3.6 Crunch Time

[glenn walker]

I don't disagree... and that "give" should not be us...
Who is the most useless variable in the equation? The AMCs... that's why it's bad news for them. They really dont bring enough to the table to command the fees they

If AI is going to send people packing..... the AMCs are definitely the ones to go!

There will be less AMCs and less appraisers and both are in the same life-boats and the Money Center Banks and Large Mortgage Bankers will slowly move the tradional full appraisal into retirement. There won't be much need for the existing numbers of licensed appraisers.

 

[George Hatch]

If AI is going to send people packing..... the AMCs are definitely the ones to go!

They'll be among the first to go.

 

[glenn walker]

Many large AMCs have already diversified to include more than single family appraisals and so their ahead of the appraisers moving forward. The small AMC are now mostly just appraisers shops that have grown bigger than 1 to 6 person operations but using their own panel.

 

[Zoe]

There will be less AMCs and less appraisers and both are in the same life-boats and the Money Center Banks and Large Mortgage Bankers will slowly move the tradional full appraisal into retirement. There won't be much need for the existing numbers of licensed appraisers.

Depends on the subject you are appraising. Many loans don't qualify for GSE or the intended user. Many intended users don't lend money. Many lenders lend money on real property and have no intention of selling the loan to a GSE. They could care less about a 3.6.

A 3.6 means nothing to them. No more than a 2.6

 

[DWiley]

Depends on the subject you are appraising. Many loans don't qualify for GSE or the intended user. Many intended users don't lend money. Many lenders lend money on real property and have no intention of selling the loan to a GSE. They could care less about a 3.6.

A 3.6 means nothing to them. No more than a 2.6

I think you are wrong about that. I have looked at a lot of 3.6 reports and one thing I can say for sure is that the more of them I see, the more I dislike trying to read a 2.6 report. As appraisers we are so accustomed to writing 2.6 reports that we tend to overlook just how bad/antiquated the overall design is. Once lenders get used to reading 3.6 reports I think they will quickly decide that it is 3.6 for everything - not just for GSE loans. They are just easier to read/understand. Its not even close.

 

[Zoe]

I think you are wrong about that. I have looked at a lot of 3.6 reports and one thing I can say for sure is that the more of them I see, the more I dislike trying to read a 2.6 report. As appraisers we are so accustomed to writing 2.6 reports that we tend to overlook just how bad/antiquated the overall design is. Once lenders get used to reading 3.6 reports I think they will quickly decide that it is 3.6 for everything - not just for GSE loans. They are just easier to read/understand. Its not even close.

Doesn't matter Danny. Many lenders do short term commercial and residential loans and keep the loans in house. Your not getting whole picture. Many clients for appraisers don't even lend money.

Lenders that keep loan in house could care less about 2.6 or 3.6.

It is not a federal requirement for the lender on an in house loan.

 

[Zoe]

If lender is keeping loan in house, basically all they have to do is have the appraisal in file for the federal and state regulators. 2.6 or 3.6 is not required.

It can be narrative report and comply with USPAP.

Many banks hire their own private auditors too and they will want to see appraisals. As long as it complies with USPAP. It is good.

USPAP is key. It doesn't matter the client in many cases. The appraiser is held to USPAP. Public trust.

 

[Surf Cat]

Once lenders get used to reading 3.6 reports I think they will quickly decide that it is 3.6 for everything - not just for GSE loans. They are just easier to read/understand. Its not even close.

Too bad the 3.6 takes an assembly line in an AMC sweatshop to produce.

When it's good for one side and not the other, that's not a win-win proposition.

 

[Tom D]

They are just easier to read/understand. Its not even close.

Easy DWiley, your getting your lipstick all over the 3 6 report. You think reading all the ingrediants makes you more enjoy the finished meal you just had.
Hey hon, what are we having for dinner?
Hon reply, 2 cups flour, 3 eggs beaten in, salt, pepper, yeast, etc, etc, etc.
Gee, i thought it was a slice of bread.

 

[Joe Flacco]

I think you all are worrying too much. The fee issue will work itself out.