Look at FNMA and Wells Fargo ratings. Proof positive that either Fitch doesn’t know their ass from a hole in the wall, or their “ratings” are effectively meaningless.

Pairatrice, or just the one? I double checked and my spiritual advisor assured me listening to the VoA Cult would not violate either 1st OR 2nd Commandments.

Great broadcast! Congrats on 200 shows. I always enjoy speaking with or listening to Pat Turner.

One of the things few people are aware of is that extremely few (if any) appraisals for less than sale price or desired refinance transaction amounts are processed (uploaded to CU) by the AMC before they are shown to the correspondent “loan officers” (loan brokers employees).

The new ‘low’ appraisal will never get entered into the database to begin with if the loan originators don’t want it to be. IF it were, then automatically a PIW would not be allowed per FNMA guidelines. PIWs may NOT be offered where a current appraisal exists.

So despite ALL the efforts, pretense and dog and pony shows about appraiser independence, a process has been officially adopted that expands on and promotes existing loopholes. Here are the options available to the commissioned loan agents now:

1. Don’t permit the appraisal to be uploaded for CU or an SSR, and try for a PIW (they will already have been notified whether one is available or not via Desktop Underwriter); or

2. Try to get the appraiser to raise the appraised value (not improper by itself),

3. Find a technical error in the report via desk review – even a non substantive one, that gives them credible ‘cover’ for shopping the appraisal around to a new, more malleable appraiser. Then get the new appraisal.

IF a PIW is authorized, FNMA TAKES THE LENDERS WORD FOR THE VALUE! Oh, they’ll cross check it via an AVM or faulty value models derived from their own flawed database but unless the lenders value is so far beyond reason, it won’t be flagged. Past experience of in-house FNMA  reviewers I’ve spoken with suggests that flexible range amount is 10% to 15%+-.  A $600,000 MV property reported to be worth $660,000 to even as much as $690,000 might not do more than raise an eyebrow…before being stamped “Approved”.

Baggs the people (sales reps) at title cos may disappear but not the process itself. Then again, since I’ve never heard of a title claim actually being paid without the policy holder getting an attorney, some folks may be questioning its benefits to cost relationship…not unlike hybrids in lieu or real appraisals.

IF municipalities/ counties started putting ALL recordings associated with a property into an online file associated with that property and had surveys after any improvements (footprint) changes-then I can see scenarios where title insurance could become less necessary.

Roy, respectfully multi unit properties (2-4) should have gas meters shot if separate, as it has a big impact on net operating income. Same with separate water meters. The rationale is no different than taking a picture of a boiler or water heater being double strapped…though of course a client could take our word for it. We shouldn’t have to take pictures of any of this garbage unless we think there is something noteworthy about it. With digital imagery I don’t really mind because it helps job my memory or clarify my notes, but it should not be mandated to the point of holding up a loan. Do all these things get photographed in a third party inspection hybrid?

And the ratings organizations are apparently inattentive to the brand new risk factors, that’s why I posted that one below. I can hardly keep up with everything new I’m learning here in the past few months. Have a good one.

Someone please tell me again why I should consider anything Ernie says as being credible or pertinent? With his flippant dismissive reminder that the burden is ALWAYS on us to comply with USPAP, Ernie somehow conveys legitimacy to these “simply different scope” $25 to $125 “appraisals”?

I ‘assume’ he shaves without using of a mirror in the mornings. Otherwise how does he keeps from slapping himself for these kind of utterances?

Agree Roy…that “baby” by the way also includes TAF and the entire MISMO organizations influence, coupled with those conspiring with FNMA to sidestep appraiser’s self identified professional standards with more flexible ones that accommodate whatever fad-winds are blowing at any given time.

FIRREA has now failed,  TAF has failed and state regulators have proven themselves to be a combination of the incapable and unwilling in terms of credible uniform enforcement.

Oh wow, it posted in screen as an interactive doc, wild. Thought it would lead to a pop up download pdf file like how I found it. Well, that’s it, and like I said, lots of gold in there, and familiar names……

Just awful, sidestepping what should be required regulatory process.

Fitch Ratings complete analysis, lots of gold in here… Annoying pdf download pop up, just take and open, it’s safe.

https://www.fitchratings.com/site/dam/investors/US-RMBS-Aggregator-Originator-Reviews.pdf

Seek the truth.

Its not even a USPAP requirement to take photos of your comps only an AMC and often a lender requirement. The lenders and AMC’s drag down appraisers so they can invent a model that no longer needs the appraiser. Just like Zillow attempting to replace realtors, lenders and especially AMC’s want the whole piece of the pie. Corporate America is constantly at work trying to swallow the American dream

Second step allow the use of third party comp photos if they are available and if they can be verified to be accurate. Sometimes this is not possible like for new construction for example but this would really save time and reduce cost when good and accurate photos are available online. It makes absolutely no sense to allow a third-party inspector of the subject and not allow it for the comparable sales. None I tell you! None!

I had that happen on an reo once, the data entry person forgot to put in the S identifier and there was an identical property on the North side of the same block, same address, same home type, same zip. Don’t knock it until it’s happened to you. Luckily they were not home and my report of no access cleared things up when my key did not work. Dodged the bullet that time.

Matt, I got stipped a few months back, need the left side as well as the right side photo. And they used to say all you need is a few photos. 100 photos or there abouts, use the 15 photo pages after a few feature 6 by’s, call it a day. Photos are cheap.

Tim, it can seem that way. It’s good to understand the challenges of national servicing. If something becomes a law somewhere, it’s easier to implement that as a blanket policy everywhere. Bureaucracy in lending, you’re in it now. CO law requiring the alarms for all sales for all properties attached to a gas or possible source of exhausting fumes. Simply stated; if you have a hot wtr htr, frnc, boiler, or have gla attached to a parking structure, gotta have one, so pretty much everyone. Of course they don’t count the exact details, so just a photo in the report always suffices.

https://www.colorado.gov/pacific/sites/default/files/HHW_CSA_FAQ-Carbon-Monoxide-Alarm%20Law-Colorado-House-Bill-1091.pdf

They don’t want the liability of someone dying because there was no C/O detector, just covering up their legal asses

Don’t forget the photo of the mailbox with the street address visible… Because the lender wants to know if I showed up at the wrong property and convinced the owners to let me inspect.

You got me on scientific language, that’s why I spell it out long form in reports though. The meters are helpful items, think nationally and how reports may be packaged at the portfolio level. Big difference between municipal and private water and well areas, Daniel san. If there is a detail which represents difference or even common character to the area, yep, I cover it. Just tried to solicit an amc today, they got fired before they even sent me the first bid request, waste of time. Tried to entice me to use their internal typing services overseas, 10 dollars a report. My response; (I understand), “No, I don’t think you do. My signature. My rules. No exceptions. Typing services is like the blind leading the stupid, we’ll pick this up at a later time.” Obviously they’re not reading this website or they’d have at least a partial clue.

Generally right, but a bit over the top, I would say. I know of no lender that requires pictures of all that. By the way, there are no Co2 alarms in the house. They are carbon monoxide alarms. If I shoot one of ’em, the furnace and water tank as well as the plumbing array if it a boiler / in floor heating that is fine with my lenders. Why shoot the gas meter? Do you shoot the wires coming to the house if the heat is FAE or Bsbrd? Lets not invent stuff that isn’t needed. We are busy enough with busy work on each and every assignment.