Federal Transaction Appraisal!

[Terrel L. Shields]

an evaluator needs to have the competency, experience, etc.

They say that about appraisers too. So what is most appraisers chosen on if not turn time and fee?

 

[Meandering]

That "experience" thing flew out the window with UAD, Something new, no one had experience, and it was an assignment condition, hence, no one was competent to comple UAD reports when new, because no one had "experience" with them.

 

[Ariba]

For someone that has been actively involved in the appraisal profession for as long as you have been the misinformation you perpetuate is appalling. While not FRTs, Fannie, Freddie, FHA, VA, USDA all require appraisals. And NO portfolio loans are not he only loans that "require" appraisals. To say otherwise is blatantly incorrect and you know it. Portfolio loans may be the only ones that are FRTs but again not the only ones where appraisals are required.

Are Fannie Mae, Freddie Mac, etc appraisal required by federal law or are appraisals just required by their policies and stockholders?

 

[TRESinc]

That "experience" thing flew out the window with UAD, Something new, no one had experience, and it was an assignment condition, hence, no one was competent to comple UAD reports when new, because no one had "experience" with them.

which is why it was announced far ahead of the start date to allow appraisers to become familiar with the system. they didn't send out an email one day and say "ok, starting right now you must use UAD - sorry we forgot to tell you about it".

 

[Howard Klahr]

Fannie Mae, Freddie Mac,

Fannie, Freddie FHA VA do not make loans. They acquire loans that meet certain criteria. That criteria requires that the loan in most instances has an appraisal as part of the loan file. That appraisal has to have been performed to the respective guidelines of the agency overseeing the respective program.

There is not nor has there ever been a federal law requiring appraisals for properties securing loans as part of these programs.

 

[Ariba]

Fannie, Freddie FHA VA do not make loans. They acquire loans that meet certain criteria. That criteria requires that the loan in most instances has an appraisal as part of the loan file. That appraisal has to have been performed to the respective guidelines of the agency overseeing the respective program.

There is not nor has there ever been a federal law requiring appraisals for properties securing loans as part of these programs.

Correct, and they can change these criteria's at any time. Which by the way they are currently pursuing. Mortgage defaults are at an all time low, less then 1% and they believe they can absorb a 3-5% default rate. Therefore, they want change their criteria by bypassing and/or relaxing the appraisal requirements. Thereby, making home ownership available to many more people.

 

[Howard Klahr]

Correct, and they can change these criteria's at any time.

The sky is falling, the sky is falling ....

 

[Ariba]

The sky is falling, the sky is falling ....

Ignorance is bliss says the Ostrich!

 

[LANoble]

Even though these agencies are doing them they are exempt from the requirement.

Is it true ~ the agencies haven't defined what "should" or "should not" qualify as an FRT? It's my understanding that verdict is still out. So, even though we have the perimeters set for what is and is not......the market place doesn't necessarily seem to agree.

 

[Meandering]

Sorry Howard and Joan.

12 cfr 226..43, most recently "updated" by the CFPB.


(c)Appraisals required -

(1)In general. Except as provided in paragraph (b) of this section, a creditor shall not extend a higher-priced mortgage loan to a consumer without obtaining, prior to consummation, a written appraisal of the property to be mortgaged. The appraisal must be performed by a certified or licensed appraiser who conducts a physical visit of the interior of the property that will secure the transaction.

(2)Safe harbor. A creditor obtains a written appraisal that meets the requirements for an appraisal required under paragraph (c)(1) of this section if the creditor:

(i) Orders that the appraiser perform the appraisal in conformity with the Uniform Standards of Professional Appraisal Practice and title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, as amended ( 12 U.S.C. 3331et seq.), and any implementing regulations in effect at the time the appraiser signs the appraiser's certification;

(ii) Verifies through the National Registry that the appraiser who signed the appraiser's certification was a certified or licensed appraiser in the State in which the appraised property is located as of the date the appraiser signed the appraiser's certification;

(iii) Confirms that the elements set forth in appendix N to this part are addressed in the written appraisal; and

(iv) Has no actual knowledge contrary to the facts or certifications contained in the written appraisal.

(d)Additional appraisal for certain higher-priced mortgage loans -

(1)In general. Except as provided in paragraphs (b) and (d)(7) of this section, a creditor shall not extend a higher-priced mortgage loan to a consumer to finance the acquisition of the consumer's principal dwelling without obtaining, prior to consummation, two written appraisals, if:

(i) The seller acquired the property 90 or fewer days prior to the date of the consumer's agreement to acquire the property and the price in the consumer's agreement to acquire the property exceeds the seller's acquisition price by more than 10 percent; or

(ii) The seller acquired the property 91 to 180 days prior to the date of the consumer's agreement to acquire the property and the price in the consumer's agreement to acquire the property exceeds the seller's acquisition price by more than 20 percent.