Crappy Hybrid Inspection

[mp2277]

Have a review on a property that is over 4,000 sf, for a property valued at almost $3Mil. First dumb question, WHICH LENDER IS DUMB ENOUGH TO ALLOW THIS TO BE A HYBRID??? Anyway, the inspection is crap, I have an entire list of stuff that is a discrepancy and the appraiser didn't bother to look at the pictures or change anything from what the inspector said. So we start with they say slab foundation, this area only builds pier and beam, even today, only pier and beam, plus when you see the damn air vent on the floor, that should tell you something. Next, the drop stair attic that they list sure does look like a regular old door that you walk through with no stairs to climb. This company/person is also really good at calling aluminum gutters and downspouts "Galvanized Steel", I laugh almost every time I see this. They said there are 2 porches in the inspection and the appraiser writes up no porch with a screened in patio. I'm seeing an outdoor fireplace and an attached grill, yet this is the second one today from the same company that has chosen not to make an adjustment for an attached grill...is this becoming the new norm and I haven't heard anything about it? All of the bathrooms and the kitchen have been completely updated/remodeled, the only thing in the bathrooms that stayed were the tubs and toilets in the secondary bathrooms, but they said that only the floors and some of the counters were redone in the bathrooms and only the floors in the kitchen in the last 15 years, the last MLS listing was in 2015 and the interior has all changed since then. And the one that I think is the funniest, that the laundry room has no issues, yet it is only drywall, no protective coating over the drywall...ya know, like paint...so if the hose from the washer bursts and sprays everything, I guess nothing is going to happen and it will just magically go down the pipes. Now the actual square footage, they never mention anything about the square footage in the report being to ANSI standards, which this is not, they don't even mention what system is used or anything they used to determine the square footage. So I'm looking at the pictures, which are about the size of a postage stamp and go back to a previous listing on the house to see better pictures for these rooms, to find that they took 2 closets and said that because they were lower than 7 feet, they are no longer square footage, yet they are taller than 5 feet, which should have counted because more than half...as in the entire rest of the room/space...is over 7 feet and last I checked, it said that more than half the room has to be above 7 feet but no lower than 5 feet for it to still be counted as square footage. Am I just missing something here and why would anyone rely on these people that have no clue about anything to measure a house and rely on that report for something with this type of a price tag on it and not question it? Are these hybrids not reporting ANSI standards for measuring, or are they not required to?

Show me your analysis supporting an adjustment for an outdoor grill and I'll keep quiet but I've never seen market evidence beyond Realtor fluff that supports an adjustment.

 

[mp2277]

I think you're looking WAY too into this "issue"

I agree 100%

 

[djd09]

Companies such as ProxyPics stand to benefit from a major Freddie Mac policy change, which goes into effect this month. Starting in July, the government-sponsored enterprise will allow remote inspections on some refinance loans it buys.

But while desktop appraisals may save a few gas miles, and certainly will provide opportunities for a coterie of private sector companies, it’s not yet clear whether they are superior to traditional appraisals, and if they ultimately will reduce racial bias, a key GSE policy goal.

A Freddie Mac representative declined to comment for this story.

​

Fannie Mae also plans to use hybrid appraisals more often in 2022, as part of its equity plan, which is intended to “reduce costs to the borrower and reduce potential risk of bias by creating greater separation between the appraiser and borrower.”

Fannie Mae representatives said the GSE has evidence alternative appraisal approaches result in fewer instances of confirmation bias. Its appraisal modernization pilot, which used hybrid appraisals, showed an 18% point reduction in confirmation bias compared with traditional appraisals, which rely on human observations and, as such, potentially could be riddled with overt or subconscious bias. Alternative appraisals, however, rely more on objective data and an “arm’s-length” process between the appraiser and the homeowner or buyer, sometimes assisted by technology, a spokesperson for the GSE said.

Both desktop and hybrid appraisals, according to Fannie Mae, “have the benefit of reducing contact between borrowers and appraisers, thus lowering the likelihood of valuations being affected by personal or unconscious biases.”

The hybrid appraisal is here. Who benefits?

Freddie Mac now allows remote appraisals on some refis, but it remains to be seen if they will reduce racial bias, a key GSE policy goal.

www.housingwire.com

appraiser bad...bankman good

 

[chad hampton]

Kind of wonder what the kickback is for those involved in pushing these products.

 

[George Hatch]

Since you and I seem to be on opposing sides of this discussion I am getting the feeling you're talking to me. So just in case that's what you mean please allow me to put your mind at ease. I have only ever made money in the appraisal business or anything related to the appraisal business in 2 ways: selling appraisals and writing/teaching QE and CE courses to appraisers.

I don't disagree with you because there's any money in it for me, I'm disagreeing with you because I think it's dumb to blame anyone other than the lenders for what's going on with these. All the AMCs are guilty of in this mess is selling the lenders what they want to buy, and shopping for appraisers by price.

 

[djd09]

Kind of wonder what the kickback is for those involved in pushing these products.

a buck per post

anyways
good appraisals don't cost money, they save money - alot of it.

 

[TerryRohrer]

Companies such as ProxyPics stand to benefit from a major Freddie Mac policy change, which goes into effect this month. Starting in July, the government-sponsored enterprise will allow remote inspections on some refinance loans it buys.

But while desktop appraisals may save a few gas miles, and certainly will provide opportunities for a coterie of private sector companies, it’s not yet clear whether they are superior to traditional appraisals, and if they ultimately will reduce racial bias, a key GSE policy goal.

A Freddie Mac representative declined to comment for this story.

​

Fannie Mae also plans to use hybrid appraisals more often in 2022, as part of its equity plan, which is intended to “reduce costs to the borrower and reduce potential risk of bias by creating greater separation between the appraiser and borrower.”

Fannie Mae representatives said the GSE has evidence alternative appraisal approaches result in fewer instances of confirmation bias. Its appraisal modernization pilot, which used hybrid appraisals, showed an 18% point reduction in confirmation bias compared with traditional appraisals, which rely on human observations and, as such, potentially could be riddled with overt or subconscious bias. Alternative appraisals, however, rely more on objective data and an “arm’s-length” process between the appraiser and the homeowner or buyer, sometimes assisted by technology, a spokesperson for the GSE said.

Both desktop and hybrid appraisals, according to Fannie Mae, “have the benefit of reducing contact between borrowers and appraisers, thus lowering the likelihood of valuations being affected by personal or unconscious biases.”

The hybrid appraisal is here. Who benefits?

Freddie Mac now allows remote appraisals on some refis, but it remains to be seen if they will reduce racial bias, a key GSE policy goal.

www.housingwire.com

View attachment 70754

appraiser bad...bankman good

You will notice, in almost every communique from Freddie and FNMA, that they repeatedly make up terms (appraisal gap, confirmation bias, potential risk of bias) and create a mostly unchallenged narrative slanting whether that is good or bad. Then they make up "data" to confirm that narrative, while feigning indignation when they are asked to share their data and methods, all the while with all hands and feet in the public trough.

So far, we don't know if a "negative appraisal gap" harms those that the narrative leads everyone to believe are harmed in every instance (although "negative" may be redundant as no one seems to talk about the "positive appraisal gap" unless an appraiser is being sued to recover funds lent inadvisedly), nor do we know if the reduction in instances of "confirmation bias" is good, or bad, or immaterial. Nor do they offer whether the reduction in "confirmation bias" falls mostly toward creating "negative" appraisal gaps or "positive ones." Nor do we know if their measures of "confirmation bias" only involve sales, or if they involve refis, measured against the homeowners' opinion of value. More questions than answers, as they intend.

 

[chad hampton]

not talking about you. As far as I know, you have never sat in front of an appraisal board and pushed these sort of things on them for approval like other “appraisers” have done. I also don’t see your face plastered on notices about seminars where they talk about what great products they are.

But I still think you do harm to the profession when you support these things. I think they are embarrassing for the profession.

 

[djd09]

4. Unless noted otherwise, the appraiser has relied on interior and exterior subject property data obtained through a
property data report. Such data includes, but is not limited to, a floor plan, photographs, and property characteristics. After
examination of the data and data sources, the appraiser has used only the data he or she considers reliable. The appraiser
assumes there are no material omissions and makes no guarantees, express or implied, regarding the accuracy of this
data. The appraiser assumes that the property characteristics have not changed since the date of the property data report.

maybe the hybrid inspection is right maybe its wrong...but who cares the taxpayer will cover it and oh misleading is intentional or not

dont drink the kool aid

 

[djd09]

4. Unless noted otherwise, the appraiser has relied on interior and exterior subject property data obtained through a
property data report. Such data includes, but is not limited to, a floor plan, photographs, and property characteristics. After
examination of the data and data sources, the appraiser has used only the data he or she considers reliable. The appraiser
assumes there are no material omissions and makes no guarantees, express or implied, regarding the accuracy of this
data. The appraiser assumes that the property characteristics have not changed since the date of the property data report.

maybe the hybrid inspection is right maybe its wrong...but who cares the taxpayer will cover it and oh misleading is intentional or not

dont drink the kool aid plain out

the sow cannot be limited not to produce credible results

an appraisal cannot be credible if the data is not accurate or wrong

yeah reading is fundamental