GSE Waiver & Data Collection Data

[chad hampton]

Are the GSE's doing anything to curb the junk fees that are associated with use of AMCs?

 

[OSU Beavers]

This is why we need a good solid market crash.

 

[shrubberyvaluation]

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!

If you are partnering with these AMCs, why not make a condition that they allow appraiser trainees to inspect to be a partner with FNMA? That is someone who is accountable to the appraiser and someone the appraiser can train and trust since the appraiser takes all of the liability if you are wanting more flexibility. This is another reason people think that you are trying to eliminate appraisers.

I don't have personal experience but I hear enough from online about when appraiser's find the PDC made a mistake that they can see from the photos or they have a more reliable source the AMC says they have to use the less reliable source of the PDC. Do you partner with AMCs that force an appraiser to use a less reliable source? If so how does this help with accuracy?

I don't like putting my license and ethics on the line to rely on someone I don't know whose training consists of using the app on their own property over someone I trained and trust and furthermore being forced to use wrong information or have to back out and not get paid.

 

[djd09]

Appraisal Waivers Are GIFTS From Fannie Mae; PIWs & PDCs; Appraisal Types​

In what is great news for every agent concerned about low appraisals – we have seen a significant increase in the number of Property Inspection Waivers (PIWs) and Property Data Collection reports (PDCs).

Property Inspection Waivers (PIWs)​

A PIW is a designation given by Fannie Mae or Freddie Mac to a property when NO APPRAISAL OR VALUE ESTIMATE IS NEEDED. No PIW will be issued unless there is an appraisal of the property already in Fannie’s or Freddie’s database. There are other necessary criteria as well that I blogged about in 2019: Appraisal Waivers More Common Now. Suffice it to say that PIWs are “gifts” because they eliminate all value concerns – and we are seeing them more often than ever now.

Property Data Collection Reports (PDCs)​

Property Data Collection reports are also known as Inspection-Based Waivers. These reports are also designations given by Fannie and Freddie in lieu of an appraisal or value estimate – and these too are gifts. PDCs are prepared by licensed inspectors – and they include photos, measurements, and other specifics about the property. But again – they require no value estimate.

Two Important Notes​

1. We are getting PIW and PDC designations even when we know an actual appraisal would come in low due to a lack of comparable sales data.
   And
2. Agents should have us run DU (Fannie’s automated underwriter) with the address of the property their clients are offering on before they make an offer – to see if we get a PIW or a PDC. If so, they can waive the appraisal contingency with much more comfort.

Appraisal Waivers Are GIFTS From Fannie Mae; PIWs & PDCs; Appraisal Types

In what is great news for every agent concerned about low appraisals - we have seen a significant increase in the number of Property Inspection Waivers (PIWs) and Property Data Collection reports (PDCs).

www.jvmlending.com

dont drink the kool aid...

 

[Non Sequitur]

I hope everyone is paying attention to the narrative that PDCs are better at catching repair items. Once again, this will roll down to us. The demands of more photos are already starting, see below and ask yourself "Why?" [In the SOW for a resi report, this company also heavily promotes PDCs]

 

[George Hatch]

Scope creep and reporting creep always happen when the market trends slow down or reverse. Happens every time.

 

[Surf Cat]

I pretty much do all the photos stated above with the exception of what the subject faces when looking out the front door. On a typical, run-of-the-mill SFR, I do not do aerial photos from google. But I do if it's a high-end estate.

 

[Non Sequitur]

I pretty much do all the photos stated above with the exception of what the subject faces when looking out the front door. On a typical, run-of-the-mill SFR, I do not do aerial photos from google. But I do if it's a high-end estate.

You take two different view photos of every room, and all mechanicals including the electrical panel?

 

[Surf Cat]

You take two different view photos of every room, and all mechanicals including the electrical panel?

You bet.... each bedroom shot I take I make sure to take a shot of the closet. Water heater to make sure it's strapped. You got me on the electrical panel. But I do take photos of the electrical panels on 2 to 4's showing their separately metered.

I don't put every single photo in my reports, but they're in my file.

 

[djd09]

Attack on Appraisers​

by Jonathan Miller · Published December 5, 2018 · Updated May 10, 2019

Remember liar loans of a decade ago? Those same people want to do away with appraisers.​

Eliminating the Appraiser! Remember Liar Loans of a Decade Ago?

Remember liar loans of a decade ago? Those same people want to do away with appraisers. We just lived through in the financial crisis. It’s happening again.

appraisersblogs.com

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