GSE Waiver & Data Collection Data

[Gooooose]

Are you aware that Clear Capital is offering appraisers $125.00 for the valuation? Additionally, the report must be submitted within 24 hours. The one-click acceptance feature could potentially violates Florida state law, as it may not provide the appraiser with a reasonable opportunity to complete the report.

They cost $225 to the lender. PDRs are favorable to lenders that care about burdening excessive costs on their clients - or in some cases when the lender pays the appraisal cost.

 

[George Hatch]

100 assignments today, 1 email to place those assignments, 1 email to go back-n-forth over reviews, 1 email to handle invoices. Not 150 different parties to place the assignments or 100 different emails for reviews and so forth.

Like it or not, that's how these lenders are seeing it. Economy of scale.

 

[CGinMN]

Cut-rate lenders with bad reputations who hire bottom-feeder appraisers through their unethical AMCs love the idea of adding hybrids to the menu. Lenders who have reputations to uphold, not so much.

 

[J Grant]

100 assignments today, 1 email to place those assignments, 1 email to go back-n-forth over reviews, 1 email to handle invoices. Not 150 different parties to place the assignments or 100 different emails for reviews and so forth.

Like it or not, that's how these lenders are seeing it. Economy of scale.

The economy of scale exists because the AMC service is a FREE OF COST service to the lenders. If they had to pay the AMC out of their own operating funds for the service, I bet they would drop them like a hot potato [- or pay them a fraction of what the AMC can get now from the feel split off the appraisal fee ( which is how the AMC gets compensated, the lender cuts the check but the funds come out of the borrower paid the appraisal fee, which a portion of it reaching the appraiser instead of the full amount.

 

[TerryRohrer]

They cost $225 to the lender. PDRs are favorable to lenders that care about burdening excessive costs on their clients - or in some cases when the lender pays the appraisal cost.

Are you a GSE employee or an AMC employee?

 

[J Grant]

Cut-rate lenders with bad reputations who hire bottom-feeder appraisers through their unethical AMCs love the idea of adding hybrids to the menu. Lenders who have reputations to uphold, not so much.

Right, because there is no advantage to lenders to order a hybrid - the borrower covers the appraisal fee so even if hybirds are a bit cheaper (which they might not be) the lender is not paying for the appraisal. There is no proof hybrids are faster, the only ones benefitting from them are the AMCs and affiliated lenders /buddies at Fannie or Freddie - what a coincidence! - fannie/freddie are creating "studies" from appraisals that nobody outside of them view - to show hybrids deliver fewer errors or different condition ratings than traditional appraisals. This is odd, considering that the same appraisers who do hybrids also do the traditional appraisals. Granted, traditional appraisers are more often done on complex/problem properties so they might score differently )

They have to have to offer a reason to drive more lenders to this fast-food piece meal product-

 

[shrubberyvaluation]

I have a question for you. Why does Fannie Mae believe appraisers hold up the loan process? I have been appraising for 35 years and never had over a five business day turn time. If I take longer than five days, it is a delay by the borrower, lender or builder. I see where many times the loan does not close for weeks or months after my appraisal report.

As I see it, properly studying a property data report and the pictures will probably take about the same time as a property inspection to clearly not miss anything. So, the PDR is saving drive time only. Then there is the little item of comparable sales selection and pictures. Why is it not so important for the appraiser to personally inspect all the comparable sales in a regular 1004 and then it is not so important in a hybrid appraisal? To me, that tells me that this is not about "helping the appraiser do what he does best" and more about dissecting the appraisal fees for the AMCs and lenders.

I seriously doubt that a lender or AMC can order a PDR report (underwrite it) and order a market analysis report any quicker that I can do a full 1004. If you count from the time they order the PDR to the time of completion. You can give me examples I am sure of less than a day, but have completely appraisals in less than 24 hours too.

If Fannie Mae wanted to lower appraisal fees, they could remove the "appraiser must inspect all comparable sales from the street" from the 1004 and I would gladly lower my fee to not drive the comparable sales.

Fannie Mae is doing this to help the AMCs and lenders as I suppose. This is not to help the appraisers. It is rather insulting that our lender clients will only allow the assigned appraiser to inspect the property virtually eliminating the reason for having a trainee. Yet, lenders and AMCs have no problem accepting hybrid appraisals with inspections from unlicensed PDRs? I know Fannie Mae allows appraisers to let trainees inspect, but very few lenders or AMCs do. It is the worst kind of double standard. This the most irritating aspect of the hybrid appraisal.

Can you see why I am against hybrid appraisals and PDRs?

I'd say looking at pictures from someone else takes more time to assess than seeing the property. FNMA has the power to only partner with ones that will use trainees, but they will partner with the most unethical AMCs

 

[George Hatch]

The economy of scale exists because the AMC service is a FREE OF COST service to the lenders. If they had to pay the AMC out of their own operating funds for the service, I bet they would drop them like a hot potato [- or pay them a fraction of what the AMC can get now from the feel split off the appraisal fee ( which is how the AMC gets compensated, the lender cuts the check but the funds come out of the borrower paid the appraisal fee, which a portion of it reaching the appraiser instead of the full amount.

The "free cost to them" issue isn't part of the economy of scale issue. That's a market competition issue. If AMC#1 offers a cost-plus price and AMC#2 offers a bundle the lender has been choosing AMC#2, which is why the cost-plus AMCs do not have a significant presence in the market.

Regardless of how the AMCs shop by price, the lender's fixed overhead over time is still lower when they only have to make one phone call regardless how much/how little business they're doing. They don't have to hire or lay off, they don't have to wrangle office space or office equipment, they don't have to fret HR issues, they don't have to pay retirement or medical benefits, etc. They only have to pay for what they use when they use it.

 

[shrubberyvaluation]

They cost $225 to the lender. PDRs are favorable to lenders that care about burdening excessive costs on their clients - or in some cases when the lender pays the appraisal cost.

If they cared about their borrower saving money they would be happy when an appraisal comes in under contract potentially saving more than a couple hundred bucks

 

[shrubberyvaluation]

Cut-rate lenders with bad reputations who hire bottom-feeder appraisers through their unethical AMCs love the idea of adding hybrids to the menu. Lenders who have reputations to uphold, not so much.

I always hear bad things about rocket mortgage from agents and they use a lot of hybrids I believe