FHFA to Screw Up Appraisals
The FHFA is looking for comments on how they can better screw up the appraisal process. So if you’ve got a hankerin’ to help out with that you can find a comments section somewhere on the world wide web to do so. What are your thoughts on this appraisal idea from the FHFA?
They have identified a problem where they said one didn’t exist, and they identified what the solution is, and it is going to be through comments from you… They are going to modernize the appraisal process. They have already drawn their own conclusions. Now all they have to do is fill in the blanks on the path to get to where they already know they are going to go. That’s with… what did they say?… oh yes a public comment period.
Other proposals being considered include increasing use of appraisal waivers, which means using an automated valuation method based on existing data rather than a human appraiser… so much for the importance of an independent human appraiser! FHFA said it also is considering allowing what it calls hybrid appraisals where a third party collects the necessary information of a home and sends it to a qualified appraiser who will determine the valuation without seeing the property in person… If you don’t know the quality of the collateral against the loan, then you’re simply flying blind, period… Are independent appraisers really that bad, that expensive, do they take that long? What do we sacrifice by trying to automate them out of the equation?… Per Fannie & Freddie home appraisals are an important step in the home buying process…
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- FHFA to Screw Up Appraisals - January 15, 2021
To modernize the process they need to trim the fat off of the process which is the middle man who is shopping for the fastest and cheapest appraiser for two weeks to 2 months
a.k.a. AMC’s. AMC’s need to go the way of the Dodo bird. At the end of the day $500 to $1,000 for an appraisal report is a small price to pay for knowing the asset being secured is worth it to the lender taking the risk. Lender’s should be out fighting for appraisers.
“Mark Calabria is currently under scrutiny for nearly $900 million in loans to the Kushner Companies. The 18 mortgages were secured by Jared Kuskner’s sister, Nicole Kushner Meyer personally pitching the deal to Freddie Mac. The loans come with unusually lenient terms, including lower APRs than normal, interest only payments for the entire ten-year term. followed by the full principals due in a single balloon payment. If the Kushner Companies default on these loans, Freddie Mac will be out approximately $850 million in 2019 dollars.”
Where….do these people come from that have so much power and influence over appraisers?
Corner-cutting appraisals. What could go wrong?
And why should they worry when they know us taxpayers will be bailing them out again.
RE: Appraisal Waivers
Excellent. Saved. Here is one I made a while back.
I could not agree more. I see much trouble ahead for us on the horizon. 🙁
Here’s one for you! 🙂 My son is a doctor, lo and behold his patient is his appraiser. HIPPA laws prevent people from disclosing who their doctor is. USPAP requires Appraisers to disclose any relationship with the owner. A quandary! LOL LOL LOL