New Fannie/Freddie Forms

[Socrates]

I have spent some time watching the guidance on the new form that will be coming out at this link: https://www.fanniemae.com/course/singlefamily/uadtrainingfiles/story.html
From what I have been able to see, they are drilling down on collection of data such as views, waterfronts, type of waterfronts etc. There can only be one reason for these changes which would be to standardize the data so that values can be driven by algorythm. We all saw this previously with the forms that came out in the early 2000s when the c1-5 and Q-15 came out. This is becoming more finite so that view properties, waterfront properties or complex assignments can be driven by algorythms. Just my opinion. What does everyone think.

 

[Terrel L. Shields]

hey are drilling down on collection of data such as views, waterfronts, type of waterfronts etc.

Ed Zaggley. They will quant it all and then stop using appraisers.

 

[shrubberyvaluation]

I have spent some time watching the guidance on the new form that will be coming out at this link: https://www.fanniemae.com/course/singlefamily/uadtrainingfiles/story.html
From what I have been able to see, they are drilling down on collection of data such as views, waterfronts, type of waterfronts etc. There can only be one reason for these changes which would be to standardize the data so that values can be driven by algorythm. We all saw this previously with the forms that came out in the early 2000s when the c1-5 and Q-15 came out. This is becoming more finite so that view properties, waterfront properties or complex assignments can be driven by algorythms. Just my opinion. What does everyone think.

What are the algorithms for views and waterfront, these are some of the adjustments that would be hardest to standardize.

 

[sputnam]

I have spent some time watching the guidance on the new form that will be coming out at this link: https://www.fanniemae.com/course/singlefamily/uadtrainingfiles/story.html
From what I have been able to see, they are drilling down on collection of data such as views, waterfronts, type of waterfronts etc. There can only be one reason for these changes which would be to standardize the data so that values can be driven by algorythm. We all saw this previously with the forms that came out in the early 2000s when the c1-5 and Q-15 came out. This is becoming more finite so that view properties, waterfront properties or complex assignments can be driven by algorythms. Just my opinion. What does everyone think.

The data they gather may be used in that way... however, it is not the only reason they might be making those changes. Spend even a little while doing nothing but reviewing appraisal reports. You will see that many appraisers have not been meeting the minimum reporting standards of USPAP. The new form helps force those appraisers to do what they should have been doing all along.

 

[Overimprovement]

The new form helps force those appraisers to do what they should have been doing all along.

That is what state boards and revisions are for. It is really easy to spot crappy, no effort, full of boilerplate reports. Easy to tell if MLS pictures were used when the signing appraiser certifies on the form he personally inspected the comps (no rabbit holes here about inspecting vs photographing. You ALL know the issue). Easy to confirm if signing appraiser actually was the inspecting person vs a runner. Easy to require support for adjustments. And so on...

No, this is as the OP states. A clear and direct to move to totally automate data collection and valuation. Do those in charge have the right to do this? Yes. Should we continue to delude ourselves as to the eventuality of this industry? No.

 

[Tom D]

I hope no one here is expecting to be appraising full time after 2 more years. I'm doing very well in my new, again, flip and fix rebirth.
Not that are any older appraisers here, but many of us collect ss, and this downturn isn't the killer, like when we were younger.

New forms? The appraisal index card you handed to the bankers was just as good as the new uad. Appraisals don't make value up or down, we are more here to prevent value fraud. The fed and poor underwriting are the cause of bad loan losses.

 

[azbassman21]

It's easy for FNMA to do what they want to do under a liberal regime. Their *** is almost out in the wind at this point and if Trump is able to get them out of conservatorship, they will be liable for their own mistakes...we hope. We all know they have been absolutely belligerent the past decade.

 

[Tom D]

I believe that the government hasn't released its ownership of fannie is cause it has been a cash cow in the last, low rates. times. Now, it my be time soon for it to be unloaded on somebody.

 

[Mark K]

What does everyone think.

Some of us think you are exactly correct. Its been coming for several years and now the new forms will be simply more rope with which to lynch the appraisal profession. My guess is that in 3-5 years 75% of the mortgage loans will be made with waivers or automated products.

I can understand the waivers more than the AVMs... if the waiver is based on the borrower. If a borrower is requesting a 50% LTV, has a 750+ credit score, has a good job for several years, and has some emergency cash available, waive the appraisal.

 

[Terrel L. Shields]

What are the algorithms for views and waterfront, these are some of the adjustments that would be hardest to standardize.

regressions have a 0, 1 input for items. So, yes for FP, it's a 1, no is a zero. Ditto view and waterfront, vs water view, vs none. These can all be read as zeros and ones for the regression.