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Appraisal Waivers: The Future is Here

Mejappz

Senior Member
Joined
Dec 16, 2005
Professional Status
Certified Residential Appraiser
State
Florida
The GSEs seem to have executed a quiet coup of the appraisal industry, seemingly without appraisers or other industry stakeholders even noticing. Why? Many appraisers report being busier than ever in 2020, with many increasing their fees to handle the extra volume!

 

Cob

Senior Member
Joined
Mar 30, 2006
Professional Status
Certified Residential Appraiser
State
Texas
Who are they going to come after when some of these loans go into default????
 

A K

Elite Member
Joined
Jul 31, 2013
Professional Status
Certified Residential Appraiser
State
Maryland
I heard a mortgage company that has been testing hybrids in two states is rolling it out nationwide very soon. Fee < $300.
 

glenn walker

Elite Member
Joined
Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
California
NObi
Who are they going to come after when some of these loans go into default????
No one thats the beauty : E & O in the last one paid out almost nothing -They figured out the non-sense :)
 

Sadie

Senior Member
Joined
Mar 20, 2008
Professional Status
Certified Residential Appraiser
State
Oregon
Who are they going to come after when some of these loans go into default????
The appraisers, duh, like every other time.
 
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Reactions: Cob

IVCA

Senior Member
Joined
Jun 27, 2017
Professional Status
Certified General Appraiser
State
California
The GSEs seem to have executed a quiet coup of the appraisal industry, seemingly without appraisers or other industry stakeholders even noticing. Why? Many appraisers report being busier than ever in 2020, with many increasing their fees to handle the extra volume!


I think the feeling in the industry is that the days of residential appraisal are largely numbered. Oh, you will always have a few appraisers around. But it isn't hard to see that the AVMs are still making in-roads. They are hit and miss. But, from a distance, one can ask the simple question: Why hire an appraiser to tell you pretty much what about any AVM will more or less tell you? 80% of the time? Throw in the hybrids and other new developments.

I've been using Alamode - and the core software is still pretty good. But the quality is really degrading or at best running in place around the edges. XSites is trash now. I just decided to throw that overboard after wasting a lot of time with their tech support running around in circles until I finally understood they didn't have a clue what was going on and for the most part really lacked motivation to provide a solution. I would infer, they are not at all that interested in their own product. It appears it is simply on life support. You get the sense the end is coming. I think we all sense the end coming for residential appraisal as we once knew it.

I think there is a "new world" for appraisal. But it will look much different.

In general, we see flashes of the new world in advanced companies like Tesla: "Generally, Tesla checks candidates for three traits: being innovative, driven, and team players." It's going to half-ways be like being in the military: You will have to be totally focused on the job just to survive. You get what you get and there is little room for complaint.

There will be universal income for most, who will do whatever society tells them to do; and no one really knows how that is going to work out. There are some dire predictions by the likes of people like Elon Musk.

So, make money while you can. This may be the last stretch.
 

GWISC

Member
Joined
Dec 3, 2014
Professional Status
Certified Residential Appraiser
State
Wisconsin
Well, at least they can only blame themselves which they should have be doing every time they found themselves in a bind. The crashes only happen once ever 15+- years now (I am predicting the next crash in about 24 months). Taxpayers have short memories. Right?

I wonder where the tipping point will be with the increase in use of waivers. At what point will the competition from waivers begin to constrict on the population of appraisers? I believe the number of appraisers will constrict long before the waivers reach 75% of transactions (if they do). I realize there is no rule that Fannie and Freddie have to rely on appraisals. It is their decision. However, it is my tax dollars bailing them out every time they crash and need a lifeline.

The nominal times of workflow will tell how much the banks are utilizing the waivers. If the percentage use of waivers remains high, the number of active appraisers will shrink. Then there really will be a shortage of us. How does a borrower get a waiver on a planned new construction or on a renovation of their old home? Waivers depend on AVM's to help figure out values on existing homes. A bank is going to have an ever increasingly hard time finding an appraiser if many of us hang up our tape measures due to attrition. You can't stay in business waiting for a few jobs to materialize each month.
 
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