GSE Waiver & Data Collection Data

[shrubberyvaluation]

Bill Pulte pledges to scrutinize ‘underperforming’ Fannie and Freddie​

Bill Pulte, the newly confirmed director of the Federal Housing Finance Agency (FHFA), is wasting no time in making a splash with Fannie Mae and Freddie Mac, suggesting they too might receive the DOGE treatment that other government entities have already experienced.

In a series of messages posted to his Xaccount on Friday morning, he wrote:

“Fannie and Freddie generate over $30 billion in earnings per year. The Fannie & Freddie Management Teams and I will immediately review their 2025 budgets (like business does!) to help restore the American Dream for Americans who have been crushed these last 4 years.”

Pulte has not mentioned loan buybacksin the single-family space, a bugaboo for originators who regularly complained to Pulte’s predecessor, Sandra Thompson, that the GSEs were too aggressive in making them repurchase loans that were performing but had minor defects.

Bill Pulte says he‘ll scrutinize ‘underperforming’ Fannie and Freddie

FHFA Director Bill Pulte is wasting no time in making a splash with Fannie Mae and Freddie Mac, and the GSEs may soon get the DOGE treatment.

www.housingwire.com

Kind of off topic, but I wonder how much time and manpower was spent on the 1004MC. I feel like almost anyone on this forum could of made a superior form within one business day working alone.

 

[TerryRohrer]

I wonder how many saw this article last week.

https://sf.freddiemac.com/articles/...aiser-the-lowdown-on-property-data-collection

Errors regarding condition ratings are 200% higher in traditional appraisal reports as compared to hybrids.
Errors involving not requiring repairs and/or inspections, in accordance with published policy, are 225% higher in traditional reports as compared to hybrids.

I am sure there is no chance of seeing the analysis these statements are based on (no doubt because they can't stand an objective review), but what is the basis for the following statements? How are they measured and computed? How are the "right answers" established to compare the different reports to? Are PDRs and traditional appraisal reports completed on the same properties for comparison, or are they two disparate data sets?

"PDRs had a 1.9 times improvement as compared to traditional appraisal reports"
"hybrid appraisal reports had a 2 times improvement over traditional appraisal reports"

 

[shrubberyvaluation]

I am sure there is no chance of seeing the analysis these statements are based on (no doubt because they can't stand an objective review), but what is the basis for the following statements? How are they measured and computed? How are the "right answers" established to compare the different reports to? Are PDRs and traditional appraisal reports completed on the same properties for comparison, or are they two disparate data sets?

"PDRs had a 1.9 times improvement as compared to traditional appraisal reports"
"hybrid appraisal reports had a 2 times improvement over traditional appraisal reports"

I remember when the "accuracy" of our reports was based on comparing them to AVMs, as if AVMs are the source of perfection.

 

[George Hatch]

A condition or other property attribute can be characterized as a fact; accurate or inaccurate.

"There's a crack. There's some spalling or other sign of deterioration. This structure measures 1801sf under ANSI protocols. "

Not the same thing as a value conclusion.

 

[CGinMN]

Condition ratings and determining what repairs or inspections are required, however, are subjective.

 

[CGinMN]

Since the GSEs can so confidently determine required repairs from PDR pics, the easiest solution is to just have appraisers take pics and report facts. We don't need to be calling for repairs and inspections anymore.

 

[Mejappz]

I am sure there is no chance of seeing the analysis these statements are based on (no doubt because they can't stand an objective review), but what is the basis for the following statements?

You won’t be able to see it because it doesn’t exist. It’s just another lie to push their narrative, just like the infamous “Research note.”

 

[CGinMN]

Since the GSEs can so confidently determine required repairs from PDR pics, the easiest solution is to just have appraisers take pics and report facts. We don't need to be calling for repairs and inspections anymore.

Same for quality and condition, for that matter. The GSEs seem to have figured out from photos how to tell if the appraiser’s rating actually matches the definition they require us to use. This means appraisers don’t need to be applying the objective GSE scoring metrics anymore, as we are so often incorrect. No fair-average-good, no C5-C4-C3, we can just stick to the facts. Condition: Comparable 1 has deferred maintenance that the subject lacks, and is adjusted upward by $4,500.

The new forms will require an iPad for site observation, and it will collect and report all the data the GSEs need for their AVMs. Remember…

We need to find ways to remove as much appraiser discretion as possible.

 

[Mejappz]

I guess ACE wasn't performing up to snuff. They should have hired me.

https://www.sec.gov/ix?doc=/Archives/edgar/data/0001026214/000102621425000043/fmcc-20250317.htm

 

[Justinjla]

If these products compare "favorably" does that mean "superior?" Otherwise, why are they needed. Currently, it is being used to circumvent the appraisal fee. That is the only real statement that is important to me. Personally, I would trust my value on any property I inspected over PDR no matter how many pictures are provided. As far as Aloft goes, I watched their video and there was not science to assign Q ratings, basically guess work.

In certain areas we evaluated, they outperform; in others, they are equal.

Let’s keep in mind that we’ve introduced these options to give lenders and consumers flexibility—not to mandate their use. Traditional appraisals remain fully available for any loan, and appraisers can opt out of these alternatives if they choose. It’s all voluntary. During periods of low loan volume, we’re likely to see less reliance on these options. But as loan activity ramps up, I expect their adoption will grow to help ease capacity challenges.

There’s a misconception floating around—though not from any of you—that we’re out to eliminate appraisers. That couldn’t be further from the truth, and it’s not even a whisper in Fannie Mae’s internal conversations. Why would we pour over six years and millions of dollars into advancing the next generation of the Uniform Appraisal Dataset (UAD) if we planned to phase out appraisals? Truth is, aside from being an important collateral risk tool that we rely on to run our business, appraisals are a cornerstone of our models and risk engines—we absolutely need them!