3.6 Crunch Time

[J Grant]

I mean, that's pretty much the definition of market capitalism isn't it?

But appraisals and AMCs are not a free market.

In market capitalism, the consumer or buyer is free to choose their professional service provider. That is not the case in res lending appraisals. That narrows the demand buying channel to a very limited number; among them, AMCs are not retail buyers; they are wholesale shoppers to make a profit off the appraiser "vendor"

In addition, the AMC does not charge their lender customer a cost for their service, as nearly every business does in the free capitalism market. The AMC gets paid off a govt perk ( govt welfare to the big $ playsers ) The AMC;s get paid a split of the govt-allowed HUD bundled fee, further giving the AMC a huge volume share because they can offer free-of-charge service to the lender customer. They are not competing in the free market at normal free market conditions.

 

[Airstream]

The exception request does include a question asking how you plan to fully transition to the UAD 3.6. Our answer was about three sentences long. Again, I would be surprised if anybody is getting rejected unless they submit an incomplete request.

It really feels like the GSEs know the industry isn't ready for this forced transition, but they don't want to admit to any fault. Their way around this rollout debacle was allowing individual sellers to request an extension instead of pushing back the implementation date until the software providers, and not just one or two, have a functioning product.

I completely agree with your assessment. This should have been put off for another 6 mos. to a year. I feel like a beta tester with the software. I mean I have done 4 reports in 3.6, but I constantly run into snags. I think ACI debacle may have pushed them over the edge to allow for exceptions.

 

[Mike Ault]

It was as an easy house. And the last one I did, didn't take that long. Also you have to remember I am dealing with an AMC. I have direct lenders and they are paying 650. And they aren't going to budge of that. If you think you are going to get 700 or 800 for an urban home, I got news for you. Not going to happen unless it is complex.

My main bank client has been paying $775 for urban cookie cutters on the 3.6 form. I'm not minding them on those terms at all.

 

[Airstream]

My main bank client has been paying $775 for urban cookie cutters on the 3.6 form. I'm not minding them on those terms at all.

If you can get that, great.

 

[chad hampton]

Not one ordered yet. At this point, it’s starting to get weird that I haven’t had one ordered yet.

Makes me think another announcement is coming

 

[Airstream]

Not one ordered yet. At this point, it’s starting to get weird that I haven’t had one ordered yet.

Makes me think another announcement is coming

Not many orders period right now. Thank the mortgage rates at nearly 7.5%. Also Redfin came out with a stat there are over 60% more sellers than buyers. We may not be looking at a crash, but my guess is real estate market is going to start declining on a general basis. I am seeing houses languish on the market and price reductions.

 

[djd09]

https://twitter.com/x/status/2109645268207513839

 

[Vermonter]

My main bank client has been paying $775 for urban cookie cutters on the 3.6 form. I'm not minding them on those terms at all.

Averaged a little over $900 for my first six. Five rural but non-complex. One in town and typical for the market.

According to multiple lending contacts and real estate agents I've talked to the past week, it's just as bad for them. Appraisers are flat out refusing 3.6 orders and the ones that do are having so many problems they just cancel the order mid way thru.

The pool of available appraisers is shrinking fast here so even with the reduced mortgage volume, I'm booked out 4 weeks right now

 

[HVNY]

So here's where I am at. I use ACI Software. They said they are not ready until May 2027. I am not about to go out and start software shopping so my position is that when ACI is ready so am I. Otherwise I'm still awash with work, and much of it non GSE.

 

[cashcatz]

So here's where I am at. I use ACI Software. They said they are not ready until May 2027. I am not about to go out and start software shopping so my position is that when ACI is ready so am I. Otherwise I'm still awash with work, and much of it non GSE.

With all due respect, this is a crazy clown town perspective. ACI is dead, and they should have been dead and burred after how they handled the First American hack. Why in the world would anyone wait around for a company who botched this so badly that they had to actually kill the product? Go kick the tires on the other options, start with SFREP. This is not rocket science - learn the UAD 3.6 spec first.