Your metrics for risk, Default rate, CU risk flags, loan performance loss severity, and loan deflects NONE of it has anything to do with appraisals !
Which makes it a crock of sht- (sorry but really, it is) to apply these metrics to judge appraisals and then sit there and say there is no more or less risk for this appraisal product vs that other prudct sine the a bulkd of the metrics are on the borower/loan side -
As far as data accuracy, I reviewed hundreds of appraisals with field reviews post-market crash after 2008, and data accuracy was rarely the problem - fudged adjustments and cherry-picked comps to make a value were the issues the vast majority of the time. I have seen or reviewed sproadially reports since then and the same holds true.
It's hard to believe that "undervaluation" is a problem since many appraisers fear being dropped due to a "low value." How do you determine what an undervaluation is? Though it might upset a borrower or a lender who loses a deal, an "under valuation" does not increase risk. An overvaluation can - whether a WAIVER, full apprisal, AVM or hybrid produces an overvaluation..
