3.6 Crunch Time

[J Grant]

The GSEs are not there to keep appraisers employed. They are there to keep money moving thru the housing market. Technology facilitates that movement better than an 80yo appraiser with a clipboard and a 2 week turn time.

No appraisers working in the lending market have a 2-week turnaround anymore, and the 80-year-old had to compete with everyone else, and if they did not deliver, they did not stay in business. Most appraisers are not 80, of course. But thanks for the stereotype. I cannot think of any field other than appraisal where some of its own practitioners are set on destroying and denigrating it. The RE agents band together to call themselves market experts. They don't portray themselves in the negative light that can exist in their practice. At least they are not self destrictivbe, whatver theier flaws.

The GSEs exist to keep money moving thru the housing market -they are also chartered by Congress with a public trust, and they only exist because they are a gateway to public taxpayer-backed mortgages, wrt liquidiy in funding. They thus have a public trust obligation in their charter.

What does a clipboard vs. an iPhone or iPad have to do with anything? An appraiser can use any combo of them. They all are just a means of recording information.

Duly noted that most of the people chiming in to trash appraisers are eitehr on the AMC side or have not done an appraisl themselves in years.

 

[J Grant]

No appraisers working in the lending market have a 2-week turnaround anymore, and the 80-year-old had to compete with everyone else, and if they did not deliver, they did not stay in business. Most appraisers are not 80, of course. But thanks for the stereotype. I cannot think of any field other than appraisal where some of its own practitioners are set on destroying and denigrating it. The RE agents band together to call themselves market experts. They don't portray themselves in the negative light that can exist in their practice. At least they are not self destrictivbe, whatver theier flaws.

The GSEs exist to keep money moving thru the housing market -they are also chartered by Congress with a public trust, and they only exist because they are a gateway to public taxpayer-backed mortgages, wrt liquidiy in funding. They thus have a public trust obligation in their charter.

What does a clipboard vs. an iPhone or iPad have to do with anything? An appraiser can use any combo of them. They all are just a means of recording information.

Duly noted that most of the people chiming in to trash appraisers are eitehr on the AMC side or have not done an appraisal in years.

 

[Zoe]

The GSEs are not there to keep appraisers employed. They are there to keep money moving thru the housing market. Technology facilitates that movement better than an 80yo appraiser with a clipboard and a 2 week turn time.

And are not competent. Sure. You believe in Santa Clause too.................

 

[Zoe]

GSEs need volume to survive. Fastest and cheapest is fine with them. Competence and public trust are not at top of totem pole.

I doubt their mission statement even mentions public trust.

 

[J Grant]

The older or aging appraisers will retire at some point sooner than the mid-career or younger appraisers- the GSEs have lobbed a wrecking ball into real estate lending as a viable career path for younger or mid-career appraisers. The dismal trickle of people graduating PAREA tells the story. The entities decided to invest in data rather than people and have made a series of decisions that make appraisers into low-paid, expendable gig workers. The older appraisers have mainly escaped that fate, but what about the younger ones ?

Appraisal can not hope to attract or retain talented, smart people in the lending realm. Which, imo, is a huge disservice because that is where these people are needed the most.

Any older or mid-age appraiser who intends to remain doing mortgage lending work is learning 3.6 and can learn relevant AI software as well. If younger appraisers are treated like gig workers and chained to desks in hybrid assignments at an AMC, they will not develop sufficient field knowledge. It is the integration of field knowledge with data analysis that makes an appraiser uniquely qualified as a value expert. Data expertise is clerical in function, which I suppose is hte point - the stakeholders onboarded a flood of non-appraisers to "data collect" instead of inspect a property, and the next step might be to do that with the appraisal itself, in the minds of the profiteers who, since it is not their money at stake, are pusng the agenda that speed up the front end of valuation makes sense on a loan that is worth hundreds of thousands of dollars with a 30 year duration. They are trying to turn it into ordering a pair of sneakers at Amazon.

 

[Zoe]

The older or aging appraisers will retire at some point sooner than the mid-career or younger appraisers- the GSEs have lobbed a wrecking ball into real estate lending as a viable career path for younger or mid-career appraisers. The dismal trickle of people graduating PAREA tells the story. The entities decided to invest in data rather than people and have made a series of decisions that make appraisers into low-paid, expendable gig workers. The older appraisers have mainly escaped that fate, but what about the younger ones ?

Appraisal can not hope to attract or retain talented, smart people in the lending realm. Which, imo, is a huge disservice because that is where these people are needed the most.

Any older or mid-age appraiser who intends to remain doing mortgage lending work is learning 3.6 and can learn relevant AI software as well. If younger appraisers are treated like gig workers and chained to desks in hybrid assignments at an AMC, they will not develop sufficient field knowledge. It is the integration of field knowledge with data analysis that makes an appraiser uniquely qualified as a value expert. Data expertise is clerical in function, which I suppose is hte point - the stakeholders onboarded a flood of non-appraisers to "data collect" instead of inspect a property, and the next step might be to do that with the appraisal itself, in the minds of the profiteers who, since it is not their money at stake, are pusng the agenda that speed up the front end of valuation makes sense on a loan that is worth hundreds of thousands of dollars with a 30 year duration. They are trying to turn it into ordering a pair of sneakers at Amazon.

It won't work in a very heterogeneous market for public trust. Do I think GSEs have public trust at forefront? NO

They got bailed out.

I think public trust is furthterest from their interest. Like North and South poles.

 

[Zoe]

North pole equals public trust. South pole equals gses.

 

[Vermonter]

No appraisers working in the lending market have a 2-week turnaround anymore

Ok....I'm scheduling inspections 10/15 as of today.

It is the integration of field knowledge with data analysis that makes an appraiser uniquely qualified as a value expert.

Of course, the sorcerer appraiser is the only one that can tell the difference between Q and C ratings, right?

Any older or mid-age appraiser who intends to remain doing mortgage lending work is learning 3.6 and can learn relevant AI software as well.

So you encourage appraisers to use tech, but are upset when other parties in the mortgage industry do it?

 

[glenn walker]

The US has the lead in AI at the moment, China probably robotics. A sovereign wealth manager in the UAE that I know recently toured car factories in China, said there were very few human workers - nearly fully automated. But if it's true that China (and other) populations are due for a collapse, then I think the robots and AI will offset the productivity loss.

Don't ever underestimate how man can become like little gods and find ways to eliminate the millions of unemployed people.

 

[TerryRohrer]

No appraisers working in the lending market have a 2-week turnaround anymore, and the 80-year-old had to compete with everyone else, and if they did not deliver, they did not stay in business. Most appraisers are not 80, of course.

You have obviously never heard of the VA appraiser panel.