AMC asking for UAD 3.6 fees, what's everyone thinking?

[George Hatch]

I think you're correct about this. And the reasons are at least twofold: (1) appraisal quality - overall - really is pretty crappy, and (2) the GSE's (who control ~ 55% of the entire residential mortgage market) have effectively killed what little demand there was for quality appraisals. By convincing MBS investors that their internal AVM is as accurate (if not more so) than an appraisal, they've accomplished the feat of convincing MBS buyers that appraisals aren't important.

I sincerely doubt the investor class is following instructions from the GSEs. I think they're using some of their own experience and judgement and have been making some of their own comparisons using their own metrics for what the think they need.

As a seller of appraisal services you can tell the buyers of those services what you think they should consider adequate to their needs, but that doesn't mean they're going to do what they're told. I think the seller/buyer relationship between the lenders and the investors has a similar parallel.

 

[Mile High Trout]

I've been saying this for a long time.... why do appraisers continually have to keep going through the continuing education rigamarole when the users not only won't pay for, but don't care about the additional education and knowledge garnered?

Yeah; market conditions.

You could gift people free appraiser licenses and most would either wash out or choose not to stay.

Who would voluntarily want to work for AMC's if they're being honest and not using some exploit to unfairly game the system?

 

[Mile High Trout]

I think you're correct about this. And the reasons are at least twofold: (1) appraisal quality - overall - really is pretty crappy, and (2) the GSE's (who control ~ 55% of the entire residential mortgage market) have effectively killed what little demand there was for quality appraisals. By convincing MBS investors that their internal AVM is as accurate (if not more so) than an appraisal, they've accomplished the feat of convincing MBS buyers that appraisals aren't important.

Yep. FHA is not far behind. They just issued the notice they'll be adopting 3.6, but do not have a clear time frame. Industry standards eh? Where is the VA on this?

 

[alebrewer]

I sincerely doubt the investor class is following instructions from the GSEs. I think they're using some of their own experience and judgement and have been making some of their own comparisons using their own metrics for what the think they need.

As a seller of appraisal services you can tell the buyers of those services what you think they should consider adequate to their needs, but that doesn't mean they're going to do what they're told. I think the seller/buyer relationship between the lenders and the investors has a similar parallel.

I don't think I said anywhere that the MBS investors were following instructions, or that they're being told what to do. But thanks for attributing that to me.

Lookit: continue to believe in the altruistic nature of the GSE's. No skin off my back. Don't doubt, though, that the tail wags the dog.

 

[gregb]

Worry Warts. Joan Trice (on FB) has solution figured-

"Ryan, continuing to move forward as a typist will indeed make 3.6 quite a beast . I would love to work with one or two appraisers to assist us with work flow as we build out our app, BoxLi. What it will do is populate 80% of the report with a single scan of a home with an IPhone . So then your time is cut in half , not expanded . Keep in mind work flow might also change . 3.6 is very photo centric . Photos aren’t afterthoughts any longer. But this means technology can label each room , identify deficiencies you might have missed , provide an ANSI floor plan. LiDAR , CV and public records will assist in completing your report . Then you are responsible for QC , not rekeying data."

 

[George Hatch]

I don't think I said anywhere that the MBS investors were following instructions, or that they're being told what to do. But thanks for attributing that to me.

Lookit: continue to believe in the altruistic nature of the GSE's. No skin off my back. Don't doubt, though, that the tail wags the dog.

I was responding to your comment about the GSEs selling their vision to the investors.

I do not attribute altruism to the GSEs or the investors or any of the other involved groups. Including the appraisers. I'm just trying to pay attention to what they're doing and considering the possible reasons they might be using to make those decisions.

 

[Surf Cat]

Worry Warts. Joan Trice (on FB) has solution figured-

"Ryan, continuing to move forward as a typist will indeed make 3.6 quite a beast . I would love to work with one or two appraisers to assist us with work flow as we build out our app, BoxLi. What it will do is populate 80% of the report with a single scan of a home with an IPhone . So then your time is cut in half , not expanded . Keep in mind work flow might also change . 3.6 is very photo centric . Photos aren’t afterthoughts any longer. But this means technology can label each room , identify deficiencies you might have missed , provide an ANSI floor plan. LiDAR , CV and public records will assist in completing your report . Then you are responsible for QC , not rekeying data."

https://www.boxli.AI/

 

[glenn walker]

Yep. FHA is not far behind. They just issued the notice they'll be adopting 3.6, but do not have a clear time frame. Industry standards eh? Where is the VA on this?

VA was involved in the development like 2.6 they will go 3.6 it may be a little later but yes they will.

 

[Surf Cat]

Worry Warts. Joan Trice (on FB) has solution figured-

"Ryan, continuing to move forward as a typist will indeed make 3.6 quite a beast . I would love to work with one or two appraisers to assist us with work flow as we build out our app, BoxLi. What it will do is populate 80% of the report with a single scan of a home with an IPhone . So then your time is cut in half , not expanded . Keep in mind work flow might also change . 3.6 is very photo centric . Photos aren’t afterthoughts any longer. But this means technology can label each room , identify deficiencies you might have missed , provide an ANSI floor plan. LiDAR , CV and public records will assist in completing your report . Then you are responsible for QC , not rekeying data."

https://www.boxli.AI/

This is what it's all coming to.....

 

[DWiley]

Haha. Ok. Until recently, I wasn't aware of any method for accurately denoting ceiling height in crappy MLS photos, but if you say so. Remember, digital photography has only been around since the early 2000's. Careful - you'll back yourself into a corner.

No corner at all. Once one has measured thousands of ceilings, it becomes pretty easy to look at the door frame and other features to get the ceiling height right ~95% of the time. And, high ceilings are often noted in MLS comments, though that has lessened somewhat with the increase in the number of photos in most listings. What you seem to be trying to paint as some huge tasks was actually pretty simple.