Freddie Mac vs Appraiser Bias

[jay trotta]

Are you aware of any states that have a mandatory minimum % of inspections as part of the experience requirements? I had one trainee who got her CR without ever having done one single inspection...

Comment: Competency may apply to factors such as, but not limited to, an appraiser’s familiarity with a specific type of property or asset, a market, a geographic area, an intended use, specific laws and regulations, or an analytical method. If such a factor is necessary for an appraiser to develop credible assignment results, the appraiser is responsible for having the competency to address that factor or for following the steps outlined below to satisfy this COMPETENCY RULE.

hmmm

 

[Zoe]

That is not a unsupported guess Zoe Fannie and Freddie do not typically make residential loans . They Purchase Loans from lenders in packages. They are not the Lender Client . No different than FHA or VA in most loans FHA & VA Insure loans they do not make the loans.

I have done a ton of appraisals where GSE was my only client. They owned the property.

Grant it, they were getting rid of it. But there was no direct lender involved. Whoever sold the loan to them was nowhere on the engagement. I was engaged by FNMA directly.

If we have another meltdown like that one in 2008, you should try to get on their approved real estate broker list. I know some brokers locally that got rich selling FNMA properties.

 

[alebrewer]

Comment: Competency may apply to factors such as, but not limited to, an appraiser’s familiarity with a specific type of property or asset, a market, a geographic area, an intended use, specific laws and regulations, or an analytical method. If such a factor is necessary for an appraiser to develop credible assignment results, the appraiser is responsible for having the competency to address that factor or for following the steps outlined below to satisfy this COMPETENCY RULE.

hmmm

My bold added...

hmmm

 

[Zoe]

Glenn, I think FNMA has some buyback terms that are different than 2008. In another meltdown, the lender may get the property back instead of FNMA selling it. I don't know that for sure. Anyway, some local agents made a bunch of money locally just selling FNMA owned properties.

 

[glenn walker]

You may be right

 

[Tiffany Gibbons]

My bold added...

hmmm

I get it, lol

 

[J Grant]

Glenn, I think FNMA has some buyback terms that are different than 2008. In another meltdown, the lender may get the property back instead of FNMA selling it. I don't know that for sure. Anyway, some local agents made a bunch of money locally just selling FNMA owned properties.

Far as I know, for FF /FHA loan lenders are not allowed to take back the property and keep it. They must sell it within X years , and then if there is anything left over after they pay off the mortgage , any other liens and legal fees the property owner gets the $ left. That is an REO sale

For many properties I understand the lenders try to work out a short sale instead of a default?REO

Agents who "made a bunch of money" selling FNMA properties were getting a sales commission from properties that were financed with a FNMA loan which made repairs to their REO properties.

 

[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

Before you continue, may I suggest you sit down at a computer and try and upload an appraisal with a trainee signature. Its not the lender or the AMC, its the software and its verification process. The signature can be overridden, but not at when the appraisal is being submitted. This is the error that the program responds with: EAD-APPRAISER - Certification or License Number - should match ASC.gov. This is a hard stop and cannot be overridden. You just have one part of the puzzle.

 

[BRCJR]

Technical, I know, but REO is not a foreclosed property. OREO is a foreclosed property.

 

[Dublin ohio]

its the software and its verification process

The software you refer to is the software the AMC or client uses to prescreen the report. Are you uploading directly to the UCDP? The answer is No. Appraisers cannot access the UCDP