Hybrid Appraisals

[Joe Flacco]

The Appraisers-R-Racist psyop that began on the Biden campaign trail and ended with the Trump administration was perpetuated by some of the very same people who have been pushing for waivers and hybrids over the past decade. That's not even debatable.

The borrower in the first big story of an appraiser being racist was a Servicelink employee, right?

 

[shrubberyvaluation]

View attachment 98478

https://www.fanniemae.com/media/42541/display

That may be the first time the GSE's looked into alternative options but it is the GSE's claim that appraisers are racist and biased that has moved it forwards since.

The entire appraisal modernization program at the GSE is based on pushing the narrative that appraisers are racist and biased. It is not the appraisals that are wrong and biased, it is that the GSE AVM's which are used as benchmarks are wrong.

You can see from the publication that it is racial inequities in housing and the appraisers are racist narrative which are the reason for increasing the use of hybrids, increasing the use of collateral underwriter as a review tool, and continuing modernization.

As you can see, all of these programs, Collateral Underwriter (CU), UAD (New forms), Automated Valuations (AVM), Hybrid Appraisals, the entire modernization effort has been pushed forward based on the fake story of appraisers being racist and biased.

I see it as more of an excuse then a reason for the product. Just like when a value too low lawsuit is brought its better to just claim its racial bias. More people are willing to accept it without evidence and you can't disprove it.

 

[djd09]

USPAP is clearly written...the SOW cannot be so limited not to produce credible results

 

[CGinMN]

The borrower in the first big story of an appraiser being racist was a Servicelink employee, right?

That I can't verify. Maybe there is a former Servicelink employee you can ask.

 

[shrubberyvaluation]

The Appraisers-R-Racist psyop that began on the Biden campaign trail and ended with the Trump administration was perpetuated by some of the very same people who have been pushing for waivers and hybrids over the past decade. That's not even debatable.

There was also a push against the sales comparison approach and using a cost approach without a the site instead as the gold standard.

 

[DWiley]

The borrower in the first big story of an appraiser being racist was a Servicelink employee, right?

No, but why let facts stand in the way

 

[CGinMN]

Don't forget the infamous "research note." If you try to download from Freddie's site, you get an oops, that link doesn't exist.

https://www.bloomberg.com/news/articles/2021-09-28/study-finds-widespread-racial-disparities-in-appraisals

Yes, but the internet is forever.

Racial and Ethnic Valuation Gaps In Home Purchase Appraisals

To follow up on several stories of potential appraisal bias in various news outlets, Freddie Mac kicked off a study of whether minorities are more likely to receive an appraisal value that is lower than the contract price during purchase transactions.

web.archive.org

Racial & Ethnic Valuation Gaps in Home Purchase Appraisals - A Modeling Approach

This research explores whether properties in predominantly Black and Latino census tracts are more likely than properties in predominantly White census tracts to receive an appraisal value that is lower than the contract price when homes are appraised for the purpose of obtaining a home loan.

web.archive.org

 

[CGinMN]

Wayback Machine

"Freddie Mac will continue to explore opportunities to leverage various data collection methods, examine data driven analytics and develop supporting tools to create new approaches across the valuation spectrum. The company is also testing whether alternatives to traditional appraisals offer a more objective analysis of property value."

Lemme guess, they did the testing and the found hybrids, data collection by non appraisers, and waiver reduce bias.

 

[Joe Flacco]

No, but why let facts stand in the way

Edit: It was Abena Sanders Horton, general council for Black Knight, parent of Servicelink AMC, Servicelink AMC being one of six Fannie Mae appraisal modernization partners.

 

[CGinMN]

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