Freddie Mac vs Appraiser Bias

[Dale Floyd]

What is with the license shaming. That is the second time you have asked that question. I answered it the first time (in another thread). I can guarantee it wasn't because of the "man" holding me down.

I know several CRs and Licensed appraisers who put CGs to shame in their reports. I knew a CR appraiser who specialized in agricultural properties and was the best in the state with those specific kinds of assignments. (Many CGs frequently called him to assist with large farms, because they lacked the competence he had.)

The stars on the Sneetches bellies should all be removed. All appraisers should have only one license and they should always provide competency in their qualifications to do the assignments they accept. Competency should be the real test, not a certificate on the wall. (Sorry - broken record)

 

[Dale Floyd]

I would say that there is a HUGE difference between appraisers and surveyors. For a surveyor, measuring IS the job.
For an appraiser, measuring is just part of data collection that helps enable the job. What is being tested is using another data collection source to enable the job.

I mean no disrespect DW, but the biggest reason for appraisal lawsuits today (according to LIA, OREP, and others,) involve disagreements of the GLA in measurements. This is why ANSI became a standard. For surveyors, measuring is a huge part of their job. You'll have to do better in explaining why it isn't for appraisers and we should be free to utilize sources we have vetted properly. I can't imagine you feeling any different if you were still on the appraising side of our profession.

As I told you before - We have been completely barred from these decisions being made in your world about us, and many are getting anxious. As much as I have always honored your thoughts, you know nothing about what works best at my firm. Ultimately though, after Freddie has come up with their solutions to a historical blip in our economy months ago, appraisers will be put in a position of take it or leave it.

Many appraisers will be culled from their life's work. And all for what - Faster and cheaper? My preaching daddy would insert a scripture here, but I'll refrain.

 

[Dublin ohio]

Has anyone actually seen a PCR for a GSE hybrid report. (Not the inspections for AMC proprietary products). I know I haven't. But from what I have been able to research (DW correct me if I am wrong). There is not a specific reporting format. But there is quite a comprehensive list of what is to be reported and how features and deficiencies are defined and described. Appears a lot more comprehensive than most field notes appraiser's would make. As far as inspector bias. Why would they be biased in their descriptions. Why would they make their job more difficult. The job is to observe and report. Nothing else. No reason I could see to provide a biased report. They wouldn't care if the kitchen and baths are dated. That there is a red Tesla in the driveway. They would just report what they see.

Why would the condition ratings made by appraisers based on third party inspections be more "accurate". My opinion is it is psychological. You are provided data by a third party. I believe most appraisers (consciously of sub consciously) would be more critical examining that data. Knowing that other parties involved in the transaction would have access to that data. Like having someone looking over your shoulder. JMO

 

[Dublin ohio]

I know several CRs and Licensed appraisers who put CGs to shame in their reports. I knew a CR appraiser who specialized in agricultural properties and was the best in the state with those specific kinds of assignments. (Many CGs frequently called him to assist with large farms, because they lacked the competence he had.)

The stars on the Sneetches bellies should all be removed. All appraisers should have only one license and they should always provide competency in their qualifications to do the assignments they accept. Competency should be the real test, not a certificate on the wall. (Sorry - broken record)

View attachment 69193

I have created a niche over the years in doing rural work as well as what some might consider "complex" 2-4 family properties. Many lenders today require a CR to be on there panel. I have numerous lenders with that requirement that have provided me a waiver to be on there panels. They didn't provide those waivers because of my personality.

 

[Carnivore]

You may need to re-read Standard 1 and AO2. USPAP - Standard 1-2 (e) and Standard 2-3. " An inspection is not required by USPAP, but one is often conducted. While an inspection is not required, appraisal reports...must contain a signed certification that clearly states when the appraiser has or has not personally inspected the property." The Scope of Work Rule 1-1(a) also covers this. If you are a residential appraiser who does lender work you absolutely need to be able to competently perform a physical inspection.

And if a Trainee or an another Appraiser does the Inspection but is not signing the report it is considered NOT Significant Appraisal Assistance.

So the workaround is this: If an Appraiser or a Trainee is doing property inspections for Ground-Works. What Now? Easy, Neither the appraiser or a trainee is NOT required to tell Ground-Works they are licensed. They can just act like the rest of the other dummies inspecting for Chump Change.

What does this mean to the Appraiser Doing the Desktop - Nothing except that he or she has reason to believe the data is reliable? Well we match up/compare that source with other Sources. From it all we can come up with a value. How Reliable or accurate is the Value compared to when I complete a 1004 by myself?
Well I don't know for sure, but I can guarantee this.... It won't be as good or reliable as my 1004. Here is a key example:

The Borrower has no mortgage on his SFR. Its an relatively expensive property: $500,000 Tax Value. The owner wants to buy a Rundown house that has good bones to Fix N Flip. He Needs 100K total to buy Fix and Sell That's 20% of his primary house Value. His Credit Score is 800. Risk to lender? ZIP , 0,

So the lender has a decision to make. Make the loan just require a signature. and or maybe have a Desktop appraisal for the primary home Something like that.

 

[J Grant]

No, of course not. But, in testing no assumptions are made about the effect on credibility. That is measured with actual data. And, when that data is analyzed it is not done in a vacuum - it is done in comparison to appraisals done with a traditional inspection.

Those traditional inspections are not 100% error free. I know that from both data and personal experience.

Traditional inspections are not 100% error free , and neither will third party inspections be 100% error free

USPAP says perfection is not expected, so 100% error free is irrelevant. What is relevant is the appraiser inspecting gives them first hand experience of the property vs second hand . An appraiser can at least account for their own errors, not the case for third parties who have no stake in the process.

 

[J Grant]

Third party inspections are superior to a desktop with no inspection -fwiw

 

[Zoe]

What is homeowner going to say when I call to schedule appraisal and they tell me a property inspector has been there and I tell them I am the appraiser. I don’t know who that person is. When can we schedule?

 

[ramrcdk]

Has anyone actually seen a PCR for a GSE hybrid report. (Not the inspections for AMC proprietary products). I know I haven't. But from what I have been able to research (DW correct me if I am wrong). There is not a specific reporting format.

>>> HOW DO Ya KNOW, Please Share >>> But there is quite a comprehensive list of what is to be reported and how features and deficiencies are defined and described. Appears a lot more comprehensive than most field notes appraiser's would make. They would just report what they see AND so DO APPRAISERS, WITH PHOTOS?

Why would the condition ratings made by appraisers based on third party inspections be more "accurate". My opinion is it is psychological. You are provided data by a third party. I believe most appraisers (consciously of sub consciously) would be more critical examining that data. Knowing that other parties involved in the transaction would have access to that data. Like having someone looking over your shoulder. JMO

In the BIG Picture and like USPAP, the very minimum...
I hope for : separation & disclosure of Roles.
Like in : You DO you ... and I'll Do me.
Except it seems : the YOU in "inspector" will have No Name, No License, No Coverage : Do I need a rider on my E&O?

 

[Dublin ohio]

What is homeowner going to say when I call and schedule appraisal and they tell me a property inspector has been there and I tell them I am the appraiser. I don’t know who that person is. When can we schedule?

Why would you be scheduling an appointment for a hybrid assignment?