GSE Waiver & Data Collection Data

[shrubberyvaluation]

"Rather than being due to racial discrimination by appraisers, we found Freddie’s claim of an “appraisal gap” is much more likely the result of would-be first-time buyer inexperience, socio-economic status (SES), or government actions (in particular a concentration of FHA lending in certain census tracts) with a disparate impact on protected classes. Our analysis, which goes well beyond Freddie Mac’s “exploratory research”, can explain around 85% for Black tracts and 29% for Latino tracts of the gap through differences in socio-economic status (SES), leverage, and borrower characteristics. With the full set of controls, the Black gap disappears entirely, while the Latino gap falls by almost half."

"The literature suggests that an appraiser may be providing some would-be buyers a consumer benefit by providing an appraised value below the contract price, thus alerting such buyer that he or she is overpaying on the home, which then triggers a renegotiation. "

https://www.aei.org/wp-content/uploads/2022/01/Freddie-Mac-note-on-Racial-and-Ethnic-Valuations-Gap-Housing-Center-Critique-Jan-2022-final.pdf?x91208

This has been my experience. I have seen the most out of whack contract prices in lower income areas. A lot of the time these are very simple appraisals of townhomes in the same community and really only vary in condition, end/interior units, and decks and patios.

 

[shrubberyvaluation]

Then why not just give "us" the damn checklist then? We are trainable.... the powers that be gave us the uad with q&c ratings... we adopted. Check these boxes, take these photos. Let's call it the 1004H form. This way, the lenders get the form that is "so much better" than what traditional appraisers do. PLUS, the appraiser actually gets to check the subject's neighborhood location and attributes, check for externalities, etc. The lenders get the licensed & insured appraiser to do the inspection....not some random unlicensed person....

Another benefit would be that the lenders can order the 1004H ONLY and Garner the experience of the licensed, insured appraiser to produce the property data. Wow...win-win! NOT.

Rhetorical questions and thoughts.... no need to answer. It's so evident of what's going on.

Much easier to facilitate fraud this way.

 

[shrubberyvaluation]

Because that $500 requires the paperwork to be amended and if there was an appraisal contingency it gave the borrower a right to cancellation of the loan and transaction.

Frankly if the appraisers data won't support the extra $500 bucks it should have come in lower than the $1,000,000 or higher. That's a report i would have reviewed.

Well then maybe they should do the paperwork for the contract better when they have some weird contract price like that. Most probable price is different than supporting.

 

[glenn walker]

It is between 90% and 95%, avg not 98%.

Of course some appraisers are 98% and some 80% and so on.

Depends on the market area. Not on rural or complex but on tract stucco boxes it was probably closer to 98% for the last 15 years. I think the un spoken mindset was 1% to 3% is just a variance and good enough for govt work. Lol

 

[glenn walker]

Well then maybe they should do the paperwork for the contract better when they have some weird contract price like that. Most probable price is different than supporting.

Would you rather defend the $500.00 or defend why your adjusted sales prices supported the Purchase Price including the weird $500 ?

Think about this for a while.
Personally if I didn't think my adjusted sales supported $1,000.500 then it doesn't support $1,000.000 either and I probably can't support either.

 

[shrubberyvaluation]

Would you rather defend the $500.00 or defend why your adjusted sales prices supported the Purchase Price including the weird $500 ?

Think about this for a while.
Personally if I didn't think my adjusted sales supported $1,000.500 then it doesn't support $1,000.000 either and I probably can't support either.

If my assignment is if 1,000,500 sure, if its most probable price its probably not 1,000,500. Yes its the path of least resistance to just ignore the certs and definition of market value because at the end of the day no one cares unless they want to use it against you for something unrelated.

 

[glenn walker]

If my assignment is if 1,000,500 sure, if its most probable price its probably not 1,000,500. Yes its the path of least resistance to just ignore the certs and definition of market value because at the end of the day no one cares unless they want to use it against you for something unrelated.

The reconciliation can be written to cover these odd numbers. In this case if the adjusted sales comparables were say between $990,000 and $1,010,000 with a purchase price of $1,000,500 i could safely say that the Purchase Price is supported and therefore I elected to use that as my final opinion of value.

Now I'm not caught in a trap of defending a $500.00 number without pissing off everyone that's involved. The focus in the heat of battle with the buyer and seller is the $500.00 and next it's the argument that he's so damn good he can be within 0.1 % of the sales price. I'm agreeing it's stupid but that's how buyer's and sellers operate.

 

[George Hatch]

It’s easy to tell which sales they get waivers for, they’ll be the comps you’re using next month because they’ll be the highest in the neighborhood

The breakfast club loves juice.

If you can prove that allegation then you should also be able to prove the adjustment factor for those sales when compared to the 1004-backed appraisals.
So tell us, since you're so sure of your allegation, how often have you added the following or similar explanation to your SC analysis?

"S#1, S#2 and S#3 were chosen because they have the highest prices. All 3 sales were also underwritten without a conventional 1004 appraisal. " ​

​

That's a rhetorical question because everyone knows from the outset that you would never do such.

 

[chad hampton]

When you do GSE appraisals for a living, you see what you see. Since you do not do them, I’m not sure what your point of being in this thread is. You’re woefully uninformed I’m afraid.

 

[George Hatch]

MV can only exist in the form of a single point value with no rounding is a fiction.

If it's even possible for MV to exist as a range then that possibility stands as proof of concept that - as a matter of opinion - both $1,000,000 and $1,005,000 can be considered a reasonable expression of the concept of MV.