GSE Waiver & Data Collection Data

[Tim Hicks (Texas)]

First you say, "When the appraiser inspects the subject, it is not just "collecting data" - but then everything you say after that is collection of data

I would love to independently interview these property data collectors and see if they are " collecting data" or just "filling out the checklist and form."

 

[DWiley]

But do property inspectors collect that and report it correctly?

The data shows that they do - at least they do as frequently as appraisers. Look at Chad's examples above - a MH reported as a SFR, septic vs well. There have been multiple threads on this forum over the years about appraisers doing those same things.

 

[TC]

I would love to independently interview these property data collectors and see if they are " collecting data" or just "filling out the checklist and form."

Give me a call.

 

[J Grant]

First you say, "When the appraiser inspects the subject, it is not just "collecting data" - but then everything you say after that is collection of data

I had never heard of an appraisal inspection as "collecting data" until the PDC allowing non-appraisers to inspect was born.

We do "collect data", but we do much MORE than that when we appraisers conduct our own inspections- a fact that is ignored when I bring it up

Our conducting a personal inspection and getting to see the house in person and experience any noise, impact of adjacent surrounding lots and other features of the street and drive the comps, vs having to view third hand a list/photos of data, is the difference between someone eating tasting and eating a meal, vs getting a list of the ingredients with photos of them.

 

[J Grant]

The data shows that they do - at least they do as frequently as appraisers. Look at Chad's examples above - a MH reported as a SFR, septic vs well. There have been multiple threads on this forum over the years about appraisers doing those same things.

What percent of appraisers report more subject ot repair in a CDC inspection vs when they inspect themselves?

I find this hard to believe, it is another not verifiable by outsiders rationale - and IMO a weak reason for using a third party CDC collection - If the lender is really concerned about risk and physical condition , then they should be ordering an independent home inspection by a contractor licensed home inspector on every property they loan on.

 

[J Grant]

One of the problems I have with the CDC collection would be if challenged, I would find it a lot harder to defend it since I never saw the home personally.

 

[DWiley]

What percent of appraisers report more subject ot repair in a CDC inspection vs when they inspect themselves?

I find this hard to believe, it is another not verifiable by outsiders rationale - and IMO a weak reason for using a third party CDC collection - If the lender is really concerned about risk and physical condition , then they should be ordering an independent home inspection by a contractor licensed home inspector on every property they loan on.

As stated before, for traditional appraisal reports, the error rate for identifying things that should be subject to repair or subject to inspection is is 1.9 times the error rate for appraisal reports based on a PDR.

If a home has standing water in the basement, a large foundation crack, etc. and the appraisal is done "as is" rather than "subject to", then that is a significant risk. It also drives up costs, as those are some of the most common repurchase issues.

 

[TerryRohrer]

As stated before, for traditional appraisal reports, the error rate for identifying things that should be subject to repair or subject to inspection is is 1.9 times the error rate for appraisal reports based on a PDR.

If a home has standing water in the basement, a large foundation crack, etc. and the appraisal is done "as is" rather than "subject to", then that is a significant risk. It also drives up costs, as those are some of the most common repurchase issues.

For traditional appraisal reports, what is the error rate for identifying things that should be subject to repair or subject to inspection?

 

[chad hampton]

If the GSE’s liked everybody except the appraiser doing the field inspection work, why didn’t they come up with new certifications 25 years ago to allow for the use of runners? Why is it only after their breakfast club buddies figured out they could make a whole hell of a lot more money using them did they create new certifications at lightning speed?

There’s that coincidence again.

The GSE‘s don’t want independent appraisers performing appraisals. They want a standardized document performed by a half dozen companies that they have complete control over. Hell, that’s been obvious for almost a decade now.

 

[George Hatch]

One of the problems I have with the CDC collection would be if challenged, I would find it a lot harder to defend it since I never saw the home personally.

Under what circumstance do you think you would ever be required to defend an unknown-to-you error that someone else made? Because the client and intended users of that assignment didn't understand its limitations when they designed and promulgated that program?

What do you think the GSE expectations are for the appraiser's conduct in this scenario?

A landlord hands you a rent roll with errors in it or a property owner tells you that the septic is in operating condition. In lieu of information to the contrary you proceed to import that data into your analysis and report, via a standard assumption



That assumption (info I believe to be true and correct) isn't even assignment-specific (aka extraordinary assumption). We use that same general assumption in every appraisal report we sign, including the reports which are reported in any other format besides the GSE reports. Even if the verbiage varies a little to look more like the first item on the list in SR2-3.a.

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Now if you have reason to disbelieve that accuracy of that information then you can't very well assert otherwise in your report. If you want to elaborate on the specifics of that assumption in your analysis and add a warning that if the info is incorrect it might be of effect on your conclusions then that's probably okay because it doesn't contradict the verbiage or the intent of that #13 assertion on the form.