Freddie Mac To Waive Appraisals?

[Restrain]

If you think that Fannie orders appraisals on most of its REO's you are simply mistaken. Most of the MI claims submitted to my company by Fannie Mae include one or more post default BPO's but no post default appraisal.

I am the guy that did a LOT of the MI reviews, wrote the MI claims for Fannie Mae. Under the MI terms, the appraised value after foreclosure was not the important factor, but rather the actual loss. If a home was appraised at X but after foreclosure and sale actually came in at Y, Y was the issue. That was why you didn't see an appraisal.

 

[timd354]

I am the guy that did a LOT of the MI reviews, wrote the MI claims for Fannie Mae. Under the MI terms, the appraised value after foreclosure was not the important factor, but rather the actual loss. If a home was appraised at X but after foreclosure and sale actually came in at Y, Y was the issue. That was why you didn't see an appraisal.

No, that is not why. When Fannie (or anyone else) makes a claim against one of our MI policies, they have to submit the entire loan and servicing file to us (including any and all valuations they have obtained on the subject property) If they fail to submit the entire loan & servicing file to us, then under the terms of our Master Policy, the claim has not been perfected and we don't have to pay the claim until the entire file has been submitted to us. We do see post-closing appraisals that Fannie has obtained on some files and almost always receive 1 or more BPO's, but we don't see a post closing appraisal on every file that Fannie submits a claim to us.

You are correct that the appraised value (of BPO value) is not what determines the amount of Fannie's loss on a particular loan, however the valuation is very important to us because it plays a role in determining what we may do regarding the MI claim such as whether we exercise our purchase option on the property (Per the terms of our Master Policy we can settle the claim by either paying the loss up to our coverage limits or by purchasing the property from Fannie by paying the entire loan balance (including allowable default costs, unpaid interest, etc.) We have bought numerous properties this way and have ended up reducing our loss on these properties and have entirely eliminated our loss on some loans when we resell the property.

 

[Ken Masla]

Appraisals for mortgages are going away.

Maybe 2 decades: when appraisals will become irrelevant and not accepted by anyone.

I got it hand it to Zillow. When they first started their values were waaaaaay off.

I recently did a complex property in an urban area. No comps really. I checked Zillow for chits and giggles and it was almost spot on.

The banks will still charge the full "valuation of collateral fee" and keep most of it. They will pay a super intelligent AVM $50 per property and it will suffice.
The Skynet of the appraisal industry is coming.

 

[NC Appraising]

Appraisals for mortgages are going away.

Maybe 2 decades: when appraisals will become irrelevant and not accepted by anyone.

I got it hand it to Zillow. When they first started their values were waaaaaay off.

I recently did a complex property in an urban area. No comps really. I checked Zillow for chits and giggles and it was almost spot on.

The banks will still charge the full "valuation of collateral fee" and keep most of it. They will pay a super intelligent AVM $50 per property and it will suffice.
The Skynet of the appraisal industry is coming.

No chits.

All jobs are going away. Do not blame the Mexicans....blame the geniuses that are inventing the technology. Look at what the Japanese are doing...

One day we will wake up and realize......we need jobs!! Unless the government makes the tech companies to pay welfare??

1. Real estate agents are going away.
2. Mortgage brokers are going away.
3. The list goes on and on.
4. Bank tellers
5. UW's
6. Car salesman

As for the AVM....your are wrong. It will be free from Fannie Mae and Freddie Mac. The only good outcome.....Let Corelogic and the rest of the scum bag AMCs/Title Companies go out of business. Wont happen, but I have my fingers crossed.
(all are not totally going away, the field will shrink as if you are taking a cold shower. )

 

[Eli]

GSE's are going away or already have almost. They are or will be GE's.

It's their own fault. If I owned stock in a GSE, now might be a good time to sell.

 

[Eli]

There will be one bank and that will be either US govt owned or world govt owned. US locally prolly first and then world govt owned.

No buying or selling without a mark. The signs are pointing to the rapture and the second coming of Christ as foretold long ago.

 

[J Grant]

No chits.

All jobs are going away. Do not blame the Mexicans....blame the geniuses that are inventing the technology. Look at what the Japanese are doing...

One day we will wake up and realize......we need jobs!! Unless the government makes the tech companies to pay welfare??

1. Real estate agents are going away.
2. Mortgage brokers are going away.
3. The list goes on and on.
4. Bank tellers
5. UW's
6. Car salesman

As for the AVM....your are wrong. It will be free from Fannie Mae and Freddie Mac. The only good outcome.....Let Corelogic and the rest of the scum bag AMCs/Title Companies go out of business. Wont happen, but I have my fingers crossed.
(all are not totally going away, the field will shrink as if you are taking a cold shower. )

The question is, when so many become unemployed, or marginally employed due to loss of jobs....who will buy the products and services the corporations sell?

Such as an AVM or similar.....with few able to buy a house if so many are thrown out of work, the added speed of an instant valuation will be an ironic joke.

 

[Doug in NC]

Appraisals for mortgages are going away.

Maybe 2 decades: when appraisals will become irrelevant and not accepted by anyone.

I got it hand it to Zillow. When they first started their values were waaaaaay off.

I recently did a complex property in an urban area. No comps really. I checked Zillow for chits and giggles and it was almost spot on.

The banks will still charge the full "valuation of collateral fee" and keep most of it. They will pay a super intelligent AVM $50 per property and it will suffice.
The Skynet of the appraisal industry is coming.

I frequently check Zillow and other online AVM values against my appraisals, and it is extremely rare that they are "spot on".

 

[Terrel L. Shields]

Unless the government makes the tech companies to pay welfare??

Every company that moves a plant should have to pay those laid off their salary and insurance until they reach age 65.