24 Hour Appraisals

[J Grant]

Amazing how these companies are trying to cash in by offering speed on the front end - and the entities go along with it - no more title insurance, WAIVERS ( value acceptance ) waives the lenders buyback and warranties for the value ( dumping it all on the tax payer ) , automated UW soon we we will be back to no income doc loans - all for warp speed closing -

Meanwhile, a mortgage loan is for thirty years ( or sometimes 15 years) and for amounts of hundreds of thousands of dollars per house. Wait till a loan goes into delinquency, or needs a short sale or foreclosure, which can drag on for months or even a year or more .

 

[alebrewer]

Appraisal management fintech Reggora has announced a new warranty backing the results of its software’s appraisal reviews — effectively a guarantee that the company touts as the first of its kind within the mortgage industry.

Specifically, when an appraisal passes the automated review of the firm’s Reggora Appraisal Review platform, Reggora now says it will cover any financial loss associated with a repurchase or loan-level price adjustment stemming from an appraisal defect.

Yep - we take advantage of the warranty as well. It's pretty limited in scope, but who knows - might pay off at some point.

Developing an automated review tool is an expected feature in any OMS offering. That's a far cray from developing an appraisal forms generating software...

 

[J Grant]

The problem with the 24-hour appraisal and similar warp speed products is that the appraiser carries the same liability for them as if they had adequate time to research and verify. IDK what the product is. It may be some kind of appraisal desktop product - I doubt it is a 1004, but IDK- those who care to be connected to lenders can ask for info and get back to us.

 

[J Grant]

AI Overview

Reggora's 24-hour appraisal product is a new service designed to dramatically shorten mortgage loan appraisal turn times by providing a complete appraisal, including inspection and report, in under 24 hours for most transactions across urban, suburban, and rural areas. This product, set for a nationwide rollout, utilizes Reggora's proprietary fulfillment network and integrated technology stack to streamline the entire appraisal process, aiming to reduce bottlenecks and enable lenders to close loans significantly faster while maintaining quality and compliance.

Key Features & Benefits

• Drastically Reduced Turn Times:
  The primary goal is to deliver an appraisal in under 24 hours, transforming the appraisal process from a significant bottleneck to a swift component of the loan process.
  
  
• Comprehensive Service:
  The product covers the entire appraisal workflow, from ordering and scheduling to the appraisal itself and final delivery, with a focus on efficiency and speed.
  
  
• Broad Applicability:
  It is designed to work on the majority of mortgage transactions in diverse geographic areas, including urban, suburban, and rural locations.
  
  
• Integrated Technology & Fulfillment Network:
  Reggora uses its advanced technology and a dedicated network of appraisers to manage and execute the appraisal process efficiently.
  
  
• Cost-Effective:
  The service is intended to be offered at the same cost as a standard appraisal, without requiring a rush fee, thereby reducing costs for lenders.
  
  
• Enhanced Lender and Borrower Experience:
  By shortening loan cycle times, lenders can improve their profit margins, hit more closing dates, and provide a faster, more convenient digital experience for borrowers.
  
  
• Compliance and Quality:
  The product is built to maintain adherence to appraisal independence and quality standards, even with accelerated turnaround times.

 

[J Grant]

If the appraisers who agree to do the 24 hours charge a rush fee, then they can not deliver the product for the same cost. Just saying....

 

[Non Sequitur]

Yep - we take advantage of the warranty as well. It's pretty limited in scope, but who knows - might pay off at some point.

Developing an automated review tool is an expected feature in any OMS offering. That's a far cray from developing an appraisal forms generating software...

At the end of the day, what we have now is a crap-ton of fintech money flowing into our space. Couple that with what's going on with Practicum and PAREA and it doesn't take a genius to see where we're going; A horde of noobs trained to the new system, whatever it is.

 

[alebrewer]

At the end of the day, what we have now is a crap-ton of fintech money flowing into our space.

Not surprising - there is still a LOT of opportunity to make some $ by these guys. Remember - F/F are still government (well, quasi-government) organizations, so where the government is involved, there's always lots of opportunity to fleece folks. Profitability isn't their primary motive after all.

Couple that with what's going on with Practicum and PAREA and it doesn't take a genius to see where we're going; A horde of noobs trained to the new system, whatever it is.

Meh - industries change. Heck - everything changes. Isn't that one of the timeless quotes? "The only constant in life is change."

 

[Tim Hicks (Texas)]

It is all a part of the plan to AVM the appraisal process. Even though there are serious flaws in the process it is their hopeful wish. With monthly market trend adjustments (which can be flawed in limited markets like rural areas), adjustment support programs (which I find highly flawed based on depreciated cost and garbage in/garbage out data) all being pushed on the appraiser, it is too make the appraisal process more like the AVM product and make the AVMs just as reliable as they water down the appraisal process.

 

[J Grant]

I assume the plan is to send a PDC collector out ( if there is an inspection). IDK—maybe the appraisal form will be delivered to teh appraiser pre-populated or partially populated with data. I suppose if the appraiser is not really picky about the comps and just dumps a few in (or uses their comps ) and signs, it is possible to operate at speed. Can't wait to see it...

This is due in large part to the USPAP's glaring flaw, where the appraisers who wrote it decided that an inspection done for appraisal purposes, as long as it did not have an opinion attached, is not necessarily part of appraisal practice. That opened the floodgates for a non-licensed people appraiser to perform a significant part of the process, and the rest followed.

 

[alebrewer]

Sitting through a demo of Freedom RN. He said their beta is live. Supposed to be sending a link after the demo.