I am not doing the 3.6 FORM deal

[shrubberyvaluation]

I most definitely would agree that an AVM is probably more credible than an appraisal 'slapped together in 30 minutes from an appraiser that lives on the other side of the country'. Wouldn't you?

In most cases. If you were using your own money would it be good enough for you?

 

[John Hassler]

There ARE a lot of great appraisers out there - and to your point about mediocre being sufficient for many origination users, I'd suspect that - much as cream rises to the top - the 'good and great' appraisers probably don't do origination work for the most part. They have sought out those users who truly value quality - litigation, ROW, roles as state investigators, etc. I don't have much experience in those spaces (with the exception of investigator, that is), so it's little more than an educated guess as to where they go, but I do believe there are really good appraisals and I seldom see a really good appraisal in my line of work - so there's a disconnect somewhere...

Looks like we agree that there are great appraisers out there. The disconnect is that if lenders wanted better appraisals they could get better appraisals. They are in 100% control of the appraisers they hire so, for the most part, they only have themselves to blame for the appraisal in that loan file. Yet these lenders tend to gravitate towards the less competent appraisers and then complain about the reports they receive.

 

[Essexfenwick]

Like any other profession you have those that are better, or care more, or do a more thorough job (and vice versa). My position is that it can vary which is better. If an educated user like a lender is using an appraiser doing $10/foot for GLA adjustments for all appraisals that is their fault too.

I can see 15-20% for oddball properties, higher end properties, or with limited market data, (at least for residential), but for most there is probably one that is more supported. The trend is wanting that guy with a book of adjustments who will slap something together in 30 minutes who will do it for pennies and then complain that its not worth the paper its printed on.

A good sign is someone who goes to the effort to get.MAI SRA and is committed without one foot out the door.

 

[Dublin ohio]

When we offer R&W relief on Value Acceptance, that means we would not have a lender repurchase the loan for any collateral related issues. We own that risk. Am I answering your question?

That is how I have been reading it. The language used specifically states that the lender is relieved of R & W. There is a reason for that. Logic would lead one to come to the conclusion. That since Fannie packages the loans for investors. The investors are not prone to buying a "pig in a poke" if you get the drift

 

[alebrewer]

In most cases. If you were using your own money would it be good enough for you?

Would depend on the intended use, I suppose. If it were to provide a value on an individual asset that was/is part of an MBS pool as an asset mark - an AVM would probably be sufficient. If I were lending money to an individual borrower with a high risk profile, I'd personally probably require an appraisal with confirmation via AVM. That's just me, though.

 

[alebrewer]

Yet these lenders tend to gravitate towards the less competent appraisers and then complain about the reports they receive.

The lenders have ZERO impetus or reason to more pay more for (and wait longer) than what their users require. Quit blaming the lenders - it's disingenuous, John. The big bad lenders aren't who is to blame. The GSE's are the tail that wags the dog. And the GSE's (and HUD and VA) have determined that the quality of appraisals provided to them by the lenders is acceptable for their purposes (well, actually they haven't - and that's why they've adopted alternative valuations, but that's another thread). Careful what you wish for, though. If the GSE's really started cracking down on mediocre and sub-par appraisers, we'd run out of able bodied folks faster than implementing 3.6.

 

[keysersosa1]

Maybe other posts on this topic...haven't posted in a long time. After reviewing and watching Alamode video's, I have decided I am not doing the new 3.6 form that they don't want to call a "form". The software is terrible, is going to take so much more time and remove all of the analysis. My eye's physically can't take it nor am I gonna make my secretary transcribe my field notes and check boxes for hours on end. The kids can have it...they are gonna take it from us older appraisers anyway...what choice do they have but comply and turn from appraisers into check boxer people?

Will focus on private work and just slow down. I think it is ironic that there is gonna be a mass exodus of appraisers willing to do GSE work (I bet 40%) in the next 18 months which will completely antielite the industry. Gone almost overnight. But, there will also be a massive drop in need for all the people that created this software, (which is terrible to use) and their GOVT friends. I guess the people at the GSE's think they are all gonna get to keep their jobs somehow even though all of us are gone?

Why didn't the software companies get together and just tell the GSE's no? Alamode and ACI are gonna lose 40%-50% of their subscribers before this is over. No one is going to do this unless they are 20 years old with young eyes and want to sit in front of the computer checking boxes all day. Such an obvious problem with the new form. Guess we haven't been property appraisers for a long time if a software company or bank can obliterate our industry. The people doing this to us will have consequences from the mass exodus coming too though...so there is joy in that. We are all gonna be in the unemployment line together.

Its interesting because their intention has always been speed. More loans closed faster which always winds up screwing them (landsafe). Appraisers have always been the fly in the ointment slowing the process down, killing their deals, limiting the amount they were going to loan. Evidently the losses incurred will be built in to this new program. They dragged people off the street to sign the loans I am sure they will have no problem finding the homeless to check a box all day. Maybe we can all get jobs taking exterior pictures of their subject properties.

 

[John Hassler]

The lenders have ZERO impetus or reason to more pay for (and wait longer) than what their users require. Quit blaming the lenders - it's disingenuous, John. The big bad lenders aren't who is to blame. The GSE's are the tail that wags the dog. And the GSE's (and HUD and VA) have determined that the quality of appraisals provided to them by the lenders is acceptable for their purposes (well, actually they haven't - and that's why they've adopted alternative valuations, but that's another thread). Careful what you wish for, though. If the GSE's really started cracking down on mediocre and sub-par appraisers, we'd run out of able bodied folks faster than implementing 3.6.

Since you brought up cost it’s an admission that cost and competency are correlated. I’d agree with that.

The appraiser hired by the lender is 100% on the lender. Nothing disingenuous about that. It doesn’t mean they will receive the occasional flawed appraisal but even you would agree that what constitutes acceptable is a very low bar. What is disingenuous is setting a low bar for an appraisal and then complaining about competency of appraisers.

BTW, I’m more than fine cracking down on sub par appraisers. In fact, in a prior life I took state action on hundreds of such appraisers. The low standards of lenders are the lifeblood of incompetent appraisers.

 

[alebrewer]

The low standards of lenders the GSE's are the lifeblood of incompetent appraisers.

Fixed it for ya. Just don't want others to believe your nonsense.

 

[alebrewer]

BTW, I’m more than fine cracking down on sub par appraisers. In fact, in a prior life I took state action on hundreds of such appraisers.

Why am I not surprised? I REALLY disliked that approach when TX engaged in punitive behavior. Its been my experience that, while many (if not most) appraisers lack the skillset I believe necessary to provide credible appraisals, I nonetheless believe said incapacity is due not to malicious intent, but rather to ignorance. I was VERY relieved when TX finally started conducting business under that hypothesis.