Property Inspection Waivers (piw) The Death Of A Profession?

[Wayne Henry]

Fannie Mae is not the agency we should be going to for a change in property inspection waivers (PIW's). We should be going to their client, the banks. Not the homeowner because they will more than likely try to save money and PIW's are probably not as much as a full appraisal. Everyone wants to cut cost but at what cost are they doing so. Fannie Mae will still go after them if there is a buyback. This will not hit the market for a couple years and they should be warned. By using an appraiser they have a justifiable value with a real person accountable. Accountability, unfortunately, is one of our worth. It should not be our only worth but it seems these days one of our best shots of saving our profession.

 

[timd354]

Fannie Mae will still go after them if there is a buyback. .

That is simply wrong. When Fannie Mae issues a PIW, they waive the requirement for the lender to rep & warrant the collateral. Fannie will have no basis to force a repurchase due to collateral when a PIW is issued with very, very few exceptions. A bank that does not accept a PIW and instead chooses to get an appraisal is actually foolish because when they do that, they actually increase their risk of a repurchase because as soon as the bank obtains an appraisal they have put themselves on the hook to rep & warrant the appraisal and the property.

 

[Non Sequitur]

When rolled out, the bifurcated report will push many residential appraisers out of the business not PIWs.

 

[timd354]

When rolled out, the bifurcated report will push many residential appraisers out of the business not PIWs.

Yes, the volume of PIW's is not by itself going to kill off the residential appraisal business. If and when a bifurcated appraisal process becomes widely adopted, that will lead to much more disruption of the residential appraisal business than PIW's

 

[Tom4value]

News flash-
PIWs have been around for about 15 years. Here are some things that will talk you down off the ledge.

1. PIWs will only be available with a DU eligible finding. This will only happen if Fannie has a previous appraisal in the system. Therefore, new construction is out.
2. Most purchases will not be eligible. They are only possible with an LTV of less than 80%. Most purchases are less than that.
3. DU will indicate if they are “eligible” for a PIW. That means that a homeowner or an underwriter can decline the PIW and order a full appraisal. Why would a borrower want one? Well, cash out refies are capped at 70% LTV. If a homeowner has done recent renovation, they will want credit for that. Also on a purchase, if they are putting a large down payment, they will want to know if it is worth the price they are paying.

As a result, only 5% of all applications will go with a PIW.

 

[Deleted member 130081]

I don't think the PIW in itself will kill the profession, but I think it aint helpin'

The desktops will kill the profession not only by reducing the need for labor, but also will degrade the experience of appraisers disconnecting them from that which they value (can't know what a house is if you don't inspect them).

There is a segment of work out there that has been done with BPOs for a while, and that segment could shift to appraisers and possibly grow as well, but who knows how much that might be.

There is nothing good about too many desktops.

Pre-offer appraisals could save the world, but no one is interested.

 

[EddieB]

Yes, the volume of PIW's is not by itself going to kill off the residential appraisal business. If and when a bifurcated appraisal process becomes widely adopted, that will lead to much more disruption of the residential appraisal business than PIW's

You may have said this before. If you have then I missed it

 

[Deleted member 134708]

For my mom, me like. For my dad, me like. For my friends, me like. For me, me like.

For appraisers? Don't care. Capitalism is better than you.

For the tax payer? Don't care. They are controlled by a swamp so they are irrelevant.

 

[djd09]

For appraisers? Don't care. Capitalism is better than you.

You mean socialism, right?

 

[Deleted member 134708]

You mean socialism, right?

No.

1004 appraisals are garbage. They aren't value adding to society. Capitalism has discovered way better ways but are handcuffed from implementing.