"REVIEW Appraisals" are back-in favor during these Slow-Times > USPAP Violations > State Boards

[Terrel L. Shields]

It's a Handbook designed to be used like a Grand Jury-You know a Ham Sandwich can be convicted in a Grand Jury.

Good analogy - many people "indicted" by a Grand Jury would never have faced trial if the decision was solely that of the prosecutor because prosecutors don't like to lose.

In general, in my experience, the review done by a bank is done by a small staff of administrative people overseen by a licensed or certified appraiser. The smallest of banks will be reviewed by the loan officer's secretary - or the secretary of the loan officer in the adjacent office - who have nary a clue but use a check off sheet. (One local bank used a 2 page check form...0) And while the larger regionals may review the occasional report, many smaller banks don't, as best I can tell.

 

[Sadie]

Of course they should. I've stated ad nauseum that I believe an appraisal should be credible regardless of who is reading it - intended user or not. It's either credible, or it's not. That's not to say that folks who don't know appraisal terminology or methodology may misconstrue stuff, but that's why the state has investigators.

I agree.

 

[jay trotta]

So am I to assume this is applicable to Desk Tops / Waiver Slam Dunk Reports provided by F & F - OR is it just applicable to the peons at large??

 

[J Grant]

So am I to assume this is applicable to Desk Tops / Waiver Slam Dunk Reports provided by F & F - OR is it just applicable to the peons at large??

In a waiver, there is no appraisal, therefore nothing to file a complaint about on or review -
The AVM/ in house valuation done by FF to green light a range for the aiver is proprietary and idk if it qualifies as a valuation that is ever reviewed -

 

[TerryRohrer]

In a waiver, there is no appraisal, therefore nothing to file a complaint about on or review -
The AVM/ in house valuation done by FF to green light a range for the aiver is proprietary and idk if it qualifies as a valuation that is ever reviewed -

That is the big crock in all this mess. Spend 30 years supposedly creating a regulatory scheme to ensure the public trust, then subvert it with unlicensed inspectors and unregulated AVMs. The joke, apparently, is on us.

 

[glenn walker]

The waiver is the future as it eliminates people filing complaints. Remember if they don't like the $$ on a waiver the borrower can request lender that they will pay for a full 1004. No downside for lender or borrower. That's the future.

 

[J Grant]

The waiver is the future as it eliminates people filing complaints. Remember if they don't like the $$ on a waiver the borrower can request lender that they will pay for a full 1004. No downside for lender or borrower. That's the future.

Ikd if they can make it the future , because SOMEONE has to be liable if the loan goes bad - and guess who that someone is in a WAIVER? The American tax payer - we the people.

The WAIVERS are the most corrupt thing out there for many reasons, and therefore if they keep it limited to a "safer" tier of properties or borrowers they can get away with it. But if all properties and all borrowers qualify for a waiver, imo it would drive interest rates up, because the increased risk would sky rocker. All the risk in a waiver wrt the loan value is shifted to the tax payer, and they can only absorb so much without it affecting rates or needing PMI insurance.

Also, somewhere in the recent past is an appraisal on a property with a WAIVER. If they drop all appraisals as a check and balance, the $ value set by the sale contract price or loan officer ( which is what a WAIVER does, assuming in range of FF AVM ) - prices would start to skew all over the place.

 

[chad hampton]

I thought waivers were only used due to the high demand? Now that demand is zero, I assumed waivers would be ending? Are you saying the folks that pushed waivers and hybrids were liars?

 

[J Grant]

I thought waivers were only used due to the high demand? Now that demand is zero, I assumed waivers would be ending? Are you saying the folks that pushed waivers and hybrids were liars?

Idk any more about the back workings wrt WAIVERS than anyone else - giving my opinions on them what I have read and learned -

I see no reason why WAIVER use is ending, though if there is pushback on them from regulators or more of them go into default that could change -

 

[DWiley]

I thought waivers were only used due to the high demand?

I am not sure why you would think that. Waivers existed long before the market spike and the dramatic increase in demand. Waivers did help during the big spike in 2020-2021, but the spike was not the reason for the existence of the waiver programs.