The word "Average" in the improvements section - possible bias?

[J Grant]

exactly right jgrant.
people. with FHA always, you could refi the balance of your loan amount without an appraisal at any time, no doc. that makes sense, a lower risk assessment with a lower monthly payment. that has been around forever, it's not a new concept.
forget what fannie is doing, start to realize the end of most appraisers is coming. figure it out and maybe you won't be caught in a death spiral. a good amount here don't need appraising full time, some here may survive and will be needed. but it will be like a brain surgeon, not that may openings at any time. just like when i started, you had to wait for an appraiser to die to get a training position.

Correct that with FHA or other programs, one could refinance a loan without an appraisal.
Hwever, this is a vast expansion of that, because now an origination loan for a refinance or home equity, or a purchase, can be a waiver instead of an appraisal..

Some more prudent lenders still want an appraisal though, and some RE agents and parties still want an appraisal even if they are offered a waiver. An appraisal/approval of financing is often part of the sale contract and one of the reasons, IMO, the term WAIVER is out and Value Acceptance replaced it,-the buyer WAIVES the baked in financing protection in a loan wrt not having an appraisal done.

 

[Tom D]

most of my direct lenders are getting more waivers. you are going to argue with a waiver, and say no to that. never happen. now buyer's being protected less, have we seen appraisers stop house prices from ever going higher. but yes, there can be exceptions to being overpriced. i did one, very overpriced. the borrowers had a small loan amount. they didn't care, they wanted that house.
and the lender is getting a safe harbour. they will not have to take the loan back ever and eat it.

 

[J Grant]

most of my direct lenders are getting more waivers. you are going to argue with a waiver, and say no to that. never happen. now buyer's being protected less, have we seen appraisers stop house prices from ever going higher. but yes, there can be exceptions to being overpriced. i did one, very overpriced. the borrowers had a small loan amount. they didn't care, they wanted that house.

If a borrower does not care and wants to overpay for the house, then they can put their own cash down as the difference when the appraisal comes in lower and it can close at teh higher price. . Regardless of whether a borrow overpaid, if it appraised for less, the lender's LTV position was protected with the lower opinion of market value

With a waiver, the SC price is the value ( as long as falls in the GSE AVM value range _), and a buyer waives the financing protection, and IMO it has raised prices in the market.

 

[djd09]

where is the number pressure petition...todays highs make the mortgage broker ordering days the bottom number

 

[Terrel L. Shields]

The more people overpay, the more property will go under.

 

[J Grant]

The more people overpay, the more property will go under.

It extends beyond overpayment in a purchase and its twin is over-borrowing in a refinance or equity loan - which puts an owner underwater in a mortgage or having zero equity. But hey, they saved $300 on an appraisal... and a lender gets to close fast!

 

[Tom D]

fannie knows the foreclosure rate of loans done. yous think they don't know their waiver foreclosure rate. it gotta be so bad that they keep doing more of them. wishful thinking hoping for more aporaisal work.

i overpayed for my property in the crash of 1989. paid $42,500. still waiting for it to adjust back to early 1980's value. foreclosures are due to other factors, not pricing. before it was bad loan programs and lax underwriting. the other main cause is medical bills or a downturn in employment.

but they ain't being done for everbody. however, the over flowing appraiser bucket is being lowered to having a lot less appraiser.

 

[Terrel L. Shields]

fannie knows the foreclosure rate of loans done. yous think they don't know their waiver foreclosure rate.

They certainly do. But those numbers are meaningless, just like they were when housing crashed in 2008.

 

[Tom D]

terrel, i not be diagreeing with you. but do you think loans with waivers have or are going to have a higher/lower rare of foreclosure.
i say credit creme of the borrowers with maybe more down money.

fannie may already know that number, it is however a factor in our future lack of residential work. housing crashing is seen ahead of time by the fed, but they move to slow causing a market sunami. then they kinda say, we should have done something sooner. the brilliant minds in charge. same cycle repeated again. from pres carter to now

 

[RCA]

The UAD FAQs on the GSE web sites specifically say NOT to do that. (Question 34)

There is, however, nothing preventing one from developing and including definitions of Good, Avg, etc. that are modeled after the definitions of the C ratings. That is what I would do.

The UAD Condition and Quality defintions invariably invite subjective judgement from appraisers that opens the gate to systemic bias. In addition, the gross nature of these ratings cannot distinguish significant differences in market value.

But of course, all you have to do is to tell everyone to their close eyes, like that retarded guy shouted while walking through his high school gym girls shower room. [ As my Dad recounted it many years ago - it actually did happen at some high school in Eugene, OR, somewhere around 1960. ]

Dan will understand.