Gse's New Faster Mortgages

[Meandering]

Changes to appraisals, verification of borrowers’ finances strengthen underwriting

According to Fitch, having that much appraisal data also allows the GSEs to grant representation and warranty relief to lenders in some cases, as is the case with Fannie Mae’s Day 1 Certainty Program.

Additionally, the appraisal data horde enables the GSEs to waive the need for a new appraisal in some cases, as noted last year.

Fitch’s report also notes another feature of Fannie Mae’s Day 1 Certainty program: direct verification of borrowers’ income, assets, and employment.

“In addition to the changes occurring with appraisal valuations, Fannie Mae recently introduced a process of directly verifying a borrower's income and assets by using third-party vendor data, allowing for greater certainty on the accuracy of borrower-provided information,” Fitch writes. “Lenders and borrowers benefit through shorter processing times and less required paperwork, as well as representation and warranty relief for lenders.”

Sounds like they're going to work from Corelogic's data base.

So much for an appraiser shortage.

You might recognze some of the commenters below the article.

Yup, we have to build a new bubble some how.

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[Meandering]

No more FHA Appraisals?

SUPPLEMENTARY INFORMATION:
This notice informs the public that HUD is seeking approval from OMB for the information collection described in Section A.

The Federal Register notice that solicited public comment on the information collection for a period of 60 days was published on December 20, 2016 at 81 FR 92839.

A. Overview of Information Collection
Title of Information Collection: HUD Conditional Commitment/Direct Endorsement Statement of Appraised Value.

OMB Approval Number: 2502-0494.

Type of Request: Revision of currently approved.

Form Number: HUD 92800.5b.

Description of the need for the information and proposed use: Lenders must provide to loan applicants either a completed copy of form HUD-92800.5B, or a copy of the completed appraisal report, at or before loan closing. Form HUD 92800.5B serves as the mortgagee's conditional commitment/direct endorsement statement of value of FHA mortgage insurance on the property. The form provides a section for a statement of the property's appraised value and other required FHA disclosures to the homebuyer, including specific conditions that must be met before HUD can endorse a firm commitment for mortgage insurance. HUD uses the information only to determine the eligibility of a property for mortgage insurance.

B. Solicitation of Public Comment
This notice is soliciting comments from members of the public and affected parties concerning the collection of information described in Section A on the following:

(1) Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility;

(2) The accuracy of the agency's estimate of the burden of the proposed collection of information;

(3) Ways to enhance the quality, utility, and clarity of the information to be collected; and

(4) Ways to minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated collection techniques or other forms of information technology, e.g., permitting electronic submission of responses. HUD encourages interested parties to submit comment in response to these questions.



Click the link above for where to send a comment, if you care.

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[Elliott]

All I can say to the GSE's is that we are in a classic bubble, builder's are building as fast as they can, inventory is near zero, prices are rising at double digits. If you abandon appraisals now, you will have the biggest financial mess in history on your hands. It'll be a repeat of the Big Recession, but the next time is will be the Super Depression. Don't say I didn't warn you.