Hybrid

[Evincere]

I was one of the people who worked on creating the UAD (djd can thank me later) and prior to the UAD the folks at Fannie Mae had determined by looking at thousands and thousand of appraisals that appraisers used more than 200 hundred different ways of stating something was some level of average including Avg, Avg+, Avg++, Avg+++, Avg-, Avg--, Avg+/-, Avg/Good, Avg/Old, Avg/New, Avg/Fair. Avg/Sup. Avg/Inf and many, many more combinations, usually without including any explanation of what the rating actually meant. The need to standardize GSE appraisal reporting was an obvious no brainer for them.

The XML data from these hybrids which is basically the meat and bones data contained in a 1004 can then be gathered by Fannie to continue to feed their CU. Is that correct?

Then doesn’t this basically diminish - even to the extent the hybrid Replaces and phases out a 1004 down the road?

 

[George Hatch]

I think the rumors of the impending demise of the conventional 1004 are greatly exaggerated.

 

[Evincere]

I think the rumors of the impending demise of the conventional 1004 are greatly exaggerated.

No rumors. Just common sense, logic and yes or no.

I recall the hybrid being referred to as (long overdue) “modernization” which is a term generally used to replace that which is outdated.

And Actually, the only (modernization?) rumors I’ve heard had to do with Fannie revising the 1004 and so far it’s a mystery? as to when and with what....

 

[Meandering]

The XML data from these hybrids which is basically the meat and bones data contained in a 1004 can then be gathered by Fannie to continue to feed their CU. Is that correct?

Then doesn’t this basically diminish - even to the extent the hybrid Replaces and phases out a 1004 down the road?

It also negates that the "Restricted Use" report is acceptable for the assignment, as the GSEs are intended users and are being sent the XML data.

 

[Terrel L. Shields]

It also negates that the "Restricted Use" report is acceptable for the assignment, as the GSEs are intended users and are being sent the XML

Seems to me standardization was as much about data mining as having uniformity. Without a key, how can a borrower understand the report? It might as well be written in Greek. USPAP does not define the "reader" of the report but cert 23 specifies who can rely upon a report we pretend is "only" for the intended user" - talk about doublespeak.

 

[timd354]

Seems to me standardization was as much about data mining as having uniformity. Without a key, how can a borrower understand the report? It might as well be written in Greek. USPAP does not define the "reader" of the report but cert 23 specifies who can rely upon a report we pretend is "only" for the intended user" - talk about doublespeak.

Of course the standardization of the report was driven by the desire to mine data. Why wouldn't the GSEs collect and utilize the data contained in the millions of appraisals that are done for the loans that they purchase or guarantee? They would have been foolish not to take advantage of that opportunity.

 

[Terrel L. Shields]

Of course the standardization of the report was driven by the desire to mine data. Why wouldn't the GSEs collect and utilize the data contained in the millions of appraisals that are done for the loans that they purchase or guarantee? They would have been foolish not to take advantage of that opportunity.

Data? Or Opinion? That's what Google said when fined $5 billion by the EU today. They use my data and opinion but don't pay me for it rather use it against me?

 

[timd354]

Data? Or Opinion? That's what Google said when fined $5 billion by the EU today. They use my data and opinion but don't pay me for it rather use it against me?

Anytime an appraiser utilizes one the GSE's forms to report an appraisal, they have given permission for the data from the report to be scraped by the GSE's and other secondary market participants (see cert 21 from the 1004 below). If appraisers think that there is value in that data, then they should include take that into account when setting their fees and if they don't want the GSE's and others in the secondary market to collect the data from their appraisals, then they should not do GSE related work or utilize the GSE appraisal forms.

21. The lender/client may disclose or distribute this appraisal report to: the borrower; another lender at the request of the
borrower; the mortgagee or its successors and assigns; mortgage insurers; government sponsored enterprises; other
secondary market participants; data collection or reporting services; professional appraisal organizations; any department,
agency, or instrumentality of the United States; and any state, the District of Columbia, or other jurisdictions; without having to
obtain the appraiser’s or supervisory appraiser’s (if applicable) consent. Such consent must be obtained before this appraisal
report may be disclosed or distributed to any other party (including, but not limited to, the public through advertising, public
relations, news, sales, or other media).

 

[hastalavista]

USPAP does not define the "reader" of the report but cert 23 specifies who can rely upon a report we pretend is "only" for the intended user" - talk about doublespeak.

Fortunately (and at least in California) the courts have ruled, using an argument that you've advocated from what I recall since I first joined the forum, that the client and stated intended users have privity, and the others (despite that they are identified as being entities who can rely upon the report... but for a very limited purpose) have no claim against an appraiser.

Settled law.

 

[Carnivore]

Fortunately (and at least in California) the courts have ruled, using an argument that you've advocated from what I recall since I first joined the forum, that the client and stated intended users have privity, and the others (despite that they are identified as being entities who can rely upon the report... but for a very limited purpose) have no claim against an appraiser.

Settled law.

That is how I see it...and so the only thing someone can do then is file complaints with the respective Appraisal Board against the appraiser in spite of privity.

Oh Gee...'Shades of Copyright' Lets not go that road again...even though as far as I know is not settled law.