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We should be aware of this change.

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[#1] Posted: 12/31/2014 - 05:16:11 AM
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I think inspectors should be aware of the many different professions that we work with. This change for appraisals could be very important to the real estate market and consequently important for us.

http://thenationalrealestatepo...ry-2015/

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We should be aware of this change.
[#2] Posted: 12/31/2014 - 06:00:54 AM
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Interesting to read the comments. Some think it's the death of appraisals and others think it's just business as usual.
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We should be aware of this change.
[#3] Posted: 12/31/2014 - 06:54:20 AM
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If you go to the Fannie Mae web site you find that while they are implementing this in January, it is not "required".

From their Q&A:

Quote: Is use of CU mandatory for Fannie Mae sellers?
Fannie Mae strongly encourages lenders to utilize the CU risk scores, flags, and messages provided upon submission of an appraisal to UCDP, and to access the web-based application for in-depth analysis, but use of CU is not required. Review the available training and other resources for more information about the benefits of the CU feedback


Quote: Will Fannie Mae purchase loans that receive high CU risk scores
and/or risk flags?

Yes. High CU risk scores can be considered warnings, but do not preclude lender delivery of the loan to Fannie Mae. It is highly recommended, however, that lenders perform appropriate due diligence on appraisals with high CU risk scores and/or risk flags prior to loan delivery.


Will things change in the future, probably. But it's not the crisis that these two guys purport it to be in January.


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We should be aware of this change.
[#4] Posted: 12/31/2014 - 09:48:02 AM
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Quote: Originally posted by tim5055

If you go to the Fannie Mae web site you find that while they are implementing this in January, it is not "required".....


Not required of the Lender that is, but what of the Realter and Buyer when a sale is lost because the Lender chose to heed the optional CU values?

I don't yet see where HIs fit into the equation.

Marc

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We should be aware of this change.
[#5] Posted: 12/31/2014 - 09:53:22 AM
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We don't fit Marc. But, if the doomsayers prediction of it affecting the overall market with less sales comes true, then there is less of a market for our services.

I don't think it will have that much of an effect on us.

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We should be aware of this change.
[#6] Posted: 01/11/2015 - 07:39:37 AM
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Article in the Washington Post regarding this:

Fannie Mae's bid to boost appraisals accuracy draws fire

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[#7] Posted: 01/11/2015 - 08:03:18 AM
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I've always thought the appraisal process was a sham. On the homes I've bought the appraisal always come back at $500.00 more than contract. Wonder if that is b/c they have the contract with them. Makes it easy to hit that target number when you know the number.


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We should be aware of this change.
[#8] Posted: 01/11/2015 - 08:19:38 AM
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MAI is the Master Appraisal Institute...it's one of those acronyms folks put behind their names to signify something or other.

The joke is MAI = Made As Instructed. They work for the bank, not the buyer. It's amazing how many appraisals come in right at the contract price, or slightly over.


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[#9] Posted: 01/11/2015 - 09:36:05 AM
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It's time that buyers start vetting their own appraiser. We expect them to research and choose us independent of their RE's referral, why not the rest of the parties in their transaction?

The last time I tried to refi, the Truth in Lending document estimated my appraisal cost between $250 and $2500 with the bank ordering the appraisal. I told them I would secure my own appraisal or they could pay the fee if they did. They hung up on me.

   
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