Illegal In House Valuations

[djd09]

Representations and Warranties Related to Value Acceptance​

In addition to the limited waiver of underwriting representations and warranties available for certain DU loans, when a loan casefile is eligible for value acceptance, value acceptance + property data, or rural high-needs value acceptance, and is exercised by the lender, Fannie Mae accepts the value estimate submitted by the lender as the value for the subject property. The estimated property value the lender enters in DU must be:

• based on the lender’s or borrower's estimate of value for a refinance transaction, or
• the same amount as the Sales Contract Price for a purchase transaction.

just more lies...

 

[George Hatch]

They don't accept until after they analyze. Not just the value but everything else in the application: employment, credit, etc.. If it were otherwise then they would never reject. Not even you are committed enough to your wishful talking point to believe they have a 100% acceptance rate.

Face it, the MBs don't control any aspect of the lender's valuation and underwriting process. They just fill out the loan application forms.

 

[djd09]

in fact the gse's created the largest unregulated in house appraisal company in the history of the world...

 

[djd09]

They don't accept until after they analyze. Not just the value but everything else in the application: employment, credit, etc.. If it were otherwise then they would never reject. Not even you are committed enough to your wishful talking point to believe they have a 100% acceptance rate.

Face it, the MBs don't control any aspect of the lender's valuation and underwriting process. They just fill out the loan application forms.

Fannie Mae does not warrant that the estimated value provided by the lender is the actual value of the subject property. The lender may not make any statements to any third party (including the borrower) that Fannie Mae performed any kind of appraisal or valuation of the property.



...

 

[George Hatch]

So? That doesn't mean Fannie didn't run one or look to see if that estimate was supported in the market. It just means they don't want to get sued for it if their AVM is wrong. Their use of any valuation doesn't amount to guaranteeing the value to the borrower.
Don't be mad about it. Bankers are going to act like bankers.

Light a candle, sip some tea, do some breathing, and then think it through. Do you really believe 100% of the MB applications for these waivers are "accepted" without any due diligence on the GSEs part?

What else OTHER than an AVM could they be referring to when they summarize their "acceptance" process as "data, model and technology driven ".