Federal Transaction Appraisal!

[Ariba]

What is the percentage of all appraisals completed, is for a Federal transaction, that require an appraisal? Is it 10%, 25%, .... 100%.

 

[Adios]

What is the percentage of all appraisals completed, is for a Federal transaction, that require an appraisal? Is it 10%, 25%, .... 100%.

About 8% are FRTs according to FFIEC. Shameful abuse of the law coming from safety and soundness regulators .

 

[Ariba]

About 8% are FRTs according to FFIEC. Shameful abuse of the law coming from safety and soundness regulators .

You are correct and it going down in the very near future.

 

[hastalavista]

About 8% are FRTs according to FFIEC. Shameful abuse of the law coming from safety and soundness regulators .

Joan-
Can you break that down a bit?
Is that Residential Mortgage Appraisals only?
And, does the 8% for FRTs represent 8% of the total appraisals (which presumes the other 92% are for GSE/VA/FHA, etc.)?

The question (and maybe ARIBA can clarify): What is the percentage of all appraisals completed, is for a Federal transaction, that require an appraisal? Is it 10%, 25%, .... 100%.
If I reword it: Of the residential mortgage universe where an appraisal is required, of what percentage are FRTs?
Would imply to me that out of 100% of all transactions that require an appraisal, 8% of them are FRTs and 92% are something else (GSE, etc.).

I don't see anything alarming if I'm interpreting it correctly. All transactions that require an appraisal get an appraisal. However, out of all those transactions (residential mortgage), 8% of them are for FRTs (must follow the IAG) and everything else is something else (GSE or FHA guidelines).

Otherwise, it doesn't make any sense to me (only 8% of FRTs that require an appraisal are completed with an appraisal?????).

Thanks!

 

[Adios]

Joan-
Can you break that down a bit?
Is that Residential Mortgage Appraisals only?
And, does the 8% for FRTs represent 8% of the total appraisals (which presumes the other 92% are for GSE/VA/FHA, etc.)?

The question (and maybe ARIBA can clarify): What is the percentage of all appraisals completed, is for a Federal transaction, that require an appraisal? Is it 10%, 25%, .... 100%.
If I reword it: Of the residential mortgage universe where an appraisal is required, of what percentage are FRTs?
Would imply to me that out of 100% of all transactions that require an appraisal, 8% of them are FRTs and 92% are something else (GSE, etc.).

I don't see anything alarming if I'm interpreting it correctly. All transactions that require an appraisal get an appraisal. However, out of all those transactions (residential mortgage), 8% of them are for FRTs (must follow the IAG) and everything else is something else (GSE or FHA guidelines).

Otherwise, it doesn't make any sense to me (only 8% of FRTs that require an appraisal are completed with an appraisal?????).

Thanks!

Denis, I actually do have the number of appraisals completed ,Fannie, Freddie, VA and FHA. I will have to look it up though. It I thought the question was how many require appraisals. Even though these agencies are doing them they are exempt from the requirement.

 

[Terrel L. Shields]

FRTs don't apply to VA, FHA, or GSEs, only to banks. All loans at banks under $250,000 therefore do not require an appraisal normally. In flyover America, probably 80% of houses and perhaps only slightly less commercial and agri loans fall below the de minimus. Banks do have to get an evaluation but the evaluation can pretty much be done by anyone.

 

[Adios]

FRTs don't apply to VA, FHA, or GSEs, only to banks. All loans at banks under $250,000 therefore do not require an appraisal normally. In flyover America, probably 80% of houses and perhaps only slightly less commercial and agri loans fall below the de minimus. Banks do have to get an evaluation but the evaluation can pretty much be done by anyone.

FRT exempts all Fannie, Freddie, VA and FHA loans regardless of threshold .

 

[Terrel L. Shields]

FRT exempts all Fannie, Freddie, VA and FHA loans regardless of threshold .

exactly...Banks don't lend those loans from their depositor funds usually, parceled into bond instruments, they originate secondary market loans but their own in house loan portfolio lends to commercial, consumer and home loans...All but one loan in my life was money lent to me from the banks own funds and that one loan was a Fannie Mae backed loan.

 

[Adios]

exactly...Banks don't lend those loans from their depositor funds usually, parceled into bond instruments, they originate secondary market loans but their own in house loan portfolio lends to commercial, consumer and home loans...All but one loan in my life was money lent to me from the banks own funds and that one loan was a Fannie Mae backed loan.

It was not the intent of FIRREA to construct a system of oversight for aappraisals by exempting 93% of all transactions! You can thank bank regulators for relaxing their own rules! It is insane!

 

[hastalavista]

[QUOTE Banks do have to get an evaluation but the evaluation can pretty much be done by anyone.[/QUOTE]

Not according to the IAG.


Back to my original question:

What is the percentage of all appraisals completed, is for a Federal transaction, that require an appraisal? Is it 10%, 25%, .... 100%.

I am reading this to ask, of the appraisals completed that require an appraisal, what is the percentage of those that fall under the FRT definition? And, I'm presuming we are only talking residential mortgages here.

Ok. I'll buy off 8% of all those appraisers are for FRTs.
GSEs (VA, FHA, etc.) require appraisals for their programs (exception on certain properties).
FRTs are required to obtain an appraisal on a property exceeding the de minimus or when the risk associated with that transaction warrants more than an evaluation.
If the two groups above represent 100% of appraisal universe that is the basis for the question, then I certainly can believe of that entire group, 8% represents the FRT component.

But what is the point of that statistic other than to demonstrate the size of non-FRT required-appraisals relative to FRT required-appraisals? They all require an appraisal.