New Fannie/Freddie Forms

[sputnam]

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.

The state boards don't review appraisals unless someone files a complaint. The 1004 form that is used now was published in 2005. It's long out of date.

 

[Socrates]

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

They have standardized them on the new forms that are coming - click the link and watch the video.

 

[Socrates]

The state boards don't review appraisals unless someone files a complaint. The 1004 form that is used now was published in 2005. It's long out of date.

Be that as it may, this is 2000 all over again. When they start stripping data from the reports with standardized responses. Now they are fine tuning it. They are increasing the number of appraisal waivers and they will use appraisers long enough to collect more data. I have already seen a commercial for an AI app for agents to help them price homes for listings.

 

[Socrates]

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.

Agree totally. I just think the end game is full automation. No appraisers - just real estate agents running around taking photos.

 

[Fernando]

I knew the UADs were not sufficient for their algorithm for precise valuation.
Appraisers know location, views, and such have major influence. AI supplying info for Fannie to get the data needed from appraisers.
The more information collected, the more computer models will someday replace us.

 

[glenn walker]

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.

Who wants it...the mess in a real audit would most likely be so bad that to try and unwind it could crash the whole MB securities markets and those 2 5% to 3.5% fixed rate loans are worth 50 cents on a dollar. I really think this may be one Hornets Nest that we may not want to poke. Let's just try to get the other 300 agencies cleaned up first.

 

[Fernando]

Fannie is too big to fail. It may be losing money but government has to support it. How else can most Americans afford to buy a home?

 

[TerryRohrer]

Who wants it...the mess in a real audit would most likely be so bad that to try and unwind it could crash the whole MB securities markets and those 2 5% to 3.5% fixed rate loans are worth 50 cents on a dollar. I really think this may be one Hornets Nest that we may not want to poke. Let's just try to get the other 300 agencies cleaned up first.

Its a good thing the Fed owns a quarter of those bad MBS's.

 

[glenn walker]

They will be converted into bit coin or our new digital currency and just traded on open worldwide platforms. The holding and managing mortgages is less than 5 years from extinction. Even real estate can be converted to digital where a seller can list it like a stock and buyers won't need Appraisals as the value determined by the digital markets. Then if buyer needs a mortgage it can be a digital mortgage with LTV instantly determined by super computer's. Recording purchase done instantly to cloud data bases. County Recorders no longer recording transfers.

 

[sputnam]

Be that as it may, this is 2000 all over again. When they start stripping data from the reports with standardized responses. Now they are fine tuning it. They are increasing the number of appraisal waivers and they will use appraisers long enough to collect more data. I have already seen a commercial for an AI app for agents to help them price homes for listings.

Maybe that is what they will do. Look, I get it. Appraisers... most of them... hate change. Everytime there has been some change, appraisers complain about it. People in this forum are still whining about the adoption of the ANSI standard. We are not going to stop the world from changing.. and that includes the lending industry. We can work to remain relevant... or... we can just complain.