GSE Waiver & Data Collection Data

[Terrel L. Shields]

I see where many times the loan does not close for weeks or months after my appraisal report.

And you can tell when it closes weeks later because that's when you get paid.

 

[Non Sequitur]

Latest article on waiver distribution:

Prevalence of GSE Appraisal Waivers

The use of appraisal waivers at the GSEs has exploded in recent months and now accounts for over 40% of all valuations.

www.aei.org

 

[Justinjla]

Latest article on waiver distribution:

Prevalence of GSE Appraisal Waivers

The use of appraisal waivers at the GSEs has exploded in recent months and now accounts for over 40% of all valuations.

www.aei.org

Over 80% of loans have appraisals. Hmmm, all I’ve heard for the last 5 years is the GSEs are trying to git rid of appraisers with waivers.

 

[NC Appraising]

Over 80% of loans have appraisals. Hmmm, all I’ve heard for the last 5 years is the GSEs are trying to git rid of appraisers with waivers.

Not getting rid of, but greatly reducing the number of appraisers is probably more accurate. Even the reps at the GSEs have admitted that waivers will reduce the number of appraisers.

As a IFA, I cannot compete with the national firms that have several people on one report or are licensed in several states. My fear is that hybrids will just become a churn and burn money making scheme and not the appraisal analyst that the GSEs envisioned.

5 Years ago you didn't have this.(ltv 80-90%)....

To further streamline this process and ease the burden on lower-income borrowers, this number will increase to 90% LTV beginning in the first quarter of 2025.

And it will be expanded to the program limits (e.g. 97% LTV) for their more robust inspection-based appraisal waivers.

Rocket and UWM, who dominate the market?

As of October 2024, 97.9% of GSE direct sellers (1,826 out of 1,865) have delivered loans with appraisal waivers. These waivers are even gaining acceptance in the private-label securities market for non-agency residential mortgage-backed securities (RMBS).​

Property data collection-based appraisal waivers, UPD and the future of appraisals

Discover how property data-based waivers and hybrid appraisals are transforming collateral management and shaping the future of appraisals.

www.housingwire.com

The next phase of appraisal modernization is hybrid appraisals, anticipated to be incorporated into the GSE selling guides as early as mid 2025. Hybrid appraisals combine a UPD with an appraiser’s professional valuation. The process starts with a UPD collection, which is then submitted to the GSEs and provided to an appraiser to complete the hybrid appraisal. Like property data-based appraisal waivers, these appraisals are understood to be accepted by both GSEs.

 

[Justinjla]

Not getting rid of, but greatly reducing the number of appraisers is probably more accurate. Even the reps at the GSEs have admitted that waivers will reduce the number of appraisers.

As a IFA, I cannot compete with the national firms that have several people on one report or are licensed in several states. My fear is that hybrids will just become a churn and burn money making scheme and not the appraisal analyst that the GSEs envisioned.

5 Years ago you didn't have this.(ltv 80-90%)....

To further streamline this process and ease the burden on lower-income borrowers, this number will increase to 90% LTV beginning in the first quarter of 2025.

And it will be expanded to the program limits (e.g. 97% LTV) for their more robust inspection-based appraisal waivers.

Rocket and UWM, who dominate the market?

As of October 2024, 97.9% of GSE direct sellers (1,826 out of 1,865) have delivered loans with appraisal waivers. These waivers are even gaining acceptance in the private-label securities market for non-agency residential mortgage-backed securities (RMBS).​

Property data collection-based appraisal waivers, UPD and the future of appraisals

Discover how property data-based waivers and hybrid appraisals are transforming collateral management and shaping the future of appraisals.

www.housingwire.com

The next phase of appraisal modernization is hybrid appraisals, anticipated to be incorporated into the GSE selling guides as early as mid 2025. Hybrid appraisals combine a UPD with an appraiser’s professional valuation. The process starts with a UPD collection, which is then submitted to the GSEs and provided to an appraiser to complete the hybrid appraisal. Like property data-based appraisal waivers, these appraisals are understood to be accepted by both GSEs.

We expanded to those higher LTVs months ago. What happened to the rates since we expanded? Just an incremental increase. Why is the increase so small? Because we intentionally tightened our model confidence thresholds, added additional layers of logic, and more so that only a fraction of loans that we are really confident in qualify at those higher LTV levels.

 

[shrubberyvaluation]

Over 80% of loans have appraisals. Hmmm, all I’ve heard for the last 5 years is the GSEs are trying to git rid of appraisers with waivers.

The other point of reference is Hybrids. Partnering with AMCs like FastApp that have been caught only using rubber stamp "appraisers" (unethical). While technically that isn't getting rid of appraisers, it is trying to weed out the ethical ones and the non churn and burn ones that do not verify, or verify only what can be verified very fast to get the report done in 30 minutes with rote adjustments.

https://appraisersblogs.com/alleged-violations-of-appraiser-independence-at-fastapp-AMC/

 

[Non Sequitur]

Over 80% of loans have appraisals. Hmmm, all I’ve heard for the last 5 years is the GSEs are trying to git rid of appraisers with waivers.

In my world 20% is a big deal, and let's not forget waivers were supposed to be a temporary solution for a once in a lifetime event. And let's put 20% into some context, if your salary was cut 20% would you be as dismissive? If Fannie had to cut 20% of staff, would you be as dismissive to those shown the door?

Either way, the 20% isn't happening in a vacuum. Waivers are taking what most appraisers consider easy assignments, which leave boots on the ground appraisers with less work overall and a higher percentage of complex assignments. And the assignments waivers take away can be added to the loss of work from low paying hybrids being promoted by the GSEs, then we have the top two mortgage originators being all but locked up by national firm staff appraisers and AMC staff appraisers. All of that together is why true independent appraisers are dropping like flies, not because they are dying or retiring. And I get that the few test appraisers who were blessed to be picked by the GSEs for the hybrid experiment were more than happy making bank. But in the world outside of those chosen few appraisers, hybrids are a money loser and are adding stress to an already stressed market.

 

[djd09]

oh yeah sure...CU is a risk review tool

 

[Justinjla]

The other point of reference is Hybrids. Partnering with AMCs like FastApp that have been caught only using rubber stamp "appraisers" (unethical). While technically that isn't getting rid of appraisers, it is trying to weed out the ethical ones and the non churn and burn ones that do not verify, or verify only what can be verified very fast to get the report done in 30 minutes with rote adjustments.

https://appraisersblogs.com/alleged-violations-of-appraiser-independence-at-fastapp-AMC/

How do we partner with FastApp?

 

[shrubberyvaluation]

In my world 20% is a big deal, and let's not forget waivers were supposed to be a temporary solution for a once in a lifetime event. And let's put 20% into some context, if your salary was cut 20% would you be as dismissive? If Fannie had to cut 20% of staff, would you be as dismissive to those shown the door?

Either way, the 20% isn't happening in a vacuum. Waivers are taking what most appraisers consider easy assignments, which leave boots on the ground appraisers with less work overall and a higher percentage of complex assignments. And the assignments waivers take away can be added to the loss of work from low paying hybrids being promoted by the GSEs, then we have the top two mortgage originators being all but locked up by national firm staff appraisers and AMC staff appraisers. All of that together is why true independent appraisers are dropping like flies, not because they are dying or retiring. And I get that the few test appraisers who were blessed to be picked by the GSEs for the hybrid experiment were more than happy making bank. But in the world outside of those chosen few appraisers, hybrids are a money loser and are adding stress to an already stressed market.

Complex? What do you mean, just whip something together in 30 minutes. Some of the big AMCs might even pick comps for you. If someone on the other side of the country can appraise it in 30 mins that the GSEs like why can't you?