Waivers 50%. Hybrids 30%.

[shrubberyvaluation]

Yep. And in the real world when a borrower has the choice between an $800 AMC fee or WAIVER after their loan officer tweaked/submitted the file multiple times, what do you think they will choose?

Here's a recent LinkedIn discussion:

**Name redacted for privacy--Boots on the ground appraiser***: have the systems been fixed to prevent loan officers from resubmitting multiple times to trigger a waiver?
During the refinance boom, I knew a loan officer who would submit the same file up to a dozen times — adjusting things like gift letters (to show larger borrower reserves) or the borrower’s estimated value — until a waiver appeared. He said it worked about 30–40% of the time back then.

Fannie Mae’s Selling Guide even flags “an unusually high number of submissions [that] may be the result of data manipulation,” so it seems the issue was recognized. Have those triggers or other safeguards been strengthened to catch this kind of resubmission-based gaming across the automated underwriting systems?

***GSE Guy*** I can't comment on our gaming controls, but gaming is not a common cause of the issue that XXXXX experienced. Keep in mind that lenders need flexibility to change loan parameters because their understanding of the borrower's financial position evolves as underwriting proceeds, so DU must accommodate changes in loan terms. It reassesses the loan application after every material change. This cuts both ways, offering value acceptance when loan parameters shift to reduce collateral risk (say, when the lender's estimate is decreased) but also withdrawing value acceptance (requiring the lender to obtain an appraisal) when the loan application becomes more risky (such as a reduced down payment or more cash out). This ensures value acceptance can only be executed when the loan parameters fall within our established risk tolerance. For the appraiser, this leads to the occasional cancelation but also results in some new appraisal orders for loan applications that lost value acceptance. The bottom line is that this flexibility is a necessary feature of underwriting and, while a cancellation is not pleasant, in general the cancellations are offset by new orders.

Understanding of their financial position evolves? Lol, yes ok.

 

[shrubberyvaluation]

Loan officers can be a crafty bunch. It’s not exactly a secret that they all are looking for creative ways to get that waiver. And there’s no way government workers can keep up with it.

At this point, it’s hard to argue that the markets aren’t juiced. Like many have said.

Don’t forget, these flexibility’s and others were supposed to be temporary. They were never meant to be long-term and they were certainly never meant for high LTVs. Unfortunately, it’s just like everything else in the profession, no oversight or worse, fox is guarding the henhouse.

Yes anytime government says something is just temporary...it almost always is not.

 

[J8012]

That appears to be the plan. At least not have any licensed appraisers involved. Make the whole valuation thing like doordash.

Why the 3.6 though? Why develop that aggravating of a process?

Data collection, look at the amount of data now required. Its a surveillance program, you arent appraising anymore. Between cubicasa, appraisals, aerial and drone data collection, homeowners insurance data collection and all the shareware for listings everything you own, every inch of your home are now recorded. the claim has always been accuracy and accountability, it was a con. We walked right into it when we agreed to uad data storage. We are toast. IMO

 

[OSU Beavers]

This waiver, PDC and hybrid BS should have been eliminated as soon as the lockdowns ended. Now nearly every market in the nation is declining and the GSE is just taking the loan salesman's word for the value.

 

[DWiley]

....Now nearly every market in the nation is declining ....

Do you think the GSEs are getting appraisal reports that are consistent with that assertion?

 

[chad hampton]

Probably not, you should get more waivers.

 

[Non Sequitur]

Do you think the GSEs are getting appraisal reports that are consistent with that assertion?

About as many times as the GSEs have anything good to say about independent boots on the ground appraisers?

 

[OSU Beavers]

Do you think the GSEs are getting appraisal reports that are consistent with that assertion?

Not if the appraisers are using TrueTracts!

 

[djd09]

Do you think the GSEs are getting appraisal reports that are consistent with that assertion?

did you ever work for a bank...mark 'declining' and see what happens

 

[DWiley]

did you ever work for a bank...mark 'declining' and see what happens

After the crash the appraisers at my firm did hundreds, maybe thousands, of reports where "declining" was marked and negative market conditions adjustments were applied.