Appraisal With No Inspection By Appraiser?

[timd354]

Your arrogant lecture guess what lenders and appraisers are both in this business to make money is absurd, as if we did not know that and have been waiting all these years for you to tell us that.

Then why the constant bellyaching about lenders trying to maximize their profits?

You are absurdly hypocritical when you are bellyaching about lender or AMC profits while at the same time bellyaching about appraiser fees.

 

[J Grant]

Now it's a bad thing for appraisers to be concerned about the housing market and borrowers......Fannie used to have that concern and are moving away from it.

Does not affect our practice as Appraisers when appraising do their job, But this is a bulletin board where we express our viewpoints. Now you want to censor what we think or say ?

As for pot calling the kettle black, its how money is made when it puts others at risk. A doctor responsibly handling patients will make less $ than a doctor running a pain med pill mill and "diagnosing" pain over the phone. Same for lending, same for appraising

I can comment on lenders as much as I want, nobody can deny a segment of lenders history of risky lending practices that crashed markets and toxic loans and bailouts and fraud in some cases...or how would you describe that history? Their means to increase profits now aligned with FAnnie (which also was bailed out ) can cause harm when they become reckless .

 

[Evincere]

Appraisal Delays Study

VaCAP did a sample study this past winter to determine the number of days from contact ratification to appraiser acceptance from both AMCs and lenders. The results were a 9 day difference with AMC’s taking 18 days and lenders only 9 days to assign the appraisal.

We have just asked our sister coalitions to complete this survey as well. for a larger data pool and are asking every appraiser to once again participate to help our industry. This information will be used to counter the narrative the appraisal is taking too long.

We did this in Virginia in the winter (November, December, and January). Granted, a slow time of year, but we felt we might get more participation now.
VaCap’s study indicated a 9 day time lapse from direct lenders as opposed to an 18 day lapse utilizing AMCs AND so-called “portals”.

Here are the parameters to a fair report.

1. Determine the date the contract was fully ratified (finalized).
2. For your (our) information record the name of the lender.
3. Record the AMC by name.
4. Record the date of final contract ratification.
5. Record the date appraisal was ACCEPTED.
6. Record the passage of time in days.

Let’s agree to distribute to our members ASAP and ask for results ending September 30. This will give us time to compile and fully report to the AARO conference and other publicly interested entities.

This is an important undertaking, and can go far in support of insuring the safety and soundness of our financial systems, especially under current and pending issues!
Please pledge support and get this done.


Apparently removing the AMC saves 9 days in time, as opposed to a couple of 3 hours.




Appraisers should participate in similar such studies.


.

Worthy response to post number #197. Worth reposting again.

Don’t you just love it when people who ignore facts critique others for ignoring the facts?

Request rush this week. Called realtor for appointment. First comment was “You’re just now doing the Appraisal?! We’ve been waiting weeks!!! Sure enough, contract was signed lat week of May.

 

[George Hatch]

One aspect of the "timeliness" controversy is that - regardless how they're qualified - the supply of inspectors will be far more flexible than the supply of appraisers. Adding and dropping the supply of inspectors according to market demand will be far faster, cheaper and easier.

 

[J Grant]

Then why the constant bellyaching about lenders trying to maximize their profits?

You are absurdly hypocritical when you are bellyaching about lender or AMC profits while at the same time bellyaching about appraiser fees.

see my above post 212t. ( the way lenders can seek profits has quite a history) 2/3 of your posts are supposedly what you believe is some masterful amazing point of calling what an appraiser says hypocritical. A waste of time.

 

[Deleted member 139442]

Online scheduling - like my doctor and dentist both use now - is very widespread these days. As you may recall, there have already been a few heated threads on how that might apply to the appraisal process

You physically go to your Doctor and Dentist. They don't come to you. You want on-line scheduling, I'm happy to oblige. Just have the borrower pick up their house and bring it to my office for inspection.

Most AMC's and lenders require appraisers' to complete all critical aspects of an appraisal, and only contract with an individual appraiser opposed to an appraisal office. You want more flexibility for inspection times, give the appraiser the flexibility, and a reasonable fee to hire associates. I.e. get back to the way it was when you still worked as a fee appraiser in Nashville.

Servicelink's b.s. fees are not anywhere close to customary. Do you really expect appraisers to embrace exos? Service link is one client for those who actually work for you, and you want to control the appraiser's schedule. Service Link is a whole lot of what is wrong with the industry.

 

[Evincere]

Appraisal Delays Study

VaCAP did a sample study this past winter to determine the number of days from contact ratification to appraiser acceptance from both AMCs and lenders. The results were a 9 day difference with AMC’s taking 18 days and lenders only 9 days to assign the appraisal.

We have just asked our sister coalitions to complete this survey as well. for a larger data pool and are asking every appraiser to once again participate to help our industry. This information will be used to counter the narrative the appraisal is taking too long.

We did this in Virginia in the winter (November, December, and January). Granted, a slow time of year, but we felt we might get more participation now.
VaCap’s study indicated a 9 day time lapse from direct lenders as opposed to an 18 day lapse utilizing AMCs AND so-called “portals”.

Here are the parameters to a fair report.

1. Determine the date the contract was fully ratified (finalized).
2. For your (our) information record the name of the lender.
3. Record the AMC by name.
4. Record the date of final contract ratification.
5. Record the date appraisal was ACCEPTED.
6. Record the passage of time in days.

Let’s agree to distribute to our members ASAP and ask for results ending September 30. This will give us time to compile and fully report to the AARO conference and other publicly interested entities.

This is an important undertaking, and can go far in support of insuring the safety and soundness of our financial systems, especially under current and pending issues!
Please pledge support and get this done.


Apparently removing the AMC saves 9 days in time, as opposed to a couple of 3 hours.




Appraisers should participate in similar such studies.


.

Worthy response to post number #197. Worth reposting again.

Don’t you just love it when people who ignore facts critique others for ignoring the facts?

 

[DWiley]

Most AMC's and lenders require appraisers' to complete all critical aspects of an appraisal, and only contract with an individual appraiser opposed to an appraisal office. You want more flexibility for inspection times, give the appraiser the flexibility, and a reasonable fee to hire associates. I.e. get back to the way it was when you still worked as a fee appraiser in Nashville.

I agree 100%, and I have been lobbying/working toward this for long time. This change basically killed the mid-size firm, and the side effects of that are numerous. It was/is a bad move, in my view. But, it is also something not in my control. I can lobby for such change, and I have, but the lenders and regulators have to agree to change their thinking. I have addressed this in several public settings.

Servicelink's b.s. fees are not anywhere close to customary.

??? You need to take that up with appraisers. We don't have set fee schedules. We ask appraisers to tell us what their fees are, then we use market data to make sure they are charging at least an acceptable rate. See some of my prior posts about how well appraiser price their services.

 

[Deleted member 139442]

I agree 100%, and I have been lobbying/working toward this for long time. This change basically killed the mid-size firm, and the side effects of that are numerous. It was/is a bad move, in my view. But, it is also something not in my control. I can lobby for such change, and I have, but the lenders and regulators have to agree to change their thinking. I have addressed this in several public settings.



??? You need to take that up with appraisers. We don't have set fee schedules. We ask appraisers to tell us what their fees are, then we use market data to make sure they are charging at least an acceptable rate. See some of my prior posts about how well appraiser price their services.

SL doesn't have set schedules, but as soon as an appraiser tries to raise fees y'all cut them off until one of you gives. I know because when I did work for SL, that's exactly what happened. I'd get a better client, raise fees on SL who would cut off work for awhile and then come back promising more volume for lower fees.

It's disingenuous for SL to act like appraisal quality matters when the reality is your just trying to maximize profits, by hiring the cheapest appraiser possible, quality be damned. It's a balance for fee vs quality and I get that SL is a for profit company, so are appraisers. But the charade is BS. And SL is in your control. You can influence the decision to hire firms instead of just individuals. You can influence the decision for SL to move to a cost plus model. You can influence the decision to hire quality appraisers and pay them market rate. You pay between $250-$300 in Atlanta. Market rate is $450. VA is at $440. Catch up on fees and your service issues will start to fade.

PS. Say Hi to Alan for me.

 

[Terrel L. Shields]

What is the real reason they are looking to switch away from the current process? Is it to improve the quality of appraisal inspections, or is it to save money? Of course they will promote it as both, but that is just not realistic in the real world. If the goal is to save money, then the people who end up doing the inspections will be less qualified than appraisers.

Exactly, someone has to cut their fee. Using a home inspector would actually increase the fee but in reality would be a benefit to borrower and appraiser - both could benefit from a detailed home inspection...and those inspectors do caveat away a lot of liabilities.
The reality is no "inspection" can find everything. My ex sold her home when we married, which was not 18 months old. Weeks later the buyers called complaining that the water heater had quit. Who would think a 2 year old water heater wouldn't work. I told them to call the builder and see if he could get it replaced as it should still be under warranty.

itting around for a couple of days waiting on someone to call and schedule an inspection is just "old fashioned,"

But they are promising only a 5 day turn time at HouseCanary? A lot of appraisers were doing 72 hour turn times. The "time" issue usually is in the very property that they (and you) say isn't appropriate for these - rural and unique property.?? I don't see how these can maintain any sense of quality nor will they save substantial time. And I've not been paid on a 6 week old appraisal because the title work has a glitch...not an appraiser's problem. How many closings are delayed six weeks due to the appraiser? How many are delayed due to the title opinion red flagging something?