Desktop Appraisals Becoming the New Normal

[George Hatch]

just remember, you sign it, you bought it, tell the craigslist inspectors to send their E&O in case of lawsuits

Factually incorrect. As in, untrue. The appraiser will be responsible only for what they do; not for what they didn't do. It doesn't even take a new EA.

 

[alebrewer]

Many, yes, though I wouldn't argue vehemently that the proportion would be much different than "independent" appraisers keeping their clients happy to keep the assignments coming.

Based on this, would it be fair to say that a modest revision to your original post would be more accurate? "appraisers are not independent. That is simply a fact."

But, when PAREA trained employees with licenses flood the market, it will be the rule, clearly not the exception.

Speculation. My personal opinion is that they may be BETTER prepared for field work than many appraisers who got their training the traditional way, as they will be trained by folks who specialize in training - not someone's father who just happens to hold a credential. Even on my part, though, that is speculation at this point.

 

[djd09]

Factually incorrect. As in, untrue. The appraiser will be responsible only for what they do; not for what they didn't do. It doesn't even take a new EA.View attachment 59264

yawn yawn yawn, tell it to the judge or the kangaroo court state boads. yes i thought it was true, but it wasn't, which makes it a misleading report intentionally or not

 

[George Hatch]

Neither the Judges nor the state boards have the discretion to reimagine these disclosures. Rule of law. Moreover, these lenders are fully informed about these limitations and THEY are the ones who are ordering this type of appraisal.

Every appraisal assignment you have ever performed has been based in part on certain assumptions. Some assignments just have more than others.

sux for you.

 

[Bill75]

The supply of inspectors is much more flexible than the supply of appraisers. Plus, not physically inspecting any of the comps is a big time saver, too.

I expect that some of these assignments will have a 24hr turn time. Which will often be doable if the inspection report is attached to the order.

Wouldn't that be considered a Hybrid, FHFA isn't taking Hybrids right now...

 

[djd09]

Neither the Judges nor the state boards have the discretion to reimagine these disclosures. Rule of law. Moreover, these lenders are fully informed about these limitations and THEY are the ones who are ordering this type of appraisal.

Every appraisal assignment you have ever performed has been based in part on certain assumptions. Some assignments just have more than others.

sux for you.

yes, the client could ask me to throw a dart at a board filled with numbers too

 

[bluechip]

Just say NO. I have been speaking to a lot of my associates. No one wants this headache. This is the type of product where your license goes BUH BYE....

 

[George Hatch]

yes, the client could ask me to throw a dart at a board filled with numbers too ​

Regardless of what any one client might ask, there's still a 2-part test for SOW decisions, both of which must be met:

What the users for this type of assignment expect
What your peers would do when performing such an assignment

In no case can a client's expectations justify an appraiser doing less than the hardwired minimums in USPAP. Your problem is that you apparently don't think that the actual minimums are sufficient. You seem to think those minimums include more than they actually include.

 

[djd09]

the judge does not care about USPAP. due diligence is the law.

 

[CGinMN]

You're exactly right - cost isn't the issue (at least primarily) - it's a pass through fee after all. Time is the key factor

Improving AVMs is only half the strategy. The idea is to shorten all sides of the triangle as much as possible so that appraisal quality (credibility) is degraded to compete with the AVM. If you add enough weights to the back of the human analyst, the machine will eventually start winnings races. Then all you have to do is say “AI beats human analysis in cost, timing, quality, and bias” and the whole secondary market is held up by a couple black boxes, the keys to which are in the hands of Wall Street.