Anyone seen a slow down in orders the last month?

[Overimprovement]

I don't agree with the above. /the lender does not pay for the appraisal; the borrower does, so whether the charge is $450 for an appraisal or $550 to the consumer, the lender does not benefit either way, and the price difference is not a deal breaker for a person needing to get a loan.

However, since the price difference between a hybrid and a traditional appraisal is not nonexistent or minor, there is no incentive for a lender who orders from their own panel to use a hybrid. Which the GSE entities might not like -, they throw shade on traditional appraisals, claiming that there are more errors or fewer reported conditions on traditional appraisals vs hybrids. That might make a lender consider ordering the hybrid, if the lender would believe such a thing.

Just because a lender passes along certain costs, does not mean they don't benefit from a lower price to them. The lender is free to charge or not charge any closing cost they want. TIL just assures the borrower knows what the costs are, does not prevent the lender from paying them.

If you don't think offering no or low closing cost mortgage loans and HELOCs does not bring in more applications, you have not worked in the mortgage industry. I have. I know.

 

[HVNY]

Four words - G P A R

 

[J Grant]

Just because a lender passes along certain costs, does not mean they don't benefit from a lower price to them. The lender is free to charge or not charge any closing cost they want. TIL just assures the borrower knows what the costs are, does not prevent the lender from paying them.

If you don't think offering no or low closing cost mortgage loans and HELOCs does not bring in more applications, you have not worked in the mortgage industry. I have. I know.

A lender can offer a "free" appraisal if they benefit from it and pay the appraiser

However, I doubt lenders would go through the effort to pressure down fees on a hybrid - which won't be a large difference anyway. Lenders are concerned with making loans, not making efforts to suppress the most pathetic fees in the RE food chain ( appraisal fees ). AMCs, on the other hand, engage in fee pressure continually since the AMC profits directly from a free reduction, whereas the lender does not.

 

[alebrewer]

I NEVER said USPAP stated the appraiser needs to physically inspect the property.
I said the result of hybrids with the appraiser is that they give up a measure of control over their own appraisal.

Incorrect. You said the appraiser gave up control of their own appraisal - a bit different than 'they gave up a measure of control'. Regardless - they gave up NOTHING. Physical inspection is NOT part of the development or reporting of an appraisal per USPAP. Physical inspection is part of the SOW. Stop conflating physical inspection with development of an appraisal.

 

[J Grant]

Incorrect. You said the appraiser gave up control of their own appraisal - a bit different than 'they gave up a measure of control'. Regardless - they gave up NOTHING. Physical inspection is NOT part of the development or reporting of an appraisal per USPAP. Physical inspection is part of the SOW. Stop conflating physical inspection with development of an appraisal.

I added a measure of control to clarify. Regardless. I did not say USPAP insisted on a physical inspection the way you claimed I did.

In your opinion they gave up nothing; in the minds of most appraisers,, not doing the inspection of our own subject gives up control over that aspect and can change the result of an appraisal regardless of how good a job the data collector does or does not do.

USPAP is a grey area wrt inspections which is why they call it a PDC collection -

 

[Joe Flacco]

We haven't seen many folks take advantage of the offerings yet. My suspicion is that the production folks just aren't trained (or accustomed to) looking at the AUS findings to see if they're even granted the hybrid/ACE offerings.

Probably stays that way. Doesn't make any sense to order a hybrid when the fee is basically the same. Maybe if appraisal fees double or triple hybrids will be feasible.

 

[alebrewer]

In your opinion they gave up nothing; in the minds of most appraisers,, not doing the inspection of our own subject gives up control over that aspect and can change the result of an appraisal regardless of how good a job the data collector does or does not do.

No idea what they 'gave up'. Control? Money? My suspicion is that - while your narrative is couched in the 'control' defense, your beef is really about the loss of income.

 

[alebrewer]

Probably stays that way. Doesn't make any sense to order a hybrid when the fee is basically the same. Maybe if appraisal fees double or triple hybrids will be feasible.

I don't disagree. I think there will probably be the 'novelty' factor, and some have probably bought into the 'faster and cheaper' narrative, but at this point, that's just not the case.

 

[CGinMN]

My guess is there wil be some smaller lenders are going to see that hybrid is an option, they're going to order few to try it out, then once they keep running into problems, they're going to say **** that noise and go back to the traditional. There will probably be big nationwide lenders that have special relationships with national appraisal firms, and they will churn orders out a report at 6 per day per appraiser.

 

[J Grant]

No idea what they 'gave up'. Control? Money? My suspicion is that - while your narrative is couched in the 'control' defense, your beef is really about the loss of income.

I already disclosed my issue with fees and income, though personally, I do very little AMC work. Therefore, I anticipate a few if any, hybrids - if that changes down the road, I will deal with it then.

I imagine the profit and control that hybrids offer have a lot to do with their support from parties on the AMC side of the aisle.