Freddie Mac vs Appraiser Bias

[George Hatch]

WRT sending appraisal reports to a borrower, a couple possibilities come to mind:

Maybe that appraiser is an idiot and maybe they did send reports directly to borrowers without being directed to do so by their client. If so then they deserve to get disciplined just for doing that.​

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Maybe the client did direct the appraiser to send those reports out, but at different times. If so, the appraiser is in the clear because they didn't have the discretion to do otherwise.​

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Maybe neither borrower got their copy of the report from the appraiser - but from the lender instead - and the reports thereof are inaccurate. After all, it's not like the NCRC actually knows what they're talking about WRT appraisals.​

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[OSU Beavers]

Point of Information

Oregon Ban on Love Letters Deemed Unconstitutional

Following a preliminary injunction temporarily prohibiting Oregon’s enforcement of its statutory ban on love letters, the parties reached a settlement agreeing the ban violates the First Amendment and that the statute will no longer be enforced.

www.nar.realtor

Also, they are still pushing the Racial Bias Hoax

Discrimination against Black homeowners in the appraisal process: How to recognize it and what to do about it

Biased appraisal outcomes can rob Black homeowners of tens or even hundreds of thousands of dollars in wealth. Here's how it can happen.

www.businessinsider.com

 

[Zoe]

WRT sending appraisal reports to a borrower, a couple possibilities come to mind:

Maybe that appraiser is an idiot and maybe they did send reports directly to borrowers without being directed to do so by their client. If so then they deserve to get disciplined just for doing that.​

​

Maybe the client did direct the appraiser to send those reports out, but at different times. If so, the appraiser is in the clear because they didn't have the discretion to do otherwise.​

​

Maybe neither borrower got their copy of the report from the appraiser - but from the lender instead - and the reports thereof are inaccurate. After all, it's not like the NCRC actually knows what they're talking about WRT appraisals.​

​

I think both of those possibilities are next to impossible. However, if borrower is the client, Yes. Lender is required to give borrower a copy of appraisal. I get that question often. Why in the world would I want to send borrower a copy of appraisal if they are not my client?

 

[djd09]

Jesse serves on the board of the Maryland Consumer Rights Coalition, and the executive committee of Americans for Financial Reform. He was a Senior Fellow with Humanity in Action, an international human rights group, and a communications institute Fellow with Opportunity Agenda. He also sits on a variety of advisory boards, including the Federal Reserve Board’s Consumer Advisory Council, and Fannie Mae and Freddie Mac’s Affordable Housing Advisory Councils. He is a member of the consumer advisory councils of Bank of America, Fifth Third, Huntington National Bank, IBERIABANK, JP Morgan Chase, KeyBank, Quicken Loans and Santander.

https://ncrc.org/jesse-van-tol/

but not on the taf iac

 

[Terrel L. Shields]

I have a problem believing "racial bias" exists in appraisal when the very parameters of such bias cannot be quantified nor qualified. Appraisal is an opinion. The opinion is generally based upon the observation of the property, the comps, and the data. How does one distort this racially? I mean is this like the argument about "bias" because most appraisals come in at or above the contract price? Well, duh. The appraisals that come in low are never submitted in the first place. They don't make the cut.

 

[djd09]

it is their way of being together...labeling and such

 

[Elliott]

I have a problem believing "racial bias" exists in appraisal when the very parameters of such bias cannot be quantified nor qualified. Appraisal is an opinion. The opinion is generally based upon the observation of the property, the comps, and the data. How does one distort this racially? I mean is this like the argument about "bias" because most appraisals come in at or above the contract price? Well, duh. The appraisals that come in low are never submitted in the first place. They don't make the cut.

After I graduated from college, one evening my parents took me to the Portland dog track. They had a good night and I learned the betting term "spin the wheel" on dog X, so if you picked one or two winners you could guarantee a trifecta. Because of their success that night they kept asking me to go with them because I was apparently a lucky charm.

So.....I'm not surprised that any statistical analysis can prove something like bias. Its essentially holding one variable, price, and 'spinning the wheel' and you find some slight correlation. You could take price as your dependent variable and select subject street names that start with "W" and you would find a bias. Freddie's R^2's are laughable.

 

[Terrel L. Shields]

any statistical analysis can prove something like bias. Its essentially holding one variable, price, and 'spinning the wheel' and you find some slight correlation.

This is exactly why drugs can be declared "safe" or "dangerous" in drug trials. Ditto "proving" that Roundup is toxic, etc. There is a randomness of all trials statistically that can be argued is outside the norm.

About 20 years ago, 2 high school students were found to have testicular cancer from the same school within months of each other. The tort machine geared up and declared that the cause was .... drum roll please... Chicken litter. Both boys (yes, they were identified as male then) were city residents. The claim was that the chicken litter contained arsenic because chickens were fed a calcium rich mineral that came from Alabama where minutiae of arsenic were present naturally. So the arsenic contained in the calcium (since chicks grow fast they are supplemented with calcium so their bones don't break) and that this passed into the chicken litter and was spread on the pastures in the area.

The chicken companies (Georges, Tyson, Peterson, and Simmons, et al) were sued. The expert testimony was eventually repudiated and the case dismissed. And as far as I know this "cancer cluster" has never been repeated nor is explainable except by coincidence. Such 'clusters' of data are likely to be entirely attributed to randomness. As the excellent book by N. N. Taleb "Fooled by Randomness" explained.

 

[djd09]

Fannie Mae, Freddie Mac data should be public, trade groups say​

Stakeholders in the mortgage industry have started weighing in on the Federal Housing Finance Agency's request for information on fintech in the housing industry.

Thus far, the Mortgage Bankers Association, the Community Home Lenders of America and the Housing Policy Council have made their commentary public, presenting lofty demands from the FHFA. While the CHLA emphasized concerns over the potential Black Knight-ICE merger, the other two organizations advocated for the open sharing of data from the government-sponsored enterprises.

The Mortgage Bankers Association in its letter to FHFA's Director Sandra Thompson argues that Fannie Mae and Freddie Mac, two entities that the FHFA oversees, should make its data, including appraisal data

Fannie Mae, Freddie Mac data should be public, trade groups say

The Mortgage Bankers Association and Housing Policy Council are asking for the Federal Housing Finance Agency to make government-sponsored enterprise data available as part of the establishment of its new Office of Technology.

www.nationalmortgagenews.com

nds...why? trade secrets

 

[djd09]

FHFA cuts upfront mortgage fees for about 1 in 5 home buyers​

Bob Broeksmit, president of the Mortgage Bankers Association, explained, “Given the ongoing affordability challenges facing homebuyers, FHFA’s targeted adjustments to the GSEs’ pricing framework are well-timed and will improve access to credit for low- and moderate-income households, first-time buyers and minority buyers.”


On the flip side, some borrowers will actually see increased costs as a result of the announcement. According to FHFA, new fees will be implemented on cash-out refinance loans early next year.

FHFA eliminates upfront mortgage fees for 1 in 5 home buyers

The FHFA is eliminating risk-based loan fees for many first-time home buyers. Here's what it might mean for you.

themortgagereports.com

hold on, the gse's were adding fees to minority buyers wtf