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

[Zoe]

Let me go a step further. When someone grants a waiver or whatever other issue. Who grants that?

As far as lending procedures go, is there any bias involved?

Does a value even have to be placed on the subject?

If so, who puts the value on it? What is the value definition?

Is that biased?

 

[Tom D]

waivers are granted by fannie based on their risk assessment being low.
foreclosure have nothing to do with house prices being high. the last big forclosue bang was due to no doc adjustable 2 year mortgages. what the person could afford was already maxed when they bought it. then 2 years later their rates jumped several points, but their income stayed the same. the fed and loose lending causing every problem.

some here either haven't been around long enough to understand these cycles, and some of you should actually learn how these systems work, and how each one is a time bomb. especislly the fed, who never seem to know when to slow down, instead of slammig the breaks, big smart people they are.

 

[Zoe]

waivers are granted by fannie based on their risk assessment being low.
foreclosure have nothing to do with house prices being high. the last big forclosue bang was due to no doc adjustable 2 year mortgages. what the person could afford was already maxed when they bought it. then 2 years later their rates jumped several points, but their income stayed the same. the fed and loose lending causing every problem.

some here either haven't been around long enough to understand these cycles, and some of you should actually learn how these systems work, and how each one is a time bomb. especislly the fed, who never seem to know when to slow down, instead of slammig the breaks, big smart people they are.

Everybody understands that.

That was not my questions. Who puts the value on the property relative to collateral in a waiver?

What is the definition of value in a waiver?

On other products? Who puts the value on the subject property? What is the definition of value on the subject property? What real property rights are being valued and on what basis?

 

[djd09]

waivers are granted by fannie based on their risk assessment being low.
foreclosure have nothing to do with house prices being high. the last big forclosue bang was due to no doc adjustable 2 year mortgages. what the person could afford was already maxed when they bought it. then 2 years later their rates jumped several points, but their income stayed the same. the fed and loose lending causing every problem.

some here either haven't been around long enough to understand these cycles, and some of you should actually learn how these systems work, and how each one is a time bomb. especislly the fed, who never seem to know when to slow down, instead of slammig the breaks, big smart people they are.

waive them all...just not marin city

 

[Tom D]

zoe, the lender don't care who does what, if it is faster and no cost. the buyer does not care either. the agents do not care. if the loan amount is smaller than typical the risk assessment is low. the appraisal is only a part of risk assessment.
you don't understand that appraisers are done within the next 5 years or less, because fannie can spit out an avm appraisal in 10 seconds and also qualify the loan as to it's risk assessment. fannie put the anyway we want into anything as how fannie can do it. an avm, or hybrid, is an appraisal. to quote a famous movie saying with out lingo, appraiser, appraiser. we don't need no stinking appraisers.
marin city, the appraiser there would not be killed if there was a waiver. right now however, there are no waivers on properties over $1,000,000. long ago, that number was very few, but not today. that will change soon to.

 

[J Grant]

Everybody understands that.

That was not my questions. Who puts the value on the property relative to collateral in a waiver?

What is the definition of value in a waiver?

On other products? Who puts the value on the subject property? What is the definition of value on the subject property? What real property rights are being valued and on what basis?

The value on the waiver is put in by the Loan officer! Or it is the sale price! A pre-determined $ value to meet a lending goal was what HVCC and Dodd-Frank were designed to prevent in appraisals, so the GSEs sidestepped it by not using an appraisal and replacing it with a waiver.

Caveat - the loan officer's figure or the Sale price as the $ amount on a waiver/value acceptance happens as long as the $ figure fits in the value range of a Fannie/Freddie AVM/valuation , the property also might need to have an appraisal done on it within a certain # of years (not sure if a prior appraisal on the property is still required)

I tried to tell the appraisers who insisted the value should be a range- I warned them that if the appraiser did not choose the point value, then somebody else would, and that somebody else in a Waiver who chooses th point value is the loan officer on a refinance, or the price on the contract. in a sale

I do not know if the value in a Waiver is called market value - or what it is called. Maybe someone on the GSE side can explain what the value is called..
It seems the WAIVER program is now called value acceptance., fwis.

 

[alebrewer]

The value on the waiver is put in by the Loan officer! Or it is the sale price! A pre-determined $ value to meet a lending goal was what HVCC and Dodd-Frank were designed to prevent in appraisals, so the GSEs sidestepped it by not using an appraisal and replacing it with a waiver.

As I see the value 'inputs', they're not so much an appraisal performed by a LO as they are a threshold - above which additional collateral requirements are called for, and below which fewer collateral requirements are called for.

 

[J Grant]

zoe, the lender don't care who does what, if it is faster and no cost. the buyer does not care either. the agents do not care. if the loan amount is smaller than typical the risk assessment is low. the appraisal is only a part of risk assessment.
you don't understand that appraisers are done within the next 5 years or less, because fannie can spit out an avm appraisal in 10 seconds and also qualify the loan as to it's risk assessment. fannie put the anyway we want into anything as how fannie can do it. an avm, or hybrid, is an appraisal. to quote a famous movie saying with out lingo, appraiser, appraiser. we don't need no stinking appraisers.
marin city, the appraiser there would not be killed if there was a waiver. right now however, there are no waivers on properties over $1,000,000. long ago, that number was very few, but not today. that will change soon to.

From my undresanding, the borrwoer has to qualify for a waiver, ( $ amount down, credit rating or income ) and the property has to qualify - more standardized properties vs oddball or high risk properties. Correct that properties over a million are exempt. (for now). That leaves more risky borrowers and more risky, complex , difficult left overs for the appraiser .

Any newbie naive enough to enter now, lured in by PAREA or hoping a lower interest rate will return the field to glory, read the above. FF is cagey about what total percent of loans use WAIVERS, they keep changing the amount they report using different metrics, I have yet to see it reported as a total of all loans. But their goal seems to use a waiver whenever possible,-

 

[Tom D]

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 many openings at any time. just like when i started, you had to wait for an appraiser to die to get a training position.

 

[djd09]

the unethical stakeholders can do whatever they want...no rules for them...but on the back end a good appraiser with a backbone will help the borrowers they have put underwater