Waivers, huh?

[J Grant]

I could care less about their risk analysis; s I brought up the point that if these loans are such a low risk, why aren't lenders and the entities backing them? They dump all the risk on the taxpayer for waiver loans with the value of the collateral.

It certainly means appraisers, in addition to having less work because of waivers, are now relegated to appraising higher-risk properties and borrowers.

Carry on with defending the reasonableness, data-based research etc, The bottom line, again is
if these loans are such a low risk, why aren't lenders and the entities backing them? They dump all the risk on the taxpayer for waiver loans with the value of the collateral.

 

[CGinMN]

The default risk for waiver backed mortgages versus mortgages where appraisals were obtained will be lower because the GSEs consider loan type, LTV, credit, AVM confidence, and they have a prior appraisal on file.

 

[George Hatch]

I could care less about their risk analysis; s I brought up the point that if these loans are such a low risk, why aren't lenders and the entities backing them? They dump all the risk on the taxpayer for waiver loans with the value of the collateral.

It certainly means appraisers, in addition to having less work because of waivers, are now relegated to appraising higher-risk properties and borrowers.

Carry on with defending the reasonableness, data-based research etc, The bottom line, again is
if these loans are such a low risk, why aren't lenders and the entities backing them? They dump all the risk on the taxpayer for waiver loans with the value of the collateral.

Because they can? Because they're not prohibited from doing so? Because nobody but fee appraisers think it's crucial to get a conventional 1004 instead of an AVM for every loan, regardless of the LTV?

Because they don't want to be on the hook for the "data-based analysis of the reasonableness of the value"? Because they're apparently not having any problems selling those Low-LTV loans in the investor market?

There are apparently several possibilities, plus surely some other possibilities that I can't even guess at.

 

[J Grant]

Because they can?

We know they can, and it is IMO a rip-off since they dump all the risk for the value of the collateral for those loans on the taxpayer.

we know they can-and yet they didn't have to, but they did, knowing full well how much it would hurt appraisers. It did not increase loan volume, it accomplished nothing other than driving some appraises out of work and sending some more $ to the AMC's for performing the property inspteciots of the waivers that need inspectoins.dd oat ss ir "low risk " Ow w

 

[J Grant]

The default risk for waiver backed mortgages versus mortgages where appraisals were obtained will be lower because the GSEs consider loan type, LTV, credit, AVM confidence, and they have a prior appraisal on file.

The default risk may be lower, but 100% of that risk falls on the taxpayer. So, who does this help, specifically,? Other than some lenders making loans on some properties on a value they get to write in? Or teh AMC who do the PDC collections? this post addressed waivers used for refinances but for purchases. It may be allowing overvalued SC prices to be the value.

 

[George Hatch]

The default risk may be lower, but 100% of that risk falls on the taxpayer. So, who does this help, specifically,? Other than some lenders making loans on some properties on a value they get to write in? Or teh AMC who do the PDC collections? this post addressed waivers used for refinances but for purchases. It may be allowing overvalued SC prices to be the value.

I cannot even imagine the thinking it took for you to come to that idea.

The GSEs aren't granting waivers for purchases with LTVs in excess of 80%. When a borrower is making up the difference out of their own pocket how does that result in an over-leveraged property? It doesn't. And to whatever extent an 80% LTV can enable a buyer to overbid, how would that move the market pricing unless there were enough of them doing it that they represented the typical buyers?

Appraisers run into outliers all the time which don't fit the prevailing trend. It's not a big deal unless the appraisers are mischaracterizing the 1-out-of-30 as being indicative of the "most probable price".

 

[J Grant]

Keep defending it on the basis of LTV- whatever. We already know everything you are saying.

The waivers accomplish nothing except putting appraisers out of work and putting money into the hands of the AMCs, who collect property data on them.

The crinoids part is no matter how much they try to streamline valuations, cut the cost of them, or shorten closing time, it does not increase the loan volume. So even the mortgage brokers don't benefit from these practices, other than a day saved here and there or a touch less anxious wondering whether an appraisal will make value. I bet every mortgage loan officer and mortgage broker would give their right arm for the days of slower appraisals when they raked in big $ vs. the efficiency process ( not that waivers are terribly efficient ) where they make one-third of what they used to make.

Mortgage loan points and fees are expensive for borrowers, and they will not constantly refinance or buy properties just because costs are cut by $200 or closing is shortened by 5 days.

 

[George Hatch]

I find myself quoting my tagline

"Nobody wants an appraisal, they just want to know what the value is." (Steven Santora, ca. 2009)

 

[Dublin ohio]

The waivers accomplish noting excet putting appraises out of work and putting money into the hands of the AMCs;s who perform property data collection on them

Do you think if they reduced the number of waivers that the demand for 1004s would increase dramatically. Probably an increase in drive byes at the best. Granted more work. But not going to solve the current dearth of work.

 

[OSU Beavers]

Are those LTV charts based on the stated asset value provided by the borrowers?

LaTittya better throw them in prison for 30 years and seize their homes for committing mortgage fraud!