Where are the orders!

[George Hatch]

And before the inevitable "low cost appraisers won't do the work" argument comes up, I'll note that some of the high-fee appraisers don't do the work, either. Moreover, the requirement for the AMCs isn't framed in terms of "will perform competently" but whether or not they are *qualified* to perform that assignment. If an AMC engages a local appraiser at 2x the prevailing fee and that appraiser screws up that doesn't mean the AMC or the lender violated the regulations. It just means the appraiser didn't work to their capabilities.

And really, what's the difference between a local appraiser finding all 7 of the proximate comps in the MLS and picking some of them for a report vs some reviewer from 600 miles away seeing exactly the same comps and agreeing with the original appraiser's analyses?

 

[J Grant]

This ain't 1990 no more, and most 1-4s are not so crazy atypical appraisal situations that only a local can understand the appraisal problem and perform competently. In terms of how much "geographic competency" it takes to perform an appraisal on a typical 1-4 property I daresay having access to the local database is going to be more relevant than whether or not the appraiser has ever driven through that particular subdivision or shopped at the local Krogers. That, and spending the requisite amount of time/effort to research and analyze the local market trends and the subject's market segment.

I'm not local to Marin City, but even from several hundred miles away I can see 100% of all RE transactions across all property types that have occurred there over the last 20 years and I can find the MLS listings for all of the actual SFR sales that were marketed through the MLS. I can find and understand the zoning (which many of the locals don't even do that) , I can find the topo maps and flood zones and I can see from the overheads when the GLA is reported significantly different in the public records than exists onsite. I don't need to be local to do any of that. I just need to have the skills to do it and the willingness to reinvent the wheel to get to that point.

Now the GSE requirement is a little more stringent in that the appraisers certify to having "the knowledge and experience in appraising this type of property in this market area", but exactly how many assignments in a local does it take to effectively meet that requirement? 2x/yr? 1x/yr? 3x in the last 5yrs?

Sorry, but most market segments aren't that special. Not just for SFRs, but across most property types. Other than timber, ag and mining, of course.

Your opinion only. It has no more weight than anyone else;s here.

Your opinions on these residential mortgage work topics are always in line with the latest GSE scheme to cut fees and allow non-appraisers to do parts such as CDC collectors or hybrids with no appraiser to go out so they can appraise in a wider area, etc. - all to lower fees and enrich AMCs or big box order centers. I do not consider it a non-biased opinion,

These GSEs are profit centers but it is not their own money they are lending, and the taxpayer still bails it out, so to advance more and more lax valuation and appraisal guidelines so a profiteer can make a buck is deplorable, IMO.

 

[Fernando]

And before the inevitable "low cost appraisers won't do the work" argument comes up, I'll note that some of the high-fee appraisers don't do the work, either. Moreover, the requirement for the AMCs isn't framed in terms of "will perform competently" but whether or not they are *qualified* to perform that assignment. If an AMC engages a local appraiser at 2x the prevailing fee and that appraiser screws up that doesn't mean the AMC or the lender violated the regulations. It just means the appraiser didn't work to their capabilities.

And really, what's the difference between a local appraiser finding all 7 of the proximate comps in the MLS and picking some of them for a report vs some reviewer from 600 miles away seeing exactly the same comps and agreeing with the original appraiser's analyses?

I never understood why a 600 mile away appraiser be reviewing a location they not familiar with.
They just give a rubber stamp for validation or additional appraiser to blame for the lender.

 

[Surf Cat]

Selects an appraiser who is 50 miles away from the subject market area, who has the requisite E & O insurance, expertise to handle stips, and sub-$300 fee (minus processing, fax, and other made up administrative fees).

 

[J Grant]

And before the inevitable "low cost appraisers won't do the work" argument comes up, I'll note that some of the high-fee appraisers don't do the work, either. Moreover, the requirement for the AMCs isn't framed in terms of "will perform competently" but whether or not they are *qualified* to perform that assignment. If an AMC engages a local appraiser at 2x the prevailing fee and that appraiser screws up that doesn't mean the AMC or the lender violated the regulations. It just means the appraiser didn't work to their capabilities.

And really, what's the difference between a local appraiser finding all 7 of the proximate comps in the MLS and picking some of them for a report vs some reviewer from 600 miles away seeing exactly the same comps and agreeing with the original appraiser's analyses?

Why are you always defending low-fee CPR? What is in it for you, since you do not even do mortgage lending work? You chime in to defend the worst predict repeatedly on these threads.

That is a false, opinion-only statement with no proof that the higher fee appraiser don;t do teh work either. What proof do you base that unfounded statement on ? Do you personally see appraisals from across the nation every day and see the fees paid to the appraiser each ? The appraisals from both direct order and AMC's and compare them? I highly doubt it.

If a high fee appraiser does not do the work then fire them, same as a low fee appraiser. But higher fees world, allow more time to spend on each order and attract more experienced and competent appraisers

 

[George Hatch]

That is your opinion only, and your pattern is to provide a rationale for the worst of the worst of client actions.

Propepers are MORE complex than in 1990 and much more expensive, so local expertise is more important than ever. Thd online data now is not that different tan 1990, same MLS and same overhead maps etc.

Carry on spinning it for hybrids and remote appraisers doing work in areas they know nothing about. The next step will be outsourcing to India or China since no local knowledge is needed, and you will support that, too.

Be serious. If I got parachuted into your local and you and I were appraising the same 2bd condo in your project your value conclusion wouldn't be any different than mine. What would be different is the amount of time/effort I would have had to expend to review every sale therein from the last 10 years as a means of bridging the gap in personal experience. Whatever happened in the SFR subdivision across the street wouldn't come into play for how that condo would appraise. And even you know this.

And no, there is no comparison between the amount of available information at the non-MLS databases in 2023 vs what was available in even 2003, let alone 1993 or 1983 when these "geo competency" expectations were established. I know this because I wasn't able to discard the zoning maps (for example) that I had purchased out of pocket until about 10 years ago.

 

[Fernando]

As Miller case had shown, given sales or comps, appraiser scan come up with different values. Were reviewers sleeping at their jobs.

 

[George Hatch]

Those types of differences are attributable to one or both of them telling significant untruths in their analyses.

 

[Fernando]

Why are you always defending low-fee CPR? What is in it for you, since you do not even do mortgage lending work? You chime in to defend the worst predict repeatedly on these threads.

That is a false, opinion-only statement with no proof that the higher fee appraiser don;t do teh work either. What proof do you base that unfounded statement on ? Do you personally see appraisals from across the nation every day and see the fees paid to the appraiser each ? The appraisals from both direct order and AMC's and compare them? I highly doubt it.

If a high fee appraiser does not do the work then fire them, same as a low fee appraiser. But higher fees world, allow more time to spend on each order and attract more experienced and competent appraisers

People at the "top: think that their licensing and system were set up to have appraisers do a better job in protecting the public.
It failed. As long as appraisers can be incompetent with or without licensing or unscrupulous, appraised values can be influenced or manipulated.

 

[Dublin ohio]

As Miller case had shown, given sales or comps, appraiser scan come up with different values. Were reviewers sleeping at their jobs.

Which reviewers? Typical AMC "review" is nothing but a cursory look to make sure the report has all of the "bases" covered. Most of them are not even done by an appraiser