Truth or Dare

[Tiffany Gibbons]

No matter how many times we point it out to you within the same document you reference, you always skip the explanation of how the decision is made which appears right before the artfully curated quote you use. At this point I assume you're doing so deliberately, dishonestly and in bad faith.

The operative term in that sentence is "using". They're using their database in conjunction with their analytics. There is no mention of the broker's estimate in this explanation of their process. For obvious reasons.

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They are not licensed to USE anything or analyze anything. They are loan officers. They are licensed for that. You can't make loans without get your certification to do that. Plus, it's more an ethics concern, as they can't help but advocate for an LTV to make the deal work. The "stakeholders" income is dependent on the deal. An appraiser is not involved in the loan.

 

[Terrel L. Shields]

I think the survey speaks for itself about what the APPRAISERS think about the treatment we get from the regulators, the AMCs, and the banksters.

One can argue that isn't reality and reality is low fees must be OK or you wouldn't accept them. I beg to differ. The cruel pinch of want forces some appraisers to accept fees that they would never consider if their bank accounts were not so thin, the baby needs food, and the mortgage is due. People do what they have to do and sadly, it only contributes to the C & R scam. Eventually the whip hand will change, remember that, and hammer the bastids then.

 

[Tiffany Gibbons]

When a DU loan casefile receives a value acceptance offer and it is exercised by the lender, Fannie Mae accepts the value estimate submitted by the lender as the market value for the subject property

https://singlefamily.fanniemae.com/media/5916/display

any questions....

Yes, that's what the email I got said. The next email from the same loan officer was to offer his two beach condos for rent for snowbird season, so I guess he's doing pretty well at estimating values with no appraiser license for the secondary market. I can't become a loan officer without certification. Wonder what the percentage of Black and Latino loan officers are?

 

[George Hatch]

They are not licensed to USE anything or analyze anything. They are loan officers. They are licensed for that. You can't make loans without get your certification to do that. Plus, it's more an ethics concern, as they can't help but advocate for an LTV to make the deal work. The "stakeholders" income is dependent on the deal. An appraiser is not involved in the loan.

Fannie's explanation for their use of the data and analytics is for what they're doing, not what the LOs are doing.

Now we can say Fannie/Freddie are acting foolishly or taking unnecessary risks or even that they are incentivized to dork their own due diligence and perhaps that's so. But what they can't do is blame the appraisers for the decisions they are making on the appraisal-free basis.

Which BTW is another reason for appraisers to not get it twisted by mischaracterizing their AVM as an appraisal.

 

[Tiffany Gibbons]

What do you think it means when they believe whatever alternatives they're using (under certain conditions) are at least as sufficient for their usage as your work?

It means no one is regulating them, or more likely, that those in charge of regulation are in on it and will reap the benefits. And most of them are the exact same players as before in different roles. Because they got away with it before.

 

[George Hatch]

It means no one is regulating them, or more likely, that those in charge of regulation are in on it and will reap the benefits. And most of them are the exact same players as before in different roles. Because they got away with it before.

All true or at least mostly true. But to offset a little they are obliged to track with the political winds of whichever politics are in play in Congress and the White House. They are not free to operate solely on safe/sound as is applicable to the conventional lenders and underwriters.

A cynical mind can speculate that the reason for the increase beyond 80% is possibly driven by the partisan politics for increasing home ownership and spreading more inheritable wealth, not driven by pure greed. But that's just speculation.

Either way, the cliche still applies: bad deals are made during good times.

 

[Tiffany Gibbons]

Fannie's explanation for their use of the data and analytics is for what they're doing, not what the LOs are doing.

Now we can say Fannie/Freddie are acting foolishly or taking unnecessary risks or even that they are incentivized to dork their own due diligence and perhaps that's so. But what they can't do is blame the appraisers for the decisions they are making on the appraisal-free basis.

Which BTW is another reason for appraisers to not get it twisted by mischaracterizing their AVM as an appraisal.

It is taking the place or an appraisal. I had an agent say last week that the loan officer told him that a house I appraised didn't have to have rotten wood repaired and flaking, peeling paint scraped and painted since the house was built after 1978. I referred them all to the VA Lender's Handbook for MPRs and told them to call VA and ask. And this was the "Buyer's" agent. So that's another little consequence that no one is thinking about. This was a completely renovated house otherwise and it came in over contract. VA doesn't care who does the repairs but it must be done. Who is performing that oversight on waivers, scuse me Value Acceptance?

 

[Tiffany Gibbons]

I think the survey speaks for itself about what the APPRAISERS think about the treatment we get from the regulators, the AMCs, and the banksters.

One can argue that isn't reality and reality is low fees must be OK or you wouldn't accept them. I beg to differ. The cruel pinch of want forces some appraisers to accept fees that they would never consider if their bank accounts were not so thin, the baby needs food, and the mortgage is due. People do what they have to do and sadly, it only contributes to the C & R scam. Eventually the whip hand will change, remember that, and hammer the bastids then.

Well, you left out "Don't work for AMCs" so it is a flawed poll.

 

[Tiffany Gibbons]

All true or at least mostly true. But to offset a little they are obliged to track with the political winds of whichever politics are in play in Congress and the White House. They are not free to operate solely on safe/sound as is applicable to the conventional lenders and underwriters.

A cynical mind can speculate that the reason for the increase beyond 80% is possibly driven by the partisan politics for increasing home ownership and spreading more inheritable wealth, not driven by pure greed. But that's just speculation.

Either way, the cliche still applies: bad deals are made during good times.

Well, can the new administration put Mark Calabrias back in? He does seem to remember 2008. Or will Trump nominate Jordan Belfort just for giggles?

 

[George Hatch]

I think that might be the $64,000 question.