1004 Re-write: To Include Different Sow (hybrids)

[NC Appraising]

At Val Expo last week Fannie and Freddie both said there would be no interim forms developed. That question was asked directly during the Q&A. They have a theee year plan and we are in Q1 of Y1

They have a theee year plan and we are in Q1 of Y1.

Expand please.

Did hybrid model come up? What are the chances that the hybrid model will replace 1004's and when? Or will it be something like the waivers...80% LTV, credit score 700..

 

[djd09]

edit

 

[NC Appraising]

They have a theee year plan and we are in Q1 of Y1.

Expand please.

Did hybrid model come up? What are the chances that the hybrid model will replace 1004's and when? Or will it be something like the waivers...80% LTV, credit score 700..

So I will take a jab at this one.

Based on what I know, which is very little LOL. I'll take a gut approach on this one.

1. The guy at Fannie Mae also wonders why appraisers measure homes and visits the subject property. He thinks we should be at the desk.
2. The large AMC's already has the networks of brokers and so called "inspectors" from the REO day's. Most did property preservation, and BPO's.
3. Who has more pull? Large AMC's and companies like Corelogic OR appraisers? Most of the big wigs at the AMC's and large lenders who want to speed up the appraisal process (Quicken for example) all know each other and can afford marketing teams or lobbyist.


""""At Val Expo last week Fannie and Freddie both said there would be no interim forms developed"""
Other have already stated that some AMCs are already testing this hybrid form.

So I predict the 1004 will not change. We will still need the 1004. Fannie will come up with a hybrid form that is separate from the 1004. The 1004 will stay and will be used on a need be basis. Not all loans are sent to Fannie. You still have in-house, FHA, VA, etc. As I said on a previous thread, the hybrid form will be used for certain transactions such as purchases and when the home has a certain level of LTV or a minimum credit score.

As for UAD data...I am pretty sure Fannie will make the hybrid form with the same ratings to feed their UAD machine???

For all of the appraisers that are worried about extraordinary assumptions and liability...get over it. I do not understand this at all. You cannot compare the hybrid form to the 2055. Apples and oranges. You need to be worried on how many appraisers this will put of business. I am pretty sure people like the Appraiser Coach will gladly fill your void.

 

[RSW]

Just got this email this morning. Is it related to this thread?

 

[DWiley]

They have a theee year plan and we are in Q1 of Y1.

Expand please.

Did hybrid model come up? What are the chances that the hybrid model will replace 1004's and when? Or will it be something like the waivers...80% LTV, credit score 700..

Of course hybrids came up.

There are really two discussions going on - form re-design and use of alternative valuation methods. Most at Val Expo were well aware that Fannie is testing the hybrid process, so more attention was focused on the forms.

They have a three year plan, and we are in the first quarter of the first year of that plan. The primary goal for year one, as i understood it, was imply to engage with all the stakeholders who have an interest. That includes appraisers, lenders, AMCs, builders, agents, agencies, and a long list of others.

There was also a suggestion that the new "form" may not be a form at all. It could just be a data standard, which would mean that forms/software vendors could actually compete against each other for the best layout/presentation.

As for hybrids, I don't think there is any question that some "traditional" work is going to be replaced by hybrid work. How much is anyone's guess. Safe to say that in the future most little square homes in little rectangular neighborhoods will likely not be getting "the full monty"

 

[timd354]

So I will take a jab at this one.

Based on what I know, which is very little LOL. I'll take a gut approach on this one.

1. The guy at Fannie Mae also wonders why appraisers measure homes and visits the subject property. He thinks we should be at the desk.
2. The large AMC's already has the networks of brokers and so called "inspectors" from the REO day's. Most did property preservation, and BPO's.
3. Who has more pull? Large AMC's and companies like Corelogic OR appraisers? Most of the big wigs at the AMC's and large lenders who want to speed up the appraisal process (Quicken for example) all know each other and can afford marketing teams or lobbyist.


""""At Val Expo last week Fannie and Freddie both said there would be no interim forms developed"""
Other have already stated that some AMCs are already testing this hybrid form.

So I predict the 1004 will not change. We will still need the 1004. Fannie will come up with a hybrid form that is separate from the 1004. The 1004 will stay and will be used on a need be basis. Not all loans are sent to Fannie. You still have in-house, FHA, VA, etc. As I said on a previous thread, the hybrid form will be used for certain transactions such as purchases and when the home has a certain level of LTV or a minimum credit score.

As for UAD data...I am pretty sure Fannie will make the hybrid form with the same ratings to feed their UAD machine???

For all of the appraisers that are worried about extraordinary assumptions and liability...get over it. I do not understand this at all. You cannot compare the hybrid form to the 2055. Apples and oranges. You need to be worried on how many appraisers this will put of business. I am pretty sure people like the Appraiser Coach will gladly fill your void.

One thing that I would bet on is that no matter whether the future 1004 and the future hybrid appraisal form have a different look and feel, the data fields within each form will be exactly the same. The GSE's are undoubtedly going to continue to collect appraisal data and the most efficient way to collect appraisal data is make sure that all data fields are standardized within and each form and between each appraisal form used.

 

[DWiley]

One thing that I would bet on is that no matter whether the future 1004 and the future hybrid appraisal form have a different look and feel, the data fields within each form will be exactly the same.

Safe bet. In today's world the data schema is more critical than the layout/format

 

[timd354]

There was also a suggestion that the new "form" may not be a form at all. It could just be a data standard, which would mean that forms/software vendors could actually compete against each other for the best layout/presentation.

I would think that many lenders would be very opposed to not having a standardized layout/presentation.

 

[BRCJR]

Would a "Hold Harmless Agreement" fit into the equation?
I, as an Appraiser, could not be held liable for fraudulent acts or the negligence of the "Inspector".

 

[timd354]

Would a "Hold Harmless Agreement" fit into the equation?
I, as an Appraiser, could not be held liable for fraudulent acts or the negligence of the "Inspector".

Why would an appraiser need a hold harmless for that? How would the appraiser be liable for the negligent or fraudulent acts of others with or without a hold harmless?