More AMC and PDC Bull$hit

[OSU Beavers]

We need a good 20% drop in resale values nationwide to shake things up. Everyone is comfortable with Alt valuations when the market is increasing. When crashing, not so much.

 

[George Hatch]

Bad deals are made during good times

 

[J Grant]

First off, checking up on the accuracy of a PDR is arguably just common sense. Of course you should check up on them. Why wouldn't you?

You already look properties up in your public records databases and reconcile for any obvious contradictions in your MLS listings. You don't charge extra for checking up on the info in your subject's MLS listing.

Appraisers have to chase down contradictions on MLS listings on comps because we do not have access to inspect the comps. However, there is access to inspect the subject, typically,- but in a hybrid, the appraiser is denied that access - instead, a random PDC person is sent to the subject property.

If the data on a comp is contradictory and can not be reconciled, the appraiser can choose to discard the comp and continue with the assignment. But if the data is bad on a PDC, then the appraiser can not continue. Either the assignment gets upgraded to a "traditional appraisal," or the order is cancelled? I assume it would be up to the client at that point.

 

[J Grant]

Bad deals are made during good times

Fannie Mae, through its "Value Acceptance" (formerly Appraisal Waiver) program, explicitly states that the estimated value accepted from a lender in a waiver scenario might not be the actual current market value of the property.
annie Mae
Here are the key points regarding this statement from Fannie Mae's guidelines:

• Lender-Submitted Value: When an appraisal waiver (value acceptance) is offered, Fannie Mae is accepting the value submitted by the lender, which is typically based on the contract price (purchases) or an estimated value (refinances), rather than an appraiser's in-person valuation.
• No Warranty on Value: Fannie Mae does not warrant that the estimated value provided by the lender is the true, actual value of the subject property.
• Limited Representation: While Fannie Mae provides the lender with representation and warranty relief for the property value and condition, this does not mean the property's actual market value was verified by an independent party.

 

[Tom D]

So much for driving by the subject and comps. It now means that there was no value to ever having done that. Although the aerial view seems just as good as a drive by. The rules change for me, but not for thee.