Waivers, huh?

[alebrewer]

Incompetent management upon the part of an AMC who has underbid with a fixed price isn't a problem for me nor the bank. It's the management of stupid AMC owners thinking all properties are cookie cutters.

Not sure where that came from, but I fully agree - incompetent management in any company that you don't own shouldn't be a problem for you. Could be a problem for a bank, though.... if the AMC a bank is using goes belly up, and they have outstanding debts to appraisers, I can see an argument where the bank is still responsible for paying the appraiser(s)...

 

[djd09]

ask DW...the ex AQB chair if ACE follows USPAP

 

[alebrewer]

Agre- sales fiannced using a waier are NOT identified as such ,unlike every other sale which is identified as conventional, FHA, VA, cash - so ther is no way for appraisers, investors, or anybody to track the prices of sales sold using waivers to compare them to other sales.

Not being argumentative here, as I get your point, but the section you're referring to in the MLS's is the 'financing' section. It's still a conventional loan even if there was a waiver... One possible solution is to get enough traction from fellow appraisers AND Realtors to have a field added in the MLS labeled: "Appraisal Waived: Y/N" I wonder, though, if DW and company would be averse to that information being available to appraisers?...

 

[Tiffany Gibbons]

Not being argumentative here, as I get your point, but the section you're referring to in the MLS's is the 'financing' section. It's still a conventional loan even if there was a waiver... One possible solution is to get enough traction from fellow appraisers AND Realtors to have a field added in the MLS labeled: "Appraisal Waived: Y/N" I wonder, though, if DW and company would be averse to that information being available to appraisers?...

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[djd09]

either the gse's need to follow the same guidelines they set for appraisers or get the f out of the appraisal business...hypocrites

 

[alebrewer]

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?

 

[CGinMN]

Appraisers can verify every sale they use to find out about the financing that was used. So, "no way to know" isn't a thing. Besides which everyone here has experience using all-cash sales where the market participants used no appraisal or AVM at all, and we never previously worried about the market getting away from .....the market. If it hasn't happened with the all-cash sales then what makes you think the use of a relative few 0-80% LOANS would enable the market to run away from the market?

A 0 LTV buyer has more on the line than a 80 LTV borrower, and all cash sales are stronger than financed sales, meaning they can usually get a “discount” vs. financed sales for a faster close and importantly no financing/appraisal contingencies. For 80 LTV using OPM to finance who cares if it’s a couple hundred more a month extra? In fact, if I was working with 2 lenders in the purchase of one property, and one offered me a lower rate but required an appraisal, and the other offered my a slightly higher with a waiver, in an competitive environment I would probably choose the waiver.

 

[J Grant]

The other thing we don’t really know or haven’t heard anything about is concentration risk. If waivers are granted more often for specific property types, say 1-15 year old C2/C3 tract homes, waiver concentration could be higher in specific neighborhoods. If it ends up happening that these default at higher rates of/when the market sours, are there tail risks (legal) to the GSEs? We already know waivers can’t detect property condition-related issues, which is probably one reason they are moving away from waivers to property data collections.

A waiver can have or not have, a property data collection ( inspection ) attached to it.

 

[J Grant]

Appraisers can verify every sale they use to find out about the financing that was used. So, "no way to know" isn't a thing. Besides which everyone here has experience using all-cash sales where the market participants used no appraisal or AVM at all, and we never previously worried about the market getting away from .....the market. If it hasn't happened with the all-cash sales then what makes you think the use of a relative few 0-80% LOANS would enable the market to run away from the market?

Ultimately, what the lenders WILL do is primarily limited to what their regulators ALLOW them to do. So when it comes to stopping the lenders from doing things appraisers don't like it is those regulators who have the authority to apply that coercion.

The waivers should be on the SAME playing field as another financing - disclosed on the tax record and on MLS listing for all to see - WHY NOT ?? Why do you think they should be the reception??

An agent can get days to get back to us on a question like that, and some never bother answering.

I am speaking out against the system that allows this—regulators allowing them and Fannie/Freddie to allow it and inventing it to evade having an appraisal done, which must conform to regulations. A waiver is the Wild West. Other than having an AVM done, which nobody sees, is there any outside regulation or oversight of them?

Of course a lender would use it since it is allowed, you need not state the obiovus - teh wueion is whyare they allowed - well why was predatory lending allowed until the market imploded - same answer. Not every lender perhaps uses them idk

 

[J Grant]

Appraisers can verify every sale they use to find out about the financing that was used. So, "no way to know" isn't a thing. Besides which everyone here has experience using all-cash sales where the market participants used no appraisal or AVM at all, and we never previously worried about the market getting away from .....the market. If it hasn't happened with the all-cash sales then what makes you think the use of a relative few 0-80% LOANS would enable the market to run away from the market?

Ultimately, what the lenders WILL do is primarily limited to what their regulators ALLOW them to do. So when it comes to stopping the lenders from doing things appraisers don't like it is those regulators who have the authority to apply that coercion.

You never answer direct questions and instead throw out unrelated theoretical questions.

Cash sales are sometimes discarded as comps if the price is too high or too low wrt the prevailing trend. Idk why you keep bringing cash sales into the discussion. The buyer is 100% on the hook for them; there are no taxpayer-backed or investors relying on an appraisal or waiver - though some cash buyers actually finance a home , the Contact has no financing contingency, but agents call it a cash offer. I have no idea why you keep dragging them in but its your thread so I guess you can-