Appraisers Don't Understand

[George Hatch]

I'll put it this way, if the VA has been using that 90yr old appraiser with the obsolete boilerplate for the last 30 years the only way that happens is because the VA thinks the analyses and conclusions are adequate for their usage.

Not a defense of what we consider to be substandard work, just an observation of how that user operates. I've been told more than once that the VA program is basically a social entitlement program, not necessarily a profit center.

 

[TerryRohrer]

Valid question and concern. Ultimately the burden and consequences should fall on the user of the reports, not the system we have now where users of our services have effectively offloaded that on state boards.

Ultimately, State boards have the only authority (beyond non-use) to truly correct the issues, but won't. The problem, in the entire appraisal system, is that the real problem appraisers never find themselves in front of a board. I see garbage from appraisers who have been around for 40 years. Unfortunately, the new crop coming up is content to know nothing while relying on and citing the preprogrammed "adjustment calculators" that are proliferating. If the GSEs weren't lazy, stupid, spineless, and entirely self-serving and politically motivated, they would be making credible complaints to State boards and standing behind them, rather than sending anonymous "tips" that accomplish nothing. They are simply seeking credit for checking the box, not trying to accomplish anything.

 

[George Hatch]

You're not wrong but the lenders and the GSEs are loathe to turn their pipelines down to a trickle, even if only for the couple of weeks it would take to make enough of an impression on the underperforming appraisers to clean their act up.

 

[TerryRohrer]

Not a defense of what we consider to be substandard work, just an observation of how that user operates. I've been told more than once that the VA program is basically a social entitlement program, not necessarily a profit center.

That pretty well sums up the entire mortgage ecosystem in the United States right now. Nothing is a profit center, every step is a fee generator. Only the taxpayer is on the hook. Hence, no one gives a ****!

 

[TerryRohrer]

You're not wrong but the lenders and the GSEs are loathe to turn their pipelines down to a trickle, even if only for the couple of weeks it would take to make enough of an impression on the underperforming appraisers to clean their act up.

Why would they? Their take is a percentage of the flow!

 

[Joe Flacco]

The longer I do this the more I appreciate the difficulty and complexity of the job.

 

[Joe Flacco]

It is counterintuitive but I find that knowing more makes the job harder, not easier.

 

[George Hatch]

Way back when one of my Income Cap instructors made the comment, and I agree:

I was a much better appraiser back when I only had a couple years of experience. I was fast and I always knew early on what the right value was. But as the years added up and as I saw more properties I got slower and less certain. I began to put off committing to a value or signing a report until I got to the very end. I figure at this rate that in 5 years I won't be able to commit to anything or sign any reports. ​

 

[Fernando]

What matters now for "appraisers" are to meet minimum and passing checks to be submitted to Fannie. Those who understands how the game is played and follow the rules and turn around the report fast get the money.
Accuracy of appraisal value is secondary.

 

[Tiffany Gibbons]

I think it's brilliant. The lender is already getting R&W relief, so the risk to Reggora is pretty low. But what a marketing strategy!

Yeah, he thinks it's like Uber, they will show the closest appraiser in their car to get to the property ASAP. No research, no appointment-they set it for you, blah, blah. Oh it's brilliant, SMFH.