Separate e race. ALL AVMS and big data ‘valuations’ tie to geographic locations as small as census tract areas. Look at a FNMA HEAT Map sometime.

Algorithm rating/scoring systems have already been identified that capture prohibited demographic data such as RACE, marital status, gender, age, etc. Demographics are weighted in the algorithm.

It will be extremely unlikely anyone without subpoena power and the authority of state or federal authorities behind them will ever be able to find the smoking gun of racism in an AVM for a specific loan… although published articles have already conceded demographic scoring is an integral part of these models. Race-based automated ‘decisions’ are virtually guaranteed in AVMs. Merely living in a particular neighborhood may now be counted against a borrower.

FNMA insiders and former insiders tell us that FNMA has strongly discouraged (as in refused to allow) repurchases or repricing on many poorly supported appraisals. SO the question is “What repurchase risks?”

“Everyone should have equal access to mortgage lending instruments on the consumer level.”

It’s important when volunteering to get fleeced, you don’t take all the action for yourself. Releasing what private property rights which may be left is not something which should be reserved for only well to do people.

Tapping into DU waivers has as much to do with a persons larger credit profile as it does the ltv’s of the home itself. Also, with no detailed information if both of those loans were funded by the same funding entity, or had similar debt loads and with whom, the comparison is purely anecdotal with no real substance. Different companies apply different risk management standards and instruments of debt can have substantially varied contractual terms.

Credit analysis standards can change from one loan to the next, depending on how much capital funding they have left. Probably are also influenced by the specific rate of default or proportion of a vs b paper loan performance in that specific locale, that sort of thing.

Who knows? Nobody, because credit qualification criteria is a moving target which also can change daily, like if someone at trans union spills their coffee or something along those lines.

DU waivers look great on paper. All the way until there is a hint of repurchase risk. Then it’s suddenly manual underwriting for everyone all day long.

Neither CU, ACE or PIW’s are ‘great things’ (I assume that was hyperbole). The mortgage industry needs to speak with MISMO about irregularities in systems they have advocated for.

There is no credible AVM or automated risk rating program in America today. There are over-hyped programs which when coupled with drinking very large amounts of Kool-aid, give ignorant Mortgage Banking executives the illusion of plausible deniability.

Thats the only risk rating they are concerned with.

Didn’t Andre Perry pin the label of racism on the appraisal profession and claimed computers don’t recognize race???

How bout them apples?