to increase the current $400,000 residential appraisal threshold to $650,000,
Demins rising again? You know, we would not care much about any of this, if the GSE's were not gambling with the backstop of the American taxpayer. Stupidest financial decision making approach possible.
This waivers thing is shaping up exactly as expected. Consumers have no idea where they are at. Professional valuation services are sidelined in favor of automation. Black box proprietary avm algorithms nobody knows anything about.
For the record, lenders push the avm. Don't worry about integrity of the program, according to the AVM FINAL RULE which allows this activity, the avm's will automatically adjust for racial disparities in valuation, and the lender will self certify the avm is just as good as a human full service appraiser, with a bi annual two page avm self certification paperwork deal. No outside auditing or forensic review of process, protocol, or coding is required. The AVM rule is the quintessential gift of all gifts to the lending industry. The PAVE task force is how they justified pushing the AVM rule. People have no idea how coordinated this all was.
Anyone whom believes the lenders will not manipulate their internally controlled avm coding to push higher loan volume needs committed to a psychiatric institution immediately. Institutional memory problems much? We have officially entered another bubble bust predatory mortgage lending cycle, risk remains for the most part, unabated. The fallacy that lenders are being responsible with risk management when they're originating on fractional reserve basis, often required to have less than 15% origination collateral.
Former FHFA director warned of this a while back. Image.
Other appraisers called this one ahead of time. FNMA to the state of Maryland; Drop Dead.
Mortgage giant Fannie Mae and her twin, Freddie Mac, have a message for the State of Maryland: Kindly disintegrate.
appraisersblogs.com
To all the appraisers here pontificating and imagining mortgage fraud is not reaching record level highs once again, that all of this is all good. Go ahead, ignore the evidence. Live in a bubble. There is nothing any of us can do about this anyways.
Fannie Mae has been a breeding ground for fraud & abuse, dismantling critical underwriting standards that once protected our housing market.
appraisersblogs.com
One appraiser on the blogs put forth a really interesting summary of the past two decades, worth the time to read.
If the management model were truly noble, it would not stop at appraisers. Yet somehow the babysitting service never expands beyond us. Once upon a
appraisersblogs.com
Great post NC, great post.
The entertainment value here is remarkable. That escalated quickly.
This is so much better than a uniform standard to risk approach, where everyone gets a full appraisal, regardless of loan amount, and all appraisals were the same, industry wide, the same format followed for GSE work as all through the rest of the valuation need spectrum far outside of lending.
I think most people arguing in favor of the waiver program have not taken the time to read the AVM final rule. Flew right under the radar for most people, especially appraisers, whom were back on their heels fighting back against fictitious notions of valuation bias via the PAVE task force. All the big companies whom supported the valuation bias narrative got everything they wanted. They have now cornered the valuation services market for gse work and are capitalizing immediately. Brand new unprecedented access to monetize consumer data, proprietary appraiser work products, etc. They're right now shuffling all this overly granular detail for what should be GLB protected consumer data around the world and back, before a hybrid request or avm utility use is even finalized.
https://www.federalregister.gov/doc...trol-standards-for-automated-valuation-models
Pay attention because this is the neat part; Disparate valuation impact theory is cooked into every single part of this. The helicopter home argument. The homes should have equalized fair value in compliance with non discrimination laws, and avm algorithms can and will be adjusted to accommodate this. / They fought to force appraisers to apply this but the rules of the profession and ethics in general, long established standard practices of the valuation industry obviously prevented dishonest manipulation of valuation. That is why the alternative approach of utilizing AVM's with an expanded waiver program was kicked into high gear. Every single wish list of the PAVE task force has been fulfilled by the waiver program. The DEI is now firmly entrenched on a permanent basis into the mortgage lending process. From code to qualification to real world implementation, a social credit scoring program is now in place. Keyword for above document; Disparate.
Has anyone bothered to read the patents of what related automated loan approval software actually looks like? Proponents of waivers may want to take a look at that. All the big players have something just like this. Google patent research is an endless time sink. The history of patent approval, trading, and progression is what is telling. They've all worked on this for many many years. When TAF proposed the USPAP certified avm, that did not work so well, was rejected. Then came PAVE slander, the excuse to justify a total retooling of the industry. Then came the avm final rule. Now comes a further demins raise, right on time.
Data analytics are provided in loan treatment. Various sources of data may be used to optimize or predict value for a loan. Using machine-learning and/or statistical analysis, loans or treatment best suited for a particular borrower may be determined. Due to the large amounts of data available...
patents.google.com
Scroll down quite far, read the borrower cluster identification types. Which type of borrower are you? FICO scores take a back seat to the identity grounded risk based analysis. Socialism in lending. It will not matter if you are personally responsible, if you cluster up near other groups of people whom have poor scoring, you're in the exact same boat as them. Debt traps for everyone!
Class has these as well. They all do. Methods for automatically translating real estate descriptions.
Systems and methods for managing, generating, and reporting real estate data from a plurality of source databases that are distributed over a computer network are disclosed and described.
patents.google.com
Where avm tech started. It's in all the appraisal software now.
An automated valuation system for an entity, that uses specific input attributes items and a plurality of primary token features that are disposed within a specific geolocation, in addition, a plurality of valued entities input data set items and a plurality of secondary token features that are...
patents.google.com
Remote real estate inspection tech. Likely with AMC's involved. Imagine that. This is where the 12 billion of junk fee skimming went. To put everyone here out of a job.
The present disclosure provides computerized, automated real estate valuation systems and methods that take into account subjective factors of the property like curb appeal and property condition. In preferred embodiments, the valuation system uses image recognition of images (photos and/or...
patents.google.com
FNC incorporated scoring a real estate appraisal. Ever heard of that one? Probably you have.
A system and related methods for the management and evaluation of real estate appraisals comprising, a method of determining a standardized score representative of the accuracy and quality of a real estate appraisal. Data from the appraisal is extracted and evaluated according to a plurality of...
patents.google.com
Skim some of it yourself, there is oh so much.
https://patents.google.com/?q=(FNMA)&oq=(FNMA)
Appraisers on here arguing the minutia of it all. You're all missing the big picture. Take a closer look at the tech you're actually working with, and working under.
This is fun. Bored house wives whom do gig work like being a mystery shopper, pop up inventory scanning, and door dash, they are coordinating online how to get more PDC inspection work for lending. The temporary employment firms are all over this one. Totally a better approach than having a qualified licensed well vetted licensed professional real estate appraiser inspect those homes. Because; Too many white folk and appraisers sometimes omitted information about homes they did not feel is relevant. Imagine being someone actually trying to refinance and then dealing with a work visa migrant whom barely speaks english or some sycophant house wife walking into your home and running a 3d imaging scan of all your belongings, in every single room of your home.
https://appraisersblogs.com/property-valuation-and-the-future-of-data-collection/#comment-46843
Guess what happens next. You don't need to because it's clear as day. You're frigging done. The end of the line is near for everyone. This will not stop at mortgage lending. We warned you for the past two decades that if we did not protect manual process in GSE appraisal, everyone else would be effected down the line. Now the big appraisal franchise firms are doing exactly what the rules prescribe as requiring AMC licensing for, maintaining large panels, doling out orders, managing payments, multi state footprints. But they don't even bother to have an AMC license. What a trick eh? Brand yourself a valuation tech firm or an appraisal firm; no AMC licensing is imposed. They're now branching into legal, estate, government, and soon commercial. You're all done. And that's what most deserve for failing to stand up for the human value of manual detailed orientated process and place consumer protection and consumer privacy as the utmost priority. It's over, most people here simply don't posses the intellectual capacity or advanced research ability to reconcile all this data. You're all cooked! At this point the disclosure is simply an ongoing stream of whistleblower activity because the markets will crash, and the regulations and rules will eventually be rewritten again. We have entered the exploitative phase of the advanced technological infrastructure. Up until this point in time, was the build up, development, and slow incremental implementation. Now everything is in place and lined up. The systems just went live.
Last one out, please don't forget to turn off the lights.
