Fannie Mae now reconsiders AI Ready

[DWiley]

One of things they mention about AI Ready is how it allows appraisers to control their data.

The AI letter was just what it claimed to be - a response to a great deal of false information that is being promulgated.

Actually, what the email says is that AIRD (Appraisal Institute Residential Database) was developed to allow appraisers to control "their data." Unfortunately, appraisers chose not to participate, and AIRD no longer exists, as teh letter states. So, appraisers do not have the control (or financial benefits) that AIRD would have offered.

Data has been "mined" from appraisal reports for over 25 years. Because lenders are the ones choosing to assemble it (rather than the appraisers choosing to do so), some lenders do control a lot of data. Most of it is used for quality control, but some of it is undoubtedly being used in AVMs. If you don't want to supply data to lenders the only real option is not to work for lenders.

 

[DWiley]

If we are free not to sign it, will they still accept our reports? after all he posted it.

Of course not - just as the attorney I am currently working for will not accept my report if I use Market Value rather than Fair Value, as the assignment dictates.

All assignments come with assignment conditions. If one accepts an assignment that requires one to use and agree to the things on Fannie Mae forms, then one has little standing to complain. The choice to accept or decline the assignment was made by the appraiser. A client cannot make an appraiser accept an assignment.

Some seem to be very uptight lately because they have not been reading the things they have signed. As a result, they have been agreeing to things that they did not intend to. Permission to send reports to data collection services was a Fannie Mae assignment condition long before FNC and AIReady even existed.

 

[PropertyEconomics]

The AI letter was just what it claimed to be - a response to a great deal of false information that is being promulgated.

Actually, what the email says is that AIRD (Appraisal Institute Residential Database) was developed to allow appraisers to control "their data." Unfortunately, appraisers chose not to participate, and AIRD no longer exists, as teh letter states. So, appraisers do not have the control (or financial benefits) that AIRD would have offered.

Data has been "mined" from appraisal reports for over 25 years. Because lenders are the ones choosing to assemble it (rather than the appraisers choosing to do so), some lenders do control a lot of data. Most of it is used for quality control, but some of it is undoubtedly being used in AVMs. If you don't want to supply data to lenders the only real option is not to work for lenders.

Mr Wiley .. with all due respect. I believe the vote by appraisers wasnt not to control their data it was not not allow their data to be used as it is now. To simply place the blame on the appraisers in the light you have is rather false in my opinion in the light you have presented.
My firm belief is that appraisers told the AI we dont want to share our data and we dont trust you to not sell it. It was a vote for ownership of the data not a vote to let lenders mine it.

 

[John Hassler]

Why would USPAP, Fanne, et. al. ever require the use of an insecure format like PDF?

Are you suggesting that the reason to use AIReady is because it is a more secure format?

I know many appraisers think "locked" PDFs are secure, but they are not. Google "PDF Cracker" and see how many programs there are to open password protected PDF files.

Better yet, send me a password protected PDF file and I will show you first hand how "secure" it is.

Secure is a relative term. Sending a locked pdf would appear to be a reasonable level of security for an appraiser sending a report to their client for their clients internal use. Now if lenders require AIReady due to some higher level of security than pdf then what that tells me is there are a lot of unethical and criminal types in the lending environment. If that's the case then perhaps lenders should focus their attention on ridding "their" side of the bad apples rather than strengthening the security level of an electronic appraisal report because at some point there will be an AIReady cracker program. Then what?

 

[Pamela Crowley (Florida)]

My firm belief is that appraisers told the AI we dont want to share our data and we dont trust you to not sell it. It was a vote for ownership of the data not a vote to let lenders mine it.

Thank you, PE. That is how I 'voted' at that time. I NEVER agreed to the free use of my data for someone else to sell - period.

Again, let's get all of this into the courts and in front of Judges, at the Federal level.

 

[DWiley]

It was a vote for ownership of the data not a vote to let lenders mine it.

No vote on allowing lenders to mine data was necessary because appraisers using Fannie Mae forms have been giving written permission for lenders to do that for at least 15 years.

As for ownership, it is clear that many appraisers take the view that they "own" the data in an appraisal report. Many accept this is a given. Why?

If anyone "owns" the subject data, why isn't it the property owner? Most of the other data in a report is gathered from third parties - so, how/why is "ownership" of that information conveyed to an appraiser simply because the appraiser put it in a report?

The point of AIRD was that if appraisers assembled a lot of data, that collection would be valuable, and appraisers could benefit financially. Despite claims to the contrary, the AIRD was passed by vote by the AI in the same manner as other AI issues.

AI warned that if appraisers rejected the concept (which they did) that lenders would just start assembling it themselves (which they have).

Appraisers were free to make a choice about participating in a national database. They made a clear choice. Now many are unhappy about the consequences of that choice, even though those consequences were predicted.

 

[DWiley]

I NEVER agreed to the free use of my data for someone else to sell - period.

If you signed a Fannie Mae form for a single-family dwelling in the last 15 years, that is exactly what you have done.

 

[Workbox]

No vote on allowing lenders to mine data was necessary because appraisers using Fannie Mae forms have been giving written permission for lenders to do that for at least 15 years.

But how many loans did go to FNMA in the past years? were those certs really required? or just becuase they were formatted to be easily datamined for the dataminers, but just hid behind those forms? Who were the architects?

Appraisers were free to make a choice about participating in a national database. They made a clear choice. Now many are unhappy about the consequences of that choice, even though those consequences were predicted.

They predicted that it would get abused. Look at who is who in the FNC's clients and they are in a world of hurt and getting worse and many others have gone BK, Yeah, it worked very well, THANKS DW.

 

[Pamela Crowley (Florida)]

I'll accept what the Federal Courts decide

 

[Ken B]

Thank you, PE. That is how I 'voted' at that time. I NEVER agreed to the free use of my data for someone else to sell - period.

Again, let's get all of this into the courts and in front of Judges, at the Federal level.

I really wish you would take that ball and run with it so that we can get some resolution on the subject.

Otherwise, it's just people talking. And, in the absense of a ruling to the contrary, people can talk all they want.

Like an affirmative ruling that data mining is acceptable will shut anyone up.