GSE Waiver & Data Collection Data

[CGinMN]

Ok, you're right. I will be making it clear to lenders who believe or have heard that a PDC is $600 or more that this is incorrect.

That’s a very confident statement so I assume you’ll write a check for any PDC that costs more than $600, right?

Cost is not the primary benefit. The lender and consumer knowing the value/collateral piece of the mortgage process is complete very early in the process is the primary benefit.

They don’t know the value. See very convoluted messaging, no wonder people are confused.

Lenders absolutely vet PDC vendors before they onboard them. Don't take my word for it, go ask any of them.

No, they don’t. Lenders who have established relationships with a direct panel of appraisers are basically forced to use AMCs, and the AMCs select the data collector.

 

[CGinMN]

“Consumer knowing the value” on a VA+PDC is quite the whopper. Is this what you say on your lender webinars?

 

[Justinjla]

That’s a very confident statement so I assume you’ll write a check for any PDC that costs more than $600, right?


They don’t know the value. See very convoluted messaging, no wonder people are confused.


No, they don’t. Lenders who have established relationships with a direct panel of appraisers are basically forced to use AMCs, and the AMCs select the data collector.

I've never seen evidence of a PDC costing that much. If there has been one, it was a rare outlier.

The lender provides an estimate of value to DU. We analyze the loan risk and run our models to determine if that estimate is within our model thresholds. If it is, we make the VA+PD offer. The lender obtains a PDC, reviews the PDC, and reps and warrants that the data is accurate and that the property is eligible for delivery to us. We review PDCs post delivery and if we find inaccurate data or ineligible properties, they are subject to repurchase. Everyone is aware of the value we are comfortable with early on. Hence, the value/collateral piece of the process is complete and will not be in question half way through or towards the end of the mortgage process. That is the main benefit.

If you can find a lender that doesn't vet PDC vendors, I will retract that statement. You won't. We don't force lenders to do anything. 100% of the VA+PD offers we make, also include a traditional/hybrid appraisal offer.

 

[TerryRohrer]

Ok, you're right. I will be making it clear to lenders who believe or have heard that a PDC is $600 or more that this is incorrect.

Cost is not the primary benefit. The lender and consumer knowing the value/collateral piece of the mortgage process is complete very early in the process is the primary benefit.

Lenders absolutely vet PDC vendors before they onboard them. Don't take my word for it, go ask any of them.

Of course we encourage appraisers to do PDCs. It's a natural fit. That said, completing a PDC doesn't require an appraiser skillset. The process is objective and free from opinion; it’s about capturing observable property facts using mobile technology that guides the user through a standardized data collection process. We’ve seen no meaningful difference in PDC data quality between appraisers, realtors, insurance inspectors, and others. Additionally, when we compare property characteristics in a PDC to a prior appraisal on the same property, we also see very little difference. For a few characteristics like condition, the PDC is more accurate.

How is condition a fact? How do you measure the accuracy of condition ratings?

 

[Justinjla]

How is condition a fact? How do you measure the accuracy of condition ratings?

Let me clarify. Condition rating (C1-C6) is not captured as part of PDC. Deficiencies by room (description and photos) are captured. When a PDC is used in a hybrid appraisal, the appraiser's C rating is more accurate then what we see in traditional appraisals. This is because the PDC process prompts the data collector to capture everything by room. Some of what is captured is not meaningful or impactful to value, but it all should captured and ultimately considered by the appraiser.

 

[TerryRohrer]

Let me clarify. Condition rating (C1-C6) is not captured as part of PDC. Deficiencies by room (description and photos) are captured. When a PDC is used in a hybrid appraisal, the appraiser's C rating is more accurate then what we see in traditional appraisals. This is because the PDC process prompts the data collector to capture everything by room. Some of what is captured is not meaningful or impactful to value, but it all should captured and ultimately considered by the appraiser.

How is accuracy gauged? Your opinion is more accurate than mine type of thing?

 

[Surf Cat]

When a PDC is used in a hybrid appraisal, the appraiser's C rating is more accurate then what we see in traditional appraisals.

Lol...

That's like saying buying a used car sight unseen is way better than going and checking it out.....

 

[Justinjla]

Lol...

That's like saying buying a used car sight unseen is way better than going and checking it out.....

Appraiser's overlooking and/or omitting material deficiencies when they "check it out" is a problem.

 

[Terrel L. Shields]

One bedroom was so cluttered that I could only open the door wide enough to stick my camera in

When did I refi???

 

[TerryRohrer]

Appraiser's overlooking and/or omitting material deficiencies when they "check it out" is a problem.

Do you think part of that is on the appraiser, or is it all due to the label your applying?

Why can't you folks ever answer the question about "accuracy" and how it is measured and applied when asked a direct question in response to your claims about "accuracy"? Is it too complicated for an appraiser to understand, or are you simply not willing to tell the truth of the matter?