GSE Waiver & Data Collection Data

[J Grant]

Is it more accurate by room or by the overall property. A remodeled home can have some frayed carpet in a couple of rooms from a pet, but still be considered overall a C3.

I am just curious if the grading of these systems are done by the developers of these systems to help facilitate their new system.

More accurate compared to what?
They make up studies that nobody else sees and invent metrics of accuracy to rationailze these products - since cost savings is now gone as the reason, they have to say something -

 

[Surf Cat]

"We must fight, we must resist" is a very appealing message to appraisers.

I'm not fighting or resisting anything in regards to the appraisal process.

The harsh reality is that the appraisers have no say in what (beyond our minimums) ANY user thinks is sufficient for their usage.

Right..... but don't feed us that this hybrid system is more accurate.

The suits are still trying to work out the kinks of the hybrid Fast Track system. They've never been out in the field collecting data and putting together an appraisal for valuation. Thus, they are running into snags of the myriad of problems and complications that appraisers face.

The powers that be could have shortened the uad as opposed to what appears to be more complicated and drawn out data collecting to move things along more quickly. But hey, it's their show....

 

[George Hatch]

More accurate compared to what?
They make up studies that nobody else sees and invent metrics of accuracy to rationailze these products - since cost savings is now gone as the reason, they have to say something -

IRL,
No, they don't have to say anything. They can if they want, or they can-not if they want.

If it is true that they want to get rid of appraisers then they have no incentive to either disclose that intent or to attempt to justify that intent. All it takes is the decision to proceed. In that even, the consent of the appraisers is neither required nor relevant to them.

Obviously, we don't share that opinion. But IRL nobody cares what we think.

 

[George Hatch]

I'm not fighting or resisting anything in regards to the appraisal process.

Right..... but don't feed us that this hybrid system is more accurate.

The suits are still trying to work out the kinks of the hybrid Fast Track system. They've never been out in the field collecting data and putting together an appraisal for valuation. Thus, they are running into snags of the myriad of problems and complications that appraisers face.

The powers that be could have shortened the uad as opposed to what appears to be more complicated and drawn out data collecting to move things along more quickly. But hey, it's their show....

I invite you to consider the possibility that if they don't care what appraisers think about their decision making then they have no reason to lie to the appraisers about the rationale for their decision making. And really, no reason to even provide an explanation for that decision making, much less prove the metrics of that decision making.
IRL appraisers have no vote in this process.

Regardless of the fiction they try to convey to appraisers, we are not their "valued partners" and it doesn't matter what we think or what we want. We sell a service, and its our job to fit that service to their specifications.

 

[J Grant]

IRL,
No, they don't have to say anything. They can if they want, or they can-not if they want.

If it is true that they want to get rid of appraisers then they have no incentive to either disclose that intent or to attempt to justify that intent. All it takes is the decision to proceed. In that even, the consent of the appraisers is neither required nor relevant to them.

Obviously, we don't share that opinion. But IRL nobody cares what we think.

They should care what appraisers think since bulk of GSE lending orders still use appraisals - and a hybrid is an appraisal. Nobody cared much what appraisers thought wrt our petition and posting about the dangers of the pre-bubble run-up in prices - and we were right. Could have saved the nation billions in lost equity and foreclosures etc but whose counting....

 

[djd09]

i think they've got to slow down before they start to blow it
i think they're headed for a breakdown, so be careful not to show it
you really don't remember, was it something that barney frank said?
are the voices in your head calling, fannie guy?
fannie guy, don't you think you're falling'?
if everybody wants you, why isn't anybody calling'?
you don't have to answer. leave them hanging on the line, oh oh oh, calling the freddie guy...

 

[Terrel L. Shields]

Y% - Z% = #%

It's more likely a random number.

Right..... but don't feed us that this hybrid system is more accurate.

I guess we are supposed to assume that a random number between X and Y is as accurate as a number skewed one direction or the other.

Regardless of the fiction they try to convey to appraisers, we are not their "valued partners"

We are viewed as an impediment. That's because we are. And that is the function of our job. Not that anyone cares until things collapse and no one takes responsibility.

 

[Tim Hicks (Texas)]

More accurate compared to what?
They make up studies that nobody else sees and invent metrics of accuracy to rationailze these products - since cost savings is now gone as the reason, they have to say something -

If you developed an appraisal tool, wouldn't you go out of your way to make it look successful and profitable?

 

[DWiley]

If you developed an appraisal tool, wouldn't you go out of your way to make it look successful and profitable?

Even if that is the case, neither GSE developed the concept of a hybrid appraisal. As I have said many times on this forum, hybrid appraisals are not new. They have been used for twenty years or more in the servicing space. When I went to AMCland about 15 years ago now, that AMC was doing lots of what we now know as hybrids then. They didn't call them hybrids, but they used a property report prepared by a data collector (usually a real estate agent with no connection to the home), and the appraiser used that data as the basis for a desktop appraisal.

The GSEs simply tested them for use in the origination space and adopted them based on the results. It is the data that drives decisions, not some sort of "pride of creation" thing. They test many things. Some get implemented, many do not. An example of something tested but not adopted is the use of exterior only appraisals during COVID. That "COVID flexibility" was not adopted.

And, hybrids are not really a "appraisal tool." Its just a nomenclature used for a desktop appraisal (something that has also been around a very long time) where there is very recent data available on the home.

 

[alebrewer]

Red herring.