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If appraisals are such a big deal, then why are lenders now making HARP loans, with no appraisals, u

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September 05 2012 - US
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.... and technology is making appraisers obsolete...
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September 05 2012
Let me try to anticipate your question.  The reason that many HARP loans can be made with no appraisal is that Fannie/Freddie are already in a difficult spot. Regardless of the current appraised value, the owner of that loan is already convinced that they are "underwater" along with the homeowner.  By offering a new loan at a lower rate the owner of the loan is not worsening their postion and they are at least increasing the likelihood that the borrower will keep making timely payments. 

The key here is that to be eligible for HARP, the loan must already be backed or owned by either Freddie Mac or Fannie Mae.  No new lender would take on one of these loans, but these agencies really have little to lose by doing it. 
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September 05 2012
Loans made without appraisal are using Fannie Mae or Freddie Mac opinion of value.   That value plays a role in the pricing and securitization of the new loans.   
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September 05 2012
You question cut off.  Please post the rest.
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September 05 2012
 
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