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

[Sadie]

We all know that situttion does not need an appraisal

But WAIVERS are now used for origination purchases and refinances -

I think situations similar to my example are the only ones that really should receive the waivers. IMO, getting a waiver for a purchase or refi with a high LTV is a recipe for a problem. It will take a few years before we know if the waiver process created any additional problems for lenders and/or borrowers.

 

[glenn walker]

Waivers cannot be based on CU scores. CU scores reflect the over valuation risk of an appraisal report. In the case of a waiver, there is no appraisal report, so there is no CU score.

Danny Interesting I Understand there is no Appraisal but Fannie Says To be eligible for relief: the loan must be secured by a one-unit detached, attached, or condo property (manufactured homes are not eligible); and. must receive a CU risk score of 2.5 or below. The Appraisal waiver offers are issued through Desktop Underwriter® (DU®) using Fannie Mae's database of more than 58 million appraisal reports. Since the Waiver "not Value" is based on a former appraisal that is in your data base 'Is it that the former Appraisal has a CU Score of 2.5 or Less ?

 

[DWiley]

Danny Interesting I Understand there is no Appraisal but Fannie Says To be eligible for relief: the loan must be secured by a one-unit detached, attached, or condo property (manufactured homes are not eligible); and. must receive a CU risk score of 2.5 or below. The Appraisal waiver offers are issued through Desktop Underwriter® (DU®) using Fannie Mae's database of more than 58 million appraisal reports. Since the Waiver "not Value" is based on a former appraisal that is in your data base 'Is it that the former Appraisal has a CU Score of 2.5 or Less ?

I do not know. Perhaps you can ask someone at Fannie.

 

[glenn walker]

Freddie Mac --For certain Loan Product Advisor® Mortgages, the automated collateral evaluation provides a Seller with the option to accept an appraisal waiver and originate the Mortgage without an appraisal.

When the appraisal waiver option is accepted, Freddie Mac will accept the purchase price submitted by the Seller for purchase transactions or the estimated value submitted by the Seller for refinance transactions for the purposes of underwriting the Mortgage, and will not exercise its remedies, including the issuance of repurchase requests, in connection with a breach of the Seller’s selling representations and warranties related to value, condition, and marketability of the Mortgaged Premises.

Maximum LTV/TLTV ratios

Purchase	Primary Residence or second home	80%
No-cash out refinance	Primary Residence or second home	90%
Cash-out refinance	Primary Residence	70%
Second home	60%

 

[djd09]

unregulated appraisal practice with no biased scope of work or high and best use analysis suckers

 

[Carnivore]

Interesting Article. What caught my eye was the Tier rating for appraisers. I did not realize they were using that tier rating outside of their Collateral Vendor Panel. I am a Collateral Vendor and I am a Tier 1. This does not mean I or others met 100% of their expectations. Sometimes I did and sometimes I did not and this expectations rating is in percentages. I don't recall to be specific but this meant you met ; Expectations 90-100% I never dropped below tier 1 since 2008 that I know of.. But Recently I to remain on the Collateral Vendor List I was required to take two Modules of On-Line course about racial bias/disparity etc I did and I am good/Active with them.

Three FNMA Emloyees as part of my learning experience as a collateral Vendor came to Charlotte and went on Three REO Inspections.

Another reason I am a Collateral Vendor is because I meet a Federal diversity requirement imposed on FNMA by the feds. I am White Male Disabled Vet.

If you are a Black Female Disabled Veteran Licensed Appraiser you should create a Resume and immediately Apply for a Job at FNMA. 99% chance of being hired for an opening even if there is not opening you will be at the top of the list for the first opening.

I want to say something else but I better not, but will say this: It has to do with FHA REO's/Short Sale. Some of them over at facebook appraiser forum that do this work might want to go find another kind of Job..

 

[TerryRohrer]

 

[glenn walker]

unregulated appraisal practice with no biased scope of work or high and best use analysis suckers

View attachment 69852

Good chart.

 

[George Hatch]

If the primary reason a lender is getting an appraisal is to avoid a gross overencumberance of the property then they're not taking a big risk in transactions with LTVs of of 80% or less. That's not to say they should go with nothing, but if their internal AVM has enough to work with to get to a reasonable reliability level then getting an appraisal - even a hybrid or desktop - won't significantly reduce that risk.

I know that's not what appraisers want to hear. But if you were a lender and the subject was in an area with lots of data and your AVM was returning a reasonable score then - at the macro scale among the many - you wouldn't be worried about running into a significant percentage of gross overvaluations by an AVM.

 

[BRCJR]

If the primary reason a lender is getting an appraisal is to avoid a gross overencumberance of the property then they're not taking a big risk in transactions with LTVs of of 80% or less. That's not to say they should go with nothing, but if their internal AVM has enough to work with to get to a reasonable reliability level then getting an appraisal - even a hybrid or desktop - won't significantly reduce that risk.

I know that's not what appraisers want to hear. But if you were a lender and the subject was in an area with lots of data and your AVM was returning a reasonable score then - at the macro scale among the many - you wouldn't be worried about running into a significant percentage of gross overvaluations by an AVM.

Most lenders cannot adhere to the IAEG's concerning the use of an AVM. If anyone is curious, please see page 31 of 45 IAEG.

They may use them and depending upon asset size of the lender may not be caught do so improperly.

Larger institutions will be monitored (by fed and state examiners) for the AVM use and compliance with the regulatory requirements for doing so.