New 1004

[djd09]

the lenders didn't think verifying the borrowers credit, assets, of debts was a good idea either...

 

[J Grant]

I don't fail to understand it at all. The appraisal exists to facilitate the loan but thanks for repeating that, constantly, Ms. Obvious.

But what the lenders are realizing is that making the loan is the easy part. They can do that with or without an appraisal so why bother? That is what the banks are realizing and the reason that SFR F/F lenders are moving away from appraisals. Appraisals don't prevent or mitigate losses, again, so why bother. The "over-leveraging" part is such a minor issue that its not really worth discussing....except by you. An AVM is good enough for that.

You see only the front end of the while the lenders are looking at the entire issue. They are the ones looking downstream and seriously questioning the value of an appraisal. If they thought for a minute that an appraisal added value they wouldn't be in such a hurry to essentially do away with them.

Soapbox: If the lenders would spend 1/2 as much time vetting borrowers and requiring things like good credit and a down payment as they do micro-managing the appraisal process, the default rate would plummet. But F/F is intent on lending to unqualified buyers so they may as well just rubber stamp every application that crosses their computer screen. The massive seller concessions they allow plus allowing borrowers to finance the balance of the down payment with outside lenders is a recipe for disaster, one that won't be helped by the best (or worst) appraisal in the world.

The appraisal checkbox is fading into obscurity along with the business model of the appraiser that has relied on it for a living.

Why bother? Because it is the tax payers; money backing these loans, and appraisals have served them well for decades.

Another form of valuation is used instead of the appraisal - such as a WAIVER where the loan officer estimates the value, or the sale price is the value ( as long as it fits in the secret GSE AVM range. ) do you really think that is better? Do you think an assisted AVM or a hybrid where a non appraiser does a data collection instead of an inspection by the appraiser is better?

The lenders are not questioning the value of the appraisal. They want to get rid of it, so they control the value, such as in a WAIVER, or use hybrids CU; turned out by compliant AMC, anything to remove the brake on the profit train car. Somebody is making money off these alternative valuations, btw,. The shift to other products takes away any nonvested third party and puts control of the value in the lenders; by eliminating the appraisal, the valuation $ is put into the pockets of crony AMC and AVM companies.

I can not think of a profession other than appraising where a number of their own professionals were so eager to sell it out.

 

[shrubberyvaluation]

Why bother? Because it is the tax payers; money backing these loans, and appraisals have served them well for decades.

And why should they care about the taxpayers?

 

[djd09]

with the mortgage brokers estimating value...everything is going to be worth a million dollars

 

[djd09]

And why should they care about the taxpayers?

and why should we care about them...

 

[J Grant]

And why should they care about the taxpayers?

Because it is the prudent thing to do. since the taxpayers are at risk and have to bail the lenders and the GSE;s out.

If they don't care, they should abandon the phony m, the mission of protecting the public trust stance they take.

 

[ExplainDNA]

You seem to have a constsnt issue with having to note the color of someone. I believe that is racism attaching a color to any person about any subject. Do you have an internal self hating white person complexe. Although, you are usually spot on appraising answers, when not being a race baiter.

Yeah, he’s got issues. Thinks everything is a roll on the floor kackling matter. I’m putting him on ignore…

 

[George Hatch]

One thing the lenders are trying to avoid is mortgage fraud. The 1-payment default. That can still happen is the appraisal is reasonable but at least the lender can recover most of their principal.

 

[Mark K]

I can not think of a profession other than appraising where a number of their own professionals were so eager to sell it out.

Its called seeing the big picture and the writing on the wall.

The appraisal profession isn't the only one that's been adversely affected by the internet and the evolving marketplace.

Going thru life with blinders on might give you a warm feeling (kinda like peeing your pants) and ranting about the things over which you cannot control might help your psyche but it won't stop progress.

 

[djd09]

the crooked banksters will cheat and steal the borrowers blind...