Pushing Automation to Replace Appraisers
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Regulators today are often removing barriers to responsible behavior with the hope of expanding lending activity since falling mortgage rates aren’t the answer. Banks are pushing back and it is instructive to see the way FDIC thought back in 2006.
FDIC and the U.S. Treasury have turned out to be very anti-appraiser and are championing ways to automate as a way to replace us. Think about wildly inaccurate Zestimate-like AVMs on first mortgages. Economist, real estate agent and good follow John Wake shares this:
I LOVE this graphic from FDIC in 2006 bragging about the growth of interest-only, neg-am and non-prime mortgages to “Help Homebuyers Bridge the Affordability Gap." They also emphasized that 40-year mortgages "reduces monthly mortgage payments."https://t.co/ShspglIB6v pic.twitter.com/pGmUHT8duw— John Wake (@JohnWake) July 12, 2019