GSE Waiver & Data Collection Data

[Non Sequitur]

Honest question for you because I'm interested in hearing your perspective. What do you think is so challenging about collecting factual data at a property? Please leave the emotion and personal attacks out of it. I really would like to know why you think a trained person, with a standardized set of objective questions, cannot accurately capture data at a property.

Because interacting with market participants is important, driving the neighborhood is important, and getting a feel for the subject is important. Some call it the fourth approach to value, I call it just plain old good practice. The idea that appraisers belong behind a desk crunching numbers is being pushed by those with an agenda and they are pushing the narrative of modernization to get there.

 

[J Grant]

The free market drives the price. That's not something we dictate or have influence on.

Honest question for you because I'm interested in hearing your perspective. What do you think is so challenging about collecting factual data at a property? Please leave the emotion and personal attacks out of it. I really would like to know why you think a trained person, with a standardized set of objective questions, cannot accurately capture data at a property.

My two cents (worth four cents with inflation)...

I believe with proper training, a reasonably diligent person can capture the "data" -aka , measure, take photos and notes. I bet most do a fairly good job.r

The problem is that the data collector is NOT THE APPRAISER who will be doing the appraisal.
The appraiser thus gets the info secondhand. I frequently revise my initial online photo undertaking of a property when I inspect it myself - sometimes the property looks better in person, other times worse when observing the quality and finish in person. And the appraiser gets to walk the site, listen for traffic sounds or see the view/adverse or positive influences, and talk to parties at the location ( an owner, RE agent or Builder ), to get info from them that they would not get otherwise, and compare the subject to the area and comps when driving the comps and neighborhood.

The appraiser not personally inspecting the property makes the appraiser less well informed than the buyer or agent, or seller who normally visit the property). I would find it harder to define my value if challenged on a property I did not personally inspect.

The next generation of appraisers will lose valuable field experience and market knowledge if they spend most of their time at a desk looking at "data."

 

[Joe Flacco]

The free market drives the price. That's not something we dictate or have influence on.

Honest question for you because I'm interested in hearing your perspective. What do you think is so challenging about collecting factual data at a property? Please leave the emotion and personal attacks out of it. I really would like to know why you think a trained person, with a standardized set of objective questions, cannot accurately capture data at a property.

You absolutely do dicate and influence the market by leaning on the appraisal foundation for low qualifications.

It appears that you are here posting all of a sudden to convince appraisers to participate in the hybrid program with your declaration that starting this weekend hybrids will be available for 90% of loans. You don't seem to understand that $100 desktops are not something currently existing appraisers are interested in doing.

Using hybrids for 90% of loans seems like you are making promises you can't keep.

 

[shrubberyvaluation]

Because interacting with market participants is important, driving the neighborhood is important, and getting a feel for the subject is important. Some call it the fourth approach to value, I call it just plain old good practice. The idea that appraisers belong behind a desk crunching numbers is being pushed by those with an agenda and are pushing the narrative of modernization to get there.

The term modernization seems to be tossed around as if any change is good. Zillow used a modern approach, didn't work well for them. The new modernization seems to be accuracy does not matter, we need everything standardized to fit in a box. Technology can be very helpful, but having overconfidence in it when real estate is local and never completely static can be detrimental.

 

[J Grant]

I assume a 1004 hybrid with a PDC collection costs the borrower roughly the same as a "traditional appraisal" ( a 1004 where the appraiser does their own inspection - )

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[shrubberyvaluation]

You absolutely do dicate and influence the market by leaning on the appraisal foundation for low qualifications.

It appears that you are here posting all of a sudden to convince appraisers to participate in the hybrid program with your declaration that starting this weekend hybrids will be available for 90% of loans. You don't seem to understand that $100 desktops are not something currently existing appraisers are interested in doing.

Using hybrids for 90% of loans seems like you are making promises you can't keep.

I can tell you that if my mechanic used a 3rd party service who hired someone to cheaply diagnose my car using an app they were trained with on their own car, and then sent it to the mechanic to repair based on the information, and if the information is wrong the mechanic is told by the 3rd party has to go by that information anyhow while telling the mechanic he has no liability. It helps literally no one, except the AMC or bad actors. You can call this giving the mechanic more flexibility, but its stupid.

 

[NC Appraising]

Word on the street is that the gses were at a risk of a downgrade by the rating agencies for waivers due to not knowing the condition of the home. That is why they bumbed up to ltv for hybrids.

Don't know if it is true...but why did they change the ltv for hybrids?

The gses want the market share. The online lenders run the show and shake the hands. The number 1 compliant was slow appraisal turn times. Saving borrowers money was just an exuse that they used along with the covid shortage of appraisers. Lenders want to be able to lock the borrower in as fast as possible to prevent shopping.

 

[DWiley]

Word on the street is...

At least you have an iron clad source

 

[Mejappz]

DW, are you ready to start cranking up those hybrids?

Mortgage Giants Fannie Mae and Freddie Mac Brace for Job Cuts

William Pulte, the new director of the Federal Housing Finance Agency, is consolidating control over Fannie Mae and Freddie Mac and questioning employees’ productivity.

www.nytimes.com

 

[shrubberyvaluation]

DW, are you ready to start cranking up those hybrids?

Mortgage Giants Fannie Mae and Freddie Mac Brace for Job Cuts

William Pulte, the new director of the Federal Housing Finance Agency, is consolidating control over Fannie Mae and Freddie Mac and questioning employees’ productivity.

www.nytimes.com

Hmm I wonder if we are getting people from FNMA singing the praises of hybrids to try to show that they are "productive" for FNMA with job cuts looming.