Freddie Mac vs Appraiser Bias

[George Hatch]

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.


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.

I'm curious if you believe the problem is that the lenders and the AMCs somehow "don't know", and that further educating them will change their minds.

The Occam's Razor version of this is that appraisers don't matter. The problem here is apathy, not the lack of information.

. These lenders and their AMCs exercise their discretion because they can - it doesn't cost them anything extra to require the assignment be completed by the CR. That is, unless/until the volumes peak, at which point they can temporarily "settle" for less.

 

[Dublin ohio]

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.

Sounds more like a client pre screen requirement

 

[Dale Floyd]

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.

And for that, we thank you. I just wish we could get those allowances accepted and see how it all works before enacting such significant changes. If lenders aren't listening to you, why try so hard to promote something different?

I do wish representatives of GSEs wouldn't reference the need for third party inspectors in the various interviews of eliminating bias, when racism accusations are mentioned. I realize the intent, but the presentation doesn't sound like we are very trusted. Just saying.

 

[djd09]

fannie guidelines stated the appraiser was the one that did the inspection

 

[George Hatch]

Not on the hybrid report forms it doesn't. For that assignment type the form explicitly discloses otherwise.

 

[Dale Floyd]

I'm curious if you believe the problem is that the lenders and the AMCs somehow "don't know", and that further educating them will change their minds.

The Occam's Razor version of this is that appraisers don't matter. The problem here is apathy, not the lack of information.

. These lenders and their AMCs exercise their discretion because they can - it doesn't cost them anything extra to require the assignment be completed by the CR. That is, unless/until the volumes peak, at which point they can temporarily "settle" for less.

I'm from the banking world, so my view may be skewed a bit. In truth, the appraiser is viewed as the enemy of mortgage transactions by financial sectors. Banks were found doing things they shouldn't, which caused Title Xi in the first place and for the first time, there was something that could prevent a lender from doing what they wanted. (At least, in the small to moderate banks in the southeast)

"We will not be held hostage by appraisers" was once said during a corporate meeting of hundreds, back in 1991 during a conference I attended with the ABA.

I'm not sure if they don't listen, or if they just want us out. May be both problems.

 

[George Hatch]

See tagline below. Due diligence has always been an impediment to unfettered loan production. That's the reason it's an inherent conflict of interest to allow the loan production side to control the selection and engagement and reviews of the appraisers and their work.

 

[djd09]

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.

they think we are racist, where does it end, over value, under value, all they do is whine

 

[TerryRohrer]

I do wish representatives of GSEs wouldn't reference the need for third party inspectors in the various interviews of eliminating bias, when racism accusations are mentioned. I realize the intent, but the presentation doesn't sound like we are very trusted. Just saying.

They are the party that poured most of the gas on the fire! I think the intent was exactly to achieve the outcomes we are observing.

 

[djd09]

they think we are racist, where does it end, over value, under value, all they do is whine

too slow, too white, too male, too old, too expensive, whiners