Slow Down?

[Elliott]

 

[TRESinc]

? Pretending the borrow cares? They spend a lot of money to get a loan and are impacted by outcome. They may not be knowledgeable or unbiased enough to evaluate an appraisal, but that is not the same thing as them not caring ...despite not being named as client, the borrower is the party most affected by the outcome and without a borrower, there is no lending appraisal assignment.

we all know the borrower cares about one thing and one thing only - getting the loan so they get the house. period. stop lying to yourself and others. you could tell the borrower they qualified and the appraisal came in at $300,000 and they would be just as happy if you told them they got the loan and the appraisal came in at $200,000 for the same house. the appraisal is just one of many steps, and fees, they have to endure to borrow money and quite frankly it is one of, if not THE, smallest fees associated with obtaining a loan.

An appraiser who does good work by extension "cares" about the borrower, regardless of fee.

more babble to make yourself feel good. an appraiser who does good work cares about their reputation, not the borrower. it doesn't matter who the borrower is, a good appraiser puts forth their best effort every time.

 

[J Grant]

People like Tres Inc et al state their opinion about what a borrower cares about or what an appraiser cares about as if it were fact. They are welcome to their individual opinions but they post as if they speak for everyone.

Tres Inc we all know the borrower cares about one thing and one thing only - getting the loan so they get the house. period

Really? I see many sales contracts with an appraisal clause if appraisal is below SC price borrower is released from the deal /similar terms. Seems you are the one lying then...since many borrowers do not want to over pay for a house and end up with negative equity.

For those borrowers who don't care and just short term want the house at any price, that is their prerogative...they may care later when they can't sell for what they bought it for.

Regardless of borrower an appraiser needs to be unbiased, we all know it is far easier and more business friendly to rubber stamp prices, which also speeds up delivery time or lack of ROV.

 

[ICT RE]

Borrower is irrelevant.

The client in lending assignments is the party extending capital and undertaking the risk. The appraisal is part of their risk assessment and due diligence.

Are third party insurance adjusters an advocate for the insured or the insurer? What about RE title companies?

 

[J Grant]

Borrower is irrelevant.

The client in lending assignments is the party extending capital and undertaking the risk. The appraisal is part of their risk assessment and due diligence.

Are third party insurance adjusters an advocate for the insured or the insurer? What about RE title companies?

The borrower is relevant to USPAP public trust.. since the borrower is not allowed to choose the appraiser, the borrower relies on the lender to make a good choice for them...we all know many lenders don't care about the appraisal or appraiser just close the loan with magic number...some lenders are more diligent and ethical about the appraisal but they have to compete with the less ethical ones for business. The less ethical outsource any dirty work to an AMC that they used to offload to mortgage brokers...aka wink nod stop assigning orders to an appraiser it appraisal comes in "low." See how many appraisers have had that happen to them on this board, or fear it happening, which shows the third party firewall function is compromised.

The reason lenders, and AMC;s like hybrids and fast /cheap is that such pressure and products ( and accompanying low fees and fewer clients ) make appraisers more dependent on a dwindling outlet of clients and thus more frightened to dare come in below a high refi goal or SC price. The lenders are not concerned with saving borrowers $, if they were they could cut their own origination fees or points lol....and the 24 hour time savings for such quick deliver products are meaningless with 15-30 year loans and closing dates, few purchasers could move immediately even if the loan could close, they have to pack, sell a place or end a lease, same for the sellers..

 

[J Grant]

Owners often hire their own private insurance adjusters and contest claims....they are allowed to do so and it is a huge business. They can also choose their homeowner insurance company, they are not allowed to choose their appraisal. Not even sure why this thread went in this direction except some people took it there.

It was about the work slow down.

 

[djd09]

slow down.

ACE: A Free Appraisal Alternative for a Faster Close

Automated Collateral Evaluation (ACE) is a new free capability in Freddie Mac Loan Advisor Suite® that allows you to underwrite a loan without a traditional appraisal. It helps you get your borrowers to closing faster and − since there’s no appraisal fee − saves them money.

Here’s how it works: Submit your loan to Loan Product Advisor®, specifying an estimate of the value or the sales price for the mortgaged property. ACE’s proprietary automated valuation model determines the acceptability of the value (or sales price) as the basis for underwriting the loan, and uses available data − like existing appraisal data, Multiple Listing Service data, and public records − to assess the condition and marketability risks associated with the property.

If the analysis determines the risk is acceptable, the Loan Product Advisor Feedback Certificate will indicate that the loan is eligible for ACE. That means you can originate the loan without an appraisal and you’re relieved of the representations and warranties related to the value, condition, and marketability of the property.

While ACE was originally only available for no cash-out refinances, we recently expanded eligibility to include purchase transactions. That means even more borrowers can benefit from ACE.

http://www.freddiemac.com/singlefamily/community_lenders/news/20171005_free_appraisal.html

 

[J Grant]

Good post...ACE, Fannie Waivers reduce volume, combined with other factors leads to fewer orders. That, and other developments is why many appraisers report this slow down feels different compared to prior years seasonal or interest rate impacted slow downs.

The below is ironic...an appraisal is not supposed to meet a pre determined value or value direction ( sales price or value estimate ), yet an ACE valuation model is based on that. Wonder how in love with the product the secondary market or borrowers will be if turns out more borrowers end up over paying or over borrowing....and end up with no or negative equity...perhaps why so many sales contracts still have an appraisal clause.

Here’s how it works: Submit your loan to Loan Product Advisor, specifying an estimate of the value or the sales price for the mortgaged property. ACE’s proprietary automated valuation model determines the acceptability of the value (or sales price) as the basis for underwriting the loan, and uses available data − like existing appraisal data, Multiple Listing Service data, and public records − to assess the condition and marketability risks associated with the property

 

[bnmappraisal]

The below is ironic...an appraisal is not supposed to meet a pre determined value or value direction ( sales price or value estimate ), yet an ACE valuation model is based on that.

Why is that ironic?

An ACE (or for that matter any other AVM type thing) is not an appraisal. So they can have any pre determined estimates they want

 

[J Grant]

Why is that ironic?

An ACE (or for that matter any other AVM type thing) is not an appraisal. So they can have any pre determined estimates they want

That IS the ironic part...!! That they are substituting a base on a lender or borrower refi value target or sales price ACE product for an appraisal ...think about it.