Crappy Hybrid Inspection

[shrubberyvaluation]

I have to admit, I have seen many struggle with measuring a house. I have a friend that do this day after 30 years in the business still hates second story homes because he hates to measure them. I remember when training him, he was like Don Knotts with the clipboard and pencil trying to sketch the house.

I only struggle when there are a lot of non 90 degree angles. It just takes longer. its even worse in condos with weird angles in corner units where you have walls impeding the measuring.

 

[djd09]

How big mortgage lenders hope to clear the appraisal logjam​

Desktop appraisals will be available for “many” purchase loans, the agency said — although details are sketchy about precisely which homes or borrowers will be eligible. Instead of physically touring properties for sale, appraisers will inspect listing information and other data from their work stations, said Sandra Thompson, acting director of the Federal Housing Finance Agency.

“This can help each appraiser complete more loans in a day, and it can also help rural communities more readily obtain a necessary appraisal when the borrower is purchasing a property,” Thompson told mortgage bankers at a conference last week.


Realtors and mortgage brokers gripe about long delays for appraisals, and they describe appraisers demanding additional fees for such items as long drives, or for evaluations of unusual homes that lack comparable properties. Thompson unveiled the appraisal initiative during the annual conference of the Mortgage Bankers Association, news that spurred applause from the audience.


“America’s appraiser shortage has become a national crisis for home purchase lenders and the housing industry,” says Jeff Lazerson, president of Mortgage Grader in Laguna Niguel, California.

As Appraiser Shortage Delays Closings, Mortgage Giants Try Workaround | Bankrate

Fannie Mae and Freddie Mac next year will accept more "desktop appraisals" of homes for sale. These evaluations allow appraisers to work remotely, without visiting the property being appraised.

www.bankrate.com

once they relegate the appraiser to their "work station" they will be no better or worse then an avm...is sandra thompson even licensed???

 

[shrubberyvaluation]

How big mortgage lenders hope to clear the appraisal logjam​

Desktop appraisals will be available for “many” purchase loans, the agency said — although details are sketchy about precisely which homes or borrowers will be eligible. Instead of physically touring properties for sale, appraisers will inspect listing information and other data from their work stations, said Sandra Thompson, acting director of the Federal Housing Finance Agency.

“This can help each appraiser complete more loans in a day, and it can also help rural communities more readily obtain a necessary appraisal when the borrower is purchasing a property,” Thompson told mortgage bankers at a conference last week.


Realtors and mortgage brokers gripe about long delays for appraisals, and they describe appraisers demanding additional fees for such items as long drives, or for evaluations of unusual homes that lack comparable properties. Thompson unveiled the appraisal initiative during the annual conference of the Mortgage Bankers Association, news that spurred applause from the audience.


“America’s appraiser shortage has become a national crisis for home purchase lenders and the housing industry,” says Jeff Lazerson, president of Mortgage Grader in Laguna Niguel, California.

As Appraiser Shortage Delays Closings, Mortgage Giants Try Workaround | Bankrate

Fannie Mae and Freddie Mac next year will accept more "desktop appraisals" of homes for sale. These evaluations allow appraisers to work remotely, without visiting the property being appraised.

www.bankrate.com

once they relegate the appraiser to their "work station" they will be no better or worse then an avm...is sandra thompson even licensed???

evaluations of unusual homes that lack comparable properties....in other words complex appraisals. I still think being limited to a work station is still better than an AVM.

 

[TC]

Is measuring the only thing you do at an inspection?


Take photos.

 

[George Hatch]

WRT the

Georgia Fines Clear Value Hybrid Appraiser​

1. performed an appraisal that was too narrow in the scope to determine a credible value...

Think It's Okay to Do Bifurcated Hybrids? Georgia Fines Hybrid Appraiser!

So, do you think it's ok to do bifurcated hybrids? On January 31, 2018, what appeared to be egregiously deficient Clear Capital “Clear Value” bifurcated

appraisersblogs.com

(b) not commit a substantial error of omission or commission that significantly affects an appraisal; and

Comment: An appraiser must use sufficient care to avoid errors that would significantly affect his or her opinions and
conclusions. Diligence is required to identify and analyze the factors, conditions, data, and other information that would
have a significant effect on the credibility of the assignment results.

An appraiser must be prepared to support the decision to exclude any investigation, information, method, or technique
that would appear relevant to the client, another intended user, or the appraiser’s peers.

An appraiser must not allow assignment conditions to limit the scope of work to such a degree that the assignment results
are not credible in the context of the intended use.

Comment: If relevant information is not available because of assignment conditions that limit research opportunities
(such as conditions that place limitations on inspection or information gathering), an appraiser must withdraw from the
assignment unless the appraiser can

you cannot assume away credible...dont drink the kool aid

From reading the complaint it looks to me like the case was poorly argued by the respondent. If at all.

I'd actually argue many of those allegations as not being spelled out in either USPAP or state regulation and instead pertaining to user-driven requirements that are between the user and the appraiser, which who even knows if the state looked at the user's guidelines? Many of those allegations would also apply equally to the manner in which most appraisers perform conventional 1004s. The only allegation I can see that relates to this type of workproduct (as opposed to any other) is the "assistance" allegation even though the appraisers SOW didn't include performing an inspection.

Here's the thing: whats meaningful to an intended user is identified by the intended user, not the state appraisal board. It looks to me like they're applying a set of appraisal policy requirements that might not be applicable to this assignment. Matter of fact, if that user didn't have a set of written requirements there would be nothing for the state to refer to as a violation beyond their own opinions - which are not law or regulation or USPAP or enforceable.

USPAP applies to what the appraiser actually does/doesn't do in that assignment.

The appraiser might not have the means to appeal the "hybrid" related elements of the decision and put the matter in front of a judge but I'm pretty sure I could explain those aspects to a judge. I could have explained it to the board, too, assuming those discussions were entered into the record where they'd have to live with what they were saying and doing.

I'd start with "citation needed"

 

[Carnivore]

This all may be moot anyway. Desktop(all types), 2055, 1004, Narrative no matter. Do you all recall the College Prof's looking down their noses at our TAF Member's

The GSE stats have found no significant bias. Something like less than 1-2% out of hundreds of thousands or more of appraisals

Well this stuff is bubbling to the surface again. Jeremy has published an Interesting article,

Preference Falsification - Why Licensees Parrot Untrue Notions

Preference falsification has resulted in some appraisers parroting talking points they know to be untrue. People who live under authoritarian

appraisersblogs.com

In Depth Read 'Preference Falsification' below. My Take on it: Basically you can't help yourself Whitey! I expect to see a Semester of Psyche 101 for License Pre-Qualification.

https://digitalcommons.carleton.edu/cgi/viewcontent.cgi?article=1011&context=econ_repec

 

[djd09]

The Journey to a More Efficient and Fair Home Valuation Process​

April 5, 2022


Jake Williamson
Senior Vice President, Single-Family Collateral Risk Management

Our recent analysis of nearly 2 million appraisals found some divergence in values received by Black and white borrowers refinancing their homes. There are many possible reasons why an appraisal would be either overvalued or undervalued. To minimize the chance that the race of a borrower or homeowner is one of those reasons, Fannie Mae and our industry partners are taking concrete actions such as increasing the use of alternative-scope valuation approaches.


New ways of working support fair and impartial appraisals
The traditional appraisal process relies heavily on human observations that can be subject to conscious or unconscious bias. Alternative-scope appraisals involve significant reliance on objective data and a more arms-length process between the appraiser and the homeowner or buyer. Appraisers perform desktop appraisals using data from various parties, including real estate agents, homeowners, and builders, as well as appraiser files and secondary data sources such as public records, online satellite imagery, and multiple listing services. Hybrid appraisals use a neutral third party to visit the property and collect data that is transmitted to the appraiser for analysis. Both approaches have the benefit of reducing contact between borrowers and appraisers, thus lowering the likelihood of valuations being affected by personal or unconscious biases. Alternative-scope appraisals are made possible by better use of data, technology, and process design – powerful tools that are driving more factual, objective, accurate, and reproducible home valuations. For example, our appraisal modernization pilot using hybrid appraisals shows a meaningful reduction in confirmation bias versus traditional appraisals. (Confirmation bias refers to the appraisal confirming the purchase sale price or the refinance value estimate.)

Fannie Mae Today | Fannie Mae

While our role providing liquidity and stability to the residential mortgage market and promoting affordable access to mortgage credit has remained constant, we’ve strengthened our business model significantly since entering conservatorship. This makes us better able to withstand market...

www.fanniemae.com

woke jokes

 

[George Hatch]

Talk about the law of unintended consequences.

Less agreement with the "target value" means more appraisals at the lower values. Which is exactly what the activists have been complaining about - larger percentages of values not hitting the contract price or refi targets. They want the value conclusions that they want BAMN, not appraisals that contribute to the lender's underwriting toward safe/sound.

 

[The Bob]

For example, our appraisal modernization pilot using hybrid appraisals shows a meaningful reduction in confirmation bias versus traditional appraisals. (Confirmation bias refers to the appraisal confirming the purchase sale price or the refinance value estimate.)

If we are observing and reporting what informed, typically motivated, buyers and sellers are doing, wouldn't most of our appraisals come in at or very near the contract price? If a large % of appraisals came in low/high, then how can you say we are accurately reflecting what's going on in the market? Keep in mind we are coming in after the fact...the buyer/seller have already agreed on a price.

 

[djd09]

number hitting is a prohibited bias, obviously that is all the intended and unintended users abusers care about