Hybrid Appraisals

[George Hatch]

Can you read?
I did not say prohibit lenders from using 3rd party appraisals !!

Asked and answered. The only way to force lenders to drop the bundled fee is for govt to legally prohibit them from operating that way.

We're discussing commerce here, not social standing. Dollars and cents. Bottom line. Power suits, power ties, power lunches, cutthroat corporate politics, mergers/acquisitions, quarterly results, TPS reports in triplicate, etc. Trying to shame these decision makers by appealing to their compassion and empathy for fee appraisers isn't going to work. After this many years even you must recognize that reality by now.

 

[J Grant]

Eliminate AIR and AMC's and go back to mortgage brokers.....even borrowers to select and order directly from appraisers.

Yes, lenders would be responsible for appraisers again as they should be. Underwriters have enough of our data to check the validity of the report via CU and AVM's. Once the report is accepted, the lender sends the Borrower's check to the appraiser.

If the lender finds the appraisal report blatantly insufficient, pushed in value, undervalued, devoid of appraisal methodologies and common sense and the appraiser can't remedy it, they don't get paid.

This way....pushing for a certain value would waste the mortgage broker's, Realtor's, borrower's time. They would need the experienced, Geo competent, highly skilled, appraiser as opposed to the number hitting dregs that the AMC's prey upon.

The regulations that are supposed to prevent conflicts of interest and ensure impartiality......enhance it....

The regulations fail, but letting borrowers pick the appraiser would be a disaster ( and never happen).
Though never say never - whoever thought the loan officer could estimate the value via a WAIVER? The HVCC was created to not let mortgage lenders pressure for value, so now the GSE solution is to not use a relations-bound appraisal, use a Waiver (now called value acceptance ) where the mortgage lender estimates the value they need to make the deal work ( if it falls in the GSE AVM range)j

The regulations are not about the public resort when profitters drive the regulations or lack thereof.

 

[djd09]

CoreLogic expanding valuation business, announces acquisition of Mercury Network​

In last few years, CoreLogic also acquired LandSafe, FNC, and RELS

...alalogic might have a 50% market share rate by themselves

 

[Surf Cat]

Here we go....hopefully there's an open comment section...... I don't have anything bad to say about the bureau itself..... just the state of the profession.

Dear Valued Stakeholder,

The Bureau of Real Estate Appraisers (BREA or Bureau) is beginning the development of its new strategic plan. The Department of Consumer Affairs, SOLID Planning Solutions (SOLID) is assisting the Bureau with the strategic planning process.

As a stakeholder, you have an important perspective and stake in the success of the Bureau. Your completed survey will provide input as to how the Bureau is doing by identifying internal strengths and weaknesses and external opportunities and threats (SWOT Analysis) as consideration for the future direction of the Bureau.

All responses are anonymous. Thank you for taking time to participate in this survey. This will allow us to add your feedback to our analysis as we prepare our strategic plan.

This survey will close on Saturday, May 31, 2025.

Take the online survey here: https://www.surveymonkey.com/r/BREA_ext2025

Best regards

Bureau of Real Estate Appraisers

3075 Prospect Park Drive, Suite 190
Rancho Cordova, CA 95670

 

[J Grant]

Asked and answered. The only way to force lenders to drop the bundled fee is for govt to legally prohibit them from operating that way.

We're discussing commerce here, not social standing. Dollars and cents. Bottom line. Power suits, power ties, power lunches, cutthroat corporate politics, mergers/acquisitions, quarterly results, TPS reports in triplicate, etc. Trying to shame these decision makers by appealing to their compassion and empathy for fee appraisers isn't going to work. After this many years even you must recognize that reality by now.

I realize that. But what enables all the above is the retrospective HUD bundled fee, and maybe a lawsuit or one upstanding person on the DOJ side can change it - stranger things have happened. We nee to pressure for that - not appeal to sympathy.

First step is to clarify the issue, and cut through the fog of distraction such as that technology is to blame , or appraisers themselves are to blame - you just named the massive powerful entities against appraisers, yet still blame appraisers for hiring trainees 20 years ago- Whether they hired X number of trainees or Y number of trainees would have made little difference once the HVCC was enacted and the regulations around C and R in the HVCC were influenced to change from their original intent. -

 

[glenn walker]

Something is off with this post

Who is the "we" ( we helped manage )? What entity or company is it (or was it a person on staff ) that helped manage a direct lender's in-house panel? ?

Once again, if the lender gets free-of-cost service from an AMC, which they typically do ( via the bunded fee split ) I understand why lenders use them. Of course free of cost is cheaper than the cost to run a panel. Of course control over the quality of the panel benefits some lenders or wholesalers so they choose that route.

I must have commented a thousand times on the board that I understand why , since they pay virtually nothing, the lenders choose an AMC.
I understand it so well, I break it down for people, because that FREE of cost service to the lender is why the AMC:s have that tremendous market share they do. What other business gets teh incredible govt perk of a bundled fee so the business does not charge their customer? I can not think of any other business, and the rest of the appraisal world, whether residential or commercial, that orders witiut a third party ( AMC ) splitting the fee, does not operate that way either.

We is a seperate company. But you still don't get the fact that it cost the lender overall about $200.00 per report to operate their own in house direct order management system. Since the lender paid 100% of the $450.00 collected directly to the appraisers the lender absorbed all the costs to manage the fee panel. They did not want to play games with regulators by padding other cost to really be paying the losses on operating their own direct management. Also when you operate in multiple States it can create licencing conflict's. So it was easier to just move the fee panel over to
a Large AMC and they could make money instead of lender losing money on each order.

The AMC who took over collected about $650.00 and paid the lenders old panel $400.00. BOTTOM LINE is a direct order lender has to absorb the loss or increase and play games with garbage fees or raise their processing fees.

The Large Copper Logic Type AMC is more efficient handling order volumes, negotiations with apprasers and have larger review staffs, and relieved the lender of the entire hassle.

 

[Sadie]

I did an internet search. Google said hybrids are illegal. It was then confirmed by a tik tok influencer.

Can we move on now?

The ultimate authority!

 

[Sadie]

That is one challenge. Another is the restriction on assigning to a particular appraiser, rather than assigning to a firm and letting the firm handle the business in the most logical way. When I had a firm we would send appraisers out to look at 2 or 3 properties in the same area. When the lenders staring dictating the particular staff appraiser that had to do the appraisal, that severely hurt the efficiency (and profitability) of the firm. Mid sized firms like I had are basically a thing of the past, and I think that is a shame because the mid size firm is a great place to share ideas, share resources, and train new folks.

Agree. IMO the HVCC made it much more difficult to hire a trainee.

 

[Sadie]

How many times were the trainees accompanied by their mentor?

Until the mentor thought the trainee was proficient enough to inspect, etc on their own.

 

[Sadie]

Back when I trained, near 100%. Lenders did not accept reports that the trainee inspected alone.

Toward the end, my mentor would show up, walk through the house and leave so he could legitimately check the Did Inspect box.