Hybrid

[djd09]

It would be a great time to develop a tracking and appointment setting app like Exos. Coincidence?

 

[djd09]

My favorite line is 451 and 452. Keep reading.

 

[George Hatch]

Parsing 'appraiser' and 'appraisal'. Wow. My head is spinning. But if you can sell the purple kool aid, congrats.

Lawyers make a living out of prompting the courts to rule on what the law actually says. So its critical to understand what the material actually says as opposed to what people might wish it says.

You might think the ASBs wording here is somehow accidental or poorly considered, but I disagree. Obviously. I only want you to be held accountable in your work for what you actually do; not for circumstances that are beyond your knowledge or control.

 

[George Hatch]

My favorite line is 451 and 452. Keep reading.

Lulz

So what passes for due diligence and due care? Well, I already knew the correct answer to that question before you even brought it up. Actually, the answer to your challenge is part of the lesson plan.



I can do this all day long. Note that the measure is framed in terms of the expectations of the appraiser's peers (which is a defined term) and the power users for the "similar assignment". Not all types of assignments.

Had they meant all assignments they would have said all assignments. Again, the wording they chose was no accident.

 

[Terrel L. Shields]

but that's also separate from any appraisal standards issues.

Questions about it compliance with USPAP would be for that forum, but in the 'general' category the question is how to make a living being an appraiser.

What lender - especially an AMC - would offer to hire you "by the hour"? The only purpose for the bank is to make the process shorter and cheaper. Why even explore the idea that the appraiser might not be able to do them any cheaper than a 1004? I mean, how can it be faster and less liability than the "evaluation" - no, I mean a real evaluation to IAG standards which is a whole different ballgame than ANY appraisal...Those cost $175 - 225 around here, commercial about $500 and up...depending upon the "evaluation lite" or "enhanced evaluation".

So if these are offered to appraisers for $65 or so, why would anyone think they'd pay more than an evaluation would cost? They won't. By hook or crook, the bankers will get these done or they will go back to congress crying the mean ole appraisers won't work for free. We have appraisers who admit they have done some of these in the $65 - $125 range???? Why? Hunger? Curiosity? Or a sense of inevitability that the profession gets dumbed down to minimum wages...by then it won't be a profession, which is exactly the argument Phil Crawford makes...it will be Cubesville "doing" appraisals from 100s of miles away with hip deep caveats rendering the report totally "bullet proof" and like one banker told me about evaluations, "not worth the paper its written on."

If only using public records then we are no better than mass appraisers sitting in the assessors office trying to affix a $/SF number on a house we've never seen. And every mass appraiser I know admits the individual properties can be off and they only strive to average out the properties so the overall value is "right". In fact, it is the very essence of how the states measure compliance, the ratio studies.

 

[George Hatch]

And before you jump to the comment about the expectations of the power users please read the 386-387 line where it refers to "investigation, information, method or technique that would appear relevant to the client, another intended user, or the appraiser's peers. What's missing from the list is the unfounded allegation you're constantly making about a "desired conclusion" being among the expectations to which USPAP refers when making these SOW decisions.

And since I anticipate your next challenge will be based on the idea that the unpopularity among appraisers for these products amounts to the actions of an appraiser's peers in the similar assignment I'll simply refer you to the definition of "appraiser's peers". Here's a hint - it isn't all appraisers at large.

 

[George Hatch]

Questions about it compliance with USPAP would be for that forum, but in the 'general' category the question is how to make a living being an appraiser.

What lender - especially an AMC - would offer to hire you "by the hour"? The only purpose for the bank is to make the process shorter and cheaper. Why even explore the idea that the appraiser might not be able to do them any cheaper than a 1004? I mean, how can it be faster and less liability than the "evaluation" - no, I mean a real evaluation to IAG standards which is a whole different ballgame than ANY appraisal...Those cost $175 - 225 around here, commercial about $500 and up...depending upon the "evaluation lite" or "enhanced evaluation".

So if these are offered to appraisers for $65 or so, why would anyone think they'd pay more than an evaluation would cost? They won't. By hook or crook, the bankers will get these done or they will go back to congress crying the mean ole appraisers won't work for free. We have appraisers who admit they have done some of these in the $65 - $125 range???? Why? Hunger? Curiosity? Or a sense of inevitability that the profession gets dumbed down to minimum wages...by then it won't be a profession, which is exactly the argument Phil Crawford makes...it will be Cubesville "doing" appraisals from 100s of miles away with hip deep caveats rendering the report totally "bullet proof" and like one banker told me about evaluations, "not worth the paper its written on."

If only using public records then we are no better than mass appraisers sitting in the assessors office trying to affix a $/SF number on a house we've never seen. And every mass appraiser I know admits the individual properties can be off and they only strive to average out the properties so the overall value is "right". In fact, it is the very essence of how the states measure compliance, the ratio studies.

I don't necessarily disagree with any of that. I just think that if we're going to debate the fee we should debate the fee , not conceal the fee debate with some moral posturing involving a faux outrage about the public interest being threatened because some appraisers will choose to perform these. It's up to the gov't - or the secondary market investors - to regulate the lenders choices on what they can and cannot use toward their due diligence responsibilities; not the appraisers.

 

[George Hatch]

Speaking of cubesville, Phil may be right about that. Appraisers tend to forget (or else never knew) that prior to the rise of the desktop computer and laserjets and online databases the primary business model for the appraisal profession was either the big fee shop (appraisers working for 50% splits) or the appraisal departments at the lenders (appraisers working for wages). Most of the individual fee appraisers out in the sticks weren't even doing that full time; they were also selling RE and loans and insurance and tourist maps and fishing bait.

The rise of the lone gunman fee appraiser as the dominant model in the business didn't happen until the early 1990s. What many of you think is your birthright might turn out to look like an anamoly by the time the tech evolution runs its logical course. Before this is over we may all be looking for other income streams - also part time - to stitch together into a livable income.

Not an endorsement - just an observation. If you're going to be the one trick pony it had better be a heckuva trick.

 

[Joe Flacco]

I don't necessarily disagree with any of that. I just think that if we're going to debate the fee we should debate the fee , not conceal the fee debate with some moral posturing involving a faux outrage about the public interest being threatened because some appraisers will choose to perform these. It's up to the gov't - or the secondary market investors - to regulate the lenders choices on what they can and cannot use toward their due diligence responsibilities; not the appraisers.

That is true but my issue is that there should be some people that matter raising concerns that looking at photos by a third party is not the same thing as the appraiser physically visiting the property. I think that regulators and investors are being led to believe that the hybrid model does not increase collateral risk and that is false.

 

[djd09]

If i wanted to be brainwashed i would read the AOs or FAQ or the comments. Thanks but No Thanks.

Just add an AVM or two , until you get the right number, and presto all gone.