Give me a break

[Terrel L. Shields]

Face it. Secondary market does not necessarily get the cream of the crop in appraisers. The best appraisers do not do those loans because the way they are originated favors using the fastest turn time and lowest fee. That means the worst appraisers in the nation are doing secondary market while a few of the more competent ones are holding out for better fees and letting the lesser appraisers pick **** with the chickens.

If Fan.Fred.FHA wants to improve the quality of their appraisals, then they should monitor the fees and TT's of the AMCs. Anyone working for less that a decent fee or responding to 48 hr turn times should be concern and ought to make the response to the lender that the AMC who ordered such be put on a "do not use" list. If you blacklisted the low balling AMCs then the quality would improve. But that won't happen. Too much incest in this business between banks, AMCs, and all the rest.

 

[alebrewer]

only the appraiser has a non biased role

AVM's aren't biased - at least with respect to the parties to the transaction. Any bias in an AVM is a mathematical bias and can be solved by using appropriate predictors.

 

[DWiley]

The other issue is whether an appraiser is just another "tool" for risk management, or whether the appraiser as a professional has a role in the process...I believe the latter is needed since only the appraiser has a non biased role,

.

Given that assertion, how do you explain all the value spikes at the magic percentages? Is it just a coincidence that so many refi Appraisals come back exactly at the magic number needed to be at 80%? I am sure you have seen the Philly fed study

 

[djd09]

when you do not hit their number, ROV it

the eappraiseit spin offs and their clients love it

have you ever been black listed by the billion dollar banksters?

 

[J Grant]

Given that assertion, how do you explain all the value spikes at the magic percentages? Is it just a coincidence that so many refi Appraisals come back exactly at the magic number needed to be at 80%? I am sure you have seen the Philly fed study

80 %..you mean 80 % of appraisals a SC price ? ( not terrible ) What is the percent of the magic number that occurs with waivers? I read that loan officers like them because they tend to deliver higher values.

I have been posting over the years that the way for improved appraiser neutrality is a RR panel/ or similar, a way to 100% separate appraiser for lender work from the business pressure to obtain a result, which includes the ROV ! fast turn times work against good appraising as well, as does low fees and beholden to limited # of clients who can and do drop appraisers for not hitting values... surely you are aware of that ? The clients behave much worse than the appraisers , main difference is client pressure has shifted from front end to the back end after HVAC - some marginal improvement but not much. You complain about lack of better results but perpetuate a system that leads to those results.

 

[alebrewer]

Given that assertion, how do you explain all the value spikes at the magic percentages? Is it just a coincidence that so many refi Appraisals come back exactly at the magic number needed to be at 80%? I am sure you have seen the Philly fed study

That is an interesting phenomenon. I get the 'sales price bias' - which I COMPLETELY disagree with - at least as far as the article is concerned. IMO, the reason appraisals quite often come in at contract price is because the SOW (problem to be solved) is slightly different for a purchase than for a refi. I don't believe it is because appraisers are somehow 'pushed' into reconciling to the contract. As regards appraisals 'bunched' at the deciles, I just don't understand how that could be. The appraiser has no idea (on a refi appraisal) what LTV is needed for the loan to work...

 

[Overimprovement]

The appraiser has no idea (on a refi appraisal) what LTV is needed for the loan to work...

They do if they ask the borrower. I've been asked on a couple refis I have done as a borrower...

 

[alebrewer]

They do if they ask the borrower. I've been asked on a couple refis I have done as a borrower...

Unfortunately, you're probably correct. I can't believe that happens, but I've been known to be a bit too optimistic about folks...

 

[DWiley]

That is an interesting phenomenon. I get the 'sales price bias' - which I COMPLETELY disagree with - at least as far as the article is concerned. IMO, the reason appraisals quite often come in at contract price is because the SOW (problem to be solved) is slightly different for a purchase than for a refi. I don't believe it is because appraisers are somehow 'pushed' into reconciling to the contract. As regards appraisals 'bunched' at the deciles, I just don't understand how that could be. The appraiser has no idea (on a refi appraisal) what LTV is needed for the loan to work...

I am speaking about refis and the magic 80% LTV cutoff. The data on that is quite clear. There is a spike at every LTV % that is meaningful. The data seems to strongly indicate that the “magic number” is being communicated in some manner - unless one believes it is all just a big coincidence

 

[alebrewer]

I am speaking about refis and the magic 80% LTV cutoff. The data on that is quite clear. There is a spike at every LTV % that is meaningful. The data seems to strongly indicate that the “magic number” is being communicated in some manner - unless one believes it is all just a big coincidence

I can honestly say that, since HVCC, I've not been associated with any group - AMC or lender - who passes refi numbers to the appraiser - above or below the table. Now, to Overimprovement's point - it's quite possible that borrowers pass that info along, but I'm still trying to wrap my head around why an appraiser would even ask the borrower what value they needed.