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1. #Buy cash a house freddie mac first look initiative cracked
2. #Buy cash a house freddie mac first look initiative plus

When home prices flatten or decline, there is a synergistic effect as distressed sales and foreclosures cannot be ignored when considering comparable sales or comps. If I had to guess, Freddie likely wants to slow down lofty equity tapping. Waivers also aren’t as reliable when you’re worried about prices potentially sinking.

#Buy cash a house freddie mac first look initiative cracked

“You can’t see cracked foundation, dry rot, termites and ceiling stains (water leaks). “Nothing compares to (an appraiser doing) a physical inspection,” said Lance Siegel, president of HVCC Appraisal Ordering Inc. The automated waiver fails to answer several key questions: Was the property ever updated? Is there deferred maintenance? Did someone rip out the fixtures and fail to replace them? New HOA questionnaire could torpedo condo financing under Fannie, Freddie.‘No credit report, no job’ is 2022’s exotic mortgage winner.Condo questionnaire causing some boards to boycott Fannie, Freddie financing.

Mortgage rate drop may be temporary response to Russian invasion.Condo shoppers beware: Balcony law could cost you thousands of dollars after you buy.There are good reasons to put the brakes on this automation. As interest rates shift upward after years of record lows, will Freddie’s predictive model struggle to adjust in a downward market? The pandemic in two years pushed prices to consecutive, record highs. Housing costs have been rising for a decade. Think of this pivot as a canary in the housing coalmine. Why were automated valuation appraisal waivers reliable for nearly five years for so many refinances - but now not so much? Freddie representatives declined to comment.

You’ll need a complete appraisal for those.Īnd you might be waiting a long, long time for that appraisal appointment, which I’ll circle back to in a bit.Īccording to its FAQs, Freddie’s goal is to purchase loans (mortgage lenders fund loans and sell the funded or closed loans to Freddie) supported by the most reliable and appropriate valuation models available, helping to mitigate risk associated with loan default. Refinance properties with two to four units and investment properties also are not eligible for this nuanced AVM and PDR process. The alternative or option for the lender is to order an appraisal by a licensed appraiser.

#Buy cash a house freddie mac first look initiative plus

Even under Freddie’s new model using ACE plus PDR, it still won’t work for properties worth more than $1 million. It should be noted that properties worth more than $1 million did not receive these appraisal waivers.