Fannie and Freddie, Still Stealing Data

No matter how you sugar coat it, Fannie Mae and Freddie Mac have been stealing data from independent appraisers for years. The information gathered by licensed appraisers and delivered to their clients, is sold to one of these two GSE’s, who then store all the data under the auspices of appraisal quality review. Appraisers are not even allowed to see the info because it’s only for the lenders who hire the appraisers in the first place.

Now armed with years of appraisal data (which I firmly believe is gathered illegally and an entire industry is virtually blackmailed into having no control over the data they create/own?), now this data is being used to put the very people out of work who provided the data in the first place.

Fannie and Freddie are upping the stakes as they increase their appraisal waiver programs to allow the use of more automated valuations (they say only 50,000 less appraisals next year), whenever they have a previous appraisal report in their database. In one place they state the program is a no cost service to consumers and in another, this no-cost service can be provided for only a $50.00 fee. Hmm… So, they get to use the appraiser’s report twice for only one fee? Think about this – appraisers get paid for their opinions of value – not for the individual data they collect in the process of determining that opinion of value. The GSE’s are using appraiser’s own data to take work directly away from them.

There’s something downright Un-American about this whole system and the appraisal industry has been punished long enough for sins they never committed. Big Banks started the problems and, once again, the system is being driven by the “Golden Rule.” As for Big Data, it will never accurately price real estate. It simply isn’t possible using the information in public records. I am hopeful the new administration will stop the bleeding and restore some integrity to the appraisal regulation industry. No industry in history has been subjected to the turmoil imposed on the appraisal industry, that all started with the HVCC and went downhill from there. It’s time to bring back sanity to the mortgage lending process.

 

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