REVAA Reacts to FHFA Study
- Federal Valuation Agency Impact on Appraisers & the Public - July 22, 2022
- Is Georgia Going Rogue? - June 13, 2022
- Bias in Automated Valuation Models - February 28, 2022
…the methodology, measures of quality, errors & the insertion of staff opinion seems to indicate bias….
REVAA responds to the FHFA study indicating AMCs bring little value.
Mark Schiffman, Executive Director of REVAA, stated to Jacob Gafney, Editor of HousingWire, via email:
“We are disappointed that AMCs and lenders were not consulted at the outset of this research so that we could have help ensure sound methodology. We are also disappointed not to have had the chance to discuss this research with the FHFA before it was distributed publicly.
This is not a final report of any kind from the FHFA, it is a “staff working paper,” which according to the FHFA is a “preliminary product circulated to stimulate discussion and critical comment.”
We urge caution in taking away anything conclusive about the staff working paper at this time, other than the fact that it concludes that lenders that use an AMC to provide quality control before an appraisal is submitted to a GSE is comparable to a lender that did not use the services of an AMC for quality control. In either case, the appraiser never submits an appraisal report directly to the GSE – it first undergoes quality assurance, whether it is provided by the lender or the AMC.
Our review of the research has uncovered real concerns about the methodology, measures of quality, errors and the insertion of staff opinion that seems to indicate bias. REVAA is documenting its concerns and plans to speak to the FHFA about these matters.”
Read the entire article on HousingWire.
Reminder: ASC Meeting April 23rd concerning the TriStar Bank Waiver Request:
The Appraisal Subcommittee meeting scheduled for April 12th concerning TriStar Bank’s appraisal waiver request has been rescheduled for April 23rd in Washington DC.
All appraisers that are able to attend, please do so. You must preregister for the meeting at least four days prior for security clearance into the Federal Reserve Building.
Do you know Meghan Milloy?
Meghan is the Director of Financial Services at the American Action Forum. She authored the article Where are the GSEs 10 Years After The Financial Crisis”. The article was published yesterday. The article is an excellent synopsis of the reality most consumers are unaware of. VaCAP encourages everyone not only read the article, but forward it to every person you know.
VaCAP’s “Postcards From The Road” Program has come to an end for the first quarter. So many great photos were submitted it was difficult to pick a winner. The winning photo, along with the two runner ups have been posted on our website. Take a look here to see who the winner is.
The second quarter contest has begin and will end on June 30th. Please continue to submit your photos. The contest rules and submission guidelines can be found here.
It’s interesting that the FHFA would “seen biased” t’ward AMC’s. Why? They add No value to the appraisal process, we know that, they fleece the consumer out of 1/4 to 1/2 of their appraisal dollars, we all know that, they keep a “stable” of lesser quality appraisers to accept their lower than C&R fees, we all know that. So why would the FHFA, a G’ment entity, be biased in a study? They were not, they were just telling it like it is. Thank you FHFA.
Mark Schiffman is just trying to spin the truth; the same thing he always does. Pay no attention to him.
Their days are numbered and they know it !!!
Of course AMCs provide no value to the APPRAISAL PROCESS. From a lender perspective, the AMC simply represents a free “outside” service that handles what used to be an “inside” expense to the lender. By free, it means what should go 100% to the appraiser “Appraisal Fee paid by borrower”, instead a portion (up to 50+%) goes to the middleman AMC. Lenders could care less about the results (added value or not), as its all about saving another dollar a million times, or in the case of appraisals, hundreds of dollars, millions of times. On a side note, why would anyone think that AMCs add value when they pay perhaps half the going rate (C&R), and give us half the time we need?
“Improperly co mingled fees.”
“Mark Schiffman, Executive Director of REVAA”
REVAA is NO advocate of appraisers and the appraiser profession. All one need do is read the REVAA member list on their page. Most of the same companies that are destroying the appraisal profession. CoreLogic, Clear Capital, ServiceLink to note just a few.
I have no favorable regard for REVAA but in this instance they were/are right about the working paper being flawed. They just didn’t bother to identify why specifically. I’ve taken the liberty of doing so and have submitted it to AB for possible publishing within past week.