Hybrid Appraisals

[djd09]

It's apparent that these users think the desktop SOW is sufficient for their use, the additional assumptions and limitations notwithstanding. And the appraisers performing these desktops also think it's a valid assignment type.

Also apparent that they don't care that you disagree with them.

they also though no doc loans were a good idea...haha

 

[James Mpls]

Don't know what the fuss is all about?

Most on this forum will never complete a hybrid unless you work for an AMC as staff or at one of those large national firms.

I have not even been offered to do one or to bid on one?

Can’t remember last time I was offered one to bid on…

 

[glenn walker]

The GSES never purchased No Doc loans those were originated and sold to Wall Street MB Investors and hedge funds.

 

[chad hampton]

AI disagrees -

"During the period leading up to the 2008 financial crisis, Freddie Mac did accept no-doc and low-doc loans, along with Alt-A loans (loans with reduced documentation) from lenders, according to a U.S. House Financial Services Committee document. This practice, along with the growth of the private-label securities market for such loans, contributed to an environment where less scrutinized loans became more widespread. "

 

[djd09]

then why did they need a bailout...it's kool aid pouring time

 

[glenn walker]

AI disagrees -

"During the period leading up to the 2008 financial crisis, Freddie Mac did accept no-doc and low-doc loans, along with Alt-A loans (loans with reduced documentation) from lenders, according to a U.S. House Financial Services Committee document. This practice, along with the growth of the private-label securities market for such loans, contributed to an environment where less scrutinized loans became more widespread. "

No after the mortgage meltdowns the GSEs were ordered to Purchase EXISTING
NO DOC LOANS from investors in banks that were in trouble. By 2008 the GSES were the ground zero dumping grounds for all kinds of non traditional loans. BUT that was because there was no market's that would purchase them.

 

[djd09]

FANNIE MAE AND FREDDIE MAC: 2000‐2008In 2003 and 2004, controversy arose concerning the Enterprises’accounting practices. Additionally, from about 2004 through 2007, FannieMae and Freddie Mac embarked on aggressive strategies to purchasemortgages and mortgage assets originated under questionableunderwriting standards. For example, the Enterprises purchased largevolumes of Alt-A mortgages, which typically lacked full documentationof borrowers’ incomes and had higher loan-to-value or debt-to-incomeratios. They also purchased private-label MBS collateralized bysubprime mortgages.

Accounting Problems of Fannie Mae and Freddie MacIn 2003, Freddie Mac disclosed it had used improper accounting. OFHEO found thatFreddie Mac had misstated earnings by $5 billion between 2000 and 2003 and finedFreddie Mac $175 million.OFHEO also investigated Fannie Mae accounting problems and reported:• “during the period … 1998 to mid‐2004, Fannie Mae reported extremelysmooth profit growth … those achievements were illusions deliberately andsystematically created by the Enterprise’s senior management with the aidof inappropriate accounting and improper earnings management.”• “… the Enterprise also had serious problems of internal control, financialreporting, and corporate governance.” • Fannie Mae engaged in excessive risk‐taking, which included increasedholdings of subprime and Alt‐A private‐label MBS and the use of derivativesto manage the interest‐rate risk of GSE investment portfolios. • Those errors resulted in Fannie Mae overstating reported income andcapital by an estimated $10.6 billion.Fannie Mae paid a $400 million civil penalty.

https://www.fhfaoig.gov/Content/Files/History%20of%20the%20Government%20Sponsored%20Enterprises.pdf

...

 

[Non Sequitur]

Another player jumping into the hybrid game:

"Today, I'm thrilled to announce the launch of Appraisify, the industry's first valuation technology platform built to fully embrace and capitalize on the strategic benefits of hybrid and desktop valuation offerings, powered by Inspectify's nationwide inspection platform. In a matter of months we have already served thousands of customers with our unique offering and results are staggering; cost savings and SLA improvements up to 60% with equitable quality. And this is just by retooling the Inspectify platform we have built over the years. More impactfully, we will soon be rolling out an enhanced version of Aloft's Toolkit that will dramatically improve this even further by creating a level of objectivity in valuations like no other."

 

[TC]

Appraisify and Inspectify. Gotta love those marketing people that come up with that stuff.

 

[Bobby Bucks]

Appraisifi and inspectifi will also need your licencifi and E&Oifi.