Desktop Appraisals Becoming the New Normal

[LesPaul59]

I got an email from my software provider today regarding fanniemae's new take on desktop appraisals and wanted to hear your thoughts. Especially about the requirement for a floor plan with interior walls and #8 on page 2.

https://singlefamily.fanniemae.com/media/30361/display

8. What should the appraiser do if they cannot verify information? If the appraiser does not have information to create a credible report, they should take the necessary steps to verify or obtain the information necessary for a credible report.

LOL. That sounds like an answer I would have given on a test when I was in 5th grade (I hated discussion questions as a kid.)

My interpretation of that answer is to tell the lender that there is not enough credible information to follow through with a desktop. I need to visit the property myself.

 

[MrLA]

Just don't do it. Stop playing into dumb requirements that makes no sense. I am not doing interior walls nor any crap hybrid appraisals.

 

[Terrel L. Shields]

8. What should the appraiser do if they cannot verify information? If the appraiser does not have information to create a credible report, they should take the necessary steps to verify or obtain the information necessary for a credible report.

Johnny Paycheck song comes to mind- take this job and shove it.... pass and I'll go on to the next one. Ultimately I have no problem with people doing the Desktop but if they price their services with risk in mind, the fee will exceed the 1004 conventional fee and I feel that if FNMA is attempting to accomplish A- a cheaper product AND B-a faster product - I fear they are going to be disappointed. If I am floundering around for a day looking for a source of a floor plan...then how is it going to make a quicker turn time?

 

[MrLA]

Johnny Paycheck song comes to mind- take this job and shove it.... pass and I'll go on to the next one. Ultimately I have no problem with people doing the Desktop but if they price their services with risk in mind, the fee will exceed the 1004 conventional fee and I feel that if FNMA is attempting to accomplish A- a cheaper product AND B-a faster product - I fear they are going to be disappointed. If I am floundering around for a day looking for a source of a floor plan...then how is it going to make a quicker turn time?

Yes dollar per hour. Always keep that in mind. I don't do cheap appraisals but I will do desktops at full fees. Then upsell or renegotiate if needed.

 

[bluechip]

All appraisers can just say no thanks. These products are a gross waste of our time and energy. I am turning them down left and right. I call this product a career killer.

 

[shrubberyvaluation]

I got an email from my software provider today regarding fanniemae's new take on desktop appraisals and wanted to hear your thoughts. Especially about the requirement for a floor plan with interior walls and #8 on page 2.

https://singlefamily.fanniemae.com/media/30361/display

8. What should the appraiser do if they cannot verify information? If the appraiser does not have information to create a credible report, they should take the necessary steps to verify or obtain the information necessary for a credible report.

LOL. That sounds like an answer I would have given on a test when I was in 5th grade (I hated discussion questions as a kid.)

My interpretation of that answer is to tell the lender that there is not enough credible information to follow through with a desktop. I need to visit the property myself.

Or they will find a skippy that will make up a floorplan.

 

[shrubberyvaluation]

Johnny Paycheck song comes to mind- take this job and shove it.... pass and I'll go on to the next one. Ultimately I have no problem with people doing the Desktop but if they price their services with risk in mind, the fee will exceed the 1004 conventional fee and I feel that if FNMA is attempting to accomplish A- a cheaper product AND B-a faster product - I fear they are going to be disappointed. If I am floundering around for a day looking for a source of a floor plan...then how is it going to make a quicker turn time?

They will get a faster and cheaper product from skippies. Perhaps that is what they want.

 

[Essexfenwick]

Full fee. And going up. Inflation is kicking in

 

[TerryRohrer]

Johnny Paycheck song comes to mind- take this job and shove it.... pass and I'll go on to the next one. Ultimately I have no problem with people doing the Desktop but if they price their services with risk in mind, the fee will exceed the 1004 conventional fee and I feel that if FNMA is attempting to accomplish A- a cheaper product AND B-a faster product - I fear they are going to be disappointed. If I am floundering around for a day looking for a source of a floor plan...then how is it going to make a quicker turn time?

I think they are counting on enough appraisers ignoring that risk and not verifying much of anything, for less money. Then they get fees upfront and E&O funds down the road. Day one certainty precludes going after lenders for valuation failures, and individual appraisers can't mount as stiff a defense as a trillion-dollar bank facing a few billion in repurchase demands.

 

[Essexfenwick]

I think they are counting on enough appraisers ignoring that risk and not verifying much of anything, for less money. Then they get fees upfront and E&O funds down the road. Day one certainty precludes going after lenders for valuation failures, and individual appraisers can't mount as stiff a defense as a trillion-dollar bank facing a few billion in repurchase demands.

Appraiser insurance is a drop in the ocean. It’s going to cost more and take longer.