Freddie Mac vs Appraiser Bias

[George Hatch]

Tim Hicks is exactly right DW - And that was something you and I already discussed somewhile back, and I've stated this multiples of times. It has been a constant complaint for years in our profession.

That requirement has been 100% client-driven. That's who you should be blaming for not being able to send trainees out to do appraisals on the solo basis. You've always been allowed to do them that way from the standpoint of the USPAP and GSE requirements. However the resulting reports simply haven't been marketable because (as you previously stated) your clients had higher expectations of their appraisers.

 

[Dale Floyd]

That requirement has been 100% client-driven. That's who you should be blaming for not being able to send trainees out to do appraisals and inspections on the solo basis.

We have been asking the GSEs to help us in that endeavor for a very long time George. They are better equipped to send information like that to the lenders. We even discussed this about the Hybrid movement with FNMA, and their chief stated - "We aren't really interested in the trainee model to help with these inspections."

I wouldn't have said that, if there wasn't some criticism to be leveled.

 

[Sadie]

Okay - I'll ask...

Why must the inspection be non-trainee / third party? Why not use the Hybrid model, and allow trainees or other appraisers to do the inspections instead? (I've already spoken to FNMA's chief about this, and another person or two has discussed this behind the blog wall. I'm interested in any answer that will be given.)

Probably because they would charge more.

 

[Sadie]

Yes, DW, your Correct as usual. OTOH in the Real World I have read here and Facebook that many if not most Lenders do not allow the Trainee to solo inspect.

Other Lenders don't allow the trainee to sign on the left and Super on the Right.

BUT they do allow a Trainee to state in the report their assistance.

I have received assignments where it says the above....but I haven't used a trainee in a long time.

It the Lenders Choice.

OTOH if your doing work Directly for FNMA they do allow the trainee to sign. I can't recall if they allowed the trainee to solo inspect . I don't know this first hand, it is what I have been told by other Collateral Vendors like me.

If you upload reports in MISMO or XML, the reports will be rejected because the trainee does not have a license that can be verified with the ASC.

 

[DWiley]

We have been asking the GSEs to help us in that endeavor for a very long time George. They are better equipped to send information like that to the lenders.

And the GSEs have messaged (to lenders) many many times over the past four years about the acceptability of trainee inspections.

 

[George Hatch]

We have been asking the GSEs to help us in that endeavor for a very long time George. They are better equipped to send information like that to the lenders. We even discussed this about the Hybrid movement with FNMA, and their chief stated - "We aren't really interested in the trainee model to help with these inspections."

I wouldn't have said that, if there wasn't some criticism to be leveled.

It appears to me that the "We aren't really interested in the trainee model to help with these inspections." is a reference to the hybrid assignments, not the conventional 1004s I was talking about.

So WRT the hybrids, the GSEs might actually WANT to separate the appraisers from the inspections, at least for the time being. I don't know, but I assume part of that has to do with testing the outcomes of conventionals to hybrids, part has to do with getting more consistent analyses out of the appraisers, and then there's the more recent "racial bias" angle. That's all speculation on my part, though.

It seems to me that if you want to run trainees it might make more sense to put your pitch to your clients.

 

[chad hampton]

You have to go back to one of my original comments, any solution that involves putting money in the pockets of self-employed appraisers isn’t acceptable. We’re rubes who already make too much. The solution has to involve the management companies making the money.

The solution to the very rare occurrences when demand is high - just state trainees are temporarily permitted to do their own inspections. they were pretty damn quick to make emergency changes during the chicom cold.

 

[djd09]

elmo will get all the data you need, right after he is done in the kids bedroom homeowners beware

 

[Dale Floyd]

And the GSEs have messaged (to lenders) many many times over the past four years about the acceptability of trainee inspections.

And yet, nothing happens. So GSEs decide to create a whole new animal, to help the lenders - when the lenders aren't listening. That's a little confusing, and I was once in banking administration.

It appears to me that the "We aren't really interested in the trainee model to help with these inspections." is a reference to the hybrid assignments, not the conventional 1004s I was talking about.

So WRT the hybrids, the GSEs might actually WANT to separate the appraisers from the inspections, at least for the time being. I don't know, but I assume part of that has to do with testing the outcomes of conventionals to hybrids, part has to do with getting more consistent analyses out of the appraisers, and then there's the more recent "racial bias" angle. That's all speculation on my part, though.

It seems to me that if you want to run trainees it might make more sense to put your pitch to your clients.

We have been working on that for a very long time. The AMCs are a real problem with the pitch, especially since many lenders use more than one AMC in their business model. The programs that check license numbers is also a problem for those who say yes, but then have to punt when we turn in a report.

Many have tossed the baby out with the water, and only allow certified appraisers for everything. We are a limited group and have a small voice. It would help for somebody bigger (ahem) to help us maneuver these marshes. I've reached out to national groups, our state coalition, and others - It's just hard without a bigger megaphone.

 

[DWiley]

The solution to the very rare occurrences when demand is high - just state trainees are temporarily permitted to do their own inspections. they were pretty damn quick to make emergency changes during the chicom cold.

For the GSEs, no change would be necessary. They already allow trainee inspections, and have for many years. And, as I said above, that has been often communicated to lenders.