GSE Waiver & Data Collection Data

[J Grant]

But the key is that the Hybrid is CHEAPER. It is not BETTER nor is it FASTER. AND it comes the expense of the appraiser who now has every incentive to rush thru a report and hope beyond hope that they can make it up in volume... But volume is a static number independent of fee. Hybrids do not create more work.

The Hybrid is not any cheaper to the consumer now - it might have started that way, but now the reports are the cost to consumer vs a traditional appliance is the same/equivalent.

 

[chad hampton]

What gave state boards and regulators such heartburn when this thing was being shove down their throats a couple years ago was who do they go after when there are problems with the appraisal inspection? Which happens to be the number one complaint they see.

They can’t go after some unlicensed individual than an AMC is sending out to perform the appraisal inspection. The investigators I spoke to knew that this idea of using runners was wrong, but they would have no other choice but to go after the appraiser. They do not have the option of telling a borrower that something related to the appraisal is not under their purview.

Last I heard, they were going to evaluate things on a case by case basis. What they should’ve done is told every ******* that revaa sent to get the hell out of their building and never come back.

 

[Terrel L. Shields]

but it could also mean families might miss out on
the full wealth-building benefits of homeownership or may be unable to get the financing needed

Idiots. An over-valued home is not building wealth. It is threatening the financial security of both the borrower and the bank. "Safe and secure" banking requires a conservative approach to lending especially when lending at or near 90% or more.

the reports are the cost to consumer vs a traditional appliance is the same/equivalent.

No doubt. But the argument for the hybrid is it is cheaper and faster. Neither one is true. Not for the borrower. Not for the banker. Not for the appraiser.

 

[Surf Cat]

Whoa....the native drums are beating loudly this morning.....look! Smoke signals...tra-di-tion-al apprai-sers la-zy.... hy-brids much bet-ter.

Or... appraisers with decades of experience, hours and hours of continuing education are rife with unconscious bias that no amount of shock therapy can cure them. PDC's on the other hand are cute, new puppies with no such baggage....cheap too.

OR....the returns on investment of gse, lender stocks are a boomin.....keep beating the drums!

 

[George Hatch]

How about a level playing field? If AMC’s can use runners, appraisers can too? Change all the certifications to say who knows who did the inspection and who really cares?

I guess the money only flows one way. Probably why I never got an invitation to the breakfast club.

It always goes back to the use of fuzzy terms to obscure the fundamentals of who is doing what, right? That's always the go-to when all else fails.

In the above wordplay you are attempting to run you are deliberately conflating the [PDCs who are engaged by not-the-appraiser to work independently of the appraiser] with [subordinates of the appraiser] as if that's the same type of relationship and includes the same level of control by the appraiser.

Even if I was willing to accept the dishonesty of these fuzzy semantics, the two types of relationships are different from each other:

The AMC isn't performing the appraisal; the appraiser is performing the appraisal.​

and​

PDCs aren't the appraisers' [runners]; they're the AMCs [runners] or the lenders' [runners]​

and​

PDCs aren't signing appraisals; appraisers aren't signing PDRs​

​

​

 

[George Hatch]

Whoa....the native drums are beating loudly this morning.....look! Smoke signals...tra-di-tion-al apprai-sers la-zy.... hy-brids much bet-ter.

Or... appraisers with decades of experience, hours and hours of continuing education are rife with unconscious bias that no amount of shock therapy can cure them. PDC's on the other hand are cute, new puppies with no such baggage....cheap too.

OR....the returns on investment of gse, lender stocks are a boomin.....keep beating the drums!

I'm not weighing in on the stats because I don't know. I'm only talking about what the appraiser is actually doing, vs what they aren't doing.

 

[Terrel L. Shields]

PDCs aren't signing appraisals; appraisers aren't signing PDRs

How much would you bet that the appraiser is still going to be sued if a lawsuit occurs and the error lies in the PDR report, not the appraiser's report. You get to go to court over your measly $200 or so fee? Great plan.

 

[TerryRohrer]

"Rather than being due to racial discrimination by appraisers, we found Freddie’s claim of an “appraisal gap” is much more likely the result of would-be first-time buyer inexperience, socio-economic status (SES), or government actions (in particular a concentration of FHA lending in certain census tracts) with a disparate impact on protected classes. Our analysis, which goes well beyond Freddie Mac’s “exploratory research”, can explain around 85% for Black tracts and 29% for Latino tracts of the gap through differences in socio-economic status (SES), leverage, and borrower characteristics. With the full set of controls, the Black gap disappears entirely, while the Latino gap falls by almost half."

"The literature suggests that an appraiser may be providing some would-be buyers a consumer benefit by providing an appraised value below the contract price, thus alerting such buyer that he or she is overpaying on the home, which then triggers a renegotiation. "

https://www.aei.org/wp-content/uploads/2022/01/Freddie-Mac-note-on-Racial-and-Ethnic-Valuations-Gap-Housing-Center-Critique-Jan-2022-final.pdf?x91208

 

[George Hatch]

What gave state boards and regulators such heartburn when this thing was being shove down their throats a couple years ago was who do they go after when there are problems with the appraisal inspection? Which happens to be the number one complaint they see.

They can’t go after some unlicensed individual than an AMC is sending out to perform the appraisal inspection. The investigators I spoke to knew that this idea of using runners was wrong, but they would have no other choice but to go after the appraiser. They do not have the option of telling a borrower that something related to the appraisal is not under their purview.

Last I heard, they were going to evaluate things on a case by case basis. What they should’ve done is told every ******* that revaa sent to get the hell out of their building and never come back.

I am skeptical of this claim, as I have been of a couple of your other claims. Pics or it didn't happen.

If your state board actually gets such complaints or actually thinks this is some big problem for them then they would have issued a letter or some other official communication. Heck, they don't even need to do that. They could post their views and their actions in a newsletter or on a forum.

With that said, there's no reason the PDCs should be allowed to operate on an unregulated basis. I assume that sooner or later they will get state regulation under state law, complete with their own QE/CE and licensing fees and such. Not that any of that will work to the advantage of the fee appraisers. I think it more likely than not that they will be regulated by a different licensing board, not the appraiser licensing board.

 

[J Grant]

A PDC collector and an appraiser are not doing the same things when they "inspect" a home.

The PDC collector takes notes, photos, and measures via an app. They do not make any conclusions or opinns (or if tehy do, they keep ti to themselves )

The Appraiser also takes notes and photos and measures. In addition, they make conclusions and opinions by comparing what they are observing and get a holistic picture of it, and are able to compare to the hundreds or thousands of other properties they have observed. When driving the comps and at the property, you can get information from any people who might be present who are familiar with the property and or the subdivision or condo.