Fannie, appraisers move to the back of the bus.

[George Hatch]

The parallel being drawn is "buyer paid over listing price". The comparison is against high-LTV financed. I think that should be pretty clear to anyone who is reading to consider vs reading to respond.

 

[George Hatch]

well that stinks for the buyers, the RE markets and tax payers.

Okay but even to the extent that it's true it's still the lenders who are making those choices and who are acting in what they perceive their own best interests. It's the lenders who are the users of the appraisal. Not the buyer, not the RE Market and not the taxpayers (as per the decision making at the mortgage insurers and regulators).

The lenders who make these decisions literally do not work for the RE markets as a whole.

And you can't even develop an informed opinion if a problem exists because you don't know what the *additional* loss rates look like, if any. Nobody knows except perhaps some of the lenders and perhaps the GSEs.

The moral judgement is supposed to occur after the analysis of the facts, not in lieu of.​

Have you ever considered what you are going to do if (big if) it comes to pass that their alt-programs outperform the conventional w/appraisal pipelines? You might assume that can't happen but what if that assumption is incorrect? What then?

 

[DWiley]

Have you ever considered what you are going to do if (big if) it comes to pass that their alt-programs outperform the conventional w/appraisal pipelines?

You mean analysis like this?

https://capitalmarkets.freddiemac.com/crt/docs/pdfs/SF_CS_ACEResearchNote.pdf

 

[alebrewer]

Well, kind of...

I tend to employ reservation when the study proffered was/is performed by the entity hawking the results. Remember the part in USPAP that requires appraisers to be objective and unbiased? Not an appraisal, I understand - but the perception of bias is hard to dismantle when the GSE's are analyzing their own data...

 

[TerryRohrer]

You mean analysis like this?

https://capitalmarkets.freddiemac.com/crt/docs/pdfs/SF_CS_ACEResearchNote.pdf

Didn't the same "analysts" make the following pronouncements, in part, in order to sell the unfounded narrative that appraisers are racist:

Conclusions:
"This is a persistent problem that disproportionately impacts hundreds of thousands of Black and Latino applicants"
"Our goal is to develop solutions to this persistent problem"

Solutions:
"uniform standards for automated valuation models"
"improved value processes"
" develop supporting tools to create new approaches across the valuation spectrum"
"The company is also testing whether alternatives to traditional appraisals offer a more objective analysis of property value."

 

[J Grant]

Okay but even to the extent that it's true it's still the lenders who are making those choices and who are acting in what they perceive their own best interests. It's the lenders who are the users of the appraisal. Not the buyer, not the RE Market and not the taxpayers (as per the decision making at the mortgage insurers and regulators).

The lenders who make these decisions literally do not work for the RE markets as a whole.

And you can't even develop an informed opinion if a problem exists because you don't know what the *additional* loss rates look like, if any. Nobody knows except perhaps some of the lenders and perhaps the GSEs.

The moral judgement is supposed to occur after the analysis of the facts, not in lieu of.​

Have you ever considered what you are going to do if (big if) it comes to pass that their alt-programs outperform the conventional w/appraisal pipelines? You might assume that can't happen but what if that assumption is incorrect? What then?

? Appraisers have the difficult properties now, the very low down payment deals and bad credit buyers and oddball properties so the WAIVERS with more down and performing properties might "outperform" - though outsiders should see their studies

I can retire, the younger generation midstream in the profession would be most affected.

 

[George Hatch]

That's a fair point - makes sense. The avg degree of difficulty is higher.

But in a way that point also demonstrates the utility of their use of these programs. The alternatives are sufficient for the easy assignments even if they aren't sufficient for all assignments. Sometimes an AVM is enough, other times it makes more sense to get the conventional appraisal. They're trying to manage their resources.

 

[djd09]

My son bought a house. Paid 25,000 over asking. I asked if he got an appraisal. Nope. He got a waiver. I was stunned.

to the borg...that is just rounding

 

[djd09]

WLA College Gets $100,000 to Open Unique Real Estate Appraiser Program​

West Los Angeles College has been awarded a $100,000 grant from Wells Fargo to launch a groundbreaking real estate appraiser education program this Fall. This is a first-of-its-kind, Bureau of Real Estate Appraisers (BREA)-approved program that provides aspiring appraisers with an innovative pathway to licensure without the traditional supervisory requirement.

Students will engage directly with licensed appraisers and gain exposure to real-world property appraisal assignments.

The new program offers a structured, classroom-based alternative to the conventional one-on-one apprenticeship model, creating greater access for students from all backgrounds. Real estate appraisal has historically faced challenges in attracting and retaining talent, in part due to reliance on hard-to-access mentorship models. West’s program is among the first in California to offer an alternative, competency-based pathway to licensure, expanding opportunities for those previously shut out by traditional entry points. Additionally, some students may qualify for course credit for prior learning.

“We are deeply grateful to Wells Fargo for their investment in our students and in the future of the appraisal profession,” said WLAC Dean, Dr. Carmen Dones. “This grant helps us create a more inclusive and equitable pathway into an industry that is vital to fair housing, lending, and economic opportunity.”

According to the Department for Labor, “Employment of property appraisers and assessors is projected to grow 4 percent from 2024 to 2034, about as fast as the average for all occupations.” Salary.com reports that appraisers in Los Angeles typically earn between $76,000 – $104,000 per year.

The lead instructor for this new program is Professor Chantal Grayson, a long-time real estate broker and author. Grayson draws from her vast experiences to bring real world knowledge to the in-person and online classroom. She is also an accomplished entertainment entrepreneur who co-founded the award-winning internet radio station GH3 Radio.

WLA College Gets $100,000 to Open Unique Real Estate Appraiser Program

West Los Angeles College has been awarded a $100,000 grant from Wells Fargo to launch a groundbreaking real estate appraiser education program this Fall. This is a first-of-its-kind, Bureau of Real…

culvercitycrossroads.com

all roads lead to AI, 15th st, and california

 

[J Grant]

That's a fair point - makes sense. The avg degree of difficulty is higher.

But in a way that point also demonstrates the utility of their use of these programs. The alternatives are sufficient for the easy assignments even if they aren't sufficient for all assignments. Sometimes an AVM is enough, other times it makes more sense to get the conventional appraisal. They're trying to manage their resources.

They want to make loans to get more deals through. The WAIVER value is the sale price or refinance target as long as it falls in their AVM range. That is not the case with an appraisal, which might come in lower.