Got My First Cancellation Due To Piw

[TRESinc]

got an order this morning for a refi around 9. called the borrower, scheduled for monday at 10 and notified the lender. 2.5 hours later i got a call from them and the order was cancelled. the rep told me that they had an appraisal that was completed last year and that was enough for them to qualify for the new FNMA program and there was no need for a new appraisal as they were going to use the property inspection waiver.

so glad we fed their machine for the last few years so it can take away money from me now...

 

[Randolph Kinney]

With rising interest rates and PIW, appraisals for refinance is going way down.

 

[Flakey]

I'm seeing some of that locally. When I get a request for a refinance, I am careful when giving a quote. If all I'm going to get are the ugly assignments, it's gonna be an ugly fee.

 

[TRESinc]

With rising interest rates and PIW, appraisals for refinance is going way down.

as much as i hate what happened to me i can't say that i agree with your statement. as of now in order to qualify for the PIW the subject property must have a UAD-style appraisal on file with FNMA, which limits it to what, 4.5 years i believe. how many people who have refi'd over the last 4.5 years are going to be doing so again now that rates have gone up, and will go up again (up to 3 times this year projected)? even before the feds announced the rate increase my main client, a local lender, had raised the 30 year fixed rate to 4.09%, or more than a .5% increase, over the last 2 months. i just can imagine there are that many people who are under 4% currently with a long way to go on the mortgage would be refi'ng again so soon at a higher rate. it doesn't make financial sense.

that's not to say that the PIW won't take away some of our business, i just don't think it is going to have as big of an impact on us as some do. i believe we will be able to pin the slowdown on rising interest rates and the slower winter sales season vs what the PIW takes.