READ THIS!

This morning I was reviewing the AVM regulatory standards, fsb, open letter writing period.

Please take the time to write a letter people.

So far only one letter posted on their site, but the read is quite remarkable.

What happens behind the scenes, how much people are additionally put at risk, when companies switch to only automatic valuation models instead of using licensed human appraisers. The comment writer states he was shocked. Absolutely, that is a surprising story. Ocwen related. It does not take a rocket scientist to figure out why a company set like altisource/ocwen would prefer to never have to deal with a licensed human appraiser, when managing the properties they have on their books. One less point of oversight is highly appealing to a company like that. As for the defrauded party in question, the migrant gardener, never stood a chance, toast, finished, all the money is gone. Their life savings vanished through a clever mechanism of stacking fees, transferring the note, and skipping the appraisal. Brought to you by the appraisal management industry. (second link for the comment.)

https://www.federalregister.gov/documents/2023/06/21/2023-12187/quality-control-standards-for-automated-valuation-models#open-comment

https://www.regulations.gov/comment/CFPB-2023-0025-0002

https://www.jvmlending.com/blog/inspection-based-appraisal-waivers/

Just had a meeting with Realtors yesterday at Berkshire Hathaway, who has their own lender company, with regard to PDC’s Value Acceptance, unregulated workforce coming to town. They were all shocked and they agree that Appraisers should not be left out of transaction. The lender was there and said this. I told him they are in the minority. Lenders want to save money, close loans and they just do not care! We are the only gatekeepers to the whole process and yet they want to rid themselves of us “killing deals”. Lender said that they should be counseling borrowers that if an Appraisal waiver is offered they should get their own Appraisal. I said you are the EXCEPTION not the rule. Lenders do not tell their borrowers this at all! I am so glad I am close to retirement and that 80% of my business is personal. Feel sorry for those stuck in this profession for many more years. It is hard to change course when you are years into this profession.

The Federal Reserve. One hundred and ten years of not being federal, and not having any reserves. A private corporation whom creates money out of thin air, backed by nothing. Placing an entire country in a usury debt based currency system. The last jubilee was a mere decade ago, rolling around again soon. You and I will not be the beneficiaries. Bail ins, bail outs, prosperity through debt. The federal reserve seeks to devalue your currency 2%, year over year over year. Lately they’ve lot control of the projection.

https://1360khnc.com/

When the tax payers keep paying their gambling debt, they don’t and won’t care.

The CFPB, FHFA, FRB and everyone else running this country enjoy playing Black Box Casino Games with tge $12 Trillion Residential Mortgage Market.

Seek the truth.

I’ve said it before and I will say it again, pick a percentage (10, 20, 50, 90%) and even if technology gets it right a certain amount of times out of 100, which part of that 100 is right? You need to have appraisers involved 100% of the time in an attempt to find the outlying issues.

Relating to the issue I discovered, good luck to all parties involved and I hope your insurance is paid in full.

Considering this discovery took a better part of a day to put together, to those of you who are coached to put together comps in under 60 seconds (if you want a raise), I also wish you luck.

Seek the truth, as its common practice for other to ignore it, or never seek it.

Anyone notice that the specific AMCs that the government will be using are the same ones that have been lobbying the government and kissing their ass in Zoom presentations and press releases?

Do they never learn? Zillow disaster, AVM’s that have been a part of the landscape for decades which have proven over and over again that they FAIL unless you are dealing with Cookie Cutter homes. I am glad I do complex properties like Lakefront. There is no way in HELL you can use an AVM for those properties!

‘While machines crunching numbers might seem capable of taking human bias out of the equation, they can’t. Based on the data they are fed and the algorithms they use, automated models can embed the very human bias they are meant to correct. And the design and development of the models and algorithms can reflect the biases and blind spots of the developers. Indeed, automated valuation models can make bias harder to eradicate in home valuations because the algorithms used cloak the biased inputs and design in a false mantle of objectivity.’