Is the Welcome Mat Down and the Door Opened Wide for Fraud?
“What Appraisers Need to Know about Property Data Collection” is a topic of discussion in the latest Fannie Mae Newsletter. The article describes how property data is being collected and being sent to Fannie Mae to determine the type of valuation that is needed on a a property. It discusses Appraisal Modernization, Desktop appraisals, Scope of Work and USPAP. It even references The Appraisal Foundation Video on Inspections & Hybrid Appraisal Assignments.
Well, Fannie Mae is the last entity that should be discussing USPAP. They clearly failed to review the video, as the answer to most of those questions is ” It depends” Not exactly a clear-cut answer or guidance by any standards. See the Fannie Mae Newsletter here.
Now that we are thinking to ourselves how wrong and dangerous this program is and how consumers and the entire housing market will be seriously harmed by this irresponsible and reckless behavior, meet a company called Strategic Information Resources. This company provides the property data and photos. Their product is called “The Verisite Photo Appraisal”. We are not sure how they can use the term appraisal, but that is a discussion for another day.
From their website:
“The Verisite Photo Report allows you to get current interior and exterior site photos with descriptions and maps instantly. The Verisite Photo Report is perfect for use on loans and banking processes that don’t require full appraisals: you can pick and choose which pictures and descriptions you want, order them, then approve and generate the Verisite Photo Report. The result? An instant, current picture of the property.”
Check out the full line of products they offer on their website.
Has Fannie Mae and the lenders informed the borrowers that someone other than the licensed appraiser will be entering their home? Will the borrower have a choice between an appraisal by licensed appraiser who inspects the property and whatever this is Fannie Mae is promoting? Will the 55 states and jurisdictions allow this program within their state?
Please share this article on your social media pages and with your Realtor contacts. Consumers and agents need to be informed of how they are being harmed. This will greatly impact the housing market at the expense of homeowners and purchasers.
Another tax payer bail out closer than ever – especially with the rise in 100% plus LTV financing in the Residential market once again. “Pick and choose photos & info” – same concept as “pick and choose only ‘hit the mark’ Appraisers” of pre-2008 days.