3.6 Crunch Time

[chad hampton]

I think this current system of 'bidding' for appraisal orders is a big part of the problem. It enables AMCs to get a bunch of different fees in a matter of a few minutes, so they know what it will take to get an appraiser to bite on it. Personally, I give my quote, and maybe 20% of the time I get the order, and usually those are not the 'cookie cutter' ones. When we had lender clients, they knew our work quality, and if we had established reliability and competence we could talk to them if a fee didn't take the property's peculiarities or special features into account. The lenders I worked with knew that whatever/wherever the property was within my work area, I would accept the order and deliver the report on time. There's something very positive and reassuring about having people in your orbit you can count on.
That doesn't happen with the appraisal quote/bidding system.

Bidding was never supposed to be part of the appraisal ordering process with the exception of higher end/complex homes. It was strange when it started a few years ago. It coincided with the same time hedge funds and PE started purchasing AMCs.

The first few times I thought I was missing something, this looks like a typical single family home, it’s not a 9000 sf home on 4 acres, why is this out to bid?

The playing field changed when 1 group still lived in fear of the regulatory board enforcement and the other discovered that they didn’t need to worry about them.

 

[timindp]

Why are you doing a 3.6 report? Was it required? Wanted a head start in doing 3.6?

Client requested it

 

[Zoe]

Client requested it

Reply how much time it takes you compared to current 1004.

 

[chad hampton]

Reply how much time it takes you compared to current 1004.

I’d like to know how much time it took the GSE testers to do them during the approval process. How fast did they get down to after their 5th one? 10th one?

I think if a typical time is two hours in front of a screen now they wouldn’t have approved the software unless it was capable to get them done in about the same time. Maybe it just takes a few tries, but I’m not sure how you pick up five or six hours from the 8 that people are reporting it takes them.

And obviously, you have to be able to do them without calling tech-support or the aivre tech bro.

 

[timindp]

Reply how much time it takes you compared to current 1004.

Currently 5 hours into it

 

[djd09]

they wanted cheaper and faster...but gave you longer and more expensive go figure

 

[Non Sequitur]

Bidding was never supposed to be part of the appraisal ordering process with the exception of higher end/complex homes. It was strange when it started a few years ago. It coincided with the same time hedge funds and PE started purchasing AMCs.

Yep. The lender is still obligated to follow DF for loans covered by the law. But no one is auditing lenders for compliance, and the AMCs know that so they are running with the ball.

 

[Airstream]

I don’t think until we see significant demand for refinancing, we will see volume at a level that will make appraisers feel comfortable to raise fees. Or what happens is so many appraisers leave the industry that it creates a bigger appraiser shortage. The appraiser shortage is where I see fees going up. Doing one this week for 2500 because lender couldn’t find an appraiser in my old market area. I had done a number of complex properties for them and so they called me. This one isn’t even complex. I just said my minimum fee to go 4 hours away is 2500. Did one this morning for 650, and the main reason is there are no appraisers in that area (44 miles from me). Very rural, and it’s a relatively easy appraisal. But I know in my area, appraisers don’t want to drive that far. And most of the appraisers live 1/2 hour south of me yet. So for them it is over a one hour drive.

I know I raised my fees when rates got low and I was super busy. It was just easier. And then what happens is lenders get use to paying those fees.