Fannie's Own Statement About Waiver /value Acceptance;

[alebrewer]

This kind of chart seems misleading, as if it suggests more loans go bad because of appraisals.

That is not what it is suggesting at all, J.

 

[J Grant]

That is not what it is suggesting at all, J.

Why was the chart posted, then, when the amount of principal recovered in a default has nothing whatsoever to do with the fact that an appraisal was performed?
The only link I can think of is that appraisals are required when the LTV is less than 10% down on a purchase. Maybe low equity on a refi? I have no idea wrt refi what makes a borrower be rejected.

I do know that nearly every assignment now is a complex or problem-riddled property. A lot of peculiar owners in a refi - they lie about occupancy, or I have to go back to properties a second time to get them to open the locked room or building they denied access to on the first visit.

 

[alebrewer]

Why was the chart posted, then, when the amount of principal recovered in a default has nothing whatsoever to do with the fact that an appraisal was performed?

You're one of the loudest - and most prolific - posters of the false narrative that appraisals somehow reduce defaults, and that loans with appraisals 'protect' the borrower from overpaying. The data presented just serves to add one more nail to the coffin that should bury this false narrative.

The only link I can think of is that appraisals are required when the LTV is less than 10% down on a purchase.

Citation, please? Appraisals are required on all levels of LTV, depending on the loan, the mortgagor, etc. We fulfill appraisals every day for LTV's < 70%.

 

[CGinMN]

Read the footnotes on the charts. It’s grouping like with like (matched pairs) and discarding those where the grouping are not enough for a good result. Probably not a perfect way to measure it, but bottom line is that’s there’s nothing here to suggest the GSE waiver usage is wildly causing more risk or default, or more loss due to default, as compared to appraisals. And that’s what they care about.

 

[J Grant]

You're one of the loudest - and most prolific - posters of the false narrative that appraisals somehow reduce defaults, and that loans with appraisals 'protect' the borrower from overpaying. The data presented just serves to add one more nail to the coffin that should bury this false narrative.

Citation, please? Appraisals are required on all levels of LTV, depending on the loan, the mortgagor, etc. We fulfill appraisals every day for LTV's < 70%.

Post a link to any post here where I said that appraisals reduce defaults (I never said it - good luck searching all my posts; you won't find it). What I actually said is that appraisals can NOT predict or protect against defaults ( and neither can other forms of valuation)

They will not allow, as far as I know, a WAIVER for loans with less than 10% down (unless they changed it to 5% down?) and thus will require an appraisal. That's all I said or meant. This does not include any other case where a lender can require an appraisal.

Now it is your turn- produce a citation that says that appraisals are required at all levels of LTV. Then you follow it up with, depending on ...I already knew that a lender can require an appraisal for X reason, including that it is simply their internal policy.

 

[J Grant]

Read the footnotes on the charts. It’s grouping like with like (matched pairs) and discarding those where the grouping are not enough for a good result. Probably not a perfect way to measure it, but bottom line is that’s there’s nothing here to suggest the GSE waiver usage is wildly causing more risk or default, or more loss due to default, as compared to appraisals. And that’s what they care about.

View attachment 111949

Nobody said waivers cause more risk of default. Where did anybody say that here on the board? Some of us are saying waivers can skew prices because the purchase price is the property's value in a waiver.

The reality is that neither a waiver nor an appraisal can prevent a default. The fact that there is more severe loss of principal in payoff in loans that got appraisals has nothing to do with the appraisal itself, yet you went to the trouble to find this chart and post it.

 

[alebrewer]

The reality is that neither a waiver nor an appraisal can prevent a default.

Finally. That only took 57 pages of posts.

 

[J Grant]

Finally. That only took 57 pages of posts.

Do you have a reading comprehension problem? I have posted that same statement numerous times in this thread.

 

[CGinMN]

Nobody said waivers cause more risk of default. Where did anybody say that here on the board? Some of us are saying waivers can skew prices because the purchase price is the property's value in a waiver.

Got it, so you have zero concern about the use of waivers in a cash out refinance.

If we search the forum for waiver + bailout, which forum member do you think appears most?

 

[J Grant]

Got it, so you have zero concern about the use of waivers in a cash out refinance.

If we search the forum for waiver + bailout, which forum member do you think appears most?

I never said that I have zero concern wrt a cash-out or refinance with a waiver. What weird logic led you to that conclusion simply because I wrote about concerns about prices with waivers used for purchases in a sentence? How does one thing cancel out the other?

A poster writes "I like apples" and then the attacker says, "Got it, you hate all other fruit."

I have expressed concern in numerous posts wrt the borrower or lender estimating the property value waiver for a refi or cash-out ( I am aware data analytics are done for some mystery range...but the point value as the property value is estimated by the borrower or lender)