Freddie Mac vs Appraiser Bias

[glenn walker]

One bad thing that happened during Covid.19 lockdown in California was some extreme what I will call it profiteering. I was dealing with some and we needed a 1,000 square foot vacant bungalow done..and the POS would say nope exterior only $800 bucks. I am like Dude it's vacant. Didn't matter at that point I realized..we had set yourself up for the end as GREED had gotten so bad. Today I no longer care what happens to these people. On this forum we had some in California brag about their $1,000 Covid exteriors. I knew at that point we at least in California had handed our destiny into others hands as th Big Lie was always about quality and integrity. Nope in Cali the truth came out it's about $$ pay me big bucks and I will do all the exteriors you want or need..but Worse. I will tell you I want a bigger fee to not even go inside.

 

[RCA]

Ha. I have preaching this on the forum for at least 4 years.

Corporatelization of the appraisal process.

I just love the hyprocy.

They want to bring more people and minorities to the profession.....but then use avms with pcr reports....

It is most likely very similar to a system I created but in a crude form. They probably take an AVM value (which essentially assumes average condition/quality/aesthetics), then add adjustments in some range that can be fairly easily approximated, to or from the AVM value. Without an appraiser though, the error will increase as you get close to the low or high end of the condition/value range .... but their way around on the low end is just to ask for repairs per the property report to bring the property up to satisfactory condition. High-end properties will get undervalued in most cases - so they will likely ask for a full appraisal if needed.

One of the main banks to ask for appraisals from me in early 2021 was in fact a North Carolina bank, not that there is any connection. But, I wonder.

AVMs of course are black boxes and you won't get any understandable justification for the values they come up with. Time will tell if these systems are reliable.

 

[NC Appraising]

The hybrid appraisal is here. Who benefits?

Freddie Mac now allows remote appraisals on some refis, but it remains to be seen if they will reduce racial bias, a key GSE policy goal.

www.housingwire.com

Good overall article. Don't agree, but worth reading.

 

[George Hatch]

You can't measure the improvements of a situation that you never measured in the first place.

 

[djd09]

Swedish Conspiracy Theorist Greta Thunberg is Now Fighting to Overthrow ‘Oppressive’ and ‘Racist’ Capitalist System​

Climate crisis “has its roots in racist, oppressive extractivism that is exploiting both people and the planet to maximize short-term profits for a few.”

Swedish Conspiracy Theorist Greta Thunberg is Now Fighting to Overthrow 'Oppressive' and 'Racist' Capitalist System

Greta Thunberg, a nominee for the Nobel Peace Prize (just like Barack Obama, she hasn’t actually done anything yet) and a climate change conspiracy theorist, has entered the political arena to demand the end of capitalism, which she claimed is responsible for climate change, RT reported. The...

www.thegatewaypundit.com

the propaganda machine is stuck in repeat

 

[glenn walker]

No outcry from the Democratic Socialists and the Woke..lol

 

[Sadie]

It may be a hard stop in the systems used by the lenders and/or AMCs that you do work for, but it is not a UCDP hard stop. The UCDP hard stops are publicly available and can be found using any search engine. As I noted earlier, several dozen reports signed by trainees were successfully submitted just today. Both GSEs accept reports signed by trainees

You don't know what you don't know. And yes a license that cannot b verified is a hard stop. I cannot believe I have to share this link with you. page 62
https://singlefamily.fanniemae.com/media/5696/display

Its not the appraiser who can override this stuff, that is up to the lender.

 

[DWiley]

You don't know what you don't know.

I would say that of your posts

What you posted is a link to the UCDP rules. Appraisers cannot submit reports to the UCDP. Only lenders or their designees may submit reports to the UCDP.

It is correct to say that a report submitted to the UCDP with a trainee signature will produce the message that the license information cannot be verified at ASC.gov will produce a warning message. However, that message does not prevent the lender from submitting the report. If a lender's policy allow trainee signatures, then they are free to ignore the warning and submit the report.

As for the term "hard stop" - you are technically correct that the message is labeled as a "hard stop" in the current UCDP. However, it is not truly a hard stop, as it only generates a warning message and does not prevent the report from being uploaded (as explained in Appendix D of what you posted). As I have pointed out multiple times in this thread, reports with trainee signatures are uploaded to the UCDP daily.

Its not the appraiser who can override this stuff, that is up to the lender.

Yes, that has been my point al along. It is not the GSEs or MISMO XML that are blocking your reports from being submitted. It is the lenders, their policies and the systems they use.

 

[djd09]

Homes in Austin’s white neighborhoods are valued much higher than ones in communities of color​

People of color in Austin can expect their homes to be worth nearly three times less than homes owned by white residents, according to a new report.

Researchers with Washington University in St. Louis and the University of Illinois-Chicago found that while the average appraised value of a home in a white neighborhood in Austin is $873,758, a similar home in a community of color is valued at $318,496.

“The amount is striking, but it's not surprising,” said City Council Member Vanessa Fuentes, who represents Southeast Austin. Fifty-five percent of Latino families living in Fuentes’ district own their homes, which is the highest rate of Latino homeownership among the city’s districts. “I think everyone here in Austin knows the extreme racial wealth divide that we have and the racial inequities that we have.”

Researchers looked at "comparable" neighborhoods, including parts of town with the same level of employment and amenities, such as parks and shops. By controlling for these variables, the report’s authors said, they were able to show that race plays an outstripped role in what homes are worth.

“Austin follows the pattern that we're seeing across the nation,” Junia Howell, a professor at the University of Illinois-Chicago who co-authored the study, told KUT. “That homes in white neighborhoods are valued considerably higher than homes in communities of color.”

And that only worsened during the pandemic. In 2013, the difference in the average values of homes in white neighborhoods and communities of color in Austin was about $300,000. Last year, according to the study, it rose to more than $500,000.

Homes in Austin’s white neighborhoods are valued much higher than ones in communities of color

In a study of newly released data, researchers found that while the average appraised value of a home in a white neighborhood in Austin is $873,758, a similar home in a community of color is valued at $318,496.

www.kut.org

everyone's house is worth one million

 

[chad hampton]

Homes in Austin’s white neighborhoods are valued much higher than ones in communities of color​

People of color in Austin can expect their homes to be worth nearly three times less than homes owned by white residents, according to a new report.

Researchers with Washington University in St. Louis and the University of Illinois-Chicago found that while the average appraised value of a home in a white neighborhood in Austin is $873,758, a similar home in a community of color is valued at $318,496.

“The amount is striking, but it's not surprising,” said City Council Member Vanessa Fuentes, who represents Southeast Austin. Fifty-five percent of Latino families living in Fuentes’ district own their homes, which is the highest rate of Latino homeownership among the city’s districts. “I think everyone here in Austin knows the extreme racial wealth divide that we have and the racial inequities that we have.”

Researchers looked at "comparable" neighborhoods, including parts of town with the same level of employment and amenities, such as parks and shops. By controlling for these variables, the report’s authors said, they were able to show that race plays an outstripped role in what homes are worth.

“Austin follows the pattern that we're seeing across the nation,” Junia Howell, a professor at the University of Illinois-Chicago who co-authored the study, told KUT. “That homes in white neighborhoods are valued considerably higher than homes in communities of color.”

And that only worsened during the pandemic. In 2013, the difference in the average values of homes in white neighborhoods and communities of color in Austin was about $300,000. Last year, according to the study, it rose to more than $500,000.

Homes in Austin’s white neighborhoods are valued much higher than ones in communities of color

In a study of newly released data, researchers found that while the average appraised value of a home in a white neighborhood in Austin is $873,758, a similar home in a community of color is valued at $318,496.

www.kut.org

everyone's house is worth one million

Now I'm pissed. Because I'm white, I have to pay $800k for a home that's only worth 300k? That's racist.