Desktop Appraisals Becoming the New Normal

[Alsie35]

 

[alebrewer]

I try... don't you feel guilty when you charge $600 but only worked on it 4 hours?

Not at all... I laugh all the way to the bank.

 

[TerryRohrer]

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

You would think. But, we do not have any idea what volume of bodies will soon arrive with fresh licenses, employed by AMCs and trained through PAREA. What will they all do? My guess is cheap and fast desktps!

 

[Elliott]

From AppraiserBlog:

"Fannie has stated that the appraiser will not have to visit the site but will need to include a sketch with interior walls and this can be accomplished by several methods by an individual to assist the appraiser in a “Virtual” inspection of the exterior & interior of the subject. That individual can be the homeowner, Real Estate agent, loan officer, neighbor or an employee of the appraiser or most anyone else. It is my understanding that to accomplish this “Virtual“ inspection the appraiser must have an “Outline” of the exterior of the home (formerly a sketch) in his/her possession to accomplish this procedure, (I may be incorrect in this matter). Many counties and cities in California will not allow the appraiser or anyone else to view a copy of the floor plan or any other documents in the assessors or building department’s file of the subject property, which means that if the appraiser does not go to the property he/she is relying on an untrained individual to provide the sketch."

Changes from Fannie Mae: ANSI, Desktop Appraisals & Virtual Inspections

Fannie Mae has decided to make at least 2 significant changes... The New Year is here and along with that comes change. The appraisal industry and the

appraisersblogs.com

 

[TerryRohrer]

How does a salaried employee of Clario (or wherever) just say no?

They won't. They will say "What conclusion do you need?"

 

[alebrewer]

They won't. They will say "What conclusion do you need?"

That seems a bit unfair to staff appraisers who are conscientious about their services, no?

 

[Tom D]

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.

in a recent FNMA letter, a number of appraisers were sent a letter from FNMA asking them to re look at their desktop appraisal, and to correct the lack of verifications of important things. that was nice, make them do it over, but don't ever do it that way again. so there will be no leniency for those that don't have enough verification in their report.

 

[TerryRohrer]

in a recent FNMA letter, a number of appraisers were sent a letter from FNMA asking them to re look at their desktop appraisal, and to correct the lack of verifications of important things. that was nice, make them do it over, but don't ever do it that way again. so there will be no leniency for those that don't have enough verification in their report.

A lofty sentiment, for sure. Just like FNMA and Freddie came out in about 2014 and announced that appraisers would need to support their adjustments. Then they found out how few would, compared that to the volume of reports they needed, and have been silent since.

 

[TerryRohrer]

That seems a bit unfair to staff appraisers who are conscientious about their services, no?

It may be unfair, but staff appraisers are not independent. That is simply a fact.

 

[alebrewer]

It may be unfair, but staff appraisers are not independent. That is simply a fact.

Are you saying they aren't capable of providing unbiased and objective opinions of value?