Truth or Dare

[Terrel L. Shields]

How many 'waivers' will be underwater if the market adjusts down?

 

[J Grant]

How many 'waivers' will be underwater if the market adjusts down?

We will find out in several years, plus or minus.

It takes X years for a loan to become "seasoned" and see how it performs - wrt how fast or when/if any will be underwater? idk - there won't be an appraisal to review because there was no appraisal. The taxpayers bail these out - there is no liability for the lender for the value of the collateral ( no buyback on the lender's part with a bad or overvaluation, called relief from reps and warranties. )

 

[djd09]

And I got an email from a lender (addressed to all the board of realtors members) that Fannie now does waivers for 90% LTV. So, why stop at 90%?, which they won't, we know from last bailout.. Letting someone who gets paid a percentage of the loan decide the value with no appraisal license. Sure, no objective opinion of value in this market.. Makes sense. NOT.

just our friendly gse's running appraisers out of business with free appraisals....

 

[J Grant]

just our friendly gse's running appraisers out of business with free appraisals....

The GSE's are running appraisers out of business, but they are offering free valuations ( not a free appraisal )

By offering a non regulated valuation, they avoid the regulations placed on appraisals like a target value and such.

I

 

[djd09]

but they are offering free valuations ( not a free appraisal )

you can wordsmith it like them...but the dictionary definition of an appraisal is the act of assessing something or someone

 

[djd09]

boy...do appraiser need a good class action lawsuit

 

[Overimprovement]

The AMC controls what they offer. The appraiser controls which assignments they'll accept. No forced labor or servitude involved.

Boom. When I found fewer clients accepting what I wanted for the typical assignment, I decided to leave the industry as a full-time participant. No coercion involved. I also set the wage I work for now, by turning down several inferior offers, and negotiating up the salary at my current employer. We have both been happy with the arrangement since I started.

 

[J Grant]

you can wordsmith it like them...but the dictionary definition of an appraisal is the act of assessing something or someone

An appraisal per AI and USPAP is an opinion of value - regardless of what some random dictionary says.

 

[George Hatch]

you can wordsmith it like them...but the dictionary definition of an appraisal is the act of assessing something or someone

The manner in which laws and regs are structured always or almost always include an internal definitions section for certain terms used therein, those definitions being specific to that reference. Criminal Code, Civil Code, Administrative law, etc.

You can't mischaracterize the intent of the law or regulation or other ruleset by cherry picking an outside definition of the term that is different than the internal definition of a term in these laws/regs. The govt uses their definitions sections to prevent people from trying to do that. It's an anti-lawyer thing. An anti-SovCit thing. An anti-criminal thing.

Here's the definition for "appraisal" as it appears in FIRREA. It is different than the definition the appraisal profession uses in USPAP. FIRREA has different definitions for "appraiser" than does USPAP. All the state laws/regs I've seen have their own definitions which apply to their usage of their own state laws/regs.

This further illustrates the point that TAF doesn't write laws and regs, even if a definition in a section of law or regs legislated by a govt does ends up being the same as our reference.

 

[djd09]

An appraisal per AI and USPAP is an opinion of value - regardless of what some random dictionary says.

well duh...they are giving an opinion of value...ask the mortgage broker