Desktop appraisals officially rolling out

[J Grant]

The last time I did an appraisal was about 3 months ago. I don't know anyone who has completed a 1004 Desktop, although I'm sure some folks have done them in a test environment. Have you actually looked at the form? Aside from the header/footer, SOW and certs, I can't tell that much difference. Can you?

I did several 1004 as a desktop (though it might have also had an ext drive by front photo can't remember it was over a year ago ) during first phase of covid when some owners did not want to let anyone inside it was a PITA, gathering the information - I hated doing them and declined the orders after those three, thankfully most of my clients ordered full inspections - if they become a major order I'd have to think if I want to do them or not. Did not save much time at least for me. Took longer to track down photos and info then just going out and inspecting the darn thing.

 

[alebrewer]

That is a cogent response, J. My personal inclination is that they're going to be a nothingburger initially. Nobody's going to have the sketch with interior walls, no lenders have the infrastructure in place to order/procure those, and the appraiser is still going to be responsible for gathering meaningful interior condition documentation - whether from recent MLS, homeowner photos, etc. My guess is that lenders won't be able to provide the appraisers the required documentation and, as such, appraiser's aren't going to accept/complete the orders - in which case, they'll be done as traditional 1004's.

That said, I do think the infrastructure will be in place eventually, and that appraisers who embrace the product early on will find themselves in a much better position down the road than those appraisers who refuse to do them.

Granted - both our opinions are nothing but speculation at this point.

 

[ramrcdk]

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....

My Fees will be a TAD higher due to the very extra time it will take to "appraise" behind my desk. Floorplan included.
THEN all of the NEW comments I must make: best attempts to CYA.
TIME costs MORE...not less.

 

[shrubberyvaluation]

"Well commenting on a forum we are assuming the information is true."

This comment/opinion appears to be, to be kind, a very weak excuse to be inconsistent....

"We are not signing a report saying we verified it all."

I admit that when it come to reviews I'm probably the least experienced of all AF members....
And I don't know if the 2000 form (or whatever form(s) is employed for reviews) has changed in recent years....
But I did just look at the 2000 form circa 2005 and the form's boiler plate statements do include the term "verify" in several places....

Again, I'm at a major disadvantage as I've probably performed less than 100 reviews in over 30+ years of appraising....
So I bow to your expertise but as all inexperienced appraisers should do....
I question it....

Not an excuse to be inconsistent. I assume the information is correct and base it on that. I'm not going to track down 3rd party sources to verify the information on the forum. I do for my reports that I sign my name to.

Posting on a forum is not the same as filling out a review form. If I cannot comment based on the assumption that the information is correct on the forum I could never comment unless I verified all information which I'm not going to do.

 

[ucbruin]

Not an excuse to be inconsistent. I assume the information is correct and base it on that. I'm not going to track down 3rd party sources to verify the information on the forum. I do for my reports that I sign my name to.

Posting on a forum is not the same as filling out a review form. If I cannot comment based on the assumption that the information is correct on the forum I could never comment unless I verified all information which I'm not going to do.

Seems that we maybe talking pass one another and not on the same topic....
I believe your comments/posts may have been referring to the notion that on the AF the OP should be given the benefit of the doubt....
If this is the case, then I agree with you....

My comment/posts were referring to AF member appraisers who perform reviews and have no issues giving the OA the benefit of the doubt regarding the data/information found on the original report....
Yet some of these same AF members have major issue giving the same benefit of the doubt for a Desktop appraisal product....

For a Review and for a Desktop....
The appraiser has not physically inspected the subject in its entirety....

And if I've again spoken past you....
My apologizes....

 

[J Grant]

Seems that we maybe talking pass one another and not on the same topic....
I believe your comments/posts may have been referring to the notion that on the AF the OP should be given the benefit of the doubt....
If this is the case, then I agree with you....

My comment/posts were referring to AF member appraisers who perform reviews and have no issues giving the OA the benefit of the doubt regarding the data/information found on the original report....
Yet some of these same AF members have major issue giving the same benefit of the doubt for a Desktop appraisal product....

For a Review and for a Desktop....
The appraiser has not physically inspected the subject in its entirety....

And if I've again spoken past you....
My apologizes....

Okay Mr Stubborn, I will try to explain it again - my viewpoint just as your perception is your viewpoint.

For a Review and for a Desktop....
The appraiser has not physically inspected the subject in its entirety....

Review - The review appraiser exterior inspects subject for field review. Desktop, no exterior inspection done
Review - The subject was fully inspected interior and ext by the origination appraiser, with their measurements, photos, sources, and comments in a report. That forms a highly reliable and comprehensive document of property characteristics, in addition to other sources..

Desktop - It was not inspected by an appraiser , the data has to come from various sources, some can be reliable, others not.

I do verify or check sources and info on the appraisal in a review as well, but the starting point of information is far more comprehensive and direct.

 

[ucbruin]

Okay Mr Stubborn, I will try to explain it again - my viewpoint just as your perception is your viewpoint.

For a Review and for a Desktop....
The appraiser has not physically inspected the subject in its entirety....

Review - The review appraiser exterior inspects subject for field review. Desktop, no exterior inspection done
Review - The subject was fully inspected interior and ext by the origination appraiser, with their measurements, photos, sources, and comments in a report. That forms a highly reliable and comprehensive document of property characteristics, in addition to other sources..

Desktop - It was not inspected by an appraiser , the data has to come from various sources, some can be reliable, others not.

I do verify or check sources and info on the appraisal in a review as well, but the starting point of information is far more comprehensive and direct.

In order for me to complete the Desktop I had the homeowner (I'm selecting a refi and/or FSBO for my examples because these assignments did not include anyone in the real estate mortgage industry)....

I would give the homeowner a list of items that I needed them to supply (and if necessary I would email them examples of what I wanted)....
1) Photos of the 4 corners of the house and street scene photos from both directions....
2) Interior and exterior photos; I instructed them to include flooring, cabinets, counter tops, appliances, inside of the shower, electrical panel, mechanical systems, attic access, air conditioning compressor, heating vents, decks, porches, etc. I required them to provide me with any and all photos that I would have taken and typically most of their photos came out better quality than my low end camera....
3) I even had them supply photos of the stairways so I was sure of the railings; I even wrote a couple of reports "subject to" repairs....
4) List of updates/remodel/etc.
5) Water source, heating fuel, etc....

If they didn't supply me with sufficient photos or information I asked for more and if I had to wait for the information so be it....
In some instances I even emailed them a copy of the 1004 form so they had a better understanding of what I wanted/needed....

From the photos of the 4 corners of the house I could determine if the assessor sketch was credible....

For me the information I received from the homeowner and the information I found on assessor online and if available MLS listing sheet....
I felt comfortable completing the Desktop....

 

[Tim Hicks (Texas)]

I will just say no.

 

[NC Appraising]

You guys are missing part of the puzzle--This eliminates racial and gender accusations as the appraise never meet the borrowers or homeowners and it takes liability off both the appraiser and lender.

I thought that, but I have changed my mind.

1. The loan must be a purchase, 90% LTV or lower.

My personal experiance:
- 30% of the homes I go into are vacant.
-40% of the homes are cleaned, photos removed and de-cluttered.
-30% of the homes are as they are lived in.

So, 70% of the time, I have no idea the race or the color of someone's skin.

This is what I think: At a previous summit, the GSE said that mortgage brokers and agents clapped when they said that they would be allowing more desktop appraisals. So in my opinion, it is all about making the lenders happy. If not, they would be allowing this fore REFI's too. With refi's, appraisers know the color of the applicant's skin color most of the time, as the borrower is at home during the appraisal. The GSE's were worried about their market share in 2005-2007; this caved to the lenders....and crashed the market. Could it be happening again? The GSE's are bowing to the lenders to avoid loosing market share....5 day closing for the lenders?

Chew on this....more racists news...https://www.nationalmortgagenews.com/news/appraisals-undervalue-refis-for-black-borrowers-fannie-mae

But then you have this:

Study: 20% of Black mortgage applicants in Ga. rejected

Black applicants were denied due to credit, including a combination of poor or lack of credit, Zillow’s report states.

www.axios.com

Black applicants were denied due to credit, including a combination of poor or lack of credit, Zillow’s report states.

As for the above, how about personal responsibility? Is all of this about racism or personal responsibility? I never see Asians, Indians (from India), etc. on these lists. Are white appraisers giving Asians or Indians a free pass? No, this is all woke bullshet.

Google some Black comedy.....it is a running joke in the black community about bad credit....FWIW.

 

[Jayjay25]

In order for me to complete the Desktop I had the homeowner (I'm selecting a refi and/or FSBO for my examples because these assignments did not include anyone in the real estate mortgage industry)....

I would give the homeowner a list of items that I needed them to supply (and if necessary I would email them examples of what I wanted)....
1) Photos of the 4 corners of the house and street scene photos from both directions....
2) Interior and exterior photos; I instructed them to include flooring, cabinets, counter tops, appliances, inside of the shower, electrical panel, mechanical systems, attic access, air conditioning compressor, heating vents, decks, porches, etc. I required them to provide me with any and all photos that I would have taken and typically most of their photos came out better quality than my low end camera....
3) I even had them supply photos of the stairways so I was sure of the railings; I even wrote a couple of reports "subject to" repairs....
4) List of updates/remodel/etc.
5) Water source, heating fuel, etc....

If they didn't supply me with sufficient photos or information I asked for more and if I had to wait for the information so be it....
In some instances I even emailed them a copy of the 1004 form so they had a better understanding of what I wanted/needed....

From the photos of the 4 corners of the house I could determine if the assessor sketch was credible....

For me the information I received from the homeowner and the information I found on assessor online and if available MLS listing sheet....
I felt comfortable completing the Desktop....

now that sounds like a pain in the *** and a giant waste of time. I agree with jgrant on this one. Information supplied by educated/trained appraisers is much more reliable than having to train a homeowner what to do every time you complete an appraisal. It would be much simpler to let licensed appraisal trainees do the inspections and sign on the right like the 1004 is set up for. If fees, turn times and apraiser shortages we’re the real issue this would be the solution.