Tagged: FNMA

The Unbiased Reality of Census Tract Data Dump... Open Letter to FHFA 11

The Unbiased Reality of Census Tract Data Dump… Open Letter to FHFA

Folks, the following letter was sent to FHFA by an appraiser I know. It was sent in response to the ‘first’ data dump FHFA made which uses CENSUS TRACT data to try to convince others that appraisers are biased by using ‘people demographics’ contained in Census Bureau info. You can find that ‘dump’ here. The writer of that first FHFA dump was identified by name, and included an email address. So the appraiser wrote a respectful email to Mr. Russell. It turns out, shortly after this FHFA document was released, Mr. Russell left FHFA. So this nice letter sent several...

Appraisal / Appraisal News / Appraisers News / Automated Valuation Models / AVM / Fannie Mae - Freddie Mac

List of Banned Words... The Nightmarish End of Home Appraisals 29

The Nightmarish End of Home Appraisals

In his 1946 essay “Politics and the English Language,” the late British novelist, essayist and critic George Orwell examined the connection between political orthodoxies and the debasement of the English language. In a truly Orwellian move, mortgage giant Freddie Mac recently announced its intent to censor an arbitrary collection of words such as “desirable,” “safe,” “well-kept,” “student” and “crime” when they appear, in any context, in the hundreds of thousands of appraisal reports it relies on in mortgage underwriting. It would be hard to make this up. One of the banned words – “desirable” – will be recognized by students...

Appraisal / Appraisal News / Appraisers News / Fannie Mae - Freddie Mac / Trending

Has Fannie Mae Gotten Too Big to Control? 28

Has FNMA Gotten Too Big to Control?

Has Fannie Mae gotten too big to control? That was one of the many questions asked to Senators & Congressman while in Washington DC. The agreement on whether Fannie Mae has gotten too big to control was unanimous. Most believe that the company is too large and complex to be effectively managed by the government. They argue that Fannie Mae is too big to fail, and that if it were to collapse, it would have a devastating impact on the housing market. Others believe that Fannie Mae is sorta manageable, and that the government has taken steps to reduce the...

Appraisal / Appraisal News / Appraisers News / Fannie Mae - Freddie Mac / Federal Housing Finance Agency / FHFA

Clean-Slate Laws, Bad Policy Could Dispatch More Felons to Borrowers Homes 8

‘Clean-Slate’ Laws, Bad Policy Could Dispatch More Felons to Borrowers’ Homes

The idea of unlicensed individuals being hired off the streets and paid a pittance to video and photograph the interiors of borrowers’ homes, which would include the exact location of valuables and children’s bedrooms, has been unsettling to some.  An astute real estate broker recognized the name of a Michigan man awaiting sentencing in an armored-car robbery. The latter had been engaged by one of six companies authorized by mortgage giant Fannie Mae to dispatch so-called “data collectors” to borrowers’ homes. The broker alerted the bank and the National Association of Realtors. New, progressive laws designed to conceal felony convictions...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Fannie Mae - Freddie Mac

Pushback to Fannie Mae: Certified Appraisers vs. Unlicensed Data Collectors 7

Certified Appraisers vs. Unlicensed Data Collectors

Here’s a great take on the difference between Certified Appraisers vs. Unlicensed Data Collectors by Leigh Brown, President of the NC Association of REALTORS. Fannie Mae has been working hard to get rid of appraisers for years. Their latest twist is to re-categorize many appraisers as “Unlicensed Data Collectors.” Fannie Mae will end up creating more instability for the trillions in the bond market – investors will have to process millions of valuations with the physical attributes of the home collected by unlicensed, uninsured, and unprepared individuals getting paid $10-$25 per inspection.   AI meets with Fannie Mae regulators to...

AI / Appraisal / Appraisal Institute / Appraisal News / Appraisers News / Snippets

Borrowers With Good Credit Scores to Foot the Bill for Higher Risk Borrowers 24

Borrowers With Good Credit Scores to Foot the Bill for Higher Risk Borrowers

It is disheartening to think that those of us who have worked hard to maintain good credit scores will now be penalized with higher mortgage rates and fees, just so the government can subsidize people with riskier credit ratings. It’s no surprise that the Federal Housing Finance Agency’s (FHFA) new rule forcing homebuyers with good credit scores to pay higher mortgage rates and fees is causing a stir. The Federal Housing Finance Agency’s push for affordable housing is admirable, but it should not come at the expense of those with good credit scores who are trying to buy or refinance...

Appraisal / Appraisal News / Appraisers News / Fannie Mae - Freddie Mac / Federal Housing Finance Agency / FHFA

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FNMA Property Data Collectors Program Violates WV Law

The Fannie Mae Property Data Collectors program seems to have run afoul of West Virginia law. This program allows for the collection of data related to real estate appraisals by unlicensed third-party data collectors, which is in direct violation of article 38 of the state’s Real Estate Appraiser Licensing and Certification Act. The act specifically states that only a casual or drive-by inspection can be performed when it comes to consumer loans secured by real estate, and no opinion can be rendered as to its value nor any fee charged for such an inspection. ARTICLE 38. THE REAL ESTATE APPRAISER...

Appraisal / Appraisal News / Appraisers News / Fannie Mae - Freddie Mac / Trending

Canadian Banks Will Exploit Gutted U.S. Mortgage Underwriting 13

Canadian Banks Will Exploit Gutted U.S. Mortgage Underwriting

Canadian banks see the newly dismantled underwriting safeguards and risk-shedding experiments at Fannie and Freddie as a way to keep the party going, with the risk passed along to the U.S. taxpayer directly… Canada’s banks are in trouble. Their mortgage portfolios are filled with time-bombs called “fixed-payment” mortgages. Despite the name, the loans contain rate-hike triggers that are causing payment shocks for borrowers. High interest rates and falling home values mean borrowers north of the border aren’t able to refinance out of these toxic mortgages. Short sellers are even targeting one Canadian bank, Toronto-Dominion Bank, better known as TD Bank....

Appraisal / Appraisal News / Appraisers News / Fannie Mae - Freddie Mac

We the People 26

We the People…

We the people need to redirect the mortgage lending direction… The time for every appraiser and consumer to step up is now. This country was founded on the principle of “We the people”. Please sign this petition and share it everywhere.  Appraisers have been the target for blame for everything gone wrong in the mortgage lending world. We were blamed for the Savings and Loan collapse, the financial crisis of 2008, and appraisal bias and racial discrimination. Appraisers have even been the target on loans gone bad after several years on payments. Yep, we have been the target and have...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisal Organizations / Appraisers News

ASA Concerned About the Expansion of FNMA Appraisal Waiver Program 22

ASA Concerned About the Expansion of FNMA Appraisal Waiver Program

In response to the Federal Housing Finance Agency’s (FHFA) decision to allow Fannie Mae to expand its appraisal waiver program, the American Society of Appraisers (ASA) has released an op-ed by ASA’s Strategic Partnership Officer, John D. Russell, JD, criticizing this move. ASA believes that by expanding the appraisal waiver program and relying on data and models for mortgage lending instead of human interaction, Fannie Mae is leaving behind two very important aspects: safety and soundness as well as consumer protection. The fear is that overvaluation may occur due to a reliance on models which always try to chase value...

American Society of Appraisers / Appraisal / Appraisal News / Appraisal Organizations / Appraisers News / ASA

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