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Another Modernization Thread

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Once Upon a Time....

In a far away land known as HVCC, appraisers were making $225 per report with AMCs being the king and appraisers were the peasants. Most appraisers were living paycheck to paycheck, with no health insurance, no 401K, and 1/3 left the business.

From 2010-2016 it was hard for the peasant appraisers. Now, the kings (AMCs, lenders, GOVCO.) thinks us peasant appraisers are making too much. Peasant appraiser says that we are just making up for 2010-2016 when most almost lost it all. Peasant appraiser says that we are saving our money for the near future when the mortgage market will collapse or business will shrink by 50%.

Peasant appraiser also is scratching head.....lenders, LO's, agents, contractors, plumbers, etc. are all making a ton of money in this market? No? Peasant appraiser just appraised a LO house...$600,000 and driving a $80,000 tesla.

Peasant appraiser scratching butt......appraisers are making NO money from appraiser waivers.....are lenders or LO's waiving their fees???? Heck no, they are making bank. So save the fake (biased/manipulated) news for another day.

The End.
 
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Once Upon a Time....

In a far away land known as HVCC, appraisers were making $225 per report with AMCs being the king and appraisers were the peasants. Most appraisers were living paycheck to paycheck, with no health insurance, no 401K, and 1/3 left the business.

From 2010-2016 it was hard for the peasant appraisers. Now, the kings (AMCs, lenders, GOVCO.) thinks us peasant appraisers are making too much. Peasant appraiser says that we are just making up for 2010-2016 when most almost lost it all. Peasant appraiser says that we are saving our money for the near future when the mortgage market will collapse or business will shrink by 50%.

Peasant appraiser also is scratching head.....lenders, LO's, agents, contractors, plumbers, etc. are all making a ton of money in this market? No? Peasant appraiser just appraised a LO house...$600,000 and driving a $80,000 tesla.

Peasant appraiser scratching butt......appraisers are making NO money from appraiser waivers.....are lenders or LO's waiving their fees???? Heck no, they are making bank. So save the fake (biased/manipulated) news for another day.

The End.

1620945431362.png
 

"The House Financial Services Committee on April 20 approved HR 2553, the Real Estate Valuation Fairness and Improvement Act, legislation that would establish an interagency task force to analyze federal collateral underwriting standards and guidance, and provide resources for promoting diversity within the valuation profession."

"The legislation also would direct the task force to study potential racial disparities within lending and valuation, and investigate any barriers to entry that disproportionally effect minorities from starting a career as a valuation professional — the minimum requirements established by the Appraiser Qualifications Board is one item that will be explored."

National AMCs are fast developing their PAREA programs with at least one that employs staff announcing an early 2022 roll out.. What a coincidence.
 
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I have quite possibly one of the worst appraisals I have ever seen in hand.

  • The market trend is marked as stable even though it's up 9% annually.
  • Entirely made-up adjustments with a comment saying: Adjustments are based on market-derived data, that's it.
  • Phony Cost Approach with made-up cost figures as well as land value.
  • 100% canned comments
  • The subject was foreclosed last year for $100K and is now under contract for over 500K. The "summary" of prior sale reads: Prior transaction found for subject property within the past three years is a certificate of title.
  • Adjusted pool even though there are two houses with pools in the entire neighborhood and the market shows no preference.
  • Used a one-story home as a comp and made no adjustments even though a two-story home sells for 50K more than one-story.


I could go on- but the important part is it was fast and cheap and “it’s what the user wants”. Let the whining about "quality" begin. Wait until PAREA takes over.

1621023575765.png
 
So
I have quite possibly one of the worst appraisals I have ever seen in hand.

  • The market trend is marked as stable even though it's up 9% annually.
  • Entirely made-up adjustments with a comment saying: Adjustments are based on market-derived data, that's it.
  • Phony Cost Approach with made-up cost figures as well as land value.
  • 100% canned comments
  • The subject was foreclosed last year for $100K and is now under contract for over 500K. The "summary" of prior sale reads: Prior transaction found for subject property within the past three years is a certificate of title.
  • Adjusted pool even though there are two houses with pools in the entire neighborhood and the market shows no preference.
  • Used a one-story home as a comp and made no adjustments even though a two-story home sells for 50K more than one-story.


I could go on- but the important part is it was fast and cheap and “it’s what the user wants”. Let the whining about "quality" begin. Wait until PAREA takes over.

View attachment 52986

So - let's recap:

1. Borrower got ripped off;
2. Appraiser got ripped off (and tried to make up for it by not being thorough);
3. AMC got exactly what it paid for. :mad:

On another note I am a little concerned that the "powers that be" will try to time the introduction of the "newfangled mobile-friendly, dumbed down appraisal forms" in a few years to coincide with the influx of these "PAREA"-trained homunculi who might just be getting trained on this "newfangled software" while all of us are out doing real work. And that they might be looking to "ease us out of the business" via this route.

I am probably being a bit too paranoid (easy to become that way hanging around here), but - anyone else have any thoughts on this?
 
So


So - let's recap:

1. Borrower got ripped off;
2. Appraiser got ripped off (and tried to make up for it by not being thorough);
3. AMC got exactly what it paid for. :mad:

On another note I am a little concerned that the "powers that be" will try to time the introduction of the "newfangled mobile-friendly, dumbed down appraisal forms" in a few years to coincide with the influx of these "PAREA"-trained homunculi who might just be getting trained on this "newfangled software" while all of us are out doing real work. And that they might be looking to "ease us out of the business" via this route.

I am probably being a bit too paranoid (easy to become that way hanging around here), but - anyone else have any thoughts on this?

No, you are quite realistic in your thinking.
 
These changes are user driven, what they want. As a group appraisers need to consider how many new heads it will take to maintain a supply of appraiser productivity that is in relative balance to the long term demand. For now, this calculation is still strictly within the control of the incumbent appraisers.

If a lot of appraisers get greedy and decide to chase the short dollar by maxing out their trainee count then it isn't going to take that many more heads to return to the oversupply situation we had 10 years ago.

When appraisers compete, lenders win. So don't do that to yourselves. There are already too many idiots out there who can't see past their current workload.
 
Market conditions comments from the report:

Market conditions surveyed for the past twelve months reveal that general property values have been stable.


365 days ago, the SP/SF was $190.00; as of the effective date, it is $208.00. :shrug:

1621027281719.png
 
Borrower got ripped off;

Twice because I'm doing the second appraisal on this property in the last three weeks, so the borrower is paying over $900.00 in cough cough "appraisal fees."
 
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