Treasury Department Recommendations

[gregb]

Pages 103-107 relate to appraisals:

https://home.treasury.gov/sites/def...onomic-Opportunities---Nonbank-Financi....pdf

 

[Non Sequitur]

Thanks for the link, very interesting.

 

[Non Sequitur]

Page 106:

Recommendations
Treasury recommends that Congress revisit Title XI FIRREA appraisal requirements to update them for developments that have occurred in the market during the past thirty years. Recent data has illustrated that approximately 90% of residential mortgage originations are eligible for appraisal exceptions established since the enactment of FIRREA by the designated federal regulatory agencies.311 An updated appraisal statute should account for the development of automated and hybrid appraisal practices and sanction their use where the characteristics of the transaction and market conditions indicate it is prudent to do so.

 

[Randolph Kinney]

Pages 103-107 relate to appraisals:

https://home.treasury.gov/sites/def...onomic-Opportunities---Nonbank-Financi....pdf

Page 103

Property appraisal practices, including a perceived lack of appraiser independence from loan origi- nators and insufficiently stringent qualification requirements, were criticized in connection with the housing bubble and subsequent collapse in home prices. In response, lawmakers and regulators enacted changes to appraisal requirements that have fundamentally affected the appraisal industry. In recent years, lenders and homebuyers have pointed to the appraisal component of the origina- tion process as a frequent source of delays and a driver of extended closing timelines.

Concurrently, advances in financial technology, particularly with regard to automated valuation models (AVMs), have pushed appraisals in a new and innovative direction. The application of this technology has already begun to disintermediate the traditional appraisal process and, notably, has been adopted by both GSEs. The digitization of this component of the origination process, facilitated through electronic property records, development of large databases capable of holding millions of individual property records, and improvement of advanced valuation algorithms, holds promise to lower cost and expedite closing timelines.

 

[J Grant]

What are all the appraisal management companies going to do with far fewer appraisals to "manage"..I read in another fed report FHA or Fannie might offer its own replacement of traditional PMI...good riddance blood sucking PMI companies dont let the door hit you...

 

[Non Sequitur]

I don't know the future (if I did I would cash in), but the indicators are there. IMO the residential appraisal process will change dramatically and likely in a quick fashion just as it did with the HVCC.

 

[Mike Kennedy]

The digitization of this component of the origination process, facilitated through electronic property records, development of large databases capable of holding millions of individual property records, and improvement of advanced valuation algorithms, holds promise to lower cost and expedite closing timelines.

and hell for $400. bucks
bankers can run 400 "duhpraisals" till the big red bull$eye is hit. weeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee

 

[J Grant]

What's telling is all the fuss made of consumers saving money by waiving appraisals or downsizing them to hybrids...but where are consumers saving money by digitizalixzing mortgages? I don't see anything about bankers cutting THEIR loan origination fees to save borrowers $- they'll still charge thousands in junk BS fees lol.

 

[Randolph Kinney]

That document tells me that if hadn't retired already, I should now. Or, I can apply at Walmart and make just as much under the new proposal for appraisals.

 

[Renee Healion]

"
A Financial System That Creates Economic Opportunities • Nonbank Financials, Fintech, and Innovation
Updating Activity-Specific Regulations • Lending and Servicing
106

Critics of traditional appraisals argue that they represent an outdated and costly approach relative
to new digital tools. Critics of AVMs argue that they are dependent on detailed data provided by
an appraiser in order to maintain AVM accuracy, and that the disintermediation of traditional
appraisals will degrade AVMs as a result. Another form of property appraisal exists between these
two approaches to combine aspects of traditional appraisals with the automation and database
capabilities of AVMs. So-called hybrid or desktop appraisals leverage property history data, com
-parable sales data, photographs or video of the interior and exterior of a property, and a licensed
or certified appraiser. As the name would imply, desktop appraisals are able to be executed from
a single remote location, and offer the potential to save appraisers considerable time that would
otherwise be spent in transit to and from properties."

1) We cost a lot. AVMs are cheeep.
2) BUT Losing us would cause DISINTERMEDIATION of AVMs. We have heard this all before here but "disintermediation" is new to me, a keeper. Save the corpus appraiserus because we are useful as blood donors.
3) Up steps the compromise with a compromise name--hybrid. Oh, the familiar concern for saving our time. Independent ramblers, chained to the desk. Just like them.

Good thing there is more appraisal work than just lending (for the 9,864th time).