community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.
Great, I'm shocked how many clients they have considering they can get their appraisals accepted by FNMA. Maybe the reputation as a rubber stamper is enough to get them business for non FNMA loans. A pleasant surprise having FNMA make a stand against at least one disreputable AMC.
And 20% business + less money per appraisal, so more than an 20% cut.
Yep, when the market heats up all of a sudden that 20% waivers could go to 50%+
And I didn't mention, in the case of a gold credit/50% LTV/recent appraisal on file unicorn, when I was on the banking side we still didn't throw caution to the wind. Yes, in the case of non-complex collateral we opted for something less than a full report but didn't "waive" due diligence and safe and sound practice. Whether it was an evaluation backed by a boots on the ground bank employee inspection or a drive-by from a licensed appraiser, good safe and sound practice requires verifying the collateral still exists and is something the bank would want as collateral.
Reminds of years ago when a mortgage company sent me to do a drive-by of an REO manufactured home in a small development in E. Oklahoma. I arrived to find a power pole, some concrete blocks used for foundation, and some wooden front steps and the lawn was grown up 2' tall... clearly the MH hadn't been there in months. The lot? Worth about $2,000.
Well, it ain't without risk despite what the GSEs are pushing.
Sure, why not? The appraisal will make sure the borrower did not over-borrow wrt the value or that the house does not need repairs since the last appraisal or have other changes in it since then.
You didn't answer the question. Do we need a full appraisal on that loan? If so, why?
Because you don't know if the building is even there, perhaps? Or remember in 2008 when by 2010 properties were often sold for well under half what was lent against them? Or, like one REO I valued, the entire house was filled with trash bags, a storage shed was full of trash bags, many broken, and even an abandoned truck there was filled both the bed and cab with trash bags. Sometimes it helps to have eyes on the prize. In the old days when people dealt with real banks and real bankers regulated by the FDIC or OCC, and not mortgage originators or online lenders, bankers themselves often visited their borrowers and looked for themselves. That was especially true of rent properties, farms and commercial. Bankers often spent an afternoon each week just checking on the loans they had, performing or not.
Correct but the them being the Federal Reserve Banks control much of the policy and law making on who plays in the game and they only made less mortgage loans in recent years because there was more money in making adjustable heloc type loans with no interest rate risk.