Treasury Department Recommendations

[J Grant]

But lending is the big volume generator for many residential appraisers ( for the 9,864th time ). While there are other needs for res purpose appraisals, the volume is dwarfed by the lending pipeline..not arguing with you just stating fact.

Unless appraisers scramble to create a new market niche for themselves via the internet and expand services sch as offering online chat consulting about offers, .list prices and appraisal contingencies linked to Zillow etc, the res side at least will shrink dramatically if the proposed changes are passed.

 

[Mike Kennedy]

AI’s letter also makes an important point that appraisal alternatives or “waivers” are nothing new. Leading up to the real estate crash of 2007- 2008, Fannie and Freddie were issuing appraisal waivers en masse. After the GSEs were taken into conservatorship back in 2008, it was discovered that as many as 30 percent of mortgage loans held by Fannie and Freddie had received such waivers, according to AI. Even after the crash, a separate report from the Government Accountability Office reports that Fannie and Freddie only required appraisals for 85 percent of the mortgages they purchased in 2010 and 94 percent in 2009. In other words, the GSEs have long used AVMs or waivers as alternatives to appraisals and the practice dates back to the early 2000s.

However, AI warns that Freddie’s latest move to use these tools for first purchase transactions is especially foolish. “Freddie Mac’s decision to veer away from fundamental risk management practices appears to harken back to the loan-production driven days in the years leading up to the 2007-2008 financial crisis…which turned out to be disastrous for the entire economy,” the AI warns.


http://www.workingre.com/avms-to-finally-replace-appraisers-3/

 

[Mike Kennedy]

123456.....

 

[Randolph Kinney]

So ... to make the economy grow, housing has always been the main driver. And mortgages a key to that. With rising interest rates, rifi mortgages are out. Therefore loosen mortgage criteria so that anyone can qualify and no appraisal necessary, well some might get a hybrid appraisal.

 

[Mike Kennedy]

psssst divorces, personal trusts, bankruptcies, and second wave baby boomer estate appraisals are increasing (check your market(s) rising.....................shhh ...................it's a $ecret.

 

[Evincere]

So ... to make the economy grow, housing has always been the main driver. And mortgages a key to that. With rising interest rates, rifi mortgages are out. Therefore loosen mortgage criteria so that anyone can qualify and no appraisal necessary, well some might get a hybrid appraisal.

That's the plan. Being offered by our governments myopic visionaries. As you point out in many links provided, the mortgage real estate industry is fast becoming a hot potato that everyone's passing around. In the end there will be so many fingers pointing in every which way direction it will be impossible to assign accountability and responsibility to any one entity.

Is the VA going to point the finger at FHA who will point a finger at Fannie and Freddie? Meanwhile, the likes of Corelogic et al and other re-engineering appraisal aka " modernization" advocates sit in the galleries laughing and frolicking.

When they stop receiving appraisal data they will be relying on their own dated data to keep the ship afloat.

 

[Randolph Kinney]

psssst divorces, personal trusts, bankruptcies, and second wave baby boomer estate appraisals are increasing (check your market(s) rising.....................shhh ...................it's a $ecret.

Those have always been part of my appraisal business. However, they are not of sufficient volume to make up for lending appraisal volume. It is great to diversify but that won't sustain all the appraisers out there.

 

[Mike Kennedy]

Those have always been part of my appraisal business. However, they are not of sufficient volume to make up for lending appraisal volume. It is great to diversify but that won't sustain all the appraisers out there.

Nor should it.

 

[Randolph Kinney]

When they stop receiving appraisal data they will be relying on their own dated data to keep the ship afloat.

I suspect they will use BPOs. The realtors always have their own way of valuing homes that give the highest price. The trick is to find some sucker that will buy it at that price, then get an appraiser to come in with the value. Drop the appraiser requirement and it becomes a circular process; I sold it at that price therefor the value is the price I sold it for.

 

[Mike Kennedy]

I suspect they will use BPOs. The realtors always have their own way of valuing homes that give the highest price. The trick is to find some sucker that will buy it at that price, then get an appraiser to come in with the value. Drop the appraiser requirement and it becomes a circular process; I sold it at that price therefor the value is the price I sold it for.

and/or CMAs