Desktop appraisals officially rolling out

[Overimprovement]

From Fannie: "Desktop appraisals will be an option for some loans beginning in March 2022, as described in today’s Desktop Underwriter® (DU®) release notes. The fact sheet for lenders and appraisers provides high-level information about our requirements and answers to frequently asked questions."

Here is a link to the fact sheet: https://singlefamily.fanniemae.com/media/30361/display

Loan requirement link: https://singlefamily.fanniemae.com/media/30336/display

The loan must be a purchase, 90% LTV or lower (how is that determined before appraisal?! And loan must receive an approve/eligible recommendation
The kicker seems to be an interior floorplan WITH walls must be provided by appraiser.

Obviously, that is not available now without an appraiser inspection, and in my area, and most I am aware of, there are no interior floorplans available on either county or MLS records. So Fannie of course knows this, which begs the question: what is the use of a desktop appraisal IF someone still will have to go to home and do a detailed sketch, even more than most appraisers do even now?

Who will be doing these? What will the fees be? How accepted will this product be?

Discussion? Is this already addressed in another thread? Is this going to be THE major game changer some of us have been expecting?

 

[ucbruin]

Listing agents will probably hire a company to provide a floor plan....
More work for individuals who perform that type of service....

 

[Overimprovement]

Listing agents will probably hire a company to provide a floor plan....
More work for individuals who perform that type of service....

But at time of contract, LA will not know what direction the appraisal will go. They won't want to do it by default on every listing, that would cost too much. They would have to wait until the appraisal is ordered to know if this is needed. Then it is ANOTHER thing, with two 3rd parties involved now, that would have to be coordinated and scheduled and then communicated to appraiser. How is there any time or even money savings here?

I am very sure the new ANSI requirement is directly related to this announcement.

And I promise the person providing the floorplan will not be under any liability at all. Again, all that falls to the appraiser, who now bears greater risk (because they have to rely on more 3rd party info) and receives less fee. If this becomes accepted, and the fee is only $75-$100 less than typical, I think many appraisers may be OK with it, but as a tax-paying citizen, I do not want ANY taxpayer money supporting Fannie in any way, if they are OK relying valuations where possibly no one even visits a property. Man, the fraud potential here is off the charts. Especially with so many sale going FSBO these days.

I am reading too much into all this?

 

[ucbruin]

I can't imagine hiring someone to create a floor plan is that expensive....
But if it is, the agent can just get a copy of the assessor sketch and sketch in the interior walls themselves....

 

[Mejappz]

But at time of contract, LA will not know what direction the appraisal will go. They won't want to do it by default on every listing, that would cost too much. They would have to wait until the appraisal is ordered to know if this is needed. Then it is ANOTHER thing, with two 3rd parties involved now, that would have to be coordinated and scheduled and then communicated to appraiser. How is there any time or even money savings here?

I am very sure the new ANSI requirement is directly related to this announcement.

And I promise the person providing the floorplan will not be under any liability at all. Again, all that falls to the appraiser, who now bears greater risk (because they have to rely on more 3rd party info) and receives less fee. If this becomes accepted, and the fee is only $75-$100 less than typical, I think many appraisers may be OK with it, but as a tax-paying citizen, I do not want ANY taxpayer money supporting Fannie in any way, if they are OK relying valuations where possibly no one even visits a property. Man, the fraud potential here is off the charts. Especially with so many sale going FSBO these days.

I am reading too much into all this?

Can you say Cubi Casa. John Brennan’s little toy is going to earn him millions while appraisers take on all the liability.

 

[Bluewater65]

But at time of contract, LA will not know what direction the appraisal will go. They won't want to do it by default on every listing, that would cost too much. They would have to wait until the appraisal is ordered to know if this is needed. Then it is ANOTHER thing, with two 3rd parties involved now, that would have to be coordinated and scheduled and then communicated to appraiser. How is there any time or even money savings here?

I am very sure the new ANSI requirement is directly related to this announcement.

And I promise the person providing the floorplan will not be under any liability at all. Again, all that falls to the appraiser, who now bears greater risk (because they have to rely on more 3rd party info) and receives less fee. If this becomes accepted, and the fee is only $75-$100 less than typical, I think many appraisers may be OK with it, but as a tax-paying citizen, I do not want ANY taxpayer money supporting Fannie in any way, if they are OK relying valuations where possibly no one even visits a property. Man, the fraud potential here is off the charts. Especially with so many sale going FSBO these days.

I am reading too much into all this?

​

From Fannie: "Desktop appraisals will be an option for some loans beginning in March 2022, as described in today’s Desktop Underwriter® (DU®) release notes. The fact sheet for lenders and appraisers provides high-level information about our requirements and answers to frequently asked questions."

Here is a link to the fact sheet: https://singlefamily.fanniemae.com/media/30361/display

Loan requirement link: https://singlefamily.fanniemae.com/media/30336/display

The loan must be a purchase, 90% LTV or lower (how is that determined before appraisal?! And loan must receive an approve/eligible recommendation
The kicker seems to be an interior floorplan WITH walls must be provided by appraiser.

Obviously, that is not available now without an appraiser inspection, and in my area, and most I am aware of, there are no interior floorplans available on either county or MLS records. So Fannie of course knows this, which begs the question: what is the use of a desktop appraisal IF someone still will have to go to home and do a detailed sketch, even more than most appraisers do even now?

Who will be doing these? What will the fees be? How accepted will this product be?

Discussion? Is this already addressed in another thread? Is this going to be THE major game changer some of us have been expecting?

All I can say is that just like a drive by 2055, this is less reliable and does not serve the borrower justice. No doubt the backlog is an issue but how much money do the banks feel they need to make. Even with the backlog realtors are at all time highs in sales and commissions. Bank are making money hand over fist. I can assure you an opinion of value without putting your eyes on the inside is going to be conservative. How does that effect the borrower? Well the lender winds up having lower LTV's. For example desktop comes back at 90% LTV but a full report may show they have an 80-85% or lower LTV. The borrowers are being mislead here. What does that do? Well it could be that PMI is now in play when otherwise with a full report it may not. If I'm a borrower I'm demanding a full appraisal. To the less knowledgable purchasers and borrowers taking they will have no clue how this could affect there actual cost in the long run for their loan. Lenders offer lower interest rates for lower LTV's. This is a scam just like covid and the companies making billions off of it. Proverbs 13:11 Wealth gained hastily will dwindle, but whoever gathers little by little will increase it.

 

[sputnam]

Fannie is going to accept more Desktop appraisals... however, appraisers do not have to accept that sort of assignment. And no one can tell an appraiser how much his/her fee must be.

 

[Terrel L. Shields]

I can't imagine hiring someone to create a floor plan is that expensive..

In rural areas, 90% of your time might be just driving there? The assignment I am working on is 75 miles from home. The closest and only Realtor is about 10 miles away. And when I got there the homeowner's wife had been diagnosed with Covid only the night before....do you want to measure for $30? Another recent assignment took over 2 hours to inspect, half of that was measuring. It had been remodeled twice.

 

[KONA]

And they want a floor plan included with the sketch, Ha !

 

[ucbruin]

In rural areas, 90% of your time might be just driving there? The assignment I am working on is 75 miles from home. The closest and only Realtor is about 10 miles away. And when I got there the homeowner's wife had been diagnosed with Covid only the night before....do you want to measure for $30? Another recent assignment took over 2 hours to inspect, half of that was measuring. It had been remodeled twice.

Hypothetically, the scenarios described would be ideal for a desktop....
But in Reality these type of properties won't qualify....

And to answer your question, no I would not accept $30 to drive to and sketch the property....