FHFA to make desktop appraisals permanent for purchases in 2022

[Zoe]

The problem was in the meltdown that mortgage lenders and mortgage brokers directly got to pick the appraiser - the format had nothing to do with it, if majority of work went to number hitters whether a long form or short form or inspection or not doesn't make a difference

Yeah, it goes back to if a skilled geo competent appraiser spends more time on the assignment, it will be more credible and reliable for all parties associated with the transaction.

Not just lender.

 

[glenn walker]

The problem was in the meltdown that mortgage lenders and mortgage brokers directly got to pick the appraiser - the format had nothing to do with it, if majority of work went to number hitters whether a long form or short form or inspection or not doesn't make a difference

And now the AMC or a direct lender gets to pick the appraiser and nothing has fundamentally changed. But like I stated the 2007 mortgage meltdown was not caused by appraisers as it was a Underwriting problem and the next meltdown will not be due to appraisals but to artificially low interest rates and creating another potential bubble. No matter how qualified a borrower is that all changes in a economic crisis. In 2005 almost everyone had a 700 plus Fico Score and by 2009 most had 500 to 600 at best.

This time ( In High Cost States ) it will be about Unemployment and people not being able to pay on those $500K to $1,000,000 mortgages in CALI. The low cost States and ones who didn't-have massive speculation will be fine but high cost States may see a real nightmare and next year or the year after. Is it different this time ? Yes--but we just reverse engineering the 2007 by changing how we inflated loans and prices. Note: In Tennessee-many Californians going there flush with cash and they will be fine.

 

[Zoe]

And now the AMC or a direct lender gets to pick the appraiser and nothing has fundamentally changed. But like I stated the 2007 mortgage meltdown was not caused by appraisers as it was a Underwriting problem and the next meltdown will not be due to appraisals but to artificially low interest rates and creating another potential bubble. No matter how qualified a borrower is that all changes in a economic crisis. In 2005 almost everyone had a 700 plus Fico Score and by 2009 most had 500 to 600 at best.

This time ( In High Cost States ) it will be about Unemployment and people not being able to pay on those $500K to $1,000,000 mortgages in CALI. The low cost States and ones who didn't-have massive speculation will be fine but high cost States may see a real nightmare and next year or the year after. Is it different this time ? Yes--but we just reverse engineering the 2007 by changing how we inflated loans and prices. Note: In Tennessee-many Californians going there flush with cash and they will be fine.

This time will be different. I’m sure appraisers will get pegged in big drop in market. Some of these products will increase risk to appraiser and lending.

Think about this. If you were doing appraisal for a homeowner, buyer or seller, (considering intended use and user and client), would you want to do a desktop? I would not.

 

[ucbruin]

The appraiser as the Messiah/Savior of the mortgage industry is a myth....
Appraisers have never prevented a real estate crash....
And to believe that the last crash was due to AMCs/lenders finding a sufficient quantity of "numbers hitting" appraisers, not only nationwide but globally, is ludicrous....

I said this 7 years ago....
Appraisers here who believe that the properties that they appraised between 2005-2007 didn't suffer a drop in value by 10%-20% from the appraised value during 2008-2009....
Are not rational and/or realistic thinkers....
Or they have the a Messiah/Savior complex....


Zoe....
Funny how it's always "different this time"....

 

[Zoe]

The appraiser as the Messiah/Savior of the mortgage industry is a myth....
Appraisers have never prevented a real estate crash....
And to believe that the last crash was due to AMCs/lenders finding a sufficient quantity of "numbers hitting" appraisers, not only nationwide but globally, is ludicrous....

I said this 7 years ago....
Appraisers here who believe that the properties that they appraised between 2005-2007 didn't suffer a drop in value by 10%-20% from the appraised value during 2008-2009....
Are not rational and/or realistic thinkers....
Or they have the a Messiah/Savior complex....


Zoe....
Funny how it's always "different this time"....

It’s not that. Many buyers get burned before the sale is completed. Many sellers get burned. A desktop increases that risk to buyer and seller and homeowners. That’s why I asked would you want to do a desktop for a buyer/seller/homeowner as your client?

 

[Zoe]

Like if homeowner, buyer, seller was client, might could change definition of value from MV but that wouldn’t help much.

 

[glenn walker]

The appraiser as the Messiah/Savior of the mortgage industry is a myth....
Appraisers have never prevented a real estate crash....
And to believe that the last crash was due to AMCs/lenders finding a sufficient quantity of "numbers hitting" appraisers, not only nationwide but globally, is ludicrous....

I said this 7 years ago....
Appraisers here who believe that the properties that they appraised between 2005-2007 didn't suffer a drop in value by 10%-20% from the appraised value during 2008-2009....
Are not rational and/or realistic thinkers....
Or they have the a Messiah/Savior complex....


Zoe....
Funny how it's always "different this time"....

It’s not that. Many buyers get burned before the sale is completed. Many sellers get burned. A desktop increases that risk to buyer and seller and homeowners. That’s why I asked would you want to do a desktop for a buyer/seller/homeowner as your client?

Yes I would do a Desktop or a 2055 for a Buyer/Seller/Home Owner but I would also tell him or her or It that it was worthless the day after I signed it because out here we are in uncharted territory. On a VA or FHA low down what good is an-appraisal accept for a lender to place it into there loan file and tell a regulator it came in at or close to Purchase Price-In low cost states people panic over a $10K low appraisal but out here no sales close where a value comes in below contract as sellers do not lower prices.

The Big Guys like Racketeer Mortgage are using algorithms and they know no matter what happens Appraised values will be of no good in a serious downturn. Therefore why pay for something that is not needed. Just-like us when Pop and Billy were younger and we were buying real estate we never needed or would depended on an-appraised value as we know they are only a picture of what happened yesterday.

 

[Non Sequitur]

We’re famous!

 

[Non Sequitur]

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[J Grant]

Yes I would do a Desktop or a 2055 for a Buyer/Seller/Home Owner but I would also tell him or her or It that it was worthless the day after I signed it because out here we are in uncharted territory. On a VA or FHA low down what good is an-appraisal accept for a lender to place it into there loan file and tell a regulator it came in at or close to Purchase Price-In low cost states people panic over a $10K low appraisal but out here no sales close where a value comes in below contract as sellers do not lower prices.

The Big Guys like Racketeer Mortgage are using algorithms and they know no matter what happens Appraised values will be of no good in a serious downturn. Therefore why pay for something that is not needed. Just-like us when Pop and Billy were younger and we were buying real estate we never needed or would depended on an-appraised value as we know they are only a picture of what happened yesterday.

If appraisal comes in below SC price, even if it closes at the SC price, the lender ( and investors ) are in a better position due to their having more equity , the buyer puts in own funds when they close at a price above MV opinion in a financed loan.

Appraisals, when ordering conditions are not skewed do have a mitigating affect on big price swings up or down, wrt LTV of lenders. Problem of course is even in better scenario the agencies never really wanted appraiser independence, just a bit of it to address the worst of egregious prices or behavior.