Double Trouble - How Risky Are Hybrid Appraisals, And Where Do The Hazards Lurk

[chad hampton]

My state board is required to investigate every complaint. Not sure why you think the example is outrageous. That’s what most complaints are - homeowner based on origination based appraisals. It was dismissed.

That’s why state boards are finally seeing what hybrids are- they rarely saw complaints because they rarely been used for purchase/ Refi until now. And most appear to be concerned.

 

[Evincere]

You know, you're the only appraiser who comes up with these "retarded state board" stories. Why is that? What is it about your state's board that makes them so hyperactive that they'd even consider a complaint relating to an 82ft GLA variation?

No wonder you're so afraid of your board - they're apparently incompetent at appraisal review.

What ? Do You think Mr T’s board is the only intellectually deficient board out there? There used to be a thread wherein Mike would report a weekly and very long list of state by state board complaints, suspensions, revocations and fines. It was very clear that there Were and still ARE some state boards who are very aggressive and go after Appraisers as if they are junk yard dogs. Protecting the public and that good stuff. It was one of the longest running threads this forum ever had.

And though the Standards That were violated were published - the “details” of the Appraisers sins were not. Because of the commentary in those threads from other people who knew the Appraisers/situations I Rest assured in my recollection that square footage grievance errors were certainly among the complaints filed.

I find it interesting how what was once a cause for state board investigative action is now suddenly supposed to just to go poof, a magical bye bye by way of SOW 3rd party disclaimers.

If anything, re the hybrids, Peter wrote that he anticipates even more complaints whether justified, or not. I agree with his projections because all the non USPAP savvy Borrowers will know (or care about) is that they paid for and got an “Appraisal”.

What remains to be seen is whether And how many of the canaries live or die.

 

[Carnivore]

His first line in that piece is that he's not seeing it in the residential hybrids so far, and he goes on to mention that there's probably not that much risk involved in doing one for internal purposes. But that doing them in assignments where the borrower might get a copy will raise your level of exposure. Then he criticizes the thoughtless use of copy/paste of the 1004 boilerplate as opposed to being smarter about your disclosures.

So don't be a form monkey. Be smart and make good decisions about what you're saying in relation to what you're doing. Don't put too much faith in fannie's willingness or ability to write an effective and defensible disclosure for your use. Be assertive.

Or, run away - that works, too.

Great Advice, although its a shame you have to say that. I have heartburn with the Pre-made two page desktop.bifur forms that are coming from AMC's with solicitation to join their elite panels. The fine print gets me every time ...there are IMPORTANT disclosures that should catch the eye of the reader not be in a font size that requires an Eagle to use a magnifying glass.

 

[Evincere]

https://appraisersforum.com/forums/...ad-around-the-desktop-appraisal.209349/page-4

Good Thread. 2015

“I was recently contacted about doing these. A Realtor inspects and takes photos, that is forwarded to me and I pick out 3 or more comps and fill in data from public records for a fee of.....................

$50

These were for SunTrust HELOCS

*****************

“rather than rapping my head on the desktop.

“I won't bother to link it, but Working RE has another advertising ditty about doing a desktop report in 30 - 40 minutes for $100/hour and how much money you can make. So the rag is run by an E & O provider sort of, right? And the liability seems to be no issue for them, right? “

***************

Fast forward 2019.

The Kracken was unleashed

 

[gregb]

The future is here, for some (from FB)-

Yesterday I received 28 desktop appraisals from CC in a small city in a rural county. The handful that I checked out were not ever MLS listed or were boarded and vacant. All of them owned by the same slumlord.

I had no intention of accepting these but I checked it out a bit to educate myself. The due dates were 24 hours and the fee was $60. A broker was supposed to have done an exterior and/or interior inspection and addressed repairs and zoning compliance among other things. They provide an AVM value and various metrics on the area. They import subject and comp data from MLS and public record "when available".

You select the comps from their data base. All facts are editable so if their facts are wrong it is on you to edit them with the truth. You manually select comp photos from their database which means going through the interior and exterior pics and choosing the exterior you want.

It's all done online as well as the signature. They say the first 3-4 will take you 2-3 hours but eventually they will take 45-60 minutes.

Problems:
1. It appears you do not maintain control of your signature.
2. It imports data which is unverified. It is editable so in a court case the question is why didn't you verify and edit errors.
3. The caveat; "when available". In other words you will often get sketchy and incomplete information and have to take measures to get that info or quit the assignment after investing some time to it.
4. Reliance on a broker getting paid as poorly as you to do the inspection and relate pertinent details.
5. 45-60 minutes assumes you cut every corner and verify nothing and use their AVM number to lead you to value.
6. A very thin work file to protect you.

God bless you if you accept these types of assignments. I truly hope things look up for you. This is an awful way to make a buck. Might I suggest driving Uber or Lyft?

 

[Non Sequitur]

I’m just delivering the news so be gentle, the following and similar posts have popped up several times today in different FB groups:

“Flagstar direct lending just sent me an e-mail, they got the approval from FNMA and they are going to start using the hybrid appraisal and are going to order through Class Appraisal AMC, they figure 1/2 of their orders from branches in the next 12 months will be these. no mention on fee...”

The future is here, best of luck to everyone.

 

[chad hampton]

Thankfully we are all members of our state coalitions and have the ability to fight for our profession.

 

[Evincere]

Flagstar and Classless AMC are a perfect fit

https://www.classvaluation.com/features-and-services/#fast

Wicked Fast Turn-Times

• We get appraisals back to you on average in 4.9 business days thanks to our network of more than 12,000 appraiser partners in all 50 states. In fact, you can expect 94% of your appraisals returned on – or before – their delivery date.

STAY COMPLIANT

Rest easy knowing each appraisal is performed by the nation's top appraisers and reviewed by our in-house Quality Control team.


*************************

2014

The Consumer Financial Protection Bureau has fined Flagstar Bancorp (FBC) $37.5 million for violating the CFPB’s mortgage servicing rules, “by illegally blocking borrowers’ attempts to save their homes,” the CFPB said.

According to a release from the CFPB, Flagstar allegedly took excessive time to process borrowers’ applications for foreclosure relief, failed to tell borrowers when their applications were incomplete, denied loan modifications to qualified borrowers, and illegally delayed finalizing permanent loan modifications.


https://www.housingwire.com/article...375-million-for-mortgage-servicing-violations

 

[chad hampton]

Partners?

I'm going to put 'wicked fast appraiser' on my business card. Remember the days of marketing and handing out business cards? I barely do either.

 

[Eli]

Partners?

I'm going to put 'wicked fast appraiser' on my business card. Remember the days of marketing and handing out business cards? I barely do either.

I like it. Let’s hand out business cards to all realtors, property owners, lenders, buyers, sellers, etc.etc.etc saying “I AM YOUR PARTNER”. Call me. You