lefty2cox
Sophomore Member
- Joined
- Mar 31, 2006
- Professional Status
- Certified Residential Appraiser
- State
- Massachusetts
I’m sure this is not a new idea but since I haven’t seen it posted, I will post.
The UAD is the next step in the elimination of appraisals for FNMA mortgages. Lender servicing companies are already talking about the coming of their condition adjusted modeling. The UAD presents the subject property data in a format which is easily populated into a database of property with specific condition and quality rating.
Most appraisers, if they took the time to read the agreements they sign when entering into a contractual relationship with management companies, have given those companies intellectual rights to their work. Management companies now, with UAD, have the relevant data needed to enhance their automated products. If they don’t offer an AVM, they can sell the data to companies that do. Why do you think there are some AMCs who do not charge a fee? They are not doing this out of the kindness of their hearts.
AVM’s are already and incredibly powerful tool in estimating value. The missing piece of the puzzle has always been the quality of the data feeding the model. The UAD addresses this quality of data issue.
And don’t think for a second that FNMA, Freddie and the Federal Housing Finance Agency would love to see this.
FNMA states on their site that, at present, they do not believe AVMs have evolved sufficiently to fully replace traditional appraisals. https://www.efanniemae.com/sf/guides/ssg/relatedsellinginfo/avms/
If their intensions are not obvious to you in that statement, then don’t respond to me… please, I beg of you.
In the future, for the majority of single family, residential mortgages, your scope of work may look something like this:
Inspect the subject property from the exterior to determine if it looks the same as it did when the information about it was raped from an appraisal 5 years ago, including its quality, kitchen and bath modernization and condition rating. Your client may even provide you with photos of the property taken on the effective date to help with this. Then you will check the building jacket on the file to see if there have been any permits issued. You will then submit your findings on a form similar to a 2075. However, you will not be providing a value opinion. You may get paid $50, if you’re lucky. If the subject property has substantially changed, you may then be asked to perform an appraisal. If not, the detailed subject property information they already have will be fed into AVM for an incredibly credible value. Think I’m full of it? Ever done a comp check?
Welcome to the evolution of the AVM. The UAD is Skynet, I’m not sure if I am John Connor…but it IS judgment day and if you are reading this, you ARE the resistance.
You MUST dump any management company or client who has, within their agreement with you, language requiring that you relinquish intellectual property rights to your work… for starters. And before anyone tells me that it’s easy for me to say, don’t. I’m suffering as well. I’ve chosen to not work with any management companies, and it has cost me dearly in the short term.
Secondly…find your own secondly.
I, again, would like to apologize if I’ve been redundant regarding the topic. But I haven’t seen it. I do not have any problem with any company who exhibits the conscious of mind to take advantage of a business opportunity to provide a supply for a specific market demand, even if that supply directly competes with me. I will not, however, provide them with their wares for free or let them steel it from me.
Hell, I’ve never had a problem with management companies. They’ve just filled a need of the marketplace. If appraisal companies were fulfilling the need then lenders would not have turned to them. And remember; AMCs have been gaining strength in the marketplace before the HVCC.
The UAD is the next step in the elimination of appraisals for FNMA mortgages. Lender servicing companies are already talking about the coming of their condition adjusted modeling. The UAD presents the subject property data in a format which is easily populated into a database of property with specific condition and quality rating.
Most appraisers, if they took the time to read the agreements they sign when entering into a contractual relationship with management companies, have given those companies intellectual rights to their work. Management companies now, with UAD, have the relevant data needed to enhance their automated products. If they don’t offer an AVM, they can sell the data to companies that do. Why do you think there are some AMCs who do not charge a fee? They are not doing this out of the kindness of their hearts.
AVM’s are already and incredibly powerful tool in estimating value. The missing piece of the puzzle has always been the quality of the data feeding the model. The UAD addresses this quality of data issue.
And don’t think for a second that FNMA, Freddie and the Federal Housing Finance Agency would love to see this.
FNMA states on their site that, at present, they do not believe AVMs have evolved sufficiently to fully replace traditional appraisals. https://www.efanniemae.com/sf/guides/ssg/relatedsellinginfo/avms/
If their intensions are not obvious to you in that statement, then don’t respond to me… please, I beg of you.
In the future, for the majority of single family, residential mortgages, your scope of work may look something like this:
Inspect the subject property from the exterior to determine if it looks the same as it did when the information about it was raped from an appraisal 5 years ago, including its quality, kitchen and bath modernization and condition rating. Your client may even provide you with photos of the property taken on the effective date to help with this. Then you will check the building jacket on the file to see if there have been any permits issued. You will then submit your findings on a form similar to a 2075. However, you will not be providing a value opinion. You may get paid $50, if you’re lucky. If the subject property has substantially changed, you may then be asked to perform an appraisal. If not, the detailed subject property information they already have will be fed into AVM for an incredibly credible value. Think I’m full of it? Ever done a comp check?
Welcome to the evolution of the AVM. The UAD is Skynet, I’m not sure if I am John Connor…but it IS judgment day and if you are reading this, you ARE the resistance.
You MUST dump any management company or client who has, within their agreement with you, language requiring that you relinquish intellectual property rights to your work… for starters. And before anyone tells me that it’s easy for me to say, don’t. I’m suffering as well. I’ve chosen to not work with any management companies, and it has cost me dearly in the short term.
Secondly…find your own secondly.
I, again, would like to apologize if I’ve been redundant regarding the topic. But I haven’t seen it. I do not have any problem with any company who exhibits the conscious of mind to take advantage of a business opportunity to provide a supply for a specific market demand, even if that supply directly competes with me. I will not, however, provide them with their wares for free or let them steel it from me.
Hell, I’ve never had a problem with management companies. They’ve just filled a need of the marketplace. If appraisal companies were fulfilling the need then lenders would not have turned to them. And remember; AMCs have been gaining strength in the marketplace before the HVCC.
