New USPAP Q&As published March 6, 2025

[Fernando]

Realtors don't disclose pending sales prices in my area of this non-disclosure state. And three different presidents of the Amarillo board of Realtors have been members of my family.

Realtors have fiduciary duty not to disclose contract prices while pending.
However, when using Fernando charm, you can get agents to disclose the privy information.
Just don't be arrogant jerks like Trump.

 

[Mike Ault]

If it's a non disclosure county or state all the better nobody can prove squat so just use the pending at whatever it was listed at that's why there called pending and not closed. A pending flight to Japan means the plane took off it doesnt guarantee the flight isn't going to crash on its way.

But Hell I'm already fed up with Amarillo Texas and rather than listening to why
a pending can't be verified i want to hear the apprasers saying i know everybody in this County and every Realtor and Billy Bob's family verified it and thats my story and I'm sticking to it and the Realtors number is also non disclosure as i can't share confidential communications under Texas Law.

Mike Be like our A Holes in Alaska the apprasers all five would say F you this is how we roll up here and if i say it's pending at $400k then it's pending at $400 k ..but that's not a guarantee it's closing at $400 k and that my friend is why they don't call it a closed sale..I liked that A Hole and that made sense. In Alaska they don't care if your the CEO of Fannie Mae or a State Board.

I just view it as another opportunity to educate people on why I don't use pendings. Especially some out-of-state reviewer who thinks my appraisal development is deficient in some manner, my favorite. If the data appears on one of my grids, you can count on it. One less thing to worry about while focusing in on the finer things in life.

 

[Fernando]

I just view it as another opportunity to educate people on why I don't use pendings. Especially some out-of-state reviewer who thinks my appraisal development is deficient in some manner, my favorite. If the data appears on one of my grids, you can count on it. One less thing to worry about while focusing in on the finer things in life.

Most of my pendings sell over list price.
When I get the inside info on the contract price, I indicate it in the report which supports my appraised value.
For the timid afraid to ask, when the pending will close within days of anticipated closing date, the agent is more willing to reveal the contract price.

 

[glenn walker]

I just view it as another opportunity to educate people on why I don't use pendings. Especially some out-of-state reviewer who thinks my appraisal development is deficient in some manner, my favorite. If the data appears on one of my grids, you can count on it. One less thing to worry about while focusing in on the finer l

That's why you make the big bucks and bring the women home Saturday nights you exude confidence and that along with the ..that's how we do it in Texas works everytime with a out of stater.

 

[timd354]

You don't do rural property, do you?

Certainly rural proeprties present more of a challenge due to a lack of sufficient market data in many cases whicfh certainly may preclude an appraiser from being able to exract a time adjsutment (or market condition adjsutment) from the available data. That is why rural appraisals require more work by the appraiser and appraisers of rural proeprties should set their fees appropriately to reflect that reality.

 

[timd354]

No doubt correlated, but unlikely that LTV has any causation on default rates. That is the basis for GSE logic, though, which concludes that since alternative "valuation" products are reserved for the highest equity loans (where borrowers have skin in the game, too), those products are more "accurate" than traditional appraisals because they tend to have a lower default rate. Of course, then using the same mentality of greed that led to the Great Recession, since that was true during a long, upward trend in the housing market and is largely untested in a flat or downward market trend, they now extend the use of the unaudited products to near 100% financed loans. As always, creativity is enhanced when profits are privatized and losses are socialized.

Only someone you has never looked at the default data could say something as ridiculous as LTV has no causal relationship with defalut rates. Borrowers with little or no skin in the game (high LTV's) are much more likely to default than borrowers at lower LTV's (especially in decling markets) and this reamins true even when all other factors that affect default rates are accounted for (FICO score, DTI, reserves, # of borrowers, self-employment, etc.). Trust me, as a mortgage insurer, we know exactly the causal relationship between loan attributes and default rates, and default severity.

 

[Terrel L. Shields]

That is why rural appraisals require more work by the appraiser and appraisers of rural proeprties should set their fees appropriately to reflect that reality.

With AMCs dictating fees to so many residential appraisers, that's not always possible. But a rising tide lifts all boats so if I do some stats off the "rural and farm" segment of our MLS, I can project that as a proxy for the overall market most likely. It just takes a lot more work. I don't find a lot of difference in market condition changes between small town residences and rural properties surrounding that community.

 

[timd354]

GSE folks make a lot of claims that can't be verified because they hide the data. Not really very different than appraisers who suggest their conclusions are based on experience, except that there are mechanisms to make appraisers prove it.

I am not saying that I support or believe what the GSE's are asserting, I am just letting you know what they are saying and what they are likely telling the regulators.

 

[timd354]

With AMCs dictating fees to so many residential appraisers, that's not always possible. But a rising tide lifts all boats so if I do some stats off the "rural and farm" segment of our MLS, I can project that as a proxy for the overall market most likely. It just takes a lot more work. I don't find a lot of difference in market condition changes between small town residences and rural properties surrounding that community.

No, it is not always possible, but AMC's undoubtedly have less pricing power in rural areas with fewer appraisers than they do in suburban and urban areas with lots of appraisers. I know this to be the case because I see what we pay for field reviews in rural areas versus other areas and from the fee disclosures I see in many appraisals and review appraisals.

 

[TerryRohrer]

Only someone you has never looked at the default data could say something as ridiculous as LTV has no causal relationship with defalut rates. Borrowers with little or no skin in the game (high LTV's) are much more likely to default than borrowers at lower LTV's (especially in decling markets) and this reamins true even when all other factors that affect default rates are accounted for (FICO score, DTI, reserves, # of borrowers, self-employment, etc.). Trust me, as a mortgage insurer, we know exactly the causal relationship between loan attributes and default rates, and default severity.

Is that why you managed it so very well during 2007-2010?