disclosure mandatory. But first we would need to sell the listing services on the necessity by showing some examples. And we do that by showing the example, not by emoting about the potential threat of the unsupported basis.

 

[J Grant]

Problem identification comes first. If we can suss out some examples of waiver creep being of effect on the overall pricing trends then that would support the requests to the MLS boards to add that field to their listings as a mandatory disclosure.

My MLS shows a Buyer Financing Field. Just add "Fannie Mae/Freddie Mac Value Acceptance" marker to the list on the right and make the financing disclosure mandatory. But first we would need to sell the listing services on the necessity by showing some examples. And we do that by showing the example, not by emoting about the potential threat of the unsupported basis.

View attachment 95139

WE should not be tasked with asking the MLS listing services for it (plus they would not do it at our request anyway, even if we gave them examples.)

Fannie and Freddie need to do it; they have the data, they have the authority to do so - and they are not doing it, which speaks for itself.

 

[George Hatch]

WE should not be tasked with asking the MLS listing services for it (plus they would not do it at our request anyway, even if we gave them examples.)

Fannie and Freddie need to do it; they have the data, they have the authority to do so - and they are not doing it, which speaks for itself.

I'm curious what you think that would look like if not disclosed in the MLS listings? A searchable database @ Fannie/Freddie and open to the public which discloses the underwriting used on each transaction?

 

[J Grant]

I'm curious what you think that would look like if not disclosed in the MLS listings? A searchable database @ Fannie/Freddie and open to the public which discloses the underwriting used on each transaction?

Fannie and Freddie should make the data with waivers available for the MLS listings.
Perhaps I did not make that clear in my last post.

If Fannie and Freddie could also publish the data monthly or weekly for public consumption, that would be an additional level of disclosure.