Freddie Mac To Waive Appraisals?

[NC Appraising]

https://www.washingtonpost.com/real...7d93165c6d4_story.html?utm_term=.dcb8b7b1575c


http://www.appraisalinstitute.org/appraisal-institute-concerned-with-freddie-mac-policy-changes/
http://www.chicagotribune.com/class...13-kenneth-harney-column-20161110-column.html
Under its new policy announced Oct. 24, Freddie Mac will waive appraisals in lieu of an “appraisal alternative” in a host of situations, including first-purchase loans.


Wonder who is behind this?
http://www.quickenloans.com/press-r...ake-home-financing-accessible-for-new-buyers/

 

[Elliott]

From Ken "I'm no friend of Appraisers" Harney's article, “When was the last time a Zillow computer walked into your house?” Computerized estimates “can’t tell you everything you need to know about value,” he said.

If Freddie is reading this, I should point out that Oregon's assessor's haven't done physical re-appraisal maintenance for 25 years, ever since they froze assessed values to a 3% per year increase.

At least Ken didn't totally throw us under the bus and back over us. There was an article in the WSJ about who has benefited most from the ultra low interest rates....its the rich with high credit scores. The evidence is those with average and poor credit scores are scorned by lenders.

 

[NC Appraising]

From Ken "I'm no friend of Appraisers" Harney's article, “When was the last time a Zillow computer walked into your house?” Computerized estimates “can’t tell you everything you need to know about value,” he said.

If Freddie is reading this, I should point out that Oregon's assessor's haven't done physical re-appraisal maintenance for 25 years, ever since they froze assessed values to a 3% per year increase.

At least Ken didn't totally throw us under the bus and back over us. There was an article in the WSJ about who has benefited most from the ultra low interest rates....its the rich with high credit scores. The evidence is those with average and poor credit scores are scorned by lenders.

Like the CEO of Quicken hinted at:

The future will be Freddie/Fannies AVM and when needed a property inspection. A new job category will be created "property rater".

The few appraisers that are left will get the complex properties, when the AVM does not "hit", or when the AVM kills the deal, i.e., comes in low.


Hey Freddie....want to speed up the appraisal process? Let us do our jobs without all of the red tape and requirements!!! You can go from 100 pages of do's and don'ts, red tape, AMC's, to AVM's WITH NO GUIDELINES PER SAY? Idiotic.

 

[BRCJR]

What will they do when the database is not refreshed with new data, because the appraisal volume drops, and they have little/less to strip from?

 

[NC Appraising]

What will they do when the database is not refreshed with new data, because the appraisal volume drops, and they have little/less to strip from?

MLS data and tax data? Just like Zillow.

Freddie Mac has never been a fan of appraisals. For their REO properties, they only order BPO's, unlike Fannie which orders appraisals.

What I find funny is that Quicken wants us out of the equation.....but....http://www.usatoday.com/story/money/business/2015/04/24/quicken-loans-FHA-HUD-lawsuit/26290987/ For example, the government's complaint states that when Quicken received an appraised value for a home that was too low to approve a loan, Quicken often requested a specific new and higher value from the appraiser.

What are they going to do when the AVM disagrees? How many AVMs are going to kill the deal? Who will they cry to then?

http://www.freep.com/story/money/bu...ns-named-trumps-HUD-transition-team/94758742/ Say it's not so!!!

 

[panappr]

What are they going to do when the AVM disagrees? How many AVMs are going to kill the deal? Who will they cry to then?

Like you stated they will have to get an appraiser (with E & O) to bring it in at the desired amount..... problem solved.

 

[BRCJR]

MLS data and tax data? Just like Zillow.

Freddie Mac has never been a fan of appraisals. For their REO properties, they only order BPO's, unlike Fannie which orders appraisals.

What I find funny is that Quicken wants us out of the equation.....but....http://www.usatoday.com/story/money/business/2015/04/24/quicken-loans-FHA-HUD-lawsuit/26290987/ For example, the government's complaint states that when Quicken received an appraised value for a home that was too low to approve a loan, Quicken often requested a specific new and higher value from the appraiser.

What are they going to do when the AVM disagrees? How many AVMs are going to kill the deal? Who will they cry to then?

http://www.freep.com/story/money/bu...ns-named-trumps-HUD-transition-team/94758742/ Say it's not so!!!

So FNMA and Freddie Mac belong to hundreds, if not thousands, of MLS?

 

[Eli]

Freddie Mac is worried because they know they are a heartbeat from being history.

 

[Eli]

Tell me the govt can't do better than Freddie Mac. Please make it a book to convince me.

 

[timd354]

Freddie Mac has never been a fan of appraisals. For their REO properties, they only order BPO's, unlike Fannie which orders appraisals.

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.