I already said that the less is always less and the PDR+desktop is less than a 1004 but more than the lesser alternatives like the 2055, the desktop-only, the PDR+AVM and the waiver.
I trust the comment made earlier in this thread didn't escape your notice, about PDRs performing better than appraisers WRT noticing property defects. If the lenders and GSEs are also weighting property condition in their decision making then "PDRs are performing better than appraisers on condition" should be waving a big red flag for you.
That is THEIR statement: they are "performing better." We have no way to know if that is true, and they claim a metric which sounds ridiculous (repair items ) in the plus column, but magically, there is no minus column.
In order for outside of the GSE people to judge how PDR properties are "performing", the WAIVER/value acceptance should be identified on the loans, like FHA, cash, and conventional VA are identified. That way, RE agents, analysts, appraisers, investors, and the public- anyone- can track the waiver for prices or default rates etc. That is not possible now. wish.
A WAIVER falls under the conventional category, yet there is no identification that a WAIVER was used on public records or MLS, so nobody outside of the GSEs can see or know their performance or if it is sales how their prices line up..
If the performance is loan defaults, how can appraisals change that ? Overvaluations can put a property at risk for being underwater, and thus the humans might tend more to default; the same is true for problem properties. Problem properties are harder to sell and harder to maintain, and thus their default rate might be higher., Problem borrowers come with a built-in higher default potential
The appraisals now are almost predominantly the problem properties - or done for problem buyers or borrowers. So of course the properties that get appraisals might perform worse. Fannie accounts for all this in comparisons? Can we see the comparisons and judge for ourselves? No. . .
WAIVERS get the more conforming, easier properties and higher income or credit ot down payment borrowers, though the borrower credit side is expanding for waivers. Will see. I know that when I look up property records now, over a third and show delinquent taxes. Not a good sign.
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