FHFA to allow alternative appraisal methods on purchases up to 97% LTV

[Alsie35]

Maybe. That (loan originator controls the valuation ) isn't how the banking regs were actually written, though.

I think it's safe to say that if the lenders had the technology it takes to do this 30 years ago then they would probably have done it 30 years ago and none of us would be appraisers today. Market ineffiencies giveth, market efficiencies taketh away.


Refer to tagline below:

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Pray tell, just WHO is this "Steven Santora" that no one has ever heard of?

 

[TerryRohrer]

Pray tell, just WHO is this "Steven Santora" that no one has ever heard of?

I can't see GH's tagline, but I assume that is what you are referring to. If you search for user "Fred" you will find his old posts. A pretty bright guy who wasn't shy about stating his opinion.

Edit: Now I don't find user "Fred". Either changed or not showing as a user anymore.

 

[George Hatch]

For reference, everyone using Alamode Titan is in violation of USPAP, IMO. Corelogic is on the TAF IAC, which is a little sus.

https://www.alamode.com/legal/eula/titan

"ALM may retain and use information collected in your use of the Service."

We might not have any alternative data providers as an alternative to Corelogic's MLS business, but I'm not voluntarily patronizing any company that is subsidizing or supporting the PAREA program. I also think it improper for TAF to be handing out any cash-money grants to education providers unless its the result of some consent decree with the feds because appraisal texts 70 years ago went along the then-prevalent lending practices involving redlining. TAF doesn't hand out grants for USPAP QE or CE vendors.

If the feds want to subsidize the Appraisal Institute and other QE vendors in their PAREA programs then let them do so directly.

 

[Doug Wegener]

So, for a conventional purchase loan, why would a lender ever order an appraisal anymore? If they don't have to, why would they?

 

[Mike Ault]

Pray tell, just WHO is this "Steven Santora" that no one has ever heard of?

He is/was an appraiser from either Puerto Rico or the Virgin Islands, I can't recall now. However he was an extremely wise sage, and is often quoted.

 

[shrubberyvaluation]

If it were to happen you would have the same bootlickers on the forum nod in agreement and say something like “See I told you, why would the GSEs get rid of appraisers if their spending so much money building the new forms and UAD” or some other idiotic statement.

Seems they want to make using an appraiser more expensive. You can use an appraiser that will charge you more because they have to fill out all of this information that no one cares about or will read on this long form and be bound by more regulations and drive the comps, or you can use a cheaper option.

 

[Essexfenwick]

So, for a conventional purchase loan, why would a lender ever order an appraisal anymore? If they don't have to, why would they?

High dollar, construction / perm. When the valuation comes in low.

 

[Mike Ault]

So, for a conventional purchase loan, why would a lender ever order an appraisal anymore? If they don't have to, why would they?

You are correct. If they use the automated GSE collateral underwriting system correctly, they can make those loans with "no recourse" when they go bad as well.

 

[shrubberyvaluation]

So, for a conventional purchase loan, why would a lender ever order an appraisal anymore? If they don't have to, why would they?

If their investors want it.

 

[Non Sequitur]

If their investors want it.

Yep, other than that if the lender can push the easy button they will.