Hybrid Appraisals

[George Hatch]

Here's a fact: The GSEs developed their program and documented their expectations, and the appraiser certified to all of it when they signed the report. You can't claim the appraiser misled them in any way or that they didn't understand what they were asking for when they're the ones who developed it all in the first place.







In the Appraiser's Cert:

 

[chad hampton]

There is no inspection done in the hybrid we are discussing. A DATA COLLECTION was done !

I bet this label was conceived by the stakeholders' legal department to avoid any conflict with USPAP, which can reference an appraisal inspection as part of appraisal practice.

A "data collection" is not part of appraisal practice, which is why anybody can do one.

Somebody should tell them that, because when they show up peoples houses, the public is told they’re here for the appraisal.

Pull out a Henry Harrison book and return to the property data collection section.

I have no respect for people that push an agenda that weakens public trust, promotes lies and half truths, and turn this profession into a joke.

I’d have an ounce of respect for these scam Artists if they just came out and said that anybody can do an appraisal inspection. Instead of making up a new term and jumping through hoops and wordsmithing everything to make it seem like it isn’t what it is.

 

[George Hatch]

I agree. Somebody should tell them to not misrepresent their role. But that somebody isn't the appraiser. The appraiser has no responsibility for what any of the various 3rd parties do. Not the borrower, not the RE broker, not the loan originator, not the lender, not the AMC (if there is one) and not the PDC.

Nobody has ever asked me if I favor the return of the lenders to using conventional 1004s for most transactions, even the ones where the AVM will return the same result 100% of the time. I do favor that , if for no other reason than to shut you up about it.

 

[chad hampton]

I’m not too concerned about misleading the GSE. Organizations as corrupt as them get what they deserve ultimately. I’m more concerned about public trust.

 

[Terrel L. Shields]

you can have to do these in an hour or you don't make any money...

Fixed it.

 

[Surf Cat]

Key inefficiencies and risks associated with unlicensed PDCs include:

Data Quality Errors: Untrained collectors frequently make significant measurement mistakes, such as calculating gross living area (GLA) incorrectly, and fail to capture nuanced property characteristics or detect critical defects like moisture or structural issues.

Verification Delays: Appraisers often must spend considerable time re-verifying or correcting flawed data submitted by PDCs, which can ultimately slow down the appraisal process rather than accelerate it.

Lack of Accountability: Unlike licensed appraisers, PDCs have no standardized education, professional licensing, or accountability to state regulatory boards, leaving consumers and lenders with limited recourse for errors or misconduct.

Professional Liability: Appraisers face ethical and legal risks when taking responsibility for valuations based on unverified data, as they cannot personally confirm the accuracy of the information provided by the unlicensed collector.

Let's focus on the good part....they can be done in an hour!

 

[Terrel L. Shields]

documented their expectations, and the appraiser certified to all

In other words the GSEs can tell USPAP to GFY.

 

[George Hatch]

I’m not too concerned about misleading the GSE. Organizations as corrupt as them get what they deserve ultimately. I’m more concerned about public trust.

The public trust reference starts with the intended users. If your users don't trust you then that's how the distrust spreads. That's also one of the fundamentals in the Instructor's course. If you get that answer incorrect then you fail the test.

And no, you don't actually care about randoms out in public. AFAICT you have never or almost never taken a borrower's side when they come here to complain about appraisers. What you (and most of us) care about is the money and the decline in demand for your services that is occurring in the marketplace. There's nothing wrong with that priority, but by the same measure that's an entirely separate issue from what is/isn't an appraisal.

 

[George Hatch]

In other words the GSEs can tell USPAP to GFY.

That's not true. The SOWR in USPAP says the opposite. The caveat being the appraiser has to fill in the gap or else withdraw if the users attempt to prohibit some aspect of USPAP compliance.

The GSEs still require interior/exterior inspection for some assignments and exterior-only inspections for other assignments; and in so doing those elements become part of the USPAP mandated minimums for that assignment. What we're complaining about here is that the GSEs have previously exercised their discretion to giveth and is now taketh away from this requirement for this type of assignment.

 

[Surf Cat]

The public trust reference starts with the intended users. If your users don't trust you then that's how the distrust spreads.

Quite the pickle..... the intended users (the lenders) don't trust appraisers. Obviously, as even with the oversupply of appraisers (this has been established again and again here.... especially by you and DW) they'd rather have an unlicensed, uninsured person, with a 6-hour online Mckissock course under their belt, who does not sign to "anything" do the inspection. Oh, wait....excuse me....the "data collection" that the appraiser has to rely on to form an opinion of value with their license and signature, their E&O insurance..... to state that there's a distrust between both users/AMCs and appraisers..... is an understatement.