Three days in a row. Different GLA than advertised.

[timd354]

Correct, if the waiver was based on a past appraisal it might not be based on public records. Although we are being told these are the situations that waivers happen, I doubt it is the case most of the time.

With Fannie, it is the case 100% of the time....Fannie doe not issue an appraisal waiver unless they have received a prior appraisal on the same property.

 

[shrubberyvaluation]

How about the range [$0, $99,999,999]? - Now that has got to be 100% accurate, for about any property. Well, at least if we assume the property cannot have a negative value (e.g. contaminated) or be worth more than $99,999,999 (Claude estimates less than 0.01% of homes are worth more than $99,999,999, or less than one in 10,000, e.g. a home owned by some Billionaire like Jeff Bezos).

In my closed sale rankings, if I see a house that is DEFINITELY better than the subject that has a date adjusted sale price of $6,000,000 (and every house with a higher ranking is without doubt better as well) and one that is definitly lower in appeal with a date adjusted sale price of $5,200,000 (and everyone one with a lower ranking definitly less appealing). Then, I have an objective range of

MV range: [$5,200,000, $6,000,000]

Now maybe I could narrow the range. But the statement that the subject MV is within this range, appears well supported and therefore the statement can be taken as 100% accurate.

Property can have negative value. There are some properties that the bank and property owner are fighting to give the property to the other because its worthless due to rent controls. There could also be a time that taxes make it negative value.

 

[shrubberyvaluation]

With Fannie, it is the case 100% of the time....Fannie doe not issue an appraisal waiver unless they have received a prior appraisal on the same property.

Are you sure about that?

 

[timd354]

Are you sure about that?

Well, they will offer a waqiver with no apprasial if an inspection is required or if the LTV is very low, but the overwhelming majority of aprpasial waivers without a required inspection require a prior appraisal, not that any of this really matters as there is not a damn thing appraisers can do to stop it anyhow.

 

[chad hampton]

I'm dealing with one now. I had been sent this appraisal order back in May for a purchase and I knew the purchase price wasn't going to happen. Mtg broker called me the next day and said they got a waiver. Oh well, I figured it's going to be another example of data cancer out there, but no one seems to care about that. Last week I got the order for their refi. It won't meet the sale price and they did some upgrades.

Could have saved him $25k min had the GSE's not had their reckless waiver policy. I'm going to tell them to call the gse waiver king with any questions.

It's funny, you search the MLS in this neighborhood and you can almost predict the sales that got waivers. Some of the sales look odd. It might even be worse than most of us thought.

 

[J Grant]

It would be interesting to know how wide the value range the AVM provides in a WAIVER, where either the sale price or the loan officer's refinance $ estimate must fall within the range.

For a 300k sale price, for example, is a typical AVM range the GSEs provide ( I assume they provide the AVM) 290k-310k, or would it be 270-320k ? (or wider?)

 

[Mark K]

Property can have negative value. There are some properties that the bank and property owner are fighting to give the property to the other because its worthless due to rent controls. There could also be a time that taxes make it negative value.

We haven't had this one for a while. These are always fun!!

 

[J Grant]

With Fannie, it is the case 100% of the time....Fannie doe not issue an appraisal waiver unless they have received a prior appraisal on the same property.

How wide is the typical AVM value range for a WAIVER?

 

[alebrewer]

From Perplexity:

When Fannie Mae or Freddie Mac offer an appraisal waiver (now often called "Value Acceptance" or ACE), the value estimate for the property is accepted as submitted by the lender and is not independently provided as a range by the Uniform Collateral Data Portal (UCDP). The UCDP's role is to supply historical appraisal data and risk analytics that help determine eligibility for a waiver—not to communicate a value range or separate value judgment for the property during waiver issuance.

How Value Acceptance Works​

• If eligible for an appraisal waiver, the system accepts the lender's estimated property value as the transaction value without providing a new appraisal or value range.
• The underlying data in UCDP is used by both Fannie Mae and Freddie Mac in their risk modeling to evaluate waiver eligibility and confidence in the submitted value.
• UCDP does not issue a value range or its own estimate in situations where the waiver is granted. The acceptance is binary: either the submitted value is accepted or the waiver is not offered.

Summary of Process​

• Value Acceptance/appraisal waiver means the property value on the loan application is accepted as-is for loan underwriting by the GSEs.
• No value range or additional valuation is communicated by UCDP to the lender; only the acceptance of the lender's stated value is confirmed.

This process expedites lending and simplifies documentation where adequate data confidence exists, but the UCDP does not provide a new value or value range in waiver cases; it only supports the determination of waiver eligibility and value acceptance.

 

[chad hampton]

I'm not worried....the Borg is all knowing.